Nairobi Sports activities House is found in Nairobi, Kenya. It is a medium size company specialising in inexpensive and retail marketing of sports activities equipments, uniforms, and sportswear Activities & Fitness Equipment. Supplies for any sport: hockey, rugby, playing golf, badminton, ping pong, and related athletics merchandise.
The market would be targeted at both, males and females, ages ranging from 8-24 yrs. old.
The venue/sports surface will be leased by NSH due to the lack of space available in central Nairobi that the project would require, and equipment will be provided by them. Athletics provided will be the primary sports played out in Nairobi that happen to be basketball, hockey and yard tennis.
During the holidays the sports activities will alternate, whilst on weekends during term-time, they have a selection of which sport they opt to play.
In modern times there has been increased affinity for sports activities both for recreational worth and fitness purposes for those ages.
This proposal aspires to determine sport academy to focus on students in Nairobi who've interest in sports, cricket and tennis games as these are the most popular athletics in Kenya.
This principle will easily fit into the overall online marketing strategy of sports activities marketing.
Using various analytical tools including the SWOT analysis, Tows Matrix and considering the Marketing P's this report can look to analyse the market Nairobi Sports House currently operates in, and that of which this survey proposes it expands into.
After the analysis of market (appendix 1), I have established that there is an enormous demand for sports academies in Nairobi. All the youth who are enthusiastic about sports activities and want to make their job in sports cannot access professionally supervised programs, therefore this academy would provide them with that advantage of qualified instruction as well as good sporting grounds and facilities to experience in/on.
The academy would teach they by certified and elite instructors and could possibly be considered a training camp for junior countrywide teams, which means that enlargement would occur and for that reason, the academy could become extend out of Nairobi and into other towns and towns in Kenya, potentially east Africa.
A SWOT examination is an analysis of the internal important factors that are changing which affect an enterprise from within.
Determine the power (S) and weakness (W) of the business.
Identify the central competencies and distinctive functions.
Recognize the opportunities (O) and hazards (T) that the business may face.
Identify areas of competitive advantage. Understand needs and would like of the business enterprise.
Nairobi athletics house has the financial capacity to do the proposal meaning that funding wouldn't normally be a problem and there budget is more than ample.
1) NSH is a favorite company and brand in Nairobi. Since it is one of the major sporting outlet stores in Nairobi, it includes over 12 branches across metropolis and can use its brand image to its benefit.
2) The business provides most sport companies, including schools, which will be an advantage in marketing this idea to colleges around Nairobi.
3) The company is associated with two sports activities clubs which can be targeted to be used as locations, on rent basis. These activities clubs will be the two most known sports activities night clubs in Kenya; Nairobi Gymkhana and Parklands Sports Clubs. Both have up to date sports grounds and facilities, that may mean easy access and potential to customize and coordinate athletics programs personalized specifically to a team's needs and desires.
1) NSH does not have any previous experience in general management of sports academies and would need to outsource specialists who know the marketplace better.
1) There exists a market space as there are incredibly few established activities academies in Nairobi.
2) The existing sport academies are singularly owned and supervised, and therefore lack the financial capacity needed to offer top of the range services.
3) There is the opportunity to bring in professionally managed athletics academies as no person has professional academies you will see no competition and there is space, delivery rates are increasing annually hence there are tons of people who want to experience athletics but just don't possess the possibility to achieve this.
4) Opportunity to establish competitive competitions in the various sport disciplines could organise tournaments against other countries to keep children determined and award them with extrinsic honours.
The SWOT Matrix
To develop strategies that take into account the SWOT profile, a matrix of the factors can be made. From your SWOT matrix, possible strategies can be discovered (appendix 2).
· S-O strategies pursue opportunities that are a good fit to the company's strengths.
· W-O strategies beat weaknesses to follow opportunities.
· S-T strategies identify ways that the firm may use its strengths to lessen its vulnerability to exterior threats.
