A Service Marketing Plan for Star City Philippines
Presented to Mr. Jose Luis Liongson Marketing Department De La Salle University – Manila in partial fulfillment Of the final course requirements In Service Management
Submitted by: Aw, Brandon Jon Francia, Mikhail Goldwyn Martinez, Jesus Mao Soriente, Miguel Alberto MARKSEV K32
April 7, 2014
OUTLINE: I. Executive Summary II. Scope & Limitations III. Industry Analysis IV. Current Company/ Brand V. Competitive Analysis VI. TOWS analysis VII.TOWS matrix (Max, min, avoid, watch out) VIII. Porter's Analysis IX. Fishbone Diagram X. Goals and Objectives XI. Target Segment Description XII. Target person profile XIII. 8 P's XIV. Flower of Service XV. Investment Plan XVI. Estimates of profitability A. Appendices
I.
Executive Summary Second to the market leader in an industry which is slowly turning into
irrelevancy, Star City Amusement Park is often plagued with problems coming from both internal and external forces which spell doom for the company unless active measures are taken. These are highlighted by doubts about the park’s safety as well as an apathetic Public Relations team who seem to have other concerns not related to the wellbeing of the company. Recognizing this by way of surveys sent out to potential customers as well as actual inspection, the group devised methods by which Star City can once again be relevant in the industry. A return to former glory is worked towards and this includes a retrofitting of the park itself, highlighted safety measures, and an entirely new Public Relations team hereby known as the “Star Friends”. With these changes the group hopes to once again capture the interest and wonder of the broad C customers as well as possibly entertaining more diverse individuals in the future.
II.
Scope & Limitations The analysis and subsequent marketing plan was conducted in order to
determine the overall (financial and reputational) health of the amusement park, Star City, with respect to the current industry and competitive market. Most of the research is directed towards the expected consumer base (families under socioeconomic class C2 to C1) and this data was gathered by a bevy of research collection methods such as personal interviews, online surveys, customer testimonials from various online review websites. The study is further directed to cover brand awareness, usage, reputation,
competition, and others as a basis for recommending future potential actions that may improve the brand in all its aspects.
This study however also comes with its own limitations as the set-up plan is only covered to primarily benefit and increase customers from the aforementioned socioeconomic class C1 to C2 and specifically to those located within the Greater Metro Manila area. A minimum of thirty respondents were approached by way of a survey to form the base of the public opinion and a UAI (User-Attitude-Image) method - minimum of 30 respondents - while further supplementing the results with OLS regression.
III.
Industry Analysis Officially part of the Personal and Recreation Industry, the smaller amusement
park industry have long been a regular option for locals and foreigners Star City is part of the theme park industry in the Philippines. Its main competitor is Enchanted Kingdom. It also used to compete with Boom na Boom before its closure. To a lesser extent, it also competes with Manila Zoo.
Star City’s target market is families from socioeconomic class C and D. Families from class A and B very rarely go to Star City. Most of these families have gone abroad and visited other theme parks. They have a higher standard for theme parks and will not patronize Star City. There are two main groups that go to Star City, families with young children (aged 7-15) and young barkadas (aged 16-21.) Customers come from all over Metro Manila and even from provinces to the north and south of Metro Manila.
This industry is seasonal. The most profitable season for theme parks is Christmas season, beginning December all the way to New Year. This is because C and D class are receiving their 13th month bonus and have extra spending power. They are looking for ways to celebrate Christmas with their young children. Last Christmas Day of 2013, Star City management estimated at least 30,000 customers for that single day. Theme parks are also profitable during schools’ summer break period from April to June.
IV.
Current Company/Brand Situation Made into fruition by media mogul Fred J. Elizalde back in 1991, Star City
(officially under the company Star Parks Corporation) was made it into an independent park after it separated from Toys and Gift Fair in Pasay. Since then it had been providing fun and enjoyment to the people from kids to adult through their rides, arcade games, mini games, food and etc with great accessibility. They expanded their park through having snow world and laser tag. Star City is very well known in the market of Filipinos and normally associated with the broad C market. Normally, SEC A, B and upper C, go to Enchanted Kingdom since they have the budget to go there and transportation is more readily available to most of them. There are no other branches of Star City. They are very accessible since they can be accessed through riding public transportation which immensely benefits the masses
With Fred Elizalde helming this company as well as the adjacent Manila Broadcasting Company and Aliw Theater, he regularly relies on subordinates to deal with the inflow of work-related projects. The hierarchy proceeds as follows:
Star City has an entrance fee of 65php with no rides included. They have a 3 ride ticket which amounts to 360 and a ride-all you can that amounts to 420. They have additional exclusive rides and facilities offered like laser tag for 100php, snow world for 130php, scream adventure for 120php and zip adventure for 100php. As one may observe, Star City’s business model is wholly based around providing the greatest amount of freedom/options for the consumer to maximize his costs while trying to keep it as low as possible. It is based around the structure of profiting from bulk sales by customers who recognize the affordability of the product.
