November 28, 2011
K-MIC KTV Marketing Plan
I. EXECUTIVE SUMMARY
K-MIC is a small KTV store. KTV means karaoke TV, which is a place where young people can sing songs they like. Feng (2008) has said, "KTV, is the rage in China. The rage started back in the 1990s and since then, a great many KTV stores have sprung up on both sides of the Straits — both on the mainland and in Taiwan" (para. 2). K-MIC KTV store is located in Xinzheng and next to SIAS International University. There are three floors in total. And it has mini room, small room, medium room and big room four kinds of rooms. K-MIC is a new brand market and is during the growth stage. Now, K-MIC is facing some challenges. The scale of K-MIC needs to be extended; the lack of staff and the quality of service are also the aspects that should be improved. The marketing plan is trying to help K-MIC to focus on the target market, young people, by analyzing the current, future and competitors. Then the plan would work on the S.W.O.T analysis and set a specific marketing objective so that the store would know how many market share they can get. What's more, good marketing strategies could guide the store in a right direction. The most important is how it works. Effective marketing implementation would assist K-MIC to attract more young people through market mix (product, price, place, promotion).
II. ENVIRONMENTAL ANALYSIS
To be a KTV store, K-MIC offers consumers a comfortable place to sing and have fun. It would like to build a long-term relationship with consumers who are college students and the other young and fashionable people. It turns out to K-MIC is going to be a successful store in this area. In the future, it maybe will be more successful.
A. Marketing Environment
1. Competitive forces. K-MIC has been here for almost two years and they often put up advertisement in SIAS campus. However, in this limited area, there are several other KTV stores do the same thing as well. In some way, even better. In recent years, with the number of KTV stores increasing, the long-term-relationship customers become less and less.
2. Economic forces. Few years ago, the economic crisis was happened in U.S and spread to the world. Nowadays, it still has influences on us. It is a matter that wether we have the extra money to go to the KTV or not. K-MIC KTV needs to reduce the budget for running the business as well. The easy way is raising the price.
3. Political forces. There are no political things can impact on the K-MIC KTV.
4. Legal and regulatory forces. In China, the employers need to know everything about the legislation about KTV stores. It is better that they have studied the legislation about the KTV before they founded a store in Xinzheng. K-MIC actually did this well. We know that they have all permissions from the local government, and professional people monitor the business by consulting the manager. The government will monitor the KTV store to pay taxes on time as well.
5. Technological forces. There are several KTV stores in this area. If K-MIC wants to compete with other ones, it is better to have their own advantages or features. They can possess advantaged equipments, like touch-screen TV, leather sofa, the best sound speakers and so on. It will be easy for K-MIC to compete with other stores, if K-MIC owns their own new advantaged equipments.
6. Social culture forces. There are some people have thoughts about the KTV stores. Some figure that it is a good place to sing songs and have fun. Whereas, some people have a stereotype about the KTV as well. They think that the place is filed with bad guys, drug and alcohol. So they refused to go to such a place like that; they believe it will have a negative influence on them. Thus, it is an advisable to attractive more consumers by changing people's thoughts about the KTV. Making a promotion by sending fliers or tell the...