marketing plan
Marketing Plan
ADVB 201 Final Course Project
Develop a complete Marketing Plan for a new business that relates to your program of study. Your Marketing Plan will demonstrate mastery of Marketing concepts learned in this class. The final product must be submitted by 11:59 PM on the last day of the course.
Using Projects #1 and #2 and instructor feedback, make corrections and include them in your final Marketing Plan. The final project should take into consideration readability and appearance; graphics, charts, and headings help to keep the reader’s attention. As always, use APA format, cite all references, and proofread your work.
2
Table of Contents
Executive Summary 3
Mission Statement
4
SWOT Analysis
4
Strengths
4
Weaknesses
4
Opportunities
4
Threats
4
COD Competitive Advantage
4
Objectives
5
Marketing Strategy
5
Target Market
5
Product/Service Strategy
6
Place Strategy
8
Pricing Strategy
8
Promotional Strategy
8
Digital Media Plan
8
Print Advertising 11
Publicity
11
Marketing Budget 12
Implementation Strategy
13
Gantt Chart
13
Evaluation
15
References 17
Executive Summary
Conservatory of Dance (COD) is a classical dance studio conveniently located in Virginia Beach. This longtime champion of the art of dance is facing financial challenges. The owner is seeking marketing advice to improve COD’s profitability. The goal for this Marketing plan is to increase revenue from dance instruction by $5,000 per month by January 2019. While there are other ways to generate additional income, the focus is on in-studio activities steered by COD.
Extensive research was conducted on the COD’s history, product offerings, customers, promotional efforts and internal processes. A study of industry reports on dance studios, local demographic data, and the competition helped to determine the scope and direction of the marketing plan. COD has a great product; students receive the best instruction in the area. Both dedicated dancers and fitness dancers find their needs met at COD. High expectations challenge each student to perform at their best. The verbal and nonverbal communications skills practiced are transferable skills that will help students in other areas of life. Ballet continues to be a popular activity and with growth projected over the coming years. Ballet classes offer students an opportunity to express themselves while developing their mind and body. Students of any age or ability can benefit from dance classes. COD’s target market consists of parents seeking activity and fitness for their child, parents of children who dream to be a ballerina and aspiring dancers.
Demographic data indicates that there is a sufficient number of potential students in Virginia Beach, Chesapeake, and Norfolk with the disposable income necessary to pay for dance classes. Competition in the local dance studio industry is high due to the number of studios and other fitness activities available. Convenience, participant interest and aptitude, fitness options, time, and money are factors that influence parent decisions. Competition from other activities that meet the desire for activity, self-expression, confidence development, and social interaction also vie for the consumer’s disposable income.
There are several reasons that the COD is not generating the income necessary to thrive. Over the past few years, COD enrollment has decreased due to attrition and lack of new students. Enrollment in the lower level dance classes is consistent, but the older, higher level dancers are not returning to take classes. Declining enrollment is impacting revenue. COD’s current marketing activities focus on increasing enrollment. An assortment of promotional tools and activities to create awareness, stimulate enrollment and to maintain loyalty are utilized. Family obligations require much of the director’s time and energy, thus limiting her availability to teach classes and maintain business records. Some student accounts are past due on last year’s tuition payments, and many times people fail to submit. To overcome present obstacles and grow, COD should capitalize on its strengths, improve internal processes, and take advantage of opportunities to differentiate itself. I recommend expanding the target market to include to include individuals with intellectual disabilities, adding classes to the existing schedule, upgrading the accounts receivable process, and improving communication with the current and potential customers.
Mission Statement
“We strive to promote confidence in all our students and give each and every dancer the attention to detail that is needed to achieve proper technique.” (Conservatory of Dance, n.d.)
SWOT Analysis
Strengths
·
Dance instructors are professional and passionate about providing quality dance instruction.
· The studio is conveniently located in Virginia Beach near I 264 on Princess Anne Road.
· COD had a social media presence Facebook, Instagram and YouTube
Weaknesses
· The dance studio facility is underutilized; 12 hours of dance instruction are offered weekly.
· Older students have limited time due to increased academic requirements at school and other extracurricular activities.
· Groupon certificates are repeatedly used by the same customers decreasing per-student revenue by $48 a month
· Parents that do not pay tuition on time and those that are in arrears.