Establishing and sustaining an amusement park in Manila is not as easy as it is. There’s a high financial barrier that has to be overcome by the owner in order to start up
the amusement park business. Sustaining is another problem, since amusement park is not a daily need of any market. There are some amusement park like Boom na Boom that didn’t manage to survive the market. However, Star City, which had built a name in the industry of amusement parks, remained in the industry for already 23 years even in the midst of the seasonality of the amusement park sales.
V.
Competitive Analysis
Enchanted Kingdom
Product
Pricing
Offerings
Strategy
Child-centric Rides
Promotional and Pricing
Attractions;
Location
Promotions
Santa Rosa, Laguna (developing
(P500+)
provincial location)
Promotional
Manila
Traditional Amusement Park The Bay
Family-centric Attractions Tourist Spot
Bay
-
and Pricing
Seaside Boulevard,
(P500-)
Pasay City (highly developed
flatland
near key business sectors) Manila
Aquatic
Zoo, Promotional
Luneta,
Metro
Ocean Park Child-centric Attractions, Social Hub
Pricing and (P500++)
Manila
(bay
area
near key business sectors)
The original main competitor of Star City as far as amusement parks are concerned would obviously have to be Enchanted Kingdom and their status as the market leader in the industry. With an approximate 80% preference rating among the public for the park in a survey held a few years ago (symbianize.com, 2010), Enchanted Kingdom has long held the title as the best amusement park in the whole country.
Located in the Santa Rosa area approximately 29 kilometers from the Metro, customers usually have to take an hour-long trip to get to the park as compared to a relatively shorter time for Star City. These customers have all been observed to lie somewhere around social class C2 (skilled manual workers and their families) and this is something that is inherently shared with Star City as similar groups have been observed in the area. Rides and attractions here are quite similar to the ones in Star City but it seems that these are more geared towards attracting individuals of a lower age bracket as compared to a relatively more mature theme for Star City (smartparenting.com, 2012). Also coming with this is the fact that it is more expensive to go to Enchanted Kingdom not only because of travelling costs but the costs of admission are also more expensive than the promos offered by Star City. As of writing,
the weekday and weekend rates for children (36”-47”) are P250 and P350 respectively while adult rates are P500 and P600. Children below 36” enter free and unlike Star City, there is no rate for entrance (no rides)
Apart from Enchanted Kingdom, recent developments by the SM Development Corporation has also led to the rise of another amusement park located near the Mall of Asia. Known as the The Bay amusement park, it is a small park recently established as part of an expansion project by the SMDC and runs the length of about 1.5 kilometers along the bay. Rides here follow the traditional theme of small amusement parks with offering such as bumper cars and Tilt-A-Whirls while their flagship ride is the MOA Eye (considered to be the tallest Ferris Wheel in the Philippines). Prices are relatively cheap as they charge 50 pesos for regular rides, 100-120 pesos for larger rides, and 150 pesos for the MOA Eye (depending on seasonality). This is especially dangerous for Star City due to its proximity to a large consumer base by way of the nearby Mall of Asia as well as the easy accessibility it offers to potential park goers.
There are also alternative sources of family-centric entertainment in Manila which comprises the indirect competition and this is primarily represented by Manila Ocean Park. With a similar entertainment value present here plus the fact that prices here are based on industry standard, establishments such as this have high potential in stealing possible park attendees.
VI.
TOWS Analysis Despite its lagging status as one of the country’s premier amusement parks
located in the Metro, Star City still can rely on a few key strengths based on its offerings for the past few years. Like with any amusement park this would rely on a fairly extensive variation of attractions to be offered to the public. Ranging from rides to stages and everything and between, this is the basis of their family-centric experience which they work to promote. Another strength that then comes from this which is the large target market they have which naturally stems from having a product which appeals to the whole family. Apart from having rides which provide entertainment for all, the offerings also have to specify to specific target markets to provide a varying range of products as well as maximize the enjoyment of each individual. Another strength they have would be the relative flexibility of their park packages which more or less give you freedom of which rides you want to go to and which ones you don’t. This was targeted for the consumers which want to maximize their cost as well as somewhat bring it down while still allowing them to enjoy the amenities of the park. So far, this has been successful in bringing in patrons. And finally, its last strength lies in their proximity to major residential and commercial areas which mean that the accessibility of the park serves as a major draw for these people because of these ease in commuting here as well as the convenience of going to a park so close to work the public works and lives.
Their internal weaknesses are also similarly numerous as the administration seems to make suspect choices which might have little basis. The first is their late opening time (earliest is at 2 PM) which primarily alienates the morning crowd looking
for entertainment options. They don’t really have to start at 7 AM in the morning but 2 in the afternoon seems to throw away a prime time period of profit in the lunch hours between 12-1. Another weakness is, like most amusement parks, their reputation for safety isn’t very stable at the moment. Not only are there stories of accidents coming up every once in a while, the administration also seems to not do anything to counter these allegations. Their customer relations page have, in this aspect, become so lazy or nonexistent that their last online posts have come from at least 3 years ago. There is absolutely no online presence kept. And finally, their attractions (and more specifically the rides) have a general feel of being unkept and largely outdated. Efforts to update their offerings are very minimal and this is starting to show the age of the park.
