Our services will be positioned to provide our customers with a premium amusement and entertainment experience.
Thus our pricing strategy will be to charge a premium price as per industry standards.
The following subtopics will present our sales strategy, marketing strategy, pricing strategy, daily customer projections and promotion strategy. To see comparison FECs and their current pricing refer to financials topics for projections and pro forma comparisons.
I & B INVESTMENTS will also work toward establishing community involvement programs that will demonstrate how the business can contribute to a better quality of community life. Such as: Community projects using the "FEC's" facilities to help civic groups obtain their financial goals (by offering fund raising events). Schools, churches, and other groups will be welcomed for tours of the facilities and will be shown how the facility can be used to help raise funds for their needs.
The high standards set by our company and our location are going to make it very difficult for competitors to enter and survive in the market area.
I&B Investments research shows that the opportunity exists to provide a high-quality service in a family-oriented environment, where we can offer competitive pricing to our customers and still make an outstanding profit in this demanding market.
The keys to our competitive edge
There are several critical issues based on the lifestyles of the area for our business to be accepted and survive.
Our customers can come from all age groups, male and female, all races, every income level and can be local residents or tourists to the area. That is why our marketing plan started at the construction phase; by keeping in mind, if it looks fun people will come. Thus the main factor to our success is simply that a person can enjoy themselves at our center while participating in an activity they choose.
Our full-time public relations manager is a vital part of our management team, by assuring that customer satisfaction is provided and gathering information from the public about the types of entertainment most desired. This can provide our company with the means to stay in touch with the community and ready to meet their desires.
To establish the following detailed chart, we referred to several factory-pricing recommendations and the local competition.
The following details our pricing and the # of customers per month that we used for our cash flow projections. These projected numbers are 35% +/- of daily operation capacity and being open for business 26 days a month, closed on Sundays. It should also be noted, there maybe activities planned that are not included in our projections.
|Arcade and redemption||$10.00||600/month|
|Batting cages and pitching lanes||$1.00||1,620/month|
|Air hockey and foosball||$0.50||672/month|
All business expenses are detailed in the financials topics. All other direct cost were pre-calculated and added into the Sales Forecast table.
I&B Investments' first objective in promoting our center will be to capitalize on the power of the WORD OF MOUTH.
In every business it is a well-known fact that word-of-mouth advertising is any businesses' best friend or worst enemy. Yet, this does not preclude the fact that announcements, placing advertisements in the local newspapers and our future planned website are not just as important in reaching new customers and will be employed as follows:
Getting our positioning message to the public, "family recreation," where fun and customer service is paramount.
Utah's State Tourist Dept
Keeping them aware of our center and all current promotions.
Go-cart Track Signs
Local businesses can buy sign footage and have their signs placed around the track like you would see around any race track.
Freeway & Site Signs
Informing the public of all the activities found and offered at the center.
Rewarding customers for spending money through establishing frequent player programs and sponsoring up to $50,000 a year towards prize money awarded through tournament playoff prizes.
The activities of the center will be promoted as a place to bring your group to participate in events and raise funds for "project name here." These types of fund raising events can request that a portion of each players expenses be donated to their organization (a standard amount will be established).
I&B Investments intends on providing a venue in which the entire family can really enjoy their leisure time by participating in fun and competitive activities that require minimum strength and athletic ability. Supported with great service and offered at competitive prices we have the winning combination.
At our facilities the value of entertainment experience that our customers receives would be considered high compared to per dollar spent ("Biggest bang for your buck" or "You get your moneys worth"), and by providing the best in the area, our management team expects to reach an even broader market than used for our cash flow projections.
Our sales strategy is set on the very basics of business, please our customers and they will return again and again.
Sales as per population (exclude tourist)
Using our minimal targeted market population of 418,399 people, we will detail how easily we can reach our projected income goals.
This means that we can meet or exceed our projected income if approximately one out of three possible customers visits our center once a year and spends a minimum of $8.50 on that visit.
2006 shows increase in sales caused by the opening of Phase 2.
The following chart shows I&B Investments Projected Sales Forecast and the annual projections for the next five years. Monthly figures are detailed in the appendix. To see activities pricing break down & projected numbers used see topic 4.2.
Set forth below are the main milestones in the schedule of proposed development. We have carefully reviewed the timelines for start-up and firmly believe that once we are completely funded we can construct and open our initial FEC within less than one year of breaking ground.