· The COD website has old and missing information.
· Due to family obligations, the owner has limited time to devote to business operations.
Opportunities
·
Teens and adults with intellectual disabilities need more opportunities for activity and socializing.
· Increased number of senior citizens that seek dance classes for fitness.
· Athletes recognize the importance of strength and conditioning classes.
· Increasing emphasis on diversity and cultural awareness.
· Children in school have breaks in over Christmas, around Easter, and over the summer.
Threats
· High concentration of dance studios in the area.
· Farm Fresh, an anchor store at the shopping center closed and the space has not been leased
· Activities like sports and scouts compete with dance for disposable income and time.
COD Competitive Advantage
The COD provides quality instruction from knowledgeable, experienced staff, performance opportunities, high expectations, and a sense of community within the studio.
Objectives
The objective is to increase monthly revenue from dance instruction to $5,000 per month by January 2019.
Marketing Strategy
Target Market
Currently, COD serves three market segments. Each segment has an adequate level of disposable income to pay for dance classes. The market segments are based on demographics and psychographic aspects. This plan recommends including a fourth segment to expand the market of potential customers.
1. Parents or caregivers of youth ages 3 to 11 seeking dance to keep a child active and fit. They recognize the benefits of dance instruction to self-expression, physical activity, and development of social skills. Introductory level dance classes incorporate games and fun while focusing on proper technique. The winter and spring shows provide a chance for the dancers to show off their talent on stage for their family and friends. This market segment is price sensitive and utilizes the COD Groupon promotions but is willing to commute to a studio that best suits their desires.
2. Parents or grandparents of preschoolers who are looking for ways to keep their child physically active and involved. This group is trying out a variety of activities to determine their child’s passion. Introductory level dance classes incorporate games and fun while focusing on proper technique. While seasonal enrollment is not encouraged, participants can discontinue classes with two-weeks’ notice. This market segment is not loyal to dance only; they seek convenience and economy. They utilize the COD Groupon promotions.
3. Parents or caregivers of youth ages six to18 years old who want to study ballet, love dance, or dream of becoming a ballerina. They recognize the benefits of classical instruction. Introductory level dance classes incorporate games and fun while focusing on proper technique using classical ballet terminology. As students progress, they have the option to take multiple classes each week to hone their skills. Upper-level classes include the history of dance, rigor, and opportunities for group and solo public performances. All dance classes are taught with a focus on proper technique using classical ballet terminology and history of dance is woven into upper-level classes. Private instruction is available. These customers are willing to drive long distances to get to the right studio.
4. ID Adults or older teens, their parents and care providers who seeking an activity to express themselves, gain fitness, and socialize. Dance classes will also give this segment a sense of belonging and accomplishment. The classes will be taught with a focus on proper technique and safety. Once folks with ID leave the public-school system, they either stay home, work, part time or attend a day facility. It is a challenge for care givers to find things to do with the individual. This market segment is willing to travel longer distances to find opportunities for activity and socialization. The cost of the class is not significant enough to deter this group from taking classes.
Product/Service Strategy
COD needs to take a differentiator strategy. The studio is currently positioned as a classical dance studio that values technique and discipline. The COD brand image conveys professional, classical, quality instruction from knowledgeable, experienced staff. Adding tap and jazz instruction, and camps offers additional opportunities to generate income and capitalize on the professional instruction offered at COD. Incorporating dance instruction for individuals with ID demonstrates a commitment to dance instruction and its benefits for all. Including ID students also positions COD as a place where diversity is embraced.
Currently, there are 12 dance classes scheduled which amount to about 12 hours of dance instruction per week and the dance studio facility is underutilized. Also, COD was closed over the summer vacation from June 15 until September 10, 2018. It is recommended that beginner Tap, beginner Jazz, and special needs dance classes be added to the schedule. Mini dance camps over school breaks will encourage continued enrollment in dance instruction and better utilize the facility.
The beginner Tap, and Jazz classes will appeal to younger dancers who are enrolled in Ballet 2-3. The suggested schedule allocates times during workweek on Monday and Thursday that these classes could be offered and not interfere with the ballet classes that the students may be enrolled in. Another option is a Saturday morning class. Saturday mornings work better than afternoons for families with young children. Afternoon classes cut into naps and limit family time. Classes may be small at the start but will fill up as more people learn about the classes. Continue to run small classes and maintain a positive experience for the students enrolled. Find ways to energize the dancers at the end of class, before they enter the parent waiting area. Keep in mind people want to be a part of something fun and exciting. After the Tap and Jazz performances in the Winter performance, more young ballerinas will be interested in Tap and Jazz lessons. Eventually, the classes will fill up, and more advanced classes should be added to the schedule.
