TheMobileHotspot Team2 Final

8/2/2019 TheMobileHotspot Team2 Final

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Team 2Marketing plan

BWI-DL-1-WS2011-MUV, 2011/2012

Prepared for: DI Harald Swoboda, MB

The Mobile Hotspot

Prepared by: Branko Begic

Daniela Wolf

(Franz Lechner - quitted)

Marina Zlatunic

Shruti Jit


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The Mobile Hotspot Team 2

2

1. Executive summary ..................................................................................................................................... 3

2. Our Vision ................................................................................................................................................... 4

3. Our Mission ................................................................................................................................................ 4

4. Objectives ................................................................................................................................................... 4

5. Business goals ............................................................................................................................................. 4

6. Situation analysis ........................................................................................................................................ 5

7. Marketing strategy ..................................................................................................................................... 6

8. SWOT Analysis ............................................................................................................................................ 7

9. Porters five forces ...................................................................................................................................... 7

10. Weather analysis .................................................................................................................................... 9

11. Consumer and segmentation analysis ................................................................................................... 10

12. Competitor Analysis ............................................................................................................................. 12

13. Product Life Cycle Analysis.................................................................................................................... 13

14. Positioning Analysis, Branding .............................................................................................................. 16

15. Product levels, product model .............................................................................................................. 18

16. Financial objectives .............................................................................................................................. 19

17. Pricing strategy ..................................................................................................................................... 20

18. Estimated costs for company ................................................................................................................ 21

19. Competitors analysisPrices ............................................................................................................... 22

20. Price evaluation .................................................................................................................................... 24

21. Price analysis ........................................................................................................................................ 25

22. Promotion objectives............................................................................................................................ 27

23. AIDA ..................................................................................................................................................... 27

24. Promotion strategies and channels ....................................................................................................... 28

25. Advertising budget ............................................................................................................................... 32

26. USP- Unique Selling Proposition ........................................................................................................... 32

27. Sales arguments ................................................................................................................................... 33

28. Sources ................................................................................................................................................. 34


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1. Executive summaryThe Mobile Hotspot is an event agency, which provides one stop entertainment for two

categories of consumers:

private consumers (events can be organized in a garden, garage or rented place, e.g.birthday parties, wedding ceremonies, baby parties, stag parties, house parties )

business consumers (events can be organized for pubs, restaurants, companies, intheir courtyards or at rented places)

The goal of the The Mobile Hotspot is to provide consumers with the highest level of event

planning. We exist to attract and maintain consumers. When we adhere to this maxim,

everything else will fall into place. Our services will exceed the expectations of our consumers.

Private consumers play also an important role for our event agency. If they are satisfied, they

will tell their friends or colleagues about us (word-of-mouth) and so new clients can be gained.

It is also important for us to have a profile on social networking sites (e.g. Facebook, MySpace)

and make use of the networking marketing strategies (e.g. refer-a-friend, communities,

monitoring, and online-reputation).

If business consumers are satisfied, they will be steady and profitable. It is important for them

to recognize that the investment in event entertainment is always a good investment. TheMobile Hotspotintends to profit from this intelligent business strategy. Additionally, even in

times of economic downturn, companies still have to motivate employees or launch products

and will still need someone to organize these events.

Success is determined by good choices for lasting effects in this ever changing, fast-paced

world. Communication is essential. The Mobile Hotspot strives to be the best choice of

clients by helping to ease their event-organizing burden. Through consistent, predictable

professionalism, The Mobile Hotspot will ensure a worry and hassle-free event at a

reasonable price.

The event agency will start with two employees. With the time, we think, that the agency could

be bigger or grown into franchising.


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2. Our VisionTo be a well-respected and highly valued event agency recognized as the experts to approach

for event management solutions.

3. Our MissionThe Mobile Hotspot mission is to provide entertainment to our consumers who enjoy

together with their family, friends and colleagues a stress-free and relaxing atmosphere of a

campfire in a garden or backyard and we ensure a stress-free experience with the organization

of the event all through the entire process. We are committed to ensuring you receive tailored

event solutions that bring exceptional results. We exist to attract and maintain consumers. Our

services will exceed the expectations of our consumers.

4. ObjectivesThe objectives for the first three years of operation include:

To create a service-based company whose value is exceeding consumer's expectations. To experience an increase in new consumers who are turned into long-term consumers. To increase our number of served clients by 20% per year through superior service. To develop a sustainable and profitable start-up business. To maintain positive, steady, growth each month. A double-digit growth rate for each future year. To increase the employees from two permanent full time employees and a few part time

supporter to five full time positions.