The industry in general has a large number of opportunities which they can tap onto due to their lack of any major movement in the past few years. First would have to concern the large amount of development occurring in their surrounding area. With malls, concert grounds, and casinos popping up in areas quite close to the park, they can tap into this influx of consumer traffic by highlighting itself as the only amusement park in the area which markets itself to the whole family. This is largely in part to the rising disposable income of the Filipinos which therefore increase expenditures for wants and luxuries. If they manage to convince the public that this is a competitive choice compared to all the offerings around them, it can prove to be financially successful for the company. This is primarily possible by banking on several brand expansion opportunities available to them such as in the online sector (which they failed to tap despite the youth being a huge part of their market) as well as other possible
aspects such as merchandising. Finally, they can also concentrate on the acceptance of corporate partnerships of tourism destinations with ticket agencies in the past. With this not only will they bring in the local market but there is also the opportunity to tap in the local ASEAN market as well.
The external threats also connect with the company’s strengths because it has something to do with its proximity to local entertainment options such as casinos and malls. Although it brings in a huge number of individuals to the area, there is also the danger that the existing customers of the park would rather explore these newer places rather than stay in the park. This increase in competition would actually then serve to bring down the overall number of park patrons and if not taken care of, would cause the downfall of Star City.
For our maxi-maxi strategies which highlight the maximization of our opportunities with respect to our strengths, the first suggestion would be to use targeted advertising to highlight its family-oriented offerings to the nearby public. We feel that this is its main differentiation from its main points of competition and should be highlighted by the company. The next is to promote their packages through its campaign to highlight the cost benefits that they’ll be able to experience by going to the park. Apart from their ad campaign, they should also work on key sponsorship partnerships with travel agencies (and tourist sites) to highlight its status as a travel destination as well as concentrating on improving its park offerings to back up their claims as a legitimate travel destination.
The maxi-mini strategies then highlight on minimizing its weaknesses based on its opportunities and we feel that the main thing to work on would be forcing the park to start earlier to accommodate the influx of the morning crowd during weekends as well as the lunch-break crowd which occurs all week round. This is a main source of profitability which is regularly unconsidered and we feel that it should be a main profit point for the company if they want to stay competitive. Another main point to employ would be to highlight the safety of their park by updating the public of the security measures and protocol which the company regularly does in order to put down any doubts and stories of accidents which may come into the public eye. The last strategy for both weaknesses and opportunities is to increase of the effort of their customer relations department in order to not only remain transparent of their activities but also drum up interest for the park.
Working on threats with respect to the park’s strengths is the main point of our mini-maxi strategies and the first is to highlight the differentiating factors of Star City with other main points of competition such as other amusement parks and entertainment centers. The point here is to highlight the park’s competitiveness and show the viability of the park as an alternative means of entertainment which is easily available to the public. Of course, the end goal is to show that Star City would be the best choice overall. More specifically, the company would have to highlight its familyfriendly atmosphere as well as its cheap rates compared to these other entertainment options.
The last would consist of the mini-mini strategies and this looks to highlight the minimization of both the internal weaknesses and external threats of the company. The previous strategies have already touched on our suggestions and it looks to edit the opening hours of the park to accommodate the earlier crowd as well as highlight the safety features of the park which is a very important consideration point for its public. Also, increasing public visibility in all necessary mediums such as the internet is essential in order to earn the trust of the public.
VII.
TOWS Matrix Strengths
Weaknesses
S1 - Flexible park packages W1
-
Late
opening
(option to choose specific
(earliest time is at 2 PM)
rides to minimize cost)
W2
S2 - Large target market
concerning safety
-
Negative
times
reputation
S3 - Varied attractions and W3 - Outdated attractions W4 - Lazy customer relations
offerings S4
-
Proximity
to
major
residential and commercial areas Opportunities O1
-
Maxi-maxi
Maxi-mini
Increasing S2S4O1 - By way of targeted W1O1 – Take advantage of the
potential base
consumer advertising, highlight family- increase around
its oriented fun to the increasing consumers
immediate area O2
-
of
consumer
Increase
base
in around the area
packages
O3 - Potential brand formulate expansion
(online, which
as new
well
packages measures
highlight
S3O3 – Further increase W3O3
opportunities, etc.)
attraction
partnerships
to
if
security
ensure
the
variation
–
Highlight
product
by expansion by acquiring newer
alternative attractions
and
forms
of
of entertainment mediums by entertainment for the public W4O1O4
–
with S2S4O4 – Increase brand partnerships
agencies
popular
add)
(or
park is a safe place to go to
tourism centers and way of internet and television ticket
Highlight
financial financially-viable public that the
entertainment
Recent exploring
–
as necessary,
flexibility within the park
–
the
park-goers
alternative
O4
shifting
situated opening time to accept morning
disposable income for S1O2 – Promote existing W2O2 Filipinos
by
potential
Use and
future
increased
tourist exposure by partnering with customer visibility to motivate
destinations
travel
agencies
and the
customer
highlighting its proximity to department other tourist destinations
relations
to improve their
performance (particularly in the online sector)
Threats T1
-
Mini-maxi Presence
of S1S3T1
Mini-mini –
Highlight W1T1T2 - Adjust opening times
similar competition T2
-
differentiating
factors to cover morning hours to take
External between the two amusement advantage of those looking for
entertainment options parks and start an online alternative (casinos, museums, etc.)