A dance class for older youth and adults with intellectual disabilities (ID) fills a gap in the marketplace. Give the class a catchy name like
I CAN Dance!
The class should teach movement and self-expression to music and utilize routines that are easy to remember and perform. Target teenaged and adults with ID who live in Chesapeake, Norfolk, and Virginia Beach. This group of individuals and their care providers want to keep active but often there are not enough opportunities. A yearlong commitment may be too much to ask the customers to commit to until the program establishes a reputation within the community. Due to the nature of the student, allow students to sign up for a month of instruction at a time at the one class per week rate of $68 a month. It may take the individual a few weeks to decide if they like the class or not. A drop-in class structure doesn’t encourage weekly attendance and is difficult to plan for. Include the ID students in the Winter and Spring shows. Including them in the show will bring more people to the studio shows and increase the opportunity for word of mouth advertising among members of the community for both the I CAN Dance! class and the traditional ballet, jazz and tap classes. Friday evenings are perfect for this dance class. Some individuals with disabilities have concerns, fears and behaviors that can be a challenge for themselves and others around them. They may be more comfortable when there are no other classes going on in the studio. Offer this class year-round. Summer participation may wane, but consistency is important for people with intellectual disabilities. They like to have something to look forward to. There may be some ID students that desire ballet, but the target market may be hard to reach and too narrow start with. Once the initial dance class is established, offer a modified traditional ballet class to this population. Consider starting the modified ballet class in the Spring.
Offering camps during school breaks is an opportunity to increase loyalty, expand the customer base, and generate revenue when regular classes are not in session. Over the winter break between the Christmas and New Year holidays offer a week-long themed camp from 9 AM -12 PM. This class should be promoted to parents of children aged 5-10 but expanded based on interest. The dance classes will not require a background in ballet, so the dancer’s level of experience will not limit their ability to participate. Three hours of dance is a long time for this age group, break up dance instruction with games and a craft. Promote to current students and their friends. $165 for the week. On the fifth day, have a brief in-studio performance to show their parents what they learned. Post the performance on YouTube for friends, family, and prospective customers to see. Consider showing the performance live on Facebook and Instagram for those who cannot attend. Little ones do some funny things, you never know when a performance may go viral! Initially, the camp participation may be small. Providing an excellent experience will generate positive word of mouth advertising for the spring breaks and summer camps.
Summer camps are a popular way to expose children to a variety of activities. During the spring, parents start to look for summer activities for their children. Use Facebook and Instagram in addition to in-studio fliers to announce the summer schedule. It is important to plan ahead; working parents make summer camp reservations and daycare arrangements before school lets out for summer break. Give the parents incentive to register and pay in advance, 8-10% off the weekly rate. Varying the weekly theme encourages participation in multiple camps. If the children have a great experience at dance camp, the parents are more likely to enroll them in dance instruction for the following year. Suggested themes include:
· Around the World in 5 Days- group learns dances and movements from different regions of the world
· Dancing through the USA- each day the group learns dances and movements from different parts the United States
· Dance like and Animal- each day the group moves and learns about different animal species
· Fairy Tale Dance Camp- each day focuses on a specific fairy tale
· Under the Sea- each day the group moves like sea animals
Place Strategy
Dance instruction is offered at the COD studio located in the Marketplace Shopping Center, 4876 Princess Anne Road in Virginia Beach. Key members in providing quality instruction are well-trained and enthusiastic instructors. Classes take place in either the large studio or small studio. Each studio is fitted with mirrors and ballet barre. The large studio is larger and is better suited for high impact jumps and expansive floor routines. The smaller studio is used primarily for Ballet I and II classes.