5. Business goalsWe want to be a service provider

that brings entertainment to consumers who enjoy a stress-free and relaxing atmosphereof a campfire in a garden or backyard to be enjoyed with friends, family and colleagues

that ensures a stress-free experience with the organization of the event all through theentire process


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6. Situation analysisThe Mobile Hotspot will enter its first year of business. In order to grow a sufficient

consumer base and to become profitable, marketing will be crucial. The agency offers high

quality event planning for private and business consumers. The basic market need for an expert

service provider is offering high quality event planning at a price that is more cost effective for

companies them trying to handle the events themselves.

a. Market need analysisThe Mobile Hotspot holds information about its consumer base. This includes consumer

needs, the general circumstances from which the needs arise, and the difficulties the consumers

would try to satisfy these needs by themselves. This information will be leveraged to better

understand the consumers' specific needs, and how The Mobile Hotspot can satisfy those

needs and for better communication channels.

b. Market NeedsThe Mobile Hotspot will provide its consumers with high quality event planning services

which are specialized for both private and business consumers. The Mobile Hotspotseeks to

fulfill the following needs which are important to their consumers:

Professionalism - This is imperative and exactly what the consumers would expect from

services like The Mobile Hotspotprovide.

Competitive pricing - The pricing scheme must be competitive to offer an incentive for the

consumer to order these services. Consumer service: The consumers need to feel as if all of

their needs are being met regardless of how small or inconsequential it may seem. They will be

impressed with the level of attention that they receive.

c. Market TrendsThe market trend for event planning has seen a surge within the last many years. This industry

has gotten more competitive for various reasons:

Increased demand also increased the number of competitors. With the increase of general event planning service providers, there has also been an

emergence of specialized event planners that only offer one or two types of event

planning services.


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7. Marketing strategyThe Mobile Hotspotwill offer a superior service at a lower cost due to specialization. By

concentrating on a few specific services, The Mobile Hotspotwill become proficient at these

services and perform the services better than someone without the same level of expertise.

The Mobile Hotspotwill increase company visibility through a website, Social networking,

and Non profitable concerts. The website will be quite detailed and provide a visitor in-depth

information about the services The Mobile Hotspot offers, the corresponding high level of

quality, and the cost savings that can be achieved by using services provided by The Mobile

Hotspot.

The Mobile Hotspotwill also be quite active in the Festival seasons like Christmas, Easter in

festival markets.


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8. SWOT Analysis

9. Porters five forces

Strengths

- professionalism

- attractive web page

- highly motivated employees

- efficient management

- excellent staff who are highly trained andvery consumer attentive

- USP: Austrias first professional campfireevent organizer

Weaknesses

- missing field experience

- consumer base has to be developed

- limited start up capital

Opportunities

- new model for professionally plannedoutside evening entertainment

- realizable for private and businessconsumers

- expansion and franchise possible

- new distribution channels (like socialmedia, ...)

Threats

- many competitors with similar models

- the model of "TMHS" is easy to copy

- not possible to prevent or avoid theemulating of our business model by newrivals

- new distribution channels

- being an outdoor event organizer wedepend on weather conditions

competitive

rivalry

threat of

newentrants

bargaining

power of

costumers

threat of

substitutes

bargaining

power of

suppliers


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for this kind of event, there is not much equipment necessary

of course, we have to analyze which supplier can deliver the best andcheapest fire wood for the fire place

many suppliers available on the market, so low bargaining power ofsuppliers

Low bargaining

power of suppliers

large segment of potential consumers

there are many and different types of costumers who can use ourservices

almost everbody with a little bit money can enjoy "TMHS"

there is no concentration of consumers, they are individual buyers

this is an entertainment service , so the consumers can live, operate,

work without it or they can replace it by another leisure activity theoretically it is possible for everbody to organize "TMHS" , but ourkind of costumer actually would never do this, because he appreciates aprofessional organized event

new model of evening entertainment for almost all kind of consumers,so moderately low bargaining power of the costumers

Moderately low

bargaining power

of costumers

it is easy to enter the event company industry, there are no entrancebarriers

a good word of mouth is important to get established on the market,after becoming a brand, there won't be big threats anymore

low fixed costs

low start up and exit costs

no government restrictions or legislation, only fire protectionregulation

no scarcity of resources

easy acces to the distribution channels and the consumers

Moderately high

threat of newentrants

consumers have the possibility to choose another entertainment offer

similar to the threat of new entrants, after the establishment of thebrand and getting the loyalty of the consumers, the threat of substituteswill minimized

number of event planner service providers is increasing

strong price competition

Moderately high

threat ofsubstitutes

a lot of event companies work with a similar strategy (differentiation)

strong differentiation AND price competition between the competitorsand their products

high competitive pressure which can result in pressure on prices andprofitabilty

strong comnpetition for same consumers

currently slow market growth

only way to constrain this rivalry, is to focus from the beginning ongood CRM and brand identification in order to bind the consumers

High degree of

Rivalry


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10.Weather analysisAs the weather is for sure one of the main issues, which defines the length of the season as well

as the risk of an event being cancelled, the analysis of the average temperature and days of rain

for Vienna based on the data of http://www.zamg.at/klima/klima_monat/klimawerte/for the

last 3 years show the following:

Month Avg.temp. AvgRainDays

1 0,2 13,5

2 1,4 9,5

3 6,2 13,5

4 12,3 8,8

5 15,8 14,8

6 19,4 14,0

7 20,9 14,3

8 20,5 11,5

9 15,8 10,0

10 9,6 10,8

11 7,2 12,7

12 0,6 15,0

Under the assumption, that an average temperature of above 10C will be required to organize a

mobile Hotspot party, the season will be from April to September, which is in total 183 days

during these months, there are in average 73, days with rain of more than 0.1mm we can expect

to have a season available of about 110 days or about 15 weeks. With the supply of additional

equipment, like rain protection, tents, heating, etc. we should be able to convert this threat into

an opportunity by extending the duration of the season and by allowing party dates with the

help of our agency, which would not be organized without.
http://www.zamg.at/klima/klima_monat/klimawerte/http://www.zamg.at/klima/klima_monat/klimawerte/


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11.Consumer and segmentation analysisThe breakdown of the market for event planning falls in a wide, very diverse grouping. Private

as well as business consumers demand the services we provide. In order to provide the greatest

depth of information, the market segments have been broken down into private and business

consumers.

a. Private consumersPrivate consumers make up the single largest portion ofThe Mobile Hotspot consumer base.

Private consumers mostly host events on a small scale. Therefore, these events generate larger

revenues per event. The majority of these events like birthday parties, wedding parties or

family gatherings etc. fall under this segment.

b. Clubs and private groupsThis kind of consumers can be quite interesting, because members of clubs spend their free

time together anyway and want to enjoy a well-organized event. Especially clubs for outdoor

activities might be interesting consumers.

c. Non-profit organizationsMost non-profits will organize some kind of event at least ones a year, which again could be a

very interesting consumer for The Mobile Hotspot.

d. Bars and restaurantsBars and restaurants host many events every year. The Mobile Hotspothopes to alleviate the

pressure of event planning from bar and restaurant owners. The second single largest segment,

the public sector, can save money and give back to its community at the same time. These

events are moderate in scale with middle to low revenues generated. Emphasis is placed on the

visibility of the event for public viewing. The majority of organizational family functions willfall under this segment.

Companies play a big role in The Mobile Hotspotconsumer base. Companies and political

parties mostly host events on the largest scale; therefore, these events generate larger revenues

per event. The majority of larger scale holiday functions will fall under this segment.


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I. Age breakdownsUnder 24: consumers under the age of twenty-four are rare at best. We hope to tap into the

market of early college graduates who have begun their professional careers but have not yet

started their families. These events will focus mainly on themes with moderate to high energyappeal. The revenues generated will range from moderate to high, depending on the event. The

majority of birthday parties will fall into this segment.

Ages 25-55: The consumers that fall into this age group are employed, middle to upper-middle

class families. The reason they choose event-planning companies is that they are too busy to do

it themselves. Therefore, TheMobile Hotspotwill be on hand for questions, contact will be

moderate in length but will occur regularly in order to disturb the daily life of the families as

little as possible. These events will generate moderate revenues, with a few generating even

low revenues. The majority of special occasion planning will occur in this market segment.

Theme Parties can also be organized.

Ages 56 and above: consumers over the age of 55 have reached the turning point of their life.

Many are retiring, others are celebrating anniversaries of significant anniversaries, and yet

others are seeing to that their children's special events are taken care of. These events will

generate moderate to high revenues depending on the income level of the family in direct

correlation to their social status. Most holiday parties and other special occasions, such as

wedding receptions and reunions will occur in this market segment.

II. Life style breakdownApartments: People living in apartments have to rent a place to organize an outdoor party. So

they need to belong to a certain income category to be able to afford the rent of a place and as

well as the event planner. Most probably this segment can also be reached via bars and

restaurants.

Town house owners: They may already have a small garden, so they can organize smaller

events at their place or combine events with their next-door neighbors.

House owners with a garden: This is most probably a very interesting group, as they have

enough space for The Mobile Hotspot events and they might enjoy being outside.

Garden plot owners: This will be another very interesting market segment, as this of group of

people is living in an apartment, but has already rented a garden plot to enjoy outside and


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garden life style. As many of them are also organized in clubs and have small pubs to meet, this

group should be quite reachable.

Others: This applies to anything that has not been described above.

12.Competitor AnalysisAs being an event organizer our competitors will be:

Existing event organizers, which again can be splitted into the following types Broad product portfolios organizing any kind of event Specialized organizers for specific types of events Event organizing companies Musician agencies Artists presenting single acts, but who do not organize complete events Musicians Bands Entertainer Performers Consumers organizing their events on their own to safe costs

There are some companies/ associations or clubs who provide either the campfire entertainment

included in a outdoor activity like Agentur Spezial (www.agenturspezial.com) or Monte

(www.montee.com) or the campfire entertainment in combination with music like Das

Lagerfeuer (www.daslagerfeuer.at), but not for individual events, it is more like a party

location for young people during the summer (every Wednesday evening) instead of some club

or disco. But none of them does provide the whole package, which includes the whole

organization of the event including: finding a place if necessary, bringing all the equipment

(including fire wood) and the musical entertainment, catering (if required) and cleaning up after

the event. These kinds of competitors wont be a great threat, because they offer activity events,

our company on contrary provides relaxing, mostly non exhausting entertainment.