entertainment
malls, campaign to show these key options differences
between W2T1 – Specifically, highlight
competition
the additional safety features
S1S3T2 – Similar to the that Star City employs and the previous
suggestion
but competition doesn’t
additionally, highlight its all W4T1
–
Increase
public
inclusive atmosphere as well visibility and transparency to as
significantly
offerings
cheaper earn the trust of the discerning public
Considering the way the park is run by its administration, the problems are numerous: lax safety standards (and publicity), practically invisible Public Relations team in social media, and a visible wear and tear of facility structures and attractions. These are the main problems based on our research and the thing about this is these are the aspects which mainly contribute to the opinion that Star City is the second best choice for amusement park in an industry which has only two main competitors. In other words, people are not assured of their choice to go here not only because of doubts about safety but also the fact that their PR team (or lack of) is doing nothing to bring people in. Obviously this is a big problem and the fact that the administration is not
recognizing this easily-solvable dilemma goes to show the quality that they put in their work.
We therefore have a few suggestions based on the TOWS analysis and for this, we found that it was best to keep it relatively simple due to their problems being easily solved. A visual check of the park on a weekday also debunked future doubts about their problems as some (such as the afternoon only opening time) don’t seem to be a hindrance to the customers but are subtle attempts at maximizing customer traffic while keeping operational costs manageable.
The general plan is mostly centered around social media due to their lack of any presence here and it starts with a new campaign which shows how someone can have real fun in Star City (hence the tagline in the publicity materials). Highlighted by our attempt at viral video teasers plus traditional poster advertisements, there is an active attempt at highlighting the safety standards that the park employs to remove any doubts in the minds of the consumer. Making safety the highlight of the posters would however imply that there is something wrong with the facility so slight mentions of standards certification and regular checkups are advised. On the more expensive side, it is also suggested that radio ads (AM if possible) be released sometime around the summer season to attract traffic and promote brand retention by putting it in the form of a jingle.
Apart from advertising we feel that it is also essential to introduce what we call as the “Star Friends”, a dedicated PR team whose main job is to connect with social media
participants by way of answering queries and releasing info online. This requires that they constantly communicate with the customers to not only make it easier for them to get relevant information but also to acclimate these individuals to visit the park in their free time. During opening hours, these individuals are also located around key areas of the park with duties somewhat similar of a concierge in order to make the customer experience as happy as possible.
Finally it is also suggested that an active renovation of the park be done once relative funding has been achieved. This is due to the fact that upon inspection, many of the metal structures were observed to be rusty, ceiling grates left open, and key rides being held up by wooden blocks. This only serves to add to any any existing uncertainty the customer may currently have and is a possible deterrent to future visits.
VIII.
Porter’s 5 Forces
Factors affecting Strength of Rivalry – Strong The competition between rivals in the market is more or less the strongest competitive force among the other four. In the figure above, it is said that rivalry is stronger when the demand of buyers is slow and sellers have a surplus in their inventory, rivals are very aggressive by introducing strategies that gains them a competitive advantage in the market, the number of competitors are increasing as well as their capability to compete violently, the differentiation of the products is strong for the indirect competitors, but weak for the direct competitor (Enchanted Kingdom).
As might be expected, there are also instances wherein rivalry amongst competitors is generally weak. The rivalry weakens when competitors are not eager to acquire a huge market share, the demand of consumers are growing, brand loyalty of the consumers are high and the products (eg. rides) of the competitors are differentiated, buyer costs to switch theme park are high, and there are few sellers in the market and each one’s decision does not affect the others’ business. Like any other business, the strength of rivalry is very strong. It is not common for companies to have an absence of rivalry between competitors because all businesses want to have a bigger market share.
Currently, The Philippines only has two directly competing theme park establishments: Star City and Enchanted Kingdom. There are also other establishments that compete with Star City, however, they are indirect competitors. These establishments include Sky Ranch and SM by the Bay Amusement Park. With the rise of establishments such as Sky Ranch and SM by the Bay Amusement Park, buyers demand to go to Star City will definitely drop if they do not make fresh moves to improve their market share.
Factors affecting Threat of Entry – Weak There are many factors that affect the willingness of new entrants to enter the market. One of the factors is if a large number of potential new entrants along with their resources to back them up. In effect, the threat increases because of the large pool of new competitors that will enter the market. The second factor determines if the
candidates will face high or low entry barriers. A high barrier reduces the threat of new competitors, while a low barrier entry increases it. Barrier to enter the industry would be the needed capital for starting up a theme park industry. It would take a lot of planning, investors, and time to build a single theme park that would match the theme parks already present. In fact, there are only a few theme parks in the Philippines including Enchanted Kingdom, Sky Ranch, SM by the Bay Amusement Park, temporary pop up theme parks during Christmas and of course, Star City. The threat of entry is weak due to the fact that after several years of its existence, only Enchanted Kingdom serve as their direct competitor. It would probably take many more years to come up with another theme park as big as both Star City and Enchanted Kingdom. Moreover, putting up a theme park would need a lot of permits and regulations, which would be difficult for people who are planning to be part of this industry. However, Sky Ranch and SM by the Bay Amusement Park as new entrants may be a threat of Star City if they grow exponentially in the future. As of now, several people are now aware of these place, and most of them either went already or planning to go in the future.