· W-T strategies establish a defensive plan to prevent the firm's weaknesses from which makes it highly vunerable to external threats.
(McGraw-Hill, , 2003)
Competitive strategies NSH may take part in include: (appendix 3)
a) Differentiation strategy
A differentiation strategy demands the introduction of something or service that offers unique capabilities that are appreciated by customers which customers perceive to be better than or different from the merchandise of the competition. This can either be horizontal (creation of variety), or vertical (differences in quality). For instance, NSH could brand their sports academy to employ very able and experienced training staff. This might lead to their academy being viewed as superior in comparison to others in the eye of potential customers and so less substitutable.
b) Cost Emphasis strategy
The focus strategy concentrates on a small section and within that section attempts to achieve the cost edge or differentiation. The premise is that the needs of the group can be better serviced by centering entirely upon it. A firm using a emphasis strategy often enjoys a high amount of customer loyalty, which establishes devotion and discourages other firms from competing directly. Kenya's most swiftly improving sport is cricket because the country come to the Semi-Finals in the 2003 world cup. Nevertheless the equipment required for the sport is expensive and being the direct importer of athletics equipment, NSH could concentrate its sports academy around providing top quality cricket training facilities.
c) Product development strategy
Product development strategy consists of introducing services into existing marketplaces. This strategy may necessitate the development of new skills and requires the business to develop customized/new products which can charm to existing markets. This strategy is dangerous as it should take much investment in product development.
d) Diversification strategy
Diversification strategy requires business markets services in new markets. This is a far more risk strategy because the business is getting into markets in which it has little if any experience. For just a business to adopt a diversification strategy, therefore, it will need to have a idea in what it expects to gain from the strategy and asses the potential risks. By undertaking the task to expand into the market for sports activities academies, NSH is already diversifying and dispersing its dangers.
try and discover new opportunities for the organisation
try and identify any risks to the organisation
A) Political Factors
The main political factors that would effect on this proposal include security, work laws and regulations, and environmental business enrollment. Nairobi is normally protected climate and parents will never be fearful to leave their children at training locations.
b) Economic Factors Talk about:
The overall economy is on its restoration trend which is wonderful for the business enterprise community. This suggests increasing leisure costs. There's a great deal of unemployed/non working residents in Kenya who are looking for jobs, this may benefit the program as we could hire more mentors in order children can be put into smaller communities and have more attention. The birth-rate in Kenya is increasing quite speedily so finding children to take part will not be difficult.
c) Social Factors
There can be an interest in activities due to hostile sports activities marketing and exposure to world athletics especially the Barclay's Premier League. A large populace of the junior recognizes themselves with leading league night clubs, and their favorite sport personality building a competitive environment.
There is a significant change in attitude of parents toward sports activities as potential career choice for children with abilities and skills in athletics. Parents are willing to support their children pursues their sport ambitions.
There is increasing knowing of the importance of activities as one factor in shaping children personality; discipline, character etc and parent are prepared to take up such opportunities that could contribute favorably to the mentoring with their children.
d) Technological Factors
Technology in Kenya is growing, although they don't have all the sporting technology they certainly cater for the essential needs. Because of good weather throughout the year, the use of indoors pitches and under-soil heating up is pointless.
The PEST research is favourable to the marketing proposal and it suggests the potential for success of the business idea.
This involves examining the competitive environment. The analysis of competition will focus on the level of completion which will determine industries permanent profitability potential. The profit of an industry is determined by the depth of conclusion.
Porter's Five Forces Analysis
The competitive environment of your company can effectively be analysed through Porter's Strategic Matrix.
Michael Porter discovered five pushes that determine the long term profit appeal of market or market segment. (Phillip Kotler, Gary Armstrong, 2005) The aim is to determine the competitive strength and, therefore, how attractive a market/industry sector is.