Pricing Strategy
Utilizing a combination of status quo and value pricing, COD tuition rates are a good value. The bundle pricing for multiple classes makes taking additional classes affordable. Build loyalty by offering an 8-10% discount to all customers who wish to pay three months in advance. This strategy gives parents incentive to commit and pay ahead. Lowering the month instruction rate to compete with recital schools cheapens COD’s image. Consumers expect to pay a little more for a quality product. None of the studios that were researched offered an hour of dance instruction for $49, it is not a sustainable price when overhead and instruction costs are considered. A professional reputation is built by conducting business fairly and by giving people great instruction at a price the customer deams realistic. The customer always determines value so think like the parent who is paying for dance instruction. Classes must begin on time and run the full hour. Run classes as scheduled even if there is only one student present. All canceled classes are made up within a month if possible.
Promotional Strategy
COD will need to use a variety of promotional tools to create awareness, stimulate enrollment and to maintain loyalty. It is recommended that COD continues using Facebook, Instagram, and YouTube in addition to updating and rejuvenating their current website. A Yelp page and Google business page should be populated to help drive traffic to the COD electronic mediums. Each of the three social mediums has characteristics that will appeal to a variety of parents. A coordinated approach to drive web traffic from one touch point to another is needed. Electronic promotion will be supplemented with print advertising and publicity.
Digital Media Plan
Below is a Social Media plan of action organized by medium. The plan includes
upgrading the COD website, creating additional traffic drivers and maintaining the current COD social media accounts. Many of the activities will need to happen simultaneously. However, the first step is to update the COD website. Next, the Yelp and Google my business pages can be developed and finally, advertisements should be placed on Google and Yahoo as financially possible. The print advertising should be done according to the implementation plan outlined later in this document.
It is advised that the COD director be responsible for all social media and promotional materials. Getting started may be overwhelming so that enlisting help may be beneficial. Obtaining assistance to proofread and edit the website, Yelp, Google, and print content is advised. Consistency and careful coordination are important, so it is vital that all involved are reading for the same script. Yelp and Google have helpful web pages that guide business owners in setting up their business pages, so creating the Yelp and Google My Business pages will not be hard to do. Hootsuite is a free app that allows business owners to simplify and schedule their social media posts (Hootsuite, n.d.).
Develop Yelp Page and Google Page
· Claim a Yelp Page and add business details.
· Encourage current customers to leave reviews. Post the request in the studio and use Facebook and Instagram to link parents to the site.
· Build a reputation for listing and responding to customers. It demonstrates care and desire to improve. Respond to all reviews. Thank the reviewer for their input. Use unfavorable comments to make changes within the studio or as a chance to rectify a situation that caused the customer to be dissatisfied.
· Gather data by monitoring the number of views and traffic linked to the COD website from Yelp.
· Sign up for Google My Business
· Develop a free Google My Business page for potential student parents. Appendix D is what prospective customers see when they Google “dance.” COD is twelfth on the list of dance studios, and the Google description is uninviting.
· Populate the page with current business information and again, seek current customer reviews.
· Quickly respond to all reviews, positive or negative.
· Utilize Google business services to determine demographically and geographically who is looking at your information and when they are looking (Appendix P). This information would be used for in deciding if and where to advertise.
Continue to Utilize Facebook, Instagram, and YouTube
· Set a year-round goal to post engaging content at least three times a week on Instagram and Facebook.
· Use hashtags that are relevant to ballet and include those with all posts. This could lead to views from potential customers.
· The social mediums should work in concert with each other and be consistent. Make sure to suggest visiting the other electronic venues (website, Facebook, etc.) when making a post.
· Encourage COD teachers can create content and submit it to the director to be posted on Facebook, Instagram, and YouTube. COD teachers and helpers may not post pictures or videos of their COD students or classes on their personal social media accounts. However, they are encouraged to share official COD posts with their contacts.
· Use Facebook and Instagram to remind parents about upcoming events and payment deadlines for show fees, costume deposits, etc.
· Post a tuition reminder at the end of every month. Use a simple picture and a link to the payment page on the website. A monthly reminder will help minimize late payments and past due accounts.
· Invite parents not able to attend Parent Observation night to view the class via a live broadcast on Instagram or Facebook. Parents who cannot attend will appreciate the opportunity.
· Post brief videos of class progress on YouTube a few times a month. Promote visiting the video through links on Facebook and Instagram.
