Golden City Miniature Golf
Golden City Miniature Golf Case Study
The partners must do additional analysis prior to determining if they should invest in a new miniature golf venture in Golden City. Before establishing marketing objectives, advertising and promotional programs, plans for addressing demand fluctuations and considering alternate locations, they must determine if they can generate sufficient sales to fund operations. They have done market research which provides a good baseline for establishing the demand, course capacity and anticipated costs. Once they have analysed this data and established that the business is financially viable, they can address advertising, demand and location questions by developing a marketing strategy.
The partners must review their research to calculate realistic projections of the numbers of rounds that will be played for the season and compare them with their capacity. Their research suggests that at least 65% of the high school age population will play at least one round of mini golf per season. There is less concrete data available for the adult and family population. A conservative assumption would be that 20% of the remaining adult and family population of 243,000 will play mini golf at least once per season. This is equivalent to a minimum of 61,000 rounds played in the season. The research also suggests that the new course will be the preferred location of most players. In comparison to the competition, the facility will be new, conveniently located, high quality and will appeal to various skill levels of player. It is reasonable to estimate that 85% of the rounds will be played at the new facility. The partners can expect 51,900 rounds of mini golf per season.
The partners should review their maximum round capacity calculation. Mr. Smith’s calculation of 864 rounds per day suggests that a new group of 4 players will start every 4 minutes, 12 hours per day. With only one staff member this may be unrealistic. One staff member is more
The partners must do additional analysis prior to determining if they should invest in a new miniature golf venture in Golden City. Before establishing marketing objectives, advertising and promotional programs, plans for addressing demand fluctuations and considering alternate locations, they must determine if they can generate sufficient sales to fund operations. They have done market research which provides a good baseline for establishing the demand, course capacity and anticipated costs. Once they have analysed this data and established that the business is financially viable, they can address advertising, demand and location questions by developing a marketing strategy.
The partners must review their research to calculate realistic projections of the numbers of rounds that will be played for the season and compare them with their capacity. Their research suggests that at least 65% of the high school age population will play at least one round of mini golf per season. There is less concrete data available for the adult and family population. A conservative assumption would be that 20% of the remaining adult and family population of 243,000 will play mini golf at least once per season. This is equivalent to a minimum of 61,000 rounds played in the season. The research also suggests that the new course will be the preferred location of most players. In comparison to the competition, the facility will be new, conveniently located, high quality and will appeal to various skill levels of player. It is reasonable to estimate that 85% of the rounds will be played at the new facility. The partners can expect 51,900 rounds of mini golf per season.
The partners should review their maximum round capacity calculation. Mr. Smith’s calculation of 864 rounds per day suggests that a new group of 4 players will start every 4 minutes, 12 hours per day. With only one staff member this may be unrealistic. One staff member is more