bowling club

8/9/2019 Bowling Club

1/68


2/68

Bowling Club

Vision Statement

For the sporting activity of bowling to provide the customers with the opportunity to

participate in a lifetime activity, that promotes the physical and mental well-being of

the individual and society as a whole.

Value Statements

The sporting activity of the bowling club is:

1. Member-based, service-oriented, participant-centered and volunteer dependent;

2. Accessible to people of all ages, skill levels and abilities;

3. Conducted in a safe and ethical environment

4. Organized effectively with collaboration and accountability

5. A contributor to community life in the Province;

6. Delivered by qualified leaders, and

7. Structured to encourage and foster relationships.

Pricing strategies

Pricing the product is a very complicated and a very sensitive issue the life of the

product or the service basically depends upon the factor of price the price should be

set realistically it should cover our expenses and should also attract the costumers thus

following are the pricing strategies that we will be using for our bowling club

We will be using the attacking pricing strategies:

1 premium strategy (high quality and high price)

2 medium value strategies (medium quality and medium price)

3 economy strategy (low quality and low price)

we will be using other pricing strategies as well to attract the costumers to the club as

well as to maximize the the ratio of our profits following is the list of other

marketing strategies that we will be using along with these attacking pricing strategies

2


3/68

Bowling Club

1 Special event pricing (pricing strategies related to events such as EID,

CHRISTMAS, VALENTINES,)

2 every day low pricing (pricing strategies related to days in a week)

3 Psychological pricing (the pricing strategies related to the psyche of the costumers)

Pricing objectives

1. Target market share. The objective for this strategy is to maximize market

share--sometimes at the cost of maximizing early profit.

2. Target return on investment. This strategy attempts to maximize the return on

investment.

3. Sales growth. This is similar to maximizing market share, except it is

expressed in the difference in sales over time.

4. Maximize long-run profit. This strategy is not dependent on making a quick

buck, but rather with making the most from a product during its entire life

cycle.

Annual fee Under 18 18-30 30-40 40-above

Diamond 5000 50 100 75 50

Platinum 2000 70 120 95 70

Gold 1000 90 140 115 90

The significance of the pricing according to the segmentation based on age is the

demographic analysis of Pakistan, which suggests that the most active group as far as

physical activity is concerned is between 18 to 30 years. The people over or under this

age dont have the schedule for physical activity

Taking a lineage of 50 (lineage is number of games per lane per day) at an average of

Rs 100 a game, an eight-lane center would generate Rs1.4 crore per year.

We will be using the combination and mixture of all the above mentioned strategies to

remain in the market and survive in the market.

Marketing strategies

3


4/68

Bowling Club

marketing strategies play a very vital role in the life of a product because by the

marketing strategies we make the people to know that this product exists in the market

and it is to create awareness among the people about the product .we will be using the

following marketing strategies to market our service of the bowling club

1. Bill Boards / Holdings

Put up as on pre-install billboards at different key locations.

Adam-G chock in front of KFC building, Rawalpindi

Traffic signal, in front of Pearl Continental, Rawalpindi

Top of Saeed Book Bank, Jinnah Super, Islamabad

Center Park, F-10 Markaz, Islamabad2. Banners

Jinnah Avenue to F-10 Markaz

Garrison Scheme to Katcheri chock

3. Broachers

Broachers would be distributed in different universities of Rawalpindi and Islamabad

through the institutes sports/related departments. The same will be distributed through

an extensive promotional campaign in front of universities/college and a few other

selective locations.

4. Internet Communities

Different Internet communities would be set to promote our service, like Orkut, Hi 5,

Yahoo chat rooms etc

5. Cable network commercials

Our commercial ad which is in the process of being shot these days will be run across

different cable networks in areas like Chaklala, Askari, Westridge, and Islamabad

SWOT Analysis of Bowling Club

Strengths

Location / Accessibility

4


5/68

Bowling Club

Committed employees

Attractive to diverse groups

Diversity in entertainment

Public Safety - Police and Fire

Architectural richness

Healthy environment

No competitor in Islamabad market

Customer focused

Latest technology

Weakness

Hours of operations

Lack of trained staff

Lack of exposure to this game

Opportunities

Educated population

Extending technical capability

Economic development

Ineffective competitor

Customer service staff need training

Starting of WTO

Threats

Inflexible market conditions

Retention of key staff

Increase in market saturation

Changes in government laws and regulations

New competitor in the same market

Time Duration

Timings Target Customers

11.00 am to 3.00 pm

Birthday parties,

School trips,

House wives only

3.00 pm to 6.00 pm Students only

5


6/68

Bowling Club

6.00 pm to 1.00 am All

Product mix

The proposed health club will provide the following services to its members:

Bowling Facility

Snack Bar

Juke Box

Refreshments center

Gossip centers

Market summary

We have the information about the market and the current situation of the market we

have information about the costumers and what are there needs and wants .and we

will use this information to improve our services day by day and to deliver the best to

our costumers. The market for game clubs in Pakistan has been developing steadily

over the last decade and a mushroom growth of Gym and clubs is being observed in

all the cities and even villages. Still a good potential exists for quality game clubs.

Pakistan is emerging as a newly health conscious society. Location and amenities are

some of the most vital factors in the success of any game club.

Target markets

1 recreational

2 fitness

3 extreme

4 fun

Market Demographics

The profile of the bowling club customer has the following demographics shown

in the form of a table.

6


7/68

Bowling Club

Population of big cities of Pakistan

Income statement

Year - I

7


8/68

Bowling Club

Revenue

Projected sales 5760000

Members fee 600000

Refreshment counter 5400000

Total 11760000

Less operating expense

Salaries 1296000

Utilities 1800000

Financial Charges 568,000

Depreciation 1,165,500Total 4829500

Operating Profit 6930500

Profit before taxation 6930500

Taxation 1039575

Profit after taxation 5890925

8


9/68

Bowling Club

1.5.2 Opportunity rationale

The factor that leads to the development of this pre-feasibility study is the fact that

very less number of people has access to gaming clubs under qualified

instructors/trainers. Great scope for these types of clubs exist in Pakistan especially in

urban areas where life is busy and people have less opportunities to find such places.

1.6 Project brief

The bowling zone will be providing services to entertain its customers. The proposed

bowling zone will provide the indoor facilities of indoor sport that is bowling.

Furthermore, environment of bowling zone and a refreshment center etc. will be

making this project a good place of enjoyment for male and female members. It willoffer professional instruction (personal training). Project should be centrally located

9


10/68

Bowling Club

to provide easy access to inhabitants. Brunswick, an international bowling solution

provider, will be installing all the equipment related to the bowling club.

1.6.1 Proposed business legal status

Legal status is suggested to be a sole partnership because it requires less legal

requirement to start with than a company. Similarly a lower rate of tax is applicable to

partnerships than that of companies.