· Once a month, post a quick YouTube tutorial on topics of interest to dancers. These videos can demonstrate the quality of instruction and concern for proper dance technique at the COD. Sample topics:
· The proper stance for barre work
· A 5-minute ab work out for dancers
· Proper ballet hands
· Ankle strengthening exercise for pre-pointe
· Post a request on Facebook and Instagram for reviews on Yelp, Google My Business, and Facebook. Be sure to give them direct links to each page. Offer incentive and encourage immediate action by giving a reward like a free show ticket or a Wendy’s Frosty gift certificate. Seek out partnerships with other businesses in the shopping center to cross promote.
· Include information about social media presence on signage within the studio.
· Include a request to follow the COD on Facebook, Instagram, and YouTube on all written correspondence given to parents and their dancers.
· During the offseason or over breaks, use contests to keep the COD fresh in the customer’s mind and to build a sense of pride in being part of the COD. For example, a local orthodontics practice gives prizes to their clients who submit pictures of themselves smiling wearing their Savage, Sabol, and Visser T-shirt from tourist destinations around the world. Online Formals, a local party dress retailer, posts pictures of their customers as they leave the shop with their homecoming/prom dress in a pink bag (Online Formals, n.d.). The girls share the picture with their friends and family and spread the word about the formal shop.
·
Targeted
Facebook Ads are $1 per advertisement (Kromer, 2018). Use Facebook advertisements to promote dance instruction and camps to individuals in the targeted segments.
· Use Facebook, Instagram, and YouTube to promote Beginner Jazz and Tap. Announcements on Instagram and Facebook alerting current customers to the new classes. Canva offers free online software, images, and designs that small business owners can use to create professional looking social media posts and posters. Figure 9 is a sample of a clever post that could be used to stimulate interest and generate enrollment in the Tap class. Canva was used to transform a tap class photo from the COD Spring 2013 show into an image ready to post.
Figure 9. Sample Social Media Post
· Promote I CAN Dance! and the modified ballet class by linking to and following Facebook and Instagram pages for other groups that serve the ID community, for example, Special Olympics, The Arts Inclusion Group, and Capernaum
· A YouTube video of an I CAN Dance! class would earn lots of exposure as proud parents, participants, and family members will share the link.
Print Advertising
Place an advertisement in the Arts Inclusion Groups annual show program. Last year, advertising spots were sold for $25-50. The show held in Norfolk at the Masonic Temple on Granby Street. They have two performances and are usually close to sold out. The shows are musicals that feature individuals who have physical and intellectual disabilities. Dancing is a big part of the performance. Consider volunteering to choreograph and teach a few of the dance numbers. Not only is it a great way to demonstrate your qualifications as an instructor who can teach adaptive dance, but it is a way to give back to the community.
Use posters and fliers to promote COD classes and direct people to the social media platforms. Hang a poster at the local dance show, Jete’ announcing I CAN Dance! Hand out post card sized fliers at the annual Virginia Beach Holiday Parade encouraging the crowd to give the gift of dance. Utilize the glass windows of the studio to promote the new classes.
Publicity
While overall newspaper readership is down, it is wise to use all free venues to communicate with the public. In November, contact the local paper so see if they will do an article on the I CAN Dance! class and the winter show. People love to see stories about individuals who triumph over adversity. Annually, the Virginian Pilot complies a directory of summer camps. Last year, the deadline to submit information was early February.
Seek opportunities to participate in community events. The annual holiday is a great opportunity to demonstrate the benefits of dance instruction at COD. Prepare an announcement to be read by the parade hosts as the group performs at the grand stand. Continue to decorate the float with a COD banner, enlist the help of parents or youth to hand out fliers that contain the dance studio contact information and a call to action. Malls have kid friendly events for big holidays like Halloween, Christmas and Easter. Simple performances by young dancers or ID dancers draw crowds, provide performance opportunities for dancers and portray a commitment to inclusivity. Use the opportunity to promote the COD classes and camps.
Figure 10. Holiday Parade
Reach out to leaders of groups that serve the ID to promote the classes. Positive word of mouth advertising is key with the ID population. Enlist the help of satisfied customers and influencers to promote the opportunity.
Marketing Budget
Projected expenses related to this marketing plan are $4,000. The expenses include paying instructors to teach the new classes and camps. However, the expenses could be decreased if the studio director is able to teach some of the classes.