Factors affecting Competition from Substitutes – Weak In the figure above, it explains the factors that affect the competition from substitute products in the market. The competitive pressures from substitutes are stronger when the substitute products are easily accessible to the market, the substitutes are attractive to the consumers (oftentimes cheaper than the primary product), the substitutes are deemed better than the primary products, and purchasing
substitutes benefits the consumers because of the low cost of switching and they have grown accustomed to using them.
In contrast, the factors that weaken the competition from substitute products are: the substitute products are not easily accessible to the market, substitutes are more expensive than the primary products, and the consumers would have higher costs if they switch to substitutes. In terms of the theme park industry, Star City’s competition from substitute products is weak since switching costs will be higher when customers transfer to Enchanted Kingdom. Moreover, Enchanted Kingdom is not easily accessible to the market as compared to Star City because it is located in a farther location and customers will have to pay toll in order to get there.
Factors affecting Bargaining Power of Suppliers – Strong The strength of supplier bargaining power is strong when the competitors in the industry incur higher costs if they switch to alternative suppliers, resources provided by the suppliers are scarce, the supplier’s inputs are of such distinct quality and unique which can be an important material that the competitors need in their business, and if the amount of suppliers is only limited.
There are factors in which describes if the strength of supplier bargaining power is weak. Such factors are: the resources being supplied is easily accessible for the competitors and they need not to get from the supplier themselves but can acquire it
from retailers with the same price offered by the suppliers, sellers switching to alternative suppliers costs are low, substitutes for raw materials emerges, a surplus of resources available, current industry members contribute a relatively large amount to the supplier’s sales, and if the current industry members would opt to manufacture their own goods for their business.
Factors affecting Bargaining Power of Buyers – Strong The factors that strengthen the buyer bargaining power include buyers switching to competing brands and to substitutes costs are low, a large pool of buyers whom purchases in large quantities demand concessions, sellers depend on the buyers’ amount of purchases, the buyers’ demands are declining, there are only few buyers in the market so sellers have to compete for those buyers, the reputation and identity of certain buyers are important to the sellers, the buyers’ knowledge on the product improves, buyers have the choice to cancel their purchases if dissatisfied, and some buyers pose as a threat to the seller’s business.
The buyer bargaining power is weak when buyers purchase from the sellers in smaller quantities, buyers switching to competing brands and to substitutes costs are high, there is a growth in buyer demand, the seller’s reputation is important to the buyer, and the seller’s product is of higher quality or unique over other brands.
For Star City, the bargaining power of the buyers is weak because when buyers switch to competing establishments like Enchanted Kingdom, it will cost them higher.
Star City has a good reputation and has unique products as well, thus customers will prefer it because it offers a lower price.
IX.
Fishbone Diagram
X.
Goals & Objectives With respect to the specific objectives of the program, it is essential that these be
divided into sub-terms in order to accurately map out those which are immediately needed and those which happen to be necessary for the future. This will then be divided into three periods: Short Term – one year, Medium Term – two to three years, and Long Term – four to five years.
The current brand situation is the main basis for these objectives as the group has highlighted problems in the aspects of safety (and its reputation of), lax public relations personnel, and outdated attractions throughout the park. The goals and objectives of our proposal are listed below:
Goals
To create a positive and exciting image to be associated with the brand
To achieve industry leader status in the business and customer opinion
To remove any consumer-made correlations between the park and lack of safety
To consistently provide world-class service
To actively communicate and improve from consumer feedbacks
To train and develop the employees to be part of the amusing factor of the park
Objectives
Short Term Objectives (one year)
o
30% of the target market will be aware of the park, promos, and safety measures
o
15% of the target market will prefer Star City as the premier amusement park
o
8% increase in Star City ticket and merchandise sales
o
15% increase in Star City market share
o
Implement “Star Friends” PR Team
o
Release online and radio advertisements
Medium Term Objectives (two to three years) o
50% of the target market will be aware of the park, promos, and safety measures
o
25% of the target market will prefer Star City as the premier amusement park
o
15% increase in Star City ticket and merchandise sales
o
25% increase in Star City market share
o
Implement facility renovations
Long Term Objectives (four to five years) o
65% of the target market will be aware of the park, promos, and safety measures
o
40% of the target market will prefer Star City as the premier amusement park
o
30% increase in Star City ticket and merchandise sales
o
45% increase in Star City market share
XI.
o
Explore attraction expansions (if possible)
o
Explore territorial expansions (if possible)
Target Segment Description A. Demographics
Age
Teenagers: 14-19
Amusement parks main target segment are usually
years teenagers around the age of 14-19. Because they are
old.
more amused in having fun rather than just doing other things. Furthermore, adults are less likely to go to these places with a main purpose of having fun. Therefore, the target age is 14-19. But then, since these people are less likely to have their own source of income, with that, they are able to drag their parents along or ask money from them to enjoy Star City.
Gender
All genders
Star City is very vast in terms of their offering to the customers. They have arcade games, rides both extreme and light, food stalls, shooting games, mini games and etc. Because of this, any gender can be their target. And often times, it became a dating place of the youth.