1) Threat of new industry entrants
A segment is of interest when there is no strong competition. The risk of new competitors typically will depend on the barriers to accessibility. Key barriers to entry include- Economies of level, money / investment requirements. Because of the high sunk costs of initial capital required and a sports premises, new organizations are less prepared to type in. NSH may use this to their advantage and alternatively than being deterred to enter, could capitalise onto it as they have sufficient investment capital.
2) Threat of substitute products
The availability of substitutes will effect prices and profit margins, hence the industry appeal and success because they limit price levels. Because of the insufficient quality academies that currently exist, NSH will probably reap the benefits of low competition permitting them to charge advanced prices and earn high gains.
3) Bargaining vitality of suppliers
Suppliers will be the businesses that supply materials & other products in to the industry. The bargaining power of supplier will impact their ability to set high price to maximise revenue. If suppliers have high bargaining ability on the company, then in theory the industry is less attractive. For your sports academy, the key components in need of supply are staff, a place and sporting equipment. Being the leading importer and vendor, sporting equipment shouldn't be a problem. On top of that, you should definitely training or representing teams in matches, professionals are generally happy to coach during their free time. Really the only difficulty Nairobi Sports activities House may encounter is in obtaining a venue for cheap as the athletics night clubs themselves will be using it frequently.
d) Bargaining vitality of buyers
This identifies the power of consumers to bargain for lower prices. This is influenced by the amount of buyers and retailers in the market and exactly how standardised the products offered are. With few vendors of sports activities academies, and with the proposal of NSH's academy being of top quality, the many buyers which exist have little vitality in trying to drive prices down.
e) Strength of rivalry between competitors
The power of rivalry /competition between competitors within an industry will affect the market attractiveness. In this monopoly market /industry Nairobi activities house is evidently the market leader, therefore there is low level of competition which allows Nairobi sports activities house to set higher prices, hence high profit margins making the industry attractive with high long-term profitability.
Overall, the competitive evaluation shows that this market is attractive with permanent potential for earnings.
Marketing Combination (the 7 service 'P's')
[A] Goal market
The features and characteristics of the target market will influence the marketing combination. The 4 main P's should be made to appeal and reach the prospective market-
Factors that influence the introduction of the marketing mix
[A] Aim for market
The features and characteristics of the target market will effect the marketing combine. The 4 P's should be designed to appeal and reach the mark market; the mark market should be able to afford the price, the merchandise should satisfy the needs of the target market in-terms of the quality, functions size etc, the product should be distributed through shops that the target market has usage of and reach consumers and lastly the campaign techniques - for example in advertising, -use multimedia that will so as the announcements reach the prospective market.
The marketplace should be designed while taking into account the top features of the mark market erg income, cultural status, gender, get older, special needs, culture, geographical location etc
The product itself will determine the marketing mix-the quality, size functions, presentation, branding position, use cost of creation etc will have an impact on the price, place and promotion.
[c] Marketing objectives
The marketing goals will influence the 4 P's as they'll be designed to achieve the goals. For example income maximization will demand high price, quality product, and Intensive distribution, low advertising cost.
The current cultural trends influence consumers style, preference and perceptions of something which influences the buying decisions. Marketers have to take into account the current public trend in producing the marketing mixture.
The academy will offer you the next services;
1) Training and training in basketball, cricket and backyard tennis games to students of age groups between 8 to 22 years.
2) School Holiday break Sport Camps and during institution. We will have Saturday training. For 3-15 calendar year olds.
The training locations will be at parklands sports activities membership that has well retained sports activities grounds and tools. Parklands sports team is situated within the Westland's area that is secure and safe.
This is the value that the buyer and owner are prepared to exchange for goods and services. Price is the main factor in the marketing because it generates revenues as the other 3 elements incur costs. Price has an immediate effect on sales and sales profits.