Implementation Strategy
The initial priority when implementing the recommended plan is to upgrade the accounts receivable process. Many of the communication activities will need to happen simultaneously. However, the next step is to update the COD website. Then, the Yelp and Google my business pages can be developed and finally, advertisements should be placed on Google and Yahoo as financially possible. Staggering the new class starting dates will allow time to promote and establish the Tap, Jazz and I CAN Dance! classes before running the camps and the modified ballet class. Below is a recommended marketing plan schedule.
Gantt Chart
Oct 18
Nov 18
Dec 18
Jan 19
Feb 19
Mar 19
Apr 19
May 19
Jun 19
Jul 19
Aug 19
Sept19
Oct 19
Transfer student accounts receivable to Quicken
Populate a Google business and Yelp page
Groupon Promotion
Update Website
Post content 3 times a week to Facebook and Instagram
Post 1 video a month to YouTube
Add Tap and Jazz Classes
Promote Tap, Jazz and I CAN Dance!
Add I CAN Dance!
Create fliers for parade
Holiday Parade
Develop promotional materials and start advertising
Winter Break
Dance Camp
Winter Break Dance Camp
Develop promotional materials and start advertising
Spring Break
Dance Camp
Spring Break Dance Camp
Add modified ballet class
Develop Summer camp schedule and promotional materials
Submit
Summer Camp
details to Virginian Pilot and run Facebook Summer Camp advertisements
Summer Break Contest
Evaluation
The overarching goal of marketing plan is to increase revenue from dance instruction. The ultimate measure of success will be monthly revenue.
Coordinating an active presence across YouTube, Facebook, Google, and Yelp will take time and dedication. To build relationships and trust, all comments, questions, and compliments must be responded to in a timely fashion. Tracking data to determine the most successful types of posts, keywords, etc. is time-consuming, but will lead to more efficient and effective use of social media in the future. Consistency is important and will help to build the differentiation that COD seeks.
Monitoring traffic to Facebook, Instagram and YouTube will help determine if customers are following and sharing COD posts. At first, it may be overwhelming to track data beyond the number of likes and followers but gathering data on viewer demographics and engagement will help to guide future social media plans. Facebook and Instagram offer data that could be used to track engagement. Facebook Analytics (n.d.) stated that business owners could “get a better understanding of who your users are through aggregated data like age, gender, city, and more.” Instagram analytics are a standard feature on business accounts track “data on engagement, impressions, audience demographics and more” (Jackson, n.d.). In addition to the analytics that the social media platforms offer, there are many free tracking services available to small business owners. While there is valuable information to obtain, it could be overwhelming for one person. Consider outsourcing data collection and analysis.
Data on class enrollment will be continually documented and reviewed to track new enrollments, and persistence. Monthly, enrollment needs to be documented so that sales projections and the budget can be adjusted. It is vital to make note of why students enroll and disenroll. Knowing the background behind attrition will help to fine tune marketing plans. This information can also be used to adjust the class schedules if a trend is detected. New customers need to be asked to explain how they found COD (see Figure 10). The registration form will include a section where the applicant can identify how they learned about the COD. The data will be gathered, sorted and analyzed to determine where our customers are gathering information and we will be able to determine what marketing tools are working best or how they could be improved.
Figure 10. How did you learn about us?
Accounting records will be reviewed by monthly to determine if the number of late payments and past due accounts have decreased.
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Associated
Expenses
Oct-18Nov-18Dec-18Jan-19Feb-19Mar-19Apr-19May-19Jun-19Jul-19Aug-19Sep-19
Targeted
Facebook Ads$20$20$20$20$20$10$20$20$20$20
Quicken 2018
Posters$50$50
Fliers- Parade$150
Fliers- Camps$75
Advertisement in
AIC Program$50
Jazz
Instruction$40$40$40$40$40
$40$40$40$40
Tap Instruction$40$40$40$40$40$40$40$40$40
Winter Break
Camp Instruction$300
Winter Break
Materials/Supplies$50
Spring Break
Camp Instruction$300
Spring Break
Materials/Supplies$50
Summer Camp
Instruction $600$600
Summer Camp
Materials/Supplies $75$50
I CAN Dance!
Instruction$40$40$40$40$40$40$40$40$40$40
Modified Ballet
Instruction$40$40$40$40$40
TOTAL Montlhy
Expenses
$20$190$640$120$220$215$530$170$180$775$750$100