Education
High
School Ages 14-19 revolves around educational level of High
to college
School to college.
Income
SEC Broad C
The main target is Broad C because
there is less
competition in this market in the industry since Star City is the most dominant in Manila and the costs of entrance and the goods and services inside fits most this bracket. However, Class A and B are more likely to go to enchanted Kingdom since they see it as better and well off than Star City. And they have the means of going to Enchanted Kingdom and the means to pay for the goods and services of EK. Occupation Students
Students and young professional are less burdened about earning money and what they have to do since they don’t have a family to feed and monthly bills to be paid.
Location
Metro Manila, Transportation in Metro Manila is easy since there are mostly Manila various transportation systems developed in Metro Manila.
B. Psychographics and Behavior From the UAI survey that we conducted, we found out that 97% of our respondents are aware of Star City. The mediums on where they learn Star City are listed below:
Great percentage of the respondents learned about Star City from their family and friends, few learned it through social media, tv, radio and newspaper. It seems that the word of mouth of the consumers was the main medium of knowledge of Star City. Out of the 31 respondents, 84% had been to Star City for last 5 years showing that the trial rate is very high from those who knew Star City.
84% of the respondents like to ride the rides in the amusement parks they went to before. However, 77% of the 31 respondents are aware of the accidents and at some point, heard that there are usually accidents in the rides of Star City. But only 29% of the 31 respondents said that they are discouraged to take the rides because the accidents they heard, while the other 71% said that they will continue to ride the rides of Star City and other amusement parks.
We surveyed the people on what they think about Star City in many aspects namely: safety as a whole, convenience in heading there, value for money, ride entertainment, games entertainment, interior design and most of all, how much are they willing to go to Star City in the scale of 1-10, 1 lowest and 10 is the highest. Since every respondent has purely random answer and they have almost unexplainable behavior to represent as a sample of the market through descriptive statistics, basic multiple regression model was used to determine the interrelationship of every variable mentioned above with respect to their level of willingness in going to Star City. The estimation outcome will shows us to which specific variable will the willingness of the respondent be responsive. The result shows that there are 2 out of 6 variables that are significant. The perception of the consumer towards the safety of Star City and their perception about the value for their money in going to Star City are the most important factor that drives the level of willingness of the respondents to go to Star City or not. While other factors such as, convenience in going to Star City, ride entertainment, game entertainment and interior design are only slightly significant, which means that they do not affect the willingness of the respondents to go to Star City or not.
XII.
Target Person – Profile
Meet the Bersabe family. The Bersabe family loves spending quality time together. The children in the family are risk takers and they are thrill seeking individuals, thus Mr and Mrs Bersabe often take them to places the children would enjoy. Despite the fact that the parents dislike going to theme parks, they are urged to go in order to make their children happy. In fact, they have been to Star City a couple of times already. They often go there due to the accessibility and affordability. In terms of safety, they believe Star City offers safe rides and perform safety precautions every time, so they really trust the institution.
This is Mike from Makati and along with him are his friends from one of the clubs he joined in school. The other guy brought his brother with him. The three friends have
been going to Star City with their own families since they were young. They continue to enjoy the park after all these years. They like the new extreme rides like the Star Frisbee and Star Flyer. They think the price of Ride all you can is worth it. They think this is especially true when they enjoy the park on weekdays because of the very short line on rides. Adding more rides every now and then is important for them to continue patronizing the park. Like most people their age, they rely on online materials in order to plan out their next trip and take advantage of all the promos that they can get (as of this time, they used their school IDs for discounts)
XIII.
8 Ps of Marketing
A. Existing 8P’s P
NI
S
✓
Price and other Cost considerations
Promotions & Education
E
✓
Product Elements
Place, Time & Cyberspace
VS
✓
✓
✓
Productivity & Quality
✓
Process
Physical Evidence
✓
People
✓
1. Product Elements - Very Satisfactory The main product of Star City is family-centered entertainment. They provide wholesome fun to the whole family. Rides range from small kiddie rides to pulse-raising rides like Star Flyer (Inverted roller coaster) and Star Frisbee. There are also carnival type games and arcades. For some parents who don’t ride, they have many options when it comes to food. There are small food stalls like Tender Juicy and Potato Corner to fast foods like Chowking, Greenwich and other small food establishments like Ihawihaw restaurants. There is an area leased out to vendors of all kinds of items. There are clothes, toys, accessories, henna tattoo, etc.
2. Price and other cost considerations - Excellent As we tested on a Wednesday night, the entrance fee with no rides costs Php65. Ride all you can (RAYC) is Php420, and 3 rides of your choice is Php360. 4 rides are
not included in RAYC and have separate payments: Lazer Blaster (Php100), Snow World (Php130), Scream Avenue (Php120) and Zip Adventure (Php100). There is an “End of School Promo” running from March 24 - April 26, 2014 that discounts RAYC tickets for only Php320 for students with valid ID. Food is more expensive than in malls. We ordered a bacon-wrapped hotdog on bun from Tender Juicy for Php70. Fast food prices in Chowking, etc. are standard. Parking was free because we parked along the road near Aliw Theater.
