The Toronto Ultimate Club Case Study

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Recommendations:

After the analysis of these options, the best belief is that they should go for option #3 (advertising on Edge 102.1) and option #4 (advertising on the local paper).

These are best options because:

- They attract the age group they are looking for

- The total stays under the $50,000 budget

- It will help increase the total membership by 1830, which is more than the 30% needed.

It helps with the current issues because it increases the number of memberships and starts using some of those untapped markets. In the long-term they may decide to start sending ads through Facebook and work on pricing schemes and changes.

Action Plan:

- Contact Edge 102.1 and local paper the Toronto star for advertisement information

- Setup advertisement deals with the two following companies

- Implementation of advertisement

- Run the ads before the start of the summer season in either March or April

- Look at the results and make necessary changes

Appendices:

Exhibit 1: SWOT

Opportunities:

- Toronto is the biggest city in Canada

- Many different age demographics and minorities have been untapped

- Lower costing sports in Canada

- Market the sport for different demographics

Threats:

- Other competitors that provide the same sport in the Toronto area

- Cost of the field is high and getting higher

- Economic downturn

- Retirements of players

Strengths:

- Third largest ultimate club in Canada

- Awesome GM

- Constant growth of players

- A competitive league

- Known for ultimate

- Loyal supporters

- Has a sponsored team

- They are a massive ultimate club with a great reputation and may get people interested by getting people to know about the sport

Weaknesses:

- High turnover (500 members yearly)

- Current marketing strategy is weak

- Rely heavily on volunteers

- Only have one sport

- The threat of other competitors which maybe causing the high turnover of memberships

Exhibit 2: Porters Five Forces

Threat of new entry (Low)

- The market has different clubs and no mention of new clubs being formed

Supplier Power (Moderate)

- They buy Frisbees from the supplier but need fields to play the sport and the city charges as they choose

Competitive Rivalry (High)

- Different competitors that provide Ultimate to customers

Buyer Power (High)

- Need players to play the sport and they may go to some where cheaper

Threat of substitute (High):

- Play sports like soccer and football

- Also, indoor activities during the winter

Exhibit 3: Customer segmentation

Consumer

Visible Minorities

Young Professionals

Post-Secondary Students

Age

18-25 years old

25-30 years old

18-25 years old

Reason to join

Meet new people

After work activity

Physical activity

Reason this customer is looked at

Untapped market

Disposable income and after work activity

Higher disposable income and need for physical activity during the summer

Exhibit 4: Break Even

[pic 1]

* Total play hours = 15 games * 2.5 hours (Summer) + 8 games * 1 hour (Winter)

* Total cost = Play hours x Cost for field per hour

* Fixed cost = 500,000 * 0.10 (marketing budget)

* Total cost is revenue – VC (Used as total cost in every breakdown)

Exhibit 5 (Facebook)

[pic 2]

- CPC and CPM is total in Canadian dollars

- 50,000/12 (evenly among the groups)

- CPC/user and CPM user = CPC (1406.25)/# of users for age group (same with CPM)

- CPC users and CPM users yellow highlight is average of the 12 groups

- Total is the percentage x total amount of users

[pic 3]

- Market share = number of players currently (3,000)/ number of total users

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