1.6.2 Project Capacity and Rationale

The proposed health club will have an area of 7,500 sq ft hall at Jinnah Park

Rawalpindi, having covered/indoor facilities. The club will operate in differentsessions of the day like morning, afternoon, evening and night depending upon the

seasons and customer preferences. The club will have a capacity to cater 300

members, spread over in the following different sessions of the day:

Time Duration

Timings Target Customers

11.00 am to 3.00 pm

Birthday parties,School trips,

House wives only

3.00 pm to 6.00 pm Students only

6.00 pm to 1.00 am All

1.6.4 Product mix

The proposed health club will provide the following services to its members: Bowling Facility

10


11/68

Bowling Club

Snack Bar

Juke Box

Refreshments center

Gossip centers

1.6.5 Key success factors/Practical Tips for success

To obtain a good average of profits it is necessary to provide state of art facilities to

clients/members. The proprietor should himself must be having a little technical know

how of all the services being offered. The services of qualified trainers/instructors

should be hired as supervised workouts improve results. Utmost priority should be

to provide members a lifestyle that encourages entertainment through the safest and

latest means.

1.7 Strategic Recommendations

Marketing

Initially huge marketing campaign is required. Afterwards, regular campaign will be

followed to maintain market share. The important marketing channels would be flyer

distribution and Cable TV.

People normally consider the following factors while selecting a bowling club

Convenience

For any gaming club to be a success, it has to be conveniently located. People are

more likely to use a facility if it is in a good area of city with easy access. Also the

club facility should have hours and class times that work within clients busy

schedule.

Pricing

Price levels should be set at affordable levels for people who live in neighborhood and

also after considering the competitors price levels.

11


12/68

Bowling Club

1.8 Sector and Industry Analysis

1.8.1 National Analysis

Game clubs industry is emerging as one of the good business ventures in Pakistan.

People are getting conscious and aware about their health, fun and feel the importance

of recreation in the busy life. Currently bowling club industry is segmented and

unorganized excluding few bowling clubs. There is neither an association of these

clubs, which is working actively for the development of this industry, nor government

or health department/ministry has collected any data about the quantity and quality of

these clubs and made any quality laws/standards for these clubs like in other

developed countries. A lot of people are venturing into this trade and are exploring it,

as it is a flourishing business. Competition is healthy but these clubs do not cater to

the actual needs of the customers.

1.8.2 Legal issues regarding industry

No approval from any government or health or sports department is required in

Pakistan for operating a health and game club. In developed countries like USA there

are specific laws called States Health Club Laws that governs the health clubs is

USA.

Prevailing rate of income tax for sole proprietorship is in various slabs max 35%.

Rates are as follows:

1.8.3 Tax Rates1

Sales Tax is applicable on club services under Provincial Sales Tax Acts. The rate of

General Sales Tax applicable on club services is 15 % on all services.

12


13/68

Bowling Club

1.9 Market Information

1.9.1 Market potential

The market for game clubs in Pakistan has been developing steadily over the last decade and a

mushroom growth of Gym and clubs is being observed in all the cities and even villages. Still a good

potential exists for quality game clubs. Pakistan is emerging as a newly health conscious society.

Location and amenities are some of the most vital factors in the success of any game club.

1.9.2 Target customers

The target customers for game clubs are the population of big cities having age group

of 15 to 50 years. Population of urban areas of Pakistan is 33% of total population out

of which 50% falls in the targeted customers age group. Total estimated current

population of Pakistan is 150,863,000 1(151 million). It means clubs targeted

customers living in urban areas are 24,892,395 (25 million).

Following table gives the percentage of population of targeted customers (age group

wise).

1. Source:

Percentage of population of targeted customers

(age group wise)2

13


14/68

Bowling Club

Population of big cities of Pakistan3 1998 census

Huge market is available for new game clubs; it is the matter of creating awareness

only for which media is playing a positive role.

2. Source

1.10 Land and Building requirement

Land Requirement

The proposed bowling club requires an area of Approx 7,500 sq ft. Our group to start

club at rented premises rather at owned premises to avoid huge investment suggests it.

Distribution of acquired space

Description Square Feet Units Area

14


15/68

Bowling Club

Owners Office 120 1 120

Admin Offices 300 1 300

Instructor Room 100 2 200

Wash Rooms 35 3 105

Refreshment Center 2000 1 2000

Bowling Alleys 3500 1 3500Counters 150 4 600

Sitting lounge 675 1 675

TOTAL 7500

Construction cost

Current construction cost of club is approx Rs. 600 per square feet. Total construction

cost of 7500 square feet area will be Rs. 4,500,000/-.

Rent cost

The required building acquired on rent at Jinnah Park, it will cost around Rs. 100,000

to Rs. 150,000 per month in different proposed areas of the park.

Utilities requirement

The necessary utilities are electricity, telephone and water. A three-phase commercial

electricity connection is required. Current rate of electricity for these connections is

Rs. 7.00 per kilowatt-hour.

1.11 Human Resource Requirement

Skilled instructors are easily available at competitive salaries. Number of workers

required for each department is as follows

Department/Position Number Salary/month

(Rs.)

Annual Salary (Rs.)

Venue Managers 2 15000 360,000

Instructors 4 10,000 480,000

Helpers 4 3,000 144,000Cashier cum accountant 4 4,000 192,000

15


16/68

Bowling Club

Cleaners 2 2500 60,000

Peon 1 2,500 30,000

Security Guard 1 2,500 30,000

Total 18 1,296,000

SWOT Analysis of Bowling Club

Strengths

Location / Accessibility

Committed employees

Attractive to diverse groups

Diversity in entertainment

Public Safety - Police and Fire

Architectural richness

Healthy environment

No competitor in Rawalpindi market

Customer focused

Latest technology

16


17/68


18/68

Bowling Club

Economic analysis

Pakistanis are more energetic and love to play games both indoors and outdoors. Due

to increase in inflation rate, spending power of people suffers. This lack of spending

power and increase in interest rate has also affected the bowling games activities. Dueto the devaluation of rupee, Pakistani market has reduced its attractiveness for the

foreign investors. These foreign clients get low return on their investment. Therefore

this devaluation affected the entertainment sectors like bowling alleys. Also, in

Pakistan, money market is not an organized sector. Business activities of entertainers

can increase with the establishment of strong money market in Pakistan.

Social analysisThere is comparatively less awareness among people about indoor games like

bowling. People do not know how to play, how to use the services. Due to this lack of

awareness and education, indoor gaming clubs did not flourish as much, as it could.

With the increase in the number of entertainment clubs, firms are becoming more

customers oriented. They know how to attract new and how to retain old one. People

are becoming more interested in establishing new business. This emergence of new

business environment has very possible effect on these clubs. The customer data base

is increasing day by day.. As general public awareness and interest regarding business

environment has increased, so we can see many new business and commerce

institutes for business education. Now, better-educated and competent work force is

available for different firms & companies. Moreover, people are becoming more

aware of these clubs.

Technical analysis

Due to the availability of Internet and other networks, customers today can play

games on computers using LAN networks. Current updates can be seen directly using

Internet. These networks also help research department to come up with new

technology and innovative ideas of proper utilization of these technologies.