3. Place, Time and Cyberspace - Satisfactory Star City is located within the Cultural Center of the Philippines complex in Pasay City. It is easily accessible by public transport via the LRT, then transferring onto jeeps that pass through CCP. Traffic varies greatly in the area. When we went there around 5pm, traffic was light. But on weekend nights, when the park attracts most customers, traffic becomes extremely heavy.
Posted park times are 4pm - 12am on Monday - Thursday, but when we asked the security guard, the tentative closure time is 10:30 pm. They adjust park closing time based on the number of people still inside.
Star City has a very good website. Ticket prices, park hours, ride details and contact info are presented. Tickets can be bought online, the credit card payments processed by PayPal. They also have great presence on Facebook with their page having 101,000 likes. Promos are posted everyday by the page admins.
4. Promotions and Education - Needs Improvement Star City has many promotions depending on the season and holiday. The most recent promos are “End of School Promo” and “Easter Circus” - on Easter Sunday April 20, kids 10 and below get 50% off on RAYC tickets. These are shared on their Facebook posts. I am not aware of Star City promotions through other media.
5. Productivity and Quality - Needs improvement Star City provides a good value for money proposition. The only place that provides the same service, Enchanted Kingdom, is far away and more expensive. The Ride all you can ticket only costs Php420 and patrons can already enjoy so many rides. The problem we saw was in the kiddie section. There are small rides and arcade games there that are no longer functioning and only take up space. The environment is clean and well-maintained. There are numerous trash cans so that people are encouraged to throw trash properly. The no smoking policy is strictly enforced in the premises and there are numerous signs posted. The restrooms are clean. The problem we experienced was the smell in the enclosed areas. Ventilation was insufficient that there is an unpleasant smell of mixed foods, concrete, metal, etc. This lessens the ambiance and overall experience of Star City.
6. Process - Very Satisfactory We went to Star City at 5pm on a Wednesday. We easily parked near Aliw Theater. The queue for tickets was light and we were able to purchase them quickly.
We bought the admission only tickets worth Php65 each. Belongings are checked before entering. We went around Star City for about 2 hours.
7. Physical Evidence - Poor Star City gives tickets for each payment and a receipt. For some rides, there is an optional picture that customers can avail of. However, it seems that there had been a lot of complains regarding the facilities, equipment etc are kid of rusty and old. They should improve it that the physical evidence would not be hindrance but a factor of attraction.
8. People - Poor The Star City employees are okay but they have not been extremely lively, specially they are expected to amuse the people inside the amusement park. But it seems that they missed out a lot of their job. In addition, other customers seem to be contributing to the not so good ambiance of Star City since most of the mare just wearing slippers, basketball short and very unpleasant clothings. At some point they affect the whole park experience a lot.
B. Proposed 8 P’s 1. Product Elements The services offered by Star City are complete. There are the kiddie and extreme rides, and food stalls for parents. The quality of the rides can be improved through better fit and finish, theme, etc. They just have to ensure the safety that the product element
would
remain
excellent
and
accidents
would
be
a
small
factor.
2. Price and other cost considerations The pricing strategy of Star City is excellent. The RAYC is the most popular and patrons think the price of Php420 is just right.
3. Place, Time and Cyberspace Star City’s prime location, being easily accessible and frequented by many people, also brings about the problem of traffic. Star City needs to help lessen the traffic in the vicinity so that patrons would be able travel to Star City easier and thereby improve overall experience.
Operating times should be adjusted. The opening times should be earlier. There should also be a standard closing time, not an adjustable closing time depending on the amount of people.
Online presence could also use improvement. There should be more interaction between Star City and its patrons. There should also be more fun content that would serve as an appetizer for the fun that patrons would experience in Star City.
4. Promotions and Education There are many promotions Star City makes depending on season, holiday, event, etc. The problem is the limited media through which they communicate these promotions. They should promote these through print ads, radio ads, TVCs.
5. Productivity and Quality The overall experience of Star City still needs improvement. They should improve on the ambiance of the park. The smell of the park should be made better through proper ventilation. The fit and finish of the rides should also be improved. The atmosphere of Star City is associated with a carnival. The exposed wires and metals, small non-functioning rides and games, etc. limits the overall ambiance of the park. The park should be renovated.
6. Process The entrance of Star City could be improved. The entrance is also the exit of the park, which could get very congested during holidays.
7. Physical Evidence Star City could add their own branded apparel, accessories, and other various souvenirs. These could also serve as promotional materials for the park. They can also serve free Star City manufactured souvenirs on special occasions.
8. People The staff of Star City should undergo training in customer relations. They are a crucial part of the service. To keep in line with the image of family-centered entertainment, the staff should be very welcoming and friendly.
XIV.
Flower of Service
Existing
Proposed
Based on the Flower of Service as well as what has been passed through in the TOWS analysis, there are multiple key objectives with respect to the service plan. The first objective is to find a way to increase online social activity as compared to the company’s previous efforts because prior to this, no replies to queries made online have been done since 2012 and even more striking is the fact that their last online post was made last 2011. In todays competitive market this is unacceptable because it alienates a large amount of individuals who depend on this medium to get the info that they need. Star City making itself not available to these customers can only translate to lower ticket sales as these individuals deviate over to the park’s competitors. The second objective is to reassure potential consumers of the safety of this park because of the fact that the most recent write-ups about the park have mostly been about deaths and suicides.