The fees will be Ksh1500 (equivalent to about 12) per pupil per session. Advance payment would be prompted; however payment per time would be accepted. Even though the majority of individuals surviving in Nairobi are in poverty, we're able to organise for sponsorship to allow them to educate and travel whilst participating in against other clubs which will gain them and therefore could interact with the wealthier people, which would also cause awareness.
Word of mouth promotion through the colleges systems-recommendations from other customers are generally viewed as more credible than company initiated promotional activities (gilmore, 2003); Creating website, Posters and presentations in academic institutions, stores and in activities night clubs, Promotional activities, By managing event and call some big personality from athletics field and interact them with the students, By organizing training seminars and free work shop in college and universities and speak about the opportunity and expansion in activities and create their interest in neuro-scientific sports, By organizing sports competition in rural areas.
The appearance of the building, gadgets, indicators, and posters imprinted materials and other obvious cues all provide tangible evidence of a firm's product and quality (gilmore, 2003)
This entails providing the physical proof the forms product and services that could influence the customers. E. g. the gadgets, interior design, branding.
The use of parklands sports house will show the physical evidence of sports activities academy. The academy will have the official standard unique to the academy
Services rely upon direct conversation between customers and firms employees. The type of the relationship strongly influences customer's perception of the firm's service quality. (gilmore, 2003)
The head coach for each athletics i. e. Sports, cricket and yard playing golf will be recruited on the deal basis. Other trainers will be contracted from academic institutions on the freelance basis.
Primary research method will be used to acquire data and information from the market. The research will concentrate on customer needs/flavor and preference, rivals. Major research method is appropriate because it will accumulate current or more currently information that will be relevant and reliable.
Secondary research method requires the utilization of data that has already been available from to the business firm external resources like the internet, census survey, government information etc.
The questionnaire (appendix 1) will be utilized to collect data from the market. A questionnaire is a couple of question used to collect information.
Evaluating a business opportunity
Evaluating a business opportunity requires data and information you can use to look for the potential of an business idea and gaining insight into the consumer's behaviour
Market research: This is actually the procedure for collecting, studying and interpreting data and information from the marketplace decisions for the intended purpose of making marketing.
Purpose of general market trends.
Market research provides information that can be used to evaluate an enterprise opportunity/idea by
[I]identifying the marketplace needs of consumers-market gap
[ii] Identifying the demand for the product/service and market potential
[ii] Determining market trends
[iv] Identifying target market and market segments
[v] Identifying competitors
Methods of market research
[A] Principal/ field Research.
Involves collecting data and information immediately from the market for a specific purpose or research. Researchers collect information straight from consumers through interviews, observation or market study using questionnaires. The questionnaires received to the children and their parents/guardians; therefore that they had to be created so that children would understand it but also to find the vital information needed to see what consumer flavour was (questionnaires in appendices)
Advantages of main research
[I]Original data/information-it provides original/first palm data and information gathered for a particular purpose /research. In this case it offers information that is specific to the Nairobi activities house as the info is valid and up thus far; they can also hand out the questionnaires to the prospective audience.
[ii]Relevance-it provides data and information that is specific to the business enterprise, its product and market. Research questions are made to gather specific data and information to relevant to the Nairobi athletics house.
[iii]Stability- it provides objective and reliable data and information that presents consumers views and perception. This reduces the component of bias and subjectivity for the researchers. The analysts know the source of the data and information, the circumstances under that your information was gathered, and the limitations and problems came across during the research which improves the research and analysis of the research information. As the target audience is children and an older figure can come with an influence on the answers the kids give by what actions are made.
Disadvantages of principal research
Primary research is expensive to curry out since it requires resources such as materials, research workers, carry etc. Nairobi activities house is a well known company and its financing will never be a huge problem.
Primary research is frustrating which might lead to a period lag between your time the research is undertaken and the implementation of the study findings. Market causes are dynamic and could have changed during making the decisions. As this is the first company checking an academy if a lot of time is used then another company might open up faster, so time is usually a factor in business.