Computerized data base also facilitate the work of these entertainment clubs to

maintain a proper data base of their customers, to know about their playing behaviors,

to know about their buying decisions and much more. More accurate and efficient

information can be obtained because of these databases. Because of satellite network,

18


19/68

Bowling Club

up dated information from international companies for e.g.. Brunswick and Bowling

Alley Operator Association etc are accessible within fraction of minute. This up-dated

information is a competitive edge in the industry as these clubs becomes more

competitive by having this information.

2.3 Ansoff Matrix

To portray alternative corporate growth strategies, Igor Ansoff presented a matrix thatfocused on the firms present and potential products and markets (customers). By

considering ways to grow via existing products and new products, and in existing

markets and new markets, there are four possible product-market combinations.

Ansoff matrix provides four different growth strategies:

Market Penetration the firm seeks to achieve growth with existing products

in their current markets, aiming to increase its market share. The market penetration

strategy is the least risky since it leverages many of the firms existing resources andcapabilities. In a growth market, simply maintaining market share will result in

19


20/68

Bowling Club

growth, and there may exist opportunities to increase market share if competitors

reach capacity limits. However, market penetration has limits, and once the market

approaches saturation another strategy must be pursued if the firm is to continue to

grow.

Market Development the firm seeks growth by targeting its existing products

to new market segments. This option includes the pursuit of additional market

segments or geographical regions. The development of new markets for the product

may be a good strategy if the firms core competencies are related more to specific

product than to its experience with as specific market segment. Because the firm is

expanding into a new market, a market development strategy typically has more risk

than a market penetration strategy.

Product Development the firm develops new products targeted to its existing

market segments. This strategy may be appropriate if the firms strengths are related

to its specific customers rather than to the specific product itself. In this situation, it

can leverage its strength by developing a new product itself. In this situation, it can

leverage its strength by developing a new product targeted to its existing customers.

Similar to the case of new market development, new product development carries

more risk than simply attempting to increase market share.

Diversification the firm grows by diversifying into new business by

developing new products for new markets. It is the most risky of the four growth

strategies since it requires both product and market development and may be outside

the core competencies of the firm. In fact, this quadrant of the matrix has been

referred as the suicide cell. However, diversification may be a reasonable choice if

the high risk is compensated by the chance of a high rate of return. Other advantages

of diversification include the potential to gain a foothold in an attractive industry and

the reduction of overall business portfolio risk.

20


21/68

Bowling Club

2.3.1 Analysis of Bowling Club

In Ansoff matrix the business would be placed in the market development segment.

Launching this bowling club captures a new market. We would be targeting a new

market segment. Offering different unique services would sever this new market

segment. In addition to this, the product, which is already present in the market,

would be introduced. This gives us a benefit that people already will be aware of this

game. They will be familiar with the fun part of the game. Launching the same game

in the new market by following differentiation strategy will provide us many benefits.

The advantage for the company of this strategy is that it does not need to invest in

new product development - the main expenditure will be in the area of marketing and

sales. This will reduce the risk associated with new product development.

2.4 Pricing Strategies

Establishing Pricing

21


22/68

Bowling Club

Price enables us to make the appropriate margins to run a successful business--over

the life cycle of the product (not always up-front). It is also a means of distinguishing

our offering from those of competitors--positioning. In addition, the price is a tool for

communicating with customers and influencing the way they buy. The four

components of a pricing program include

Objectives

Strategy

Structure

Price

Pricing Objectives

There are over twenty pricing objectives that we might consider. Following are four

that I typically concentrate on:

5. Target market share. The objective for this strategy is to maximize market share--sometimes

at the cost of maximizing early profit.

6. Target return on investment. This strategy attempts to maximize the return on investment.

7. Sales growth. This is similar to maximizing market share, except it is expressed in the

difference in sales over time.

8. Maximize long-run profit. This strategy is not dependent on making a quick buck, but rather

with making the most from a product during its entire life cycle.

While developing your pricing strategy, it is important to remember that there is an

implicit relationship between price and value .We expect to pay more for gourmet

food than for fast food and for a luxury car than for an economy model. At the same

time, value is a matter of opinion, not fact.

2.4.1 Analysis of Bowling Club

22


23/68

Bowling Club

For our project we have decided to select Penetration strategy. This strategy allows

offering higher quality at lower price. The reason to select this strategy is that we have

to compete with the industry to gain market share. Secondly, for long run advantage

we can meet economy of scales.

As the economies of scale will be achieved, the company will be earning more profiton the same cost invested. Since variable cost consists of a limited portion of the

investment. Company will be having rights to change the pricing strategy in the future

by considering several market factors and its own established brand name.

2.5 Competitors Analysis

Analyzing ones competitors helps an organization decide about what strategies are

going to be followed by it in long-term and short term. By looking at thosecompetitors, a firm can decide that what are the discounts that would be being offered

23


24/68


25/68

Bowling Club

2.6 Porters 5 forces Model

The Five Forces model of Porter is an Outside-in business unit strategy tool that is

used to make an analysis of the attractiveness (value) of an industry structure. The

Competitive Forces analysis is made by the identification of 5 fundamental

competitive forces:

The aspects that this model covers are1. Entry of competitor

2. Threat of substitutes

3. Bargaining power of buyers

4. Bargaining power of suppliers

5. Rivalry among the existing players

25


26/68

Bowling Club

Description

1. Entry of competitor

How easy or difficult it is for new entrants to start competing, which barriers do exist.

A segments attractiveness varies with the height of its entry and exit barrier. A

segment with high entry barrier and low exit barrier is a best and suitable choice. In

case of our bowling alley the entry barrier is high because of

It is a capital-intensive project. It requires large capital investment approximately

2.75 million in our case

Less established market of bowling in Pakistan

Less customer awareness and aptitude toward the game

Target segment of customers is limited

Exit barrier is high because of high capital investment.

When both entry and exit barrier are high, profit potential is high but firms face more

risk because poor performing firm stay in and fight it out. So for the bowling club

both entry and exit barriers are

2. Threat of substitutes

It describes how easy a product or service can be substituted, especially made

cheaper. A segment is attractive when there is less number of available substitutes.

26


27/68

Bowling Club

Profits are high in this case. Matching these lines with the description of our bowling

alley results in less number of substitutes because

High risk involvement

Close monitoring of price Less competition on the market

As bowling is a game of its own type and a very few number of substitutes are

available in the market. It is indoor game so indirect substitutes can be table tennis,

squash, polo etc.

3. Bargaining power of buyers

Bargaining power of buyers refer to how strong is the position of buyers. Can they

work together in ordering large volumes? A segment is attractive when the buyerspossess a weak bargaining power. Buyers bargaining power grows when there are a

greater number of substitutes available. But in our case there is less number of

substitutes that results in lower bargaining power of our service users. Our approach is

developing superior offers that strong buyers cannot refuse.