Although press releases have been used to relax the public, reassurances are needed to be kept constant in order to truly relax the mindset of potential customers. To sum it all up, it is essential that the consumer experience be kept as relaxed and enjoyable as possible. Apart from the previous suggestions, additional measures need to be taken such as renovating the surroundings to make it look cleaner and more secure by way of park renovations and increasing security measures by way of additional CCTVs and roving guards.
With the mechanics of this program laid out in the rest of the paper with the online campaign, retrofitting, and revamped PR management, it is up to the group assigned “Star Friends” to act as the proponents of the project. Given that they act as the face of the company with respect to their customer-related activities, a key part of their job is also to ensure that the same quality of service is extended to the rest of the project as well. They will be given key parts in managing the various aspects of the revamp while being led by senior management individuals who are there to regulate and mold the concepts of the Public Relations crew.
XV.
Investment Plan
Particulars Star Friends
Cost Breakdown and details - One Star Friend is paid 15,000php a month - 20 Star Friends.
PR team
Star Friends will increase in number continually during the renovation on year 2 up to the renovation and acquisition of new ride on year 5. Facebook
Facebook advertising has options on how much is our budget for
Advertisement
the month and it will be consumed on how many clicks the page will have. This advertising will be placed on the side of random people’s newsfeed and some in the games.
Budget for this is 50,000php on the first year and increasing consequently throughout the years since we are expecting that preference on Star City would change. Radio
Radio advertisement production cost 50,000php and another new
Advertisement
production on the start of 4th year because we encourage the
retention of our Star City Radio ad for 3 years. Placement of ad in Love Radio, an affiliate of Star City’s mother company, costs exactly 159,840php for one year, 50% bulk discount package is already inclusive of the amount. Minor
Minor renovations start at the 2nd year of the investment plan. This
Renovations
will include the wall paint, repainting of rusted rides, new lightings, furnitures etc.
This will start on the 2nd year. Budget allocated: 10,000,000php Major
Major renovations includes selling of old rides and acquisition of
renovations
new rides based on the preference of the consumers. Furthermore, the redesigning of the interior will be also part of this investment plan and if there is a chance to territorial expansion, we will take it.
Major renovations are very costly, thus this will start on the 4th year of investment plan.
Budget allocated for new interior design:
25,000,000php - 4th year. 35,000,000 php - 5th year.
Budget for new ride acquisition is 50,000,000php, Reflected in the estimate of profitability is the depreciation of the new ride for 10 years. Utilities
Utilities are affected by the investment plan since the lightings of the park will be change in the long run and there will be new rides, therefore, electricity consumption will increase at the same tim
Training
and Training is essential if we want Star City to have amusing
Development
employees. They have to be trained well and be developed as a part of the company’s goal
XVI.
Profitability Estimates
XVII. Appendices
A.
Survey Summary Result
Do you know Star City?
Yes
30 97%
No
1 3%
Have you been to Star City?
Yes
26 84%
No
5 16%
From where did you come to know star city?
Family
21 31%
Friends
26 39%
Social Media
7 10%
TV
7 10%
Radio
3 4%
Newspaper
1 1%
Other
2 3%
Do you ride the rides at any amusement parks?
Yes
26 84%
No
5 16%
Do you think it’s dangerous to take the rides in Star City?
Yes
13 42%
No
18 58%
Have you heard of any accidents occurring inside Star City?
Yes
24 77%
No
7 23%
Did this discourage you from actually going on amusement park rides?
Yes
9 29%
No
22 71%
How would you rate Star City’s safety?
1
1 3%
2
1 3%
3
1 3%
4
3 10%
5
7 23%
6
1 3%
7
9 29%
8
5 16%
9
3 10%
10
0 0%
How would you rate the convenience in going to Star City?
1
2 6%
2
1 3%
3
2 6%
4
0 0%
5
2 6%
6
3 10%
7
4 13%
8
9 29%
9
2 6%
10
6 19%
How much can Star City give value for your money (sulit)?
1
1 3%
2
3 10%
3
1 3%
4
2 6%
5
7 23%
6
3 10%
7
7 23%
8
5 16%
9
1 3%
10
1 3%
How much fun do you think Star City's RIDES can offer to you?
1
2 6%
2
1 3%
3
1 3%
4
4 13%
5
7 23%
6
2 6%
7
4 13%
8
6 19%
9
3 10%
10
1 3%
How much fun do you think Star City's GAMES can offer to you?
1
0 0%
2
4 13%
3
4 13%
4
3 10%
5
6 19%
6
4 13%
7
8 26%
8
2 6%
9
0 0%
10
0 0%
Do you like the interior design of Star City?
Yes
10 32%
No
21 68%
What is your willingness level to go Star City?
1
3 10%
2
1 3%
3
7 23%
4
1 3%
5
4 13%
6
3 10%
7
8 26%
8
3 10%
9
1 3%
10
0 0%
B.
Multiple Regression Results
C.
Poster