Questionnaire for children (appendix 1)
Questionnaires were given to 211 children all over Nairobi.
75% of students attended private school which means that there finances is good, and are able to pay for these academies, whilst others sponsorship programs could be organized
Most of the kids said that they would like to better their skills in the activities they be a part of.
Questionnaire for parents/guardians (appendix 2)
Most parents mentioned that their children do play sports, at different levels competitively and recreationally and they have never been to a camp hence they said they might be interested and keen on attempting it out as it is a new experience.
60%of the parents said that Westland's would be the perfect location as it is in the middle of the city and easy accessible.
The parents/guardians mentioned that the purchase price was marginally steep, so we could work on that to find a good price that both consumer and producer can agree on.
Overall parents appeared interested and around 70% of parents said they would be enthusiastic about signing up their children
A simple analysis of favourable responses would indicate the potential demand for this product.
In conclusion, the technology used to analyse Nairobi sports activities house, its current situation and the proposal enlargement plan. The company could possibly be very successful by getting into the marketplace for a sports academy however the biggest obstacle is insufficient experience, but as you might see the pro's have outweighed the downsides by a considerable difference.
1) Philip kotler. 1991, marketing management, 11th edition, NJ, Pearson education ltd
2) Christopher lovelock, and jochem wirtz 2001, servce marketing, 5th edition, NJ, Pearson Prentice Hall
3) Ian marcouse, malcom surridge and Andrew Gillespie, 2008, Business studies, 3rd release, Hodder education UK
4) David jobber 1998, Guidelines and practice of marketing, London, McGraw-Hill limited international,
5) Dave Hall, Rob Jones, and Carlo raffo, 1993, Business studies, 2nd release, causeway press limited,
6) Audrey Gilmore, 2003, Marketing principles, London, Sage publications
7) Sheila mello, 2002, The main element to great product development catalogue of congress cataloguing in publication data
8) http://www. entrepreneur. com/encyclopedia/term/82322. html
9) http://www. marketingmagazine. co. uk/
10) http://www. learnthat. com/define/view. asp?id=71
a) Sample questionnaire.
Name ___________________- sex ____________________Age__________
Residence_________________ contact address____________
1) Will you be present at: private university? ( ) general population institution? ( )
2) What level? Most important ( )
Supplementary ( )
3) Do you reside within the Westland's area? YES ( ) NO ( )
4) Tick () to indicate your parent's occupation: business ( ) Employed ( )
5) Tick () to indicate your favourite sport
Football ( ) lawn playing golf ( ) cricket ( )
6) Does one play the above sport at college YES ( ) NO ( )
7) Might you be thinking about increasing your skills in your most liked sport?
YES ( ) NO ( )
8) Have went to any privately organised training in your most liked sport?
YES ( ) NO ( )
9) Are you a member of any sport membership? Name___________________
10) Can you enrol in a athletics academy YES ( ) NO ( )
11) Which other sports are you interested in? ___________________
12) Do you take part in sport as?
Recreational activity ( )
Health activity ( )
Competitive sport activity ( )
13) If you were to enrol in this academy, which timings would be appropriate for you?
After school ( ) Weekends ( )
Analysis of the Results & Findings
Males - 129 Females- 82
159 students were in private school
52 students were in public school
200 students reside in wetlands area
The female students usually choose lawn tennis games, although a few choose hockey and football
Lawn playing golf - females-50 men-25
Football- females-12 guys-60
Hockey- females-20 males-44
204 play athletics in school
Students aged from 19-22, 85% of them are people of sports golf clubs.
200 students said the wetlands area is the best place for this academy to occur.
90% of students say they might enrol in this programme.
-Product development strategy.
-Market penetration strategies.
-Marketing strategies -the 4 P's.
-Human learning resource strategies -recruitment of licensed and experienced coaches.
-training of employees.
-Adopt competitive strategies
http://teacher2u. net/business/strategy/competitive_edge. htm
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