4. Bargaining power of suppliers

It tells us how strong the position of sellers is. Do many potential suppliers exist or

only few potential suppliers. When looking from this perspective we find out that our

only supplier is Brunswick. So its bargaining power is high. Our supplier tends to be

more organized and for us less choices or substitutes are available. In our case the cost

of switching suppliers is high.

5. Rivalry among the existing players

It refers to the level of competition between existing players in the market. In our case

the level of competition is really high. The existing competitor of our bowling club is

Hotshots. It has been operating in Islamabad since last 5 years. It is no doubt a

dominant player but not that much that it couldnt be defeated.

27


28/68

Bowling Club

2.7 AIOD Framework

28


29/68

Bowling Club

29

Need Activities Interests Opinion Demographics

Style

Working executives,

Social people,

Students, Better off,Music,

Foreign Tours

Formal, Hip hop,

Trendy,

Get-togethers,Newspaper,

Culture,

Community

Peer Pressure,

Education,

Status,Conscious,

Ambitious

Age: 18 35

FLC: Single,

Married, Full NestII,

Light to Medium

Users

Fun

Students, Bachelors,

Independent

Chatting,

Infotainment

Movies, Music,

Parties

Hip, trendy

Friends and Family

get-togethers

Internet, TV,

Magazines

Strivers,

Image,

Conscious,

Education,

Friends

Age: 15 25

FLC:

Single,

Light Users

Relaxation

Business executives,

Better off,

Independent

Movies, Music,

Partiesroad trips, foreign

countries

Formal,

Friends and Family

get-togethers,

Foods

Internet, TV,Business

Magazines

Ambitious,

Energetic,

Authoritarian,

Politics

Age: 28 40

FLC:

Married, Full Nest

II,

Medium Users

Ambience

Working Class,

executives, Students,

Bachelors

Parties

Trendy, hip

Traveling, friend

get-togethers

Internet, TV,

Magazines

Peer Pressure,

Politics,

Culture,

Future

Business and

Social Issues,

Education

Age: 18 40

FLC: Single,

Newly Married,

Full Nest I,II

Medium Users


30/68

Bowling Club

2.8 AIOD Analysis

The needs that we have identified in our AIOD Framework are Style, Fun, Relaxation

and Ambience. There are people in the world who have different moods, behaviors,

lifestyles, shared values and belief. Its really hard to cater the needs of people of

every mood. But the most common needs that are common in them according to us

fall in the categories as given above. Youngsters mostly visit entertainment club for

style because it is the most in thing. Visiting these clubs and going out for bowling is

considered as an activity of high class. The interests of these customers are reading

newspapers, looking for what is new in the market for them, going with the changing

trends, hanging out with friends. The opinion that influences the decisions of these

people is their peers.Second need identified is people searching for fun in every moment of life that passes

by them. They want to remember every single moment. They like to be independent,

watch movies, go out for parties and listen to music that soothes them. Their common

interests are sitting together with their family and enjoying those moments, sharing

fun moments with their friends and family over the Internet, reading to magazines and

watching television. These people are also influenced by the opinions of their friends

and peers. These people are mostly light users.

Relaxation is yet another need that cannot be neglected. People from the age of 28-40

are mostly worried about their fitness. They focus on how much of their calories are

burnt while they play games and to forget their worries and have less mental stress.

Mostly business executives and independent people lie in this category. They have

interests of reading business magazines, using Internet for carrier progression and

update news related to their jobs and attending family get-togethers. These people are

ambitious, energetic and authoritarian.

Last but not the least important need is ambience. People like to have a good

environment to relax them self. To feel young and have the same energy and passion

to do things as they had when they woke up. Working class mostly comes in this

category of need. People having this need mostly like traveling and going to different

places and watch the colors of life associated with the light. Peer pressure, business

and social issues influence these people.

30


31/68

Bowling Club

2.9 McKinsey's 7S framework of Bowling club

Most of us grew up learning about 'the 4Ps' of the marketing mix: product, price,

place, and promotion. And this model still works when the focus is on product

marketing. However most developed economies have moved on, with an ever-

increasing focus on service businesses, and therefore service marketing.

To better represent the challenges of service marketing, McKinsey developed a new

framework for analyzing and improving organizational effectiveness, the 7S model:

Hardvariables:

Strategy:The direction and scope of the company over the long term.

The direction of the our bowling alley is to grow, retention satisfied customers,

creating brand name

Structure: The basic organization of the company, its departments, reporting

lines, areas of expertise, and responsibility (and how they inter-relate).It will include

organization reporting lines, geography, etc.

Systems: Formal and informal procedures that govern everyday activity,

covering everything from management information systems, through to the systems atthe point of contact with the customer (retail systems, call center systems, online

31


32/68

Bowling Club

systems, etc).The decision-making systems within the organization can range from

management intuition, to structured computer systems.

Softvariables:The 4Ss across the bottom of the model are less tangible, more

cultural in nature, and were termed 'Soft Ss' by McKinsey.

Staff: The Companys people resources and how they are developed, trained,

and motivated.

Staff means that the company has hired able people, trained them well and assigned

them to the right jobs. We are going to hire highly committed staff. Provide them

with necessary training if required. Align their performance with companys goals inorder to achieve efficient results and their proper utilization..

Style: The leadership approach of top management and the company's overall

operating approach. Style refers to the employees shared and common way of

thinking and behaving, leadership style. The behavior of managers when interacting

with the staff and customers would be flexible and friendly. Managers would focus

on creating a healthy atmosphere within the club to make the customers feel relaxed

and satisfied.

Skills: The capabilities and competencies that exist within the company. What it

does best.

The club provides the best customer service and ambience. The employees have the

skills required to carry out companys strategy.

Shared value: The values and beliefs of the company. Ultimately they guide

employees towards 'valued' behavior. We will guide employees towards 'valued'

behavior.

32


33/68

Bowling Club

2.10 Financial Analysis of the Bowling Alley3

Cost is the value of inputs that have been used up to produce something, and hence

are not available for use anymore. In business, cost may be one of acquisition, in

which case the amount of money expended to acquire it is counted as cost. In this

case, money is the input that is gone in order to acquire the thing. This acquisition

cost may be the sum of the cost of production as incurred by the original producer,

and further costs of transaction as incurred by the acquirer over and above the price

paid to the producer. Usually, the price also includes a mark-up for profit over the

cost of production

Taking the installation and alley costs into account, eight lanes cost roughly Rs 2crore (inclusive of duty at 55 per cent). With air-conditioning, pro-shop, amusements,

fast-food/cold drinks counter also included, the capital cost works out to

approximately Rs 3 crore. Some of the key points for the investment in setting up a

Bowling Alley are:

The investment is capital intensive only at the outset.

Once the center is built, the assets maintain their value for two decades or more,

so the business requires little ongoing working capital.

Bowling is essentially an all-cash business. Cash flow from bowling, shoe rental

and food and beverage is immediate.

Profitability is very high.Pre-tax profits in many places can be 30% or more of

revenue.