A company like Eventation (www.eventation.at) could be a real threat to ours, because they

claim, that the can put every idea from the consumer into action. Moreover they have similar

objectives and a transparent and appealing website.
http://www.agenturspezial.com/http://www.montee.com/http://www.daslagerfeuer.at/http://www.daslagerfeuer.at/http://www.montee.com/http://www.agenturspezial.com/


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13.Product Life Cycle AnalysisAs each product has its own life cycle. It will born, it will develop, it will growold and

eventually it will die. Some products like The Mobile Hotspot will retain their market

position for a long time.

The product life cycle shows how sales of a product changes over a time.

The Mobile Hotspotis originally designed to meet the needs of busy people who had no time

and temper to organize campfires themselves. It aims to provide a stress-free and convenient

environment.

a. The product development phaseIn this phase of a product life cycle happens namely the product development (R&D) phase.

Here the company designs a product to meet a need in the market. The costs of market research

- to identify a gap in the market and of product development to ensure that the product meets

the needs of that gap - are called sunk or start-up costs.

b. Introduction phaseIn this phase the products will be launched to impact at the moment of sales. Large expenditure

on advertisement and promotion is common and quick. Earlier the consumers will pay a lot of

money for something new. Later on the pricing policy should be more aggressive so that

product becomes aggressive. However good market knowledge and what of a consumer wants

to pay for a newly introduced product.

c. Growth phase

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

profits

sales


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The Mobile Hotspot sales will increase steadily as the product was promoted and became

well known. It maintains growth in sales through expanding the original product with new

developments of according to consumers requirements. This is good for the business, as it does

not have to spend money on products and this can be achieved with existing materials.

d. Maturity phaseSuccessful products attract other competitor businesses to start selling similar products. This

indicates the third stage of the life cycle - maturity. This is the time of maximum profitability,

when profits can be used to continue to build the brand. However, competitor offering similar

products will slow down the sales. Different advertising strategies scan be used to gain during

this phase

e. Decline phaseClearly, at this point, The Mobile Hotspothas to make a key business solution. As Sales can

fall, the products can lose its position. New Product launch etc. can be possible solutions.

Effect and

responses

introduction Growth Maturity Decline

competition Not important as

Its a unique

product

Some

emulators

Many rivals

competing

Few in number with rapid

shakeout of weak

members.

Overall

strategy

Market

establishment;

persuade early

adopters to try

services

Market

penetration,

persuade mass

market to

prefer the

services

Defense of

brand position.

Keeping eye on

competitors

Preparation for new

service launch.

Profits No profits due to

investment costs

Reaches peak

levels as a

result of high

prices and

growing

Increasing

competition cut

profit margins

Declining volume pushes

costs up to levels that

eliminate profit


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demand

Retail

prices

High , to recover

launching costs

High to take

advantage of

heavy

consumer

demand

Need to avoid

price clashes

Low enough to liquidation

of inventory.

Advertising

strategy

Aim at the need

of early adopters.

Will be high

Makes mass

markets aware

of services

Will be high

Used to

differentiate the

competitors

services

Minimum expenditure for

phase out product

Consumer

sales and

promotion

expenditure

Heavy, to entice

target group with

samples, website

,coupons etc.

Moderate, to

create brand

preference

Heavy to

encourage

service

switching, to

convert some

consumers into

loyal

consumers

Minimal, to let brand coast

by itself


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14.Positioning Analysis, Branding

Our core product is the campfire romance, so we should position ourselves

As written in Crossing the chasm (copyright 1991, by Geoffrey Moore) the positioning

statement contains:

For (target consumer) Who (statement of need) The (product name) Is a (product category) That (statement of key benefitcompelling reason to buy) Unlike (primary competitive alternative) Our product (statement of primary differentiation)

So we can formulate our positioning statement as follows:

For the host who wants to entertain guests The Mobile Hotspot is an organized event that

brings a relaxing campfire romance unlike organizing it by themselves The Mobile Hotspot

gives them time to enjoy and relax with their friends.

"The Mobile Hotspot" will position itself as a reasonably priced, upscale, event agency.

Consumers will be private consumers as well as business consumers, ages 25-60.

Consumer service will be the priority. All employees will ensure that the consumers are having

the most pleasant campfire experience.

All employees will go through a training program and only experienced people will be hired.

a. Geographic Portfolio Analysis

i. GeographicsOur immediate geographic target is Austria with a population of more than eight million.

A maximum of 300 miles geographic area is in need of our services at the beginning.

ii. DemographicsMale and female (but females are in general more romantic than males, that could maybe be a

reason while females are the main consumers of our events) ages 25-60


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target group: middle and middle-upper and upper class people from city, because most of them

neither have the possibility for such kind of outdoor experience, nor a garden, and can't make a

campfire.

Highest grade elementary school or apprenticeship people who love to celebrate

iii. Behavior FactorsEnjoy a quality event without the mess of making it themselves

b. Four Growth Strategies (Ansoffs Matrix)

The mobile Hotspot is a new concept and targeting existing markets as well as new markets.

Therefore our growth strategy is diversification and product development. Both strategies have

high risks, but have also the potential of high and profitable growth. In any case we need to

plan carefully.

Current products New Products

Current markets Market penetration Product development

New markets Market development Diversification

c. Boston Consulting Group Matrix

Stars (= high growth, highest market share): Question Marks (high growth, low market

share):

Cash Cows (= low growth, highest market

share):

Dogs (= low growth, low market share)


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16.Financial objectivesa. Profit maximization objective:

To sale 8 events per month (average) during the first season (April-September). To sale 16 events per month (average) during the second season. To have a fully booked season (dry weather necessary) during the third season. To increase our number of served clients by 20% per year through superior service. To invest the profit into the growth/expansion of the company. To reach break-even point after one year. Net income more than 10% of sales by the third year.

b. Product-quality leadership (geographic prizing):We want to invest in the product and service quality. We want to become the leader in

organizing The Mobile Hotspot.

Our USP and our professional customer service lead us to a competitive advantage.

c. Price stabilization objective:On the long run the aim is to develop a stable market with stable prices.

Frequent changes in the prices of product will harm the long-term interests of our company. So

our aim is the stabilization of prices. During the periods of good business, we try to keep prices

from rising and during the periods of depression, so we keep prices from falling too low. Thus,

we take a long-term view in achieving price stability.


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17.Pricing strategy

high price low price

high quality premium strategy value (=penetration) strategy

low quality rip-off strategy economy strategy

Our Unique selling proposition is: We are Austrias first professional campfire event organizer

who entertains people together with their peers. We use a high price, but can give a good

product/service in exchange. Our Price is above competitors prices or same, but not

comparable. We have a differentiated service, specialized in one field. We are the only and

competent partner when it comes to campfire entertainment. Because of our specialization we

are able to make better and individual customer support. So our strategy is the premium

strategy and the differentiation strategy, because we offer high quality and high price, but

focused on one special segment in the event company industry.

Focus:

We consider us as so called Shapers. That means that we at the beginning focus on our

invention and then on the customer. We think that our potential customers are not aware yet of

their need for a campfire event. But after the first experience or contact with our product, the

will recognize their benefits and ask themselves how could they have lived without this

experience.


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18.Estimated costs for company

In the following table are the estimated costs for one month of the first year listed. In the

following years costs will rise with the increase of sales. In order to save costs, we wont use an

office for our company. The two employees will do home office. After increased business and

hiring more employees it will be necessary to rent an office. A similar situation is with the

firewood. For the beginning it can be stored at the basement of one employee, but as the need

for more firewood increases, it will be necessary to rent storage. There are no costs for location

listed, because in most cases the public places are free, in some cases there are reservation fees

of 10. Concerning the public location, the most important thing is to get the permission of the

city council to make an open fire and to inform the fire brigade.

1st year Expense comment cost per

unit/trip

costs

fixed costs personell 2 full time employees 5.000

communication telephone+internet use

(A1)

business

package50

vehicle VW Maxi Caddy Trendline

leasing contract with

"Weltauto", 4 years with

residal value of 8.576

236

depreciation of

equipment

pc, guitar

50

insurance insurances 150

advertising target group advertising500

fixed variable

costs

material firewood 33cm lenght

(depends on event

duration and amount of

events) from "Brennholz

Aktion" ; for one event

ca.4hours max 0,5 cubicmeters needed

8 cubic

meters of dry

stacked

firewood

(beech);

1qm=76,50

38,25 612

fuel 50 per 400km trip,

estimated amount of

trips=8

estimated

average trips

per month

during the

first

season=8

50 400

cleaning materials

and office material

depends on amount of

events5 40

total 93,25 7.038


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19.Competitors analysisPrices

Economic Value to the Customers (EVC) measures the value captured by a specific customer

for a specific use, product or application. An EVC needs to include emotional values. In

consumer markets emotional values can be as important as economic values. In the following

table we analyzed the EVC of possible competitors. The results confirm our USP and the

possibility to become the market leader in campfire experience.

Benefits

required

Relative

Importance

Weighing

Agentur Spezial:

Price=120 pP

("Outdoor Parcure"

without catering); for

"Spanferkel & Tipi"(without music): no

price available

PW-Musikagentur:

Price =musician from

55/h

Das Lagerfeuer

Price: No price available

Rating (1-10) Total Rating (1-10) Total Rating (1-10) Total

All inclusive

Service

(includes

catering)

20 7 (not all

included:

campfire+

music)

140 4 (you have to

order

musician and

catering

seperately,

just linked to

other event

comp.)

100 4 (drinks for

individual spot

payment

available)

80

Outdoor Event 10 8 (only action

events

offering)

80 5 (depends on

the musician)

50 6 (7 outdoor

spots)

60

Customized 20 9 (emphasizes

customizing)

180 5 (customer

has to find the

right musician

on his own)

100 4 (mostly for

young people)

80

Easy of

purchase

5 2 (price not

for every

event

available)

10 9 (well

explained)

45 6 (individual

spot payment),

no information

if group

packages

possible

30

Campfire

experience

20 7 (campfire

not in the

focus)

140 2 (only if it's

possible to

arrange with

another

comp.)

40 8 160

Location

independent

10 9 (wide range) 90 9 (mostly) 90 1 (located in

Sdburgenland)

10

Music guitar 15 8 (available) 120 8 (have find

right musician

on your own)

120 2 (mostly via

sound system)

30

Grand total 100 760 545 450


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It is quite difficult to analyze the prices of the competitors. There are two reasons for this

problem: 1.) There is no company which offers exactly the same mix between relaxing

campfire experience and great campfire music. 2.) There are only a few prices available. Most

of the event companies provide the opportunity to make a request for the chosen event. The

price also depends on the amount of participants. One teambuilding event with an outdoor

parcure makes 120 per Person. That would make 1800 for 15 people. The price for one

musician with guitar is between 55 and 200 per hour. That would make ~120 on the

average. After a comparison of other event organizing companies and from experience we can

define the approximately price of a comparable event with one musician for ca.4 hours and

including catering for ca.10-15 people would be 1000.


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20.Price evaluationOur business season lasts for 6 months, but due to weather conditions approximately 110 days.

So we have in average 18 workdays available. Our aim is to be fully booked at each of these

days. During the first season we expect 8 events per month in average.

Total costs for whole year:

5.986*12 (fixed costs) + [38, 7* 48(estimated events in total) + 50 *48+ 5 *48] (variable

costs)=

71.832+1.857, 76+2400+240 =76.329,76

Estimated total amount of events =48

Cost per event = 1.590

We consider us as professional service company. Therefore we wont charge more if the event

takes place is further away. So we will use the Basing point pricing (also known as delivered

pricing). The BPP refers to a system in which a buyer must pay a price for a product inclusive

of freight costs that does not depend on the location of the seller.

Working hours needed for one 3 hours event= 12 hours (including 3hours drive, organization).

Of course the prices depend on the actual amount of entertaining hours. There is always an

upgrade and additional requests possible, because we do almost everything to satisfy the needs

of our clients.

After considering the prices of the competitors and similar products, we suggest following

value-based pricing in order to reach our business goals.

We want to have steady prices, so a markup pricing is not possible.

Private consumers: 999, 90

Business consumer: 1.199,90


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21.Price analysisa. Customer demand

Customer demand is an important factor which is driven by needs, income and availability of

others similar products at a different price. A lot of consumers, value and price are highly

related: the higher the price, the higher the value. Consequently, the intention of The

Mobile Hotspot is to position itself as a unique, innovative and attractive product.

b. Break-even analysisBreak-even point=Fixed costs / (price per unit-variable costs)

= 76.329, 76/ (1590-93, 25) =50,99 events

As estimated, we could reach the Break-even point after the first season.

We need to organize 51 events to start making profit.

c. Price differentiationWe are using the Third degree price discrimination to differentiate our buyers with their

different needs. We split into business and private consumers.

There are two most important differences between the private and the business segment:

Location availability: Some of the private consumers will probably want to order The Mobile

Hotspot for some private event at their own place.

On the contrary the business consumers in most cases wont have the location on their own. In

most cases we will have to find the right location.

Amount of participants: We expect that the amount of participants in the private sector will be

up to ten and in the business sector up to 20 (because of the probably- greater budget and the

different approach the company is paying)


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d. PackagesDuring the first season we wont provide package or bundle prices. One advantage of our

service is that we dont make differences at the amount of persons. Of course we have to know

the amount of persons because of the dimensions of the fireplace, but if we are not offeringcatering, there wont be great differences in the costs . But the effect would be great, because

the customers can order The Mobile Hotspot with one musician for any kind of amount of

persons for the same price (up to 20 participants, because if there are more, probably a second

fireplace and musician are needed) . After the introduction phase we can consider (according to

the needs and wishes of the customers) to develop The Mobile Hotspot for bigger events with

more musicians and several fire places and catering. During the growth phase we can develop

package prices according to the demand.

e. Contribution marginThe contribution margin should increase during the period of next 3 years. We wont decrease

the fixed costs. On the contrary, we hope to develop our business and hire more musicians and

employees, because we expect to generate the most growth during the first three years. The

establishing of a solid customer base should increase our sales disproportionately during this

period of time. The lower cost of sales results in higher margin.

Contribution margin per unit: Sales- variable cost = 906,74 (private) remains for fixed cost.

Contribution margin rate= (Contribution margin / Sales) *100

Season Events Fixed cost

per event

Contribution

margin

Sales CMR % Revenue

per unit

Revenue

(profit, loss)

total

First 48 1496,5 906,74 999,90 90,68% -589,76 -28.308,48

Second 96 748,25 906,74 999,90 90,68% 158,49 15.215,04

Third 108 665,11 906,74 999,90 90,68% 241,363 26.096,04

Total 13.002,6


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22.Promotion objectives We want to promote a new and unknown service to the market of outdoor

events. Therefore we have to build awareness, so we have to establish an

identity with initial promotional efforts on a high level. Our initial promotional

efforts have to bigger than the following ones. Moreover we have to concentrate

in two aspect during our whole promotion process:

1. To reach effectively the potential customers, and2. To tell the market who we are and what we have to offer.

Our specific promotion objective is to make inroads into the outdoor eventmarket segment.

In further steps our objective will be to establish customer loyalty.

23.AIDA A- Awareness: attract the attention of the consumers. I - Interest: raise consumer interest by demonstrating features, advantages, and

benefits.

D - Desire: convince consumers that they want and desire the product or serviceand that it will satisfy their needs.

A - Action: lead consumer towards taking action and/or purchasing.

We chose the AIDA model as the fitting Response Hierarchy Model, which is also known as

the Think-Feel-Do model.

The Think-Feel-Do model of message effects presumes that consumers approach a purchase

situation using a sequence of responses. In other words, we think about something, then we

form an opinion or attitude about it (feel), and finally we take action and try it or buy it (do).

This model identifies three categories of effects called cognition (mental or rational), affection

(emotional), and behavior (decision or action).

Our promotion strategies are designed according to the AIDA model. For example, the internet

advertorial should build awareness among the users. Approximately 0.5- 1% of the people who

are looking at the advertisements are going to click on it. Afterwards they will be led to our

webpage (see p.30) where they can get further information about The Mobile Hotspot. The


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appealing website is going to transform the simple interest into the desire to experience also

this great campfire event. This desire leads them at least make a tentative inquiry via our (easy

to handle) inquiry page.

The Think-Feel-Do model is also called the high-involvementmodel because it depicts a series

of standard responses typically found in consumers who are active participants in the process of

gathering information and making a decision; they are active thinkers. (VanDen Heuvel, Dana)

24.Promotion strategies and channelsWe intend to distribute our event service directly to the consumers. (End user Marketing

Channel)

This strategy is also called the pull strategy, because this strategy involves getting the

consumer to 'pull' or purchase the services directly from us. This strategy targets its marketing

efforts directly on the consumers with the hope that it will stimulate interest and demand for the

product.

Exception of the direct distribution strategy will be the cooperation with Daily Deal (Groupon

not, because of the bad reputation) during the first season for a short term. Daily Deal is anonline platform, which alerts consumers to a money-saving deal each weekday.

According to our consumer analysis our target group is going to be middle and middle-upper

and upper class people from city.

We refer to both private and business consumers, so we have to develop two different

promotion strategies in order to reach our target market effective:

BusinessIf we want to start The Mobile Hotspot this season we have to start with the

promotion right away. (In case the project starts next season, it would be better to start

the promotion before Christmas, because many companies are making the time schedule

for the next year by the end of the previous one)

For the promotion of The Mobile Hotspotin the B2B (business to business) segment

we chose the following channels:


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Direct Marketing: After a target group (medium-sized enterprises) market researchwe are going to send mails to approximately 1000 companies, where we present

ourselves and our services. This Mail also includes a special offer, where offer them

a money back guarantee if they wont be satisfied. We think that this would be the

ideal awareness catcher, because most of the companies dont have time to take care

of the details of e.g. an employees excursion, so they need and expect

professionalism and perfect service and customer care. We are proud to be able to

say to have a great reputation so far and to be able to guarantee a great campfire

experience. (Estimated costs: 2.000)

Non profitable events: In order to establish a good reputation and to get good pressand free articles in newspapers via the PR strategy do good things and talk about

them (Mavridis, Thomas) we want to organize a few free campfire events for

volunteers of the Red Cross and the caritas. Usually such non-profit organizations

dont have the budget for events for their employees and especially not for

volunteers. This should be a way to thank those people for their effort with a

relaxing and unforgettable campfire event, away from the working routine and the

hard job they are doing, where they can relax and have a wonderful evening.

Private

Private consumers usually dont plan private events a few months in advance, so it will

be sufficient to start with the advertising for the private segment during the spring,

approximately one month before the season starts.

Online Advertising: The best way to reach the most people for the lowest money isvia online advertising. So we are going to promote The Mobile Hotspot in

cooperation with Ad Link Media via target advertising in the field entertainment.

(costs: 4.400, 80.000.000 ad impressions, 1.800.000unique clients)

We are positive that our customers will be satisfied with our services and that they will be that

satisfied so that the word of mouth marketing will work for us pretty well.

Advertisements on television, in newspapers, and magazines, via flyers and telephone are too

expensive for our little promotion budget and furthermore we think that they wont be

necessary, because we can reach a wide range of our target group with the promotion mix we

set up. Moreover not all advertisement channels, like telephone, are suitable for high quality

products like ours.


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Webpage

The advertisements, especially those promoted via internet are directly linked to our webpage,

where the consumers can get more information about The Mobile Hotspot. The Webpage

should create the desire to get this special campfire feeling too.

Via the inquiry site the consumers have the possibility to make a tentative inquiry for their

personal campfire event.


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Social MediaBesides our webpage we will also create profiles on the various social media platforms likeFacebook and Xing.

Especially Facebook with his great amount of followers would offer a further advertising

opportunity, particularly in the private consumer segment. In order to get a high click true rate

of one percent (which means, that one out of hundred visitors is going to click on the

advertisement, because he/she is interested in the service) we have to be aggressive at the

beginning. This means that we have to choose a high cost per click price (probably about 0,50 -

1 ) to be placed during evening times and on the top of the website. (estimated costs: 1000)


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25.Advertising budgetIn order to reach the break-even point within one year, we have to calculate our advertising

budget with 500 / month. So we have to go with the All-You-Can Afford Approach at the

beginning.

This would be 6000 for the first season for the advertising budget. We hope to establish our

business during the first three years and to reach our business and financial goals. If everything

goes like planned, we are able to increase our business, so we will be able to set a bigger

budget for the following years. But because of our great word of mouth marketing, it wont be

necessary to increase the marketing budget.

Especially at the beginning it is important to reach the promotion goals in order to be

successful.

So we are going to take advance money from our expected income in the amount of 4000 to

increase our budget for the advertising during the start up.

So we have approximately 10000 at our disposal for advertising for the startup.

26.USP- Unique Selling PropositionWe are Austrias first professional campfire event organizer who entertains people together

with their peers. We are passionate about all events. Our sweet spot is seeing our clients

reaction to their events wow moment. Our mission is to achieve our clients desired results for

every event we do. Were serious about detail, planning, deadlines and workload but we also

know how to make work fun, creative and different.

Possible Slogans:

Everyone can get his Campfire Entertainment

You can get your personalized Campfire too

Its time to get your own Campfire adventure

The Mobile Hotspot entertainment where you want it

The Place of happiness for everyone- The Mobile Hotspot

The Mobile Hotspot gets you hot


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27.Sales argumentsWe formed a few sales arguments, which articulate doubt and uncertainty to set up the sales

argument, and lure the reader into the body copy or to the website.

Are you tired of the same lame employees excursions? Are you tired of the every year event-organizing burden in your company? You always envied your friends for their garden, where they can gather their friends for

great evenings?

Do you feel exhausted and need some relaxing time? Do you need some time in the nature? Have you ever thought about a special romantic evening with your sweetheart? You dont have a clue how to surprise your wife for the anniversary?

Answer for all of these questions:

Then you are right here. We have the ideal solution for you.

The Mobile Hotspot

We arrange the perfect campfire experience for you/ your friend/ your dearests/ yourcolleagues/ your family!

We take care of everything! You just have to book and come! You get a stress-free and relaxing atmosphere of a campfire in a garden/backyard or in

the woods with a unplugged guitar accompaniment for the perfect ambience!

We ensure a stress-free experience with the organization of the event all through theentire process.

We are committed to ensure you a tailored event solution that bring exceptional results. We guarantee that we will exceed your expectations!
http://www.linguee.com/english-german/translation/ambience.htmlhttp://www.linguee.com/english-german/translation/ambience.html


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28.Sources

Capon, Noel: Marketing Framework, Wessey Inc., 2009

VanDen Heuvel, Dana:The Hierarchy of Effects, In:

http://www.marketingsavant.com/docs/ebooks/Hierarchy_of_Effects_BriefingPaper.pdf

http://mavridis.posterous.com/10647047

http://www.smallbusinessbible.org/salespromotionstrategy.html

http://www.zamg.at/klima/klima_monat/klimawerte/

http://cis.technikum-

wien.at/documents/bwi/1/muv_fl/download/Marketing_and_Sales_Lecture_Notes.pdf
http://www.marketingsavant.com/docs/ebooks/Hierarchy_of_Effects_BriefingPaper.pdfhttp://www.smallbusinessbible.org/salespromotionstrategy.htmlhttp://www.zamg.at/klima/klima_monat/klimawerte/http://cis.technikum-wien.at/documents/bwi/1/muv_fl/download/Marketing_and_Sales_Lecture_Notes.pdfhttp://cis.technikum-wien.at/documents/bwi/1/muv_fl/download/Marketing_and_Sales_Lecture_Notes.pdfhttp://cis.technikum-wien.at/documents/bwi/1/muv_fl/download/Marketing_and_Sales_Lecture_Notes.pdfhttp://cis.technikum-wien.at/documents/bwi/1/muv_fl/download/Marketing_and_Sales_Lecture_Notes.pdfhttp://www.zamg.at/klima/klima_monat/klimawerte/http://www.smallbusinessbible.org/salespromotionstrategy.htmlhttp://www.marketingsavant.com/docs/ebooks/Hierarchy_of_Effects_BriefingPaper.pdf

Documents

TheMobileHotspot Team2 Final