In emerging markets, payback on Initial investment is often reached in as little as

1 to 2 years.

Variable costs associated with bowling center operations are so low that gross

profit can be more than 90%.

Once the centers relatively fixed operating costs are covered, incremental sales

go straight to net profits. Little or no inventory is required, allowing for maximum

use of space and capital.

3. Source: Based on research through Internet and market surveys

33


34/68

Bowling Club

3.1 Market positioning strategy

All marketing strategy is built on Segmentation, Targeting and Positioning (STP). A

company discovers different needs and groups in the market place, targets those needs

and groups that it can satisfy in a superior way, and then position its offering so that

the target market recognizes the companys distinctive offering and image. If a

company does a poor job of positioning, the market will be confused as to what to

expect. If a company does an excellent job of positioning, then it can work out the rest

of its marketing planning and differentiating from its positioning strategy.

Positioning is the act of designing the companys offering and image to occupy a

distinctive place in the mind of target market. The end result of positioning is the

successful creation of a customer-focused value proposition, a cogent reason why the

target market should buy the product or avail the service offered.

Positioning starts with a product. A piece of merchandise, a service, a company, an

institution, or even a person . But positioning is not what you do to a product.

Positioning is what you do to a mind of the prospect. That is, you position the product

in the mind of the prospect. (Saying: Rise and Trout)

3.1.1 Functional Level Strategy

Initially to grasp rapid market share of the market the functional level strategy

selected for our bowling club is differentiation.

This strategy is selected because offering unique services to the customers always

have a successful impact on the business. This strategy will be achieved by following

different parameters that are illustrated follows.As it is discussed that positioning plays a vital role in making any project successful.

The differences in the positioning strategy make it possible for the business to be

successful. The concept of bowling club is basically lying on differentiation strategy.

In order to survive in the competitive market, to attract and retain customers, to be a

trend setter in the market there should be distinctive features offered by the club to be

successful. The marketing strategy of our firm will be mainly focusing upon those

distinctive features offered by our club. These features will help us to gain

34


35/68

Bowling Club

competitive edge on our competitors. To attract the customers by offering then

services which are second to none.

We have considered following criterias to make our service differentiated from our

competitors.

Customer care: Our customers are our top most priority. Customers are highly

valued entity in our plan. Customer satisfaction will be focused while considering that

positioning as well as marketing strategy. Although this factor is considered by every

organization or service provider but our mission will be to be the number one in this

market by ensuring provision of quality customer service. This all will be achieved by

creating complete integration between the employees as well as empowering the

employees. Feedbacks and customer complaints will be followed properly and

problems will be eliminated on the top most priority.

Distinctiveness: The service will be offered in a distinctive way. The ambience,

employees outlook, furniture, textures will be a class in its own way. Even the venue

selected for the club is distinctive in many cases (described in the place analysis).

Equipment installed by the Brunswick which is an American based firm having

expertise in the bowling will be an added distinction. No other bowling club in the

Pakistan is offering the equipment offered by Brunswick.

Superiority: The difference is superior to other ways of obtaining the benefit.

Superiority will be the key element of service offered. Our bowling club will be

creating a brand image of its own class and style. People will be feeling it a superior

place to visit and to hang out.

Preemptive ness: All the services and features offered by our bowling club will

be preemptive. We will be making our features hard to be copied by our competitors

in order to maintain a competitive edge. The competitors can copy the technology,

ambience and many other features. But the way these resources are utilized and

manipulated and utilized can never be copied. In order to make our services

preemptive we will be concentrating on the ways these services are offered.

Affordability: The bowling club will be specifically considering the

affordability of our customers. In order to gain market share and to make place in the

competitive market the affordability will be used as a tool. Initially to attract

maximum number of customers the price of tickets and membership fees are set a

little bit low as compared to our competitor. This only aims to attract customers from

35


36/68

Bowling Club

maximum range of income groups so that the bowling club becomes more popular in

lesser time. Charging low price doesnt mean that we will be sacrificing on the quality

of service provided to the valued customer. This strategy is only adapted to attract as

much number of customers as we can.

Profitability: The goal of any business is to be profitable. All the distinctive

features offered would be ensure the maximum profitability of the business. The

pricing strategy will also be set to meet this factor in an efficient manner. If all the

plans made to make the business successful the club will be able to cover the cost in

only a short time of two years.

36


37/68

Bowling Club

3.2 Competitive AnalysisDescription of the Model4

This matrix examines how an organization might gain a competitive advantage. It

measures relative costs and the degree to which the organization can differentiate its

products/services from those of its competitors.

Maintain Specialty Outstanding

Success

Hope for Growth

Market

Maintain Cost

Advantage

Differentiation: HighRelative costs: High

Differentiation:HighRelative Costs: Low

Differentiation: LowRelative costs: High

Differentiation: LowRelative costs: Low

Indicates a specialtycompany thatmarkets unique

products at premiumprice.

Outstandingopportunity forsuccess. Freedom tocompete at any

price.

You have high costsand a commoditytype of product. Theonly hope forsuccess is rapidgrowth of themarket.

Your products orservices are muchlike yourcompetitors'. If youcan maintain yourcost advantage, youcan compete well asthe lowest cost

producer.

Maintain Specialty Outstanding Success

Hope for Growth

Advantage

Maintain Cost Advantage

37

Bowling Club

Competitive Advantage

D D

E I H

G F I

R F G

E E H

E R

E

OF NT

I L

A O

T W

I

O

N

High Low

Relative Cost


38/68

Bowling Club

4. Source: Model selected from

3.3 The BCG Competitive Advantage Matrix5

The Boston Consulting Group (BCG) has distinguished four types of industries based

on the number of available competitive advantages and their size.

Volume Industry: One in which company can gain only a few, but rather large,

competitive advantages. Profitability is correlated with company size and market

share.

Stalemated Industry: One in which there are few potential competitive

advantages and each is small. Companies can try to hire better salesperson, entertain

more lavishly but these are small advantages. Profitability is unrelated to company

market share.

Fragmented Industry: One in which companies face many opportunities for

differentiation, but each opportunity for competitive advantage is small. A restaurant

can differentiate in many ways but end up not gaining a large market share. Both

small and large restaurants can be profitable or unprofitable.

We have put ourbowling club in the fragmented industry. The reasons are

There are many opportunities for differentiation. New product

lines and new services can be introduced to the customers as business

starts expanding. The ambience, services or game offered can be

increased in variety of ways.

Opportunities for competitive advantages are small because the

bowling club is offering a game, basic ingredient of which will remain

same.

Specialized Industry: One in which companies face many differentiation

opportunities, and each differentiation can have a high payoff. Among companies

making specialized machinery for selected market segments, some small companies

can be as profitable as some large companies.

38


39/68

Bowling Club

5. Source: Matrix studied from Marketing Management by Philip Kotler

Volume

Specialized

Stalemated Fragmented

Differentiation Variables

The following variables will be considered to gain competitive advantages.

Services Personnel Channel Image

Ordering ease

Delivery

Installation

Customer consulting

Competence

Courtesy

Credibility

Reliability

Responsiveness

Communication

Expertise

Performance

Symbols

Atmosphere

Events

39

BowlingClub

Number of Approaches to Achieve Advantage

Few ManySI

Z

E

LARGE

OF

A

D

V

AN

T Small

A

G

E


40/68

Bowling Club

Services differentiation

The key to competitive success may lie in adding valued services and improving their

quality. The Bowling Club will be differentiated through number of parameters

selected to ensure success. Ordering Ease

Ordering ease refers to how easy it is for the customer to place an order with the

company. In our club there will be a sequence of six counters that will ensure the

ordering ease. The counters will be designed in such a way that all the pricing menu

of the club should be visible to the customers. Furthermore, four counters will ensure

that customers dont have to wait for a long time even in the busy hours.

DeliveryDelivery refers to how well the product or service is delivered to the customer. It

includes speed, accuracy, and care attending the delivery process. Each and every step

designed for the launching of the bowling club ensures the in time delivery of services

with quality. Specialized event arrangement like birthday parties etc. will be available

to the customers of the bowling club. This will add to the net revenues of the firm as

well as the customer serviceability.

InstallationInstallation refers to the work done to make a product operational in its planned

location. Differentiating at this point in the consumption chain is particularly

important for our company. All the installation will be done by Brunswick to ensure

the utilization best possible equipment available in the global market and availability

to error free operations.

Customer consulting

Customer consulting refers to data, information system, and advice services that the

service provider offers. Training of customers is the major emphasis of the club. And

to provide customer consultation expert instructors of the market will b hired which

will help the customers to learn the game.

Personnel differentiation

Human resource has always remained a source to gain competitive advantage. Better-

trained, loyal and professional people boast up the organization like no one can. Thefollowing factors are identified to gain professional differentiation.

40


41/68

Bowling Club

Competence

Competence deals with the required skills and knowledge of employees.

Courtesy

They are friendly, respectful, and considerate. Credibility

They are trustworthy.

Reliability

They perform the service consistently and accurately.

Responsiveness

The employees respond quickly to customers request and problems.

Communication

They make an effort to understand the customer and communicate clearly.

Employees training and development will fulfill all above criteria. Which will done

by the parent company installing the equipment.

41


42/68

Bowling Club

3.4 Product Life Cycle (PLC) marketingstrategies

A companys positioning and differentiation strategy must change as the service

provided, product, market, and competitors change over time. The concept of PLC

and the normal changes as the product or service passes through each life cycle stage

is asserted into four stages

1. Service or product has limited life.

2. Sales pass through distinctive stages, each posing different challenges,

opportunities and problems to the provider.

3. Profits rise and fall at different stages of the product life cycle.

4. Requiring different marketing, financial, manufacturing, purchasing, and

human resource strategies in each life cycle stage.

PLC Graph

Introduction Growth Maturity Decline

The bowling club in the maturity phase will be offering new product lines and

services. For example, new indoor games can be introduced, new food items in the

snack bar, extension of building to provide other features. This is planned to have

continued growth and to maintain the market share.

42

S

A

L

E

S

and

P

R

O

F

I

T

S

Introduction of new services


43/68

Bowling Club

Summary of product life cycle characteristics,

objectives and strategies

Characteristics Introduction Growth Maturity Decline

Sales Low sales Rapidly risingsales

Peak sales Decliningsales

Cost High cost per

customer

Average cost

per customer

Low cost per

customer

Low cost per

customer

Profits Negative Rising profits High profits Declining

profits

Customers Innovators Early

adopters

Middle

majority

Laggards

Competitors Few Growing

number

Stable

number

beginning to

decline

Declining

number

Marketing Objectives

Create product

awareness and

trial

Maximize

market share

Maximize

profit while

defending

market share

Reduce

expenditure

and milk the

brand

Strategies

Advertising Building

awareness

among early

adopters and

dealers

Build

awareness

and interest in

the mass

market

Stress brand

differences

and benefits

Reduce to

level needed to

retain hard-

core loyal

Sales

promotion

Use heavy sales

promotion to

entice trial

Reduce to

take

advantage of

heavy

customer

demand

Increase to

courage brand

switching

Reduce to

minimal level

3.5 Perceptual Maps6

Perceptual mapping has been used as a strategic management tool for about thirty

years. It offers a unique ability to communicate the complex relationships between

43


44/68

Bowling Club

marketplace competitors and the criteria used by buyers in making purchase decisions

and recommendations. Its powerful graphic simplicity appeals to senior management

and can stimulate discussion and strategic thinking at all levels of all types of

organizations.

Perceptual mapping can be used to plot the interrelationships of consumer products,

industrial goods, institutions, as well as populations. Virtually any subjects that can be

rated on a range of attributes can be mapped to show their relative positions in

relation both to other subjects as well as to the evaluative attributes. Perceptual maps

may be used for market segmentation, concept development and evaluation, and

tracking changes in marketplace perceptions among other uses.

Perceptual mapping involves two steps:

1. Data collection: We completed this phase by marketing research through

questioners and interviewing different bowling players (see market research

questioner in the appendix).

2. Data analysis and presentation. The data provided by questioners is analyzed

to complete perceptual maps (see market research analysis result in appendix).

Attributes with similar characteristics

Group 1 Group 2 Group 3 Group 4 Group 5

Availability Brand name Technology Ambience Entertainment

Location AdvertisementCustomer

Service

Interior

DesignLuxurious

Scaling: 1-8

1- Worst

8- Best

6. Source: Data about hotshots collected by visiting and interviewing their employees

3.5.1 Description

Group 1

Attributes

Bowlingclub

Hotshots

44


45/68

Bowling Club

Availabili

ty

4 6

Location 6 6

The customers mostly target entertainment centers like Hotshots and bowling club

during the evening and night. Availability refers to the timings for which these centers

are available for entertainment. The timings should be adjusted such that maximum

profitability is achieved by eliminating overhead cost related to utility bills and others.

Bowling club, with respect to location is located at the most suitable place for it.

Jinnah Park has a wide parking space and it captures wide variety of people because

of various recreations spots within it. In location, according to our analysis bowling

club is located at a good place.

In case of location both have been equally rated because Hotshot is also located at a

good place in Islamabad, where as Bowling club is also located at a place where it can

grasp greater attention. With respect to availability Hotshots is given higher rates

because people at Islamabad mostly like to hangout late at nights where as in

Rawalpindi, it is the other case around.

Group 2

AttributesBowling

club

Hotsho

tsBrand name 5 6

45


46/68

Bowling Club

Advertisem

ent

6 4

Hotshots, the first mover in introducing bowling in Islamabad initially grasped a wide

range of customers reference questionnaires analysis - it was creating a brand name

and could excel in it as at that time there was no competitor. But the management

thought that being only the first mover creates a brand name. They did not go for

proper advertisementand smoothly lost their goodwill and customers. Bowling club is

not following the same lines. As per our analysis, people are still very much interested

in bowling as a game. Targeting the customers of Rawalpindi market in particular and

of Islamabad in general requires a great effort that can only be achieved through

proper advertisement.

Group 3

Attribute Bowling Hotsho

46


47/68


48/68

Bowling Club

Attributes Bowling

club

Hotsho

tsAmbience 5 4Interior

Design

6 5

Interior design matters a lot to the customers. For a person who has never visited the

club, an outlook is a first positive impression on him. Hotshots design is too simple.

At the same time, it has not enough space for the customers to sit and chat for a while.

Customers over there have to keep on standing in cases when it is crowded with

people. It also lacks in ambience. Blue lights glow within the club, which according to

our analysis does not create soothing effect.

Bowling club, with respect to its design has been designed using the help of energetic

designers and architects that have an experience of designing clubs. The factor of

ambience was also under the consideration of management because they believed an

ambient and healthy atmosphere with in the club results in overall satisfaction of the

customers.

Group 5

Attributes Bowling Hotsho

48


49/68

Bowling Club

club tsEntertainm

ent

6 5

Luxury 6 6

The overall reason of existence of the bowling alley is entertainment. People today, in

this busy world are looking for more places to have fun and enjoy. Clubs like

bowling, try to focus on providing maximum level of entertainment. Bowling club has

a very small edge of entertainment over Hotshot because it is providing a meeting

launch for people to relax themselves and at the same time it is also providing a space

for youngsters to play computer games on LAN network

49


50/68

Bowling Club

3.6 BCG Matrix for Competitor

After a critical analysis about the relative market share and sales growth rate;

according to our analysis we have placed Hot Shot Bowling Alley at Cash Cow

(High share, Low market share). Bowling Alleys in Pakistans market particularly in

Rawalpindi/ Islamabad market is a business with a high profit. The reason for the

profit in entertainment sector is because of increasing awareness among the people

and trend towards bowling as a game. The advantages of these activities on

individuals life .The choices and preferences of people to choose the places to chill

out are changing dramatically. People are more attracted towards western cultures

because of changing trends. Thus they are now attracted by places like bowling alleys

with more western environment.

50


51/68

Bowling Club

3.7 Marketing Objectives

To thrive in today's competitive climate, it is imperative to have a competitive edge

over your competitors. Planning, organizing, leading and controlling ones operations

effectively and efficiently is the dream of every organization on this earth. Focusing

on every single aspect and finding new ways to achieve high customer satisfaction

and profits are also one of the key factors.

The objective of marketing is to set out what the business is trying to achieve. Mostly

these objectives are set out that concerns business as a whole and sometimes there are

specific objectives for marketing activities. These objectives should state exactly what

is to be achieved, should be measurable so that it is possible to determine whether it

has been achieved, should be realistic given the circumstances in which it is set andthe resources available to the business, should be relevant to the people responsible

for achieving them and last but not the least they should be set with a time-frame in

mind i.e. these deadlines also need to be realistic

As discussed, marketing objectives for the Bowling club are also almost the same.

They also follow the SMART criteria. The ultimate objective of our marketing

campaign is to achieve high volume of profits and at the same time creating

awareness among the people of the game. The measurement of these goals is done be

looking at the sales and increase in customer base over regular interval of time. These

goals are no doubt realistic and if worked whole-heartedly can be achieved. The

deadlines to achieve these goals would be set to see how far the marketing objectives

have been achieved.

Marketing objectives would help the Bowling club to stand in front of its competitors.

Hotshots, pioneer in launching this game in Islamabad region. The ways adopted by

us would include going for an effective market survey through general and specific

questionnaires, looking for what additional services do the customers desire and to

come up with innovative ideas to provide them with the best value of their money.

51


52/68

Bowling Club

4.1 Marketing Mix

Marketing decisions generally fall into the following four controllable categories:

Product

Price

Place

Promotion

Marketing mix includes product planning, pricing, branding, distribution channels,

personal selling, advertising, promotions, packaging, display, servicing, physical

handling, and fact-finding analysis. The purpose of the Marketing Mix is to help

develop a mix that will not only satisfy the needs of the customers within the target

markets, but simultaneously to maximize the performance of the organization.

For Bowling club, the marketing mix encapsulates:

1. Product

Making decision about the product that is going to be marketed comes first. As

we are not offering products rather providing services, so our target would be

focused more towards service decisions. The variety services that we are

offering under one roof include bowling game in particular and in general a

small meeting launch where individuals would relax them selves, have space

to discuss the hot up to date issues and the latest trends and changes happening

in accordance to their own interests. Focusing on maximum customer

satisfaction and providing our loyal customers with hygienic environment that

adds value to their health would focus the quality of the service. Interior

design would be in accordance to the latest designs that most of the successful

bowling alleys are having today. Safety of our valuable customers would be

ensured. Customers would be given on time general know how of how to play

the game and a brief over view of how does this game adds value to their

health. We would be focused towards providing superior service and

improving quality and performance over time.

52


53/68

Bowling Club

2.Price

Pricing is the most important factor determining cash inflows to cater for the

cash outflows. It helps in keeping the company liquid and availing operatingprofit that would be crucial for survival of the company. Pricing can also be

used for achieving the companys competitive advantage. Due to huge fixed

costs, the idea is to use the facility as frequently as possible so that the cost

gets divided over more number of customers

3.Place

The business must have a location that it can afford, and that is convenient andsuitable for customers and any supplier. Place decisions are those associated

with channels of distribution that serve as the means for getting the product to

the target customers. The distribution system performs transactional, logistical

and facilitating functions. The place that we have selected for our service-

providing center is Jinnah Park in Rawalpindi. It is the best available place for

providing entertainment for people of all ages. With in the premises of the

park there are giant food providing restaurants like McDonalds and Papasellis.

Presence of these would help us attract customers.

53

Venue of project Selected Site

EnvironmentBeauty of venue

Relaxing Place


54/68

Bowling Club

4. Promotion

Promotion decisions are those related to communicating and selling to

potential consumers. Since these costs can be large in proportion to the

product price, a break-even analysis is performed when making promotionsdecisions. It is useful to know the value of a customer in order to determine

whether additional customers are worth the cost of acquiring them. While

promoting the service, we assume that the bowling club has a whole battery of

effective promotion tools to stimulate more customers. In our case, the

purpose of the marketing is to provide better services to more people more

often for more money in order to make profit. We are going to promote our

club according to pull promotional strategy. Proper advertising is also done in

order to create more awareness, make customer base, and brand name.

Friendly relationship with Jinnah Parks management and with fast food

restaurants available in the park would be a major move of our promotional

campaign.

54


55/68

Bowling Club

5.1 Pricing

Pricing is the manual or automatic process of applying prices to purchase and sales

orders, based on factors such as: a fixed amount, quantity break, promotion or sales

campaign, specific vendor quote, price prevailing on entry, shipment or invoice date,

combination of multiple orders or lines, and many others. Automated systems require

more setup and maintenance but may prevent pricing errors.

As per the analysis of the primary research we conclude the following key points:

Only five percent of the people dont have budget for out door entertainment but

seventy six percent people have budget for out door sports.

Seven Percent people dont have budget for out door entertainment because they

dont have time on the other hand forty four percent people dont have budget

for out door sports. This leads to the analysis that people judge sports to be more

time consuming activity compared to general entertainment.

Forty percent of the people have never played bowling

Majorities dont play the game because they dont know the rules of the games.

The other reasons for not playing include high pricing and unavailability of

timings.

Most of the people think that bowling is an exciting game and is a recreational

activity.

Forty percent of the people dont even know where the bowling alleys are located.

Now based on the above analysis of the primary research we can easily judge that

current pricing per game is not affordable for the people so price needs to be low inorder to attract more people.

Secondly since most of the people dont go out alone, multiple games discounts can

be offered to the customers.

The pricing model is mentioned below:

Since the current rate per bowling game is Rs.300 and the discounted rate is Rs.200,

bowling club will have a standard rate of Rs.150 per game.

Discounts on the family membership can be offered to the customers as per the

pricing mentioned in the table below:

55


56/68

Bowling Club

Annual fee Under 18 18-30 30-40 40-above

Diamond 5000 50 100 75 50

Platinum 2000 70 120 95 70Gold 1000 90 140 115 90

The significance of the pricing according to the segmentation based on age is the demographic analysis

of Pakistan, which suggests that the most active group as far as physical activity is concerned is

between 18 to 30 years. The people over or under this age dont have the schedule for physical activity

Taking a lineage of 50 (lineage is number of games per lane per day) at an average of Rs 100 a game,

an eight-lane center would generate Rs1.4 crore per year. Average is taken to be Rs.100 because we

anticipate memberships to be sold which would decrease the average compared to the standard of

Rs.150.

56


57/68

Bowling Club

5.2 Projected Profit and Loss statement

Year - I Year - II

Revenue

Projected sales 5760000 6336000

Members fee 600000 660000

Refreshment

counter5400000 5940000

Total 11760000 12936000

Less operating expense

Salaries 1296000 1360800Utilities 1800000 1890000

Financial Charges 568,000 522,560

Depreciation 1,165,500 1,165,500

Total 4829500 4938860

Operating Profit 6930500 7997140

Profit before taxation 6930500 7997140

Taxation 1039575 1199571

Profit after taxation 5890925 6797569

57


58/68

Bowling Club

5.3 Projected Balance Sheet

Year - 0 Year - 1 Year -II

Fixed Assets

Bowling

equipment

15,000,00

0

14,325,00

013,650,000

Building 5,400,000 5,157,000 4,914,000

Furniture and

fixtures2,500,000 2,387,500 2,275,000

Air conditioning

plant

500,000 477,500 455,000

Pre-operational expenses 2,500,000 2,387,500 2,275,000

Total fixed assets25,900,00

0

24,734,50

023,569,000

Current Assets

Security deposit 1,000,000 1,000,000 1,000,000

Advance rent 1,800,000 NIL 1,800,000

Cash in hand 1,200,000 9,488,425 9,238,009

Total currentassets

4,000,000 10,488,425

12,038,009

Net Total29,900,00

0

35,222,92

535,607,009

Owner's Equity

Capital 22,800,000 22,800,000 22,800,000

Accumulated

ProfitNIL 5,890,925 6797569

Long Term Loan 7,100,000 6,532,000 6,009,440

58


59/68

Bowling Club

Net Total29,900,00

0

35,222,92

535,607,009

59

5.4 Projected Cash Flow

Year - I

Profit before Financial

Charges & Taxation

Depreciation

Cash from other sources

Owner 22,800,000

Bank Finance 7,100,000

Total Sources 29,900,000

Applications:

Fixed Assets 23,400,000Preoperational Expenses 2,500,000

Working Capital 4,000,000

Re-Payment of Loan NIL

Tax NIL

Total 29,900,000


60/68

Bowling Club

5.5 Break Even Analysis

60


61/68

Bowling Club

5.6 Implementation

About Brunswick7

61


62/68

Bowling Club

Equipment installation for bowling club is outsourced to Brunswick and

international firm of bowling.

Its almost impossible to trace the rise of bowling without simultaneously

documenting the rise of Brunswick. From the very beginning, bowling and Brunswick

have shared the same path. Brunswick founder John Moses Brunswick played an

integral part in the birth of the game by building a company dedicated to taking games

like billiards and bowling out of fancy Victorian parlors and into the public arena.

Moses Bensinger (married to Eleanora Brunswick, daughter of John Moses

Brunswick) had a vision for the modern game of bowling. He standardized rules for

the game and organized the first American Bowling Congress in 1895, which held the

first significant bowling tournament in 1902. The ABC became a prominent fixture in

competitive, professional bowling, and is responsible for developing the professional

game and global appeal of the sport as it is known today.

Brunswick has contributed directly to the global growth of bowling by opening the

first bowling center in Moscow in 1976. It has also established a technological and

manufacturing presence that reaches around the globe from its state-of-the-art

research and development facilities in Muskegon, Michigan, to its pinsetter

manufacturing plant in Szkesfehrvr, Hungary, to its sales and support resources in

Hong Kong, China.

During the past century, Brunswicks passion for the game has never wavered.

Brunswick has always been dedicated to improving both the tenpin game and the

experience around it. Brunswick has continually worked to grow bowling on a global

scale and has helped to create the $10 billion industry that it is today.

In the last 100 years, Brunswick has known that the future of bowling, and the

bowling experience, depends on the success of its partnership with center investors

and owners like you. Thats why Brunswick is the worlds leader in building new

centers and modernizing existing centers. Today Brunswick is the bowling industry's

premier full-line, full-service provider. And only Brunswick offers a complete and

comprehensive network of products and services designed to assure your new centers

complete success and continued profitability.

7. Source:

5.6.1 Interior Design

62


63/68

Bowling Club

This bowling alley design allows for 8 lanes, plenty of seating for talking, observing and food storagespace and it's all within one dome.

63


64/68

Bowling Club

This bowling alley design features 8 bowling lanes, a snack bar, lounge and meeting rooms

which can all be observed from the control desk in the center of the dome.

64


65/68

Bowling Club

65


66/68

Bowling Club

66


67/68

Bowling Club

6.1 Promotion Strategies

Following are the different means we intend to use for our service promotions:

1. Bill Boards / Holdings

Put up as on pre-install billboards at different key locations.

Adam-G chock in front of KFC building, Rawalpindi

Traffic signal, in front of Pearl Continental, Rawalpindi

Top of Saeed Book Bank, Jinnah Super, Islamabad

Center Park, F-10 Markaz, Islamabad

2. Banners

Jinnah Avenue to F-10 Markaz

Garrison Scheme to Katcheri chock

3. Broachers

Broachers would be distributed in different universities of Rawalpindi and Islamabad through the

institutes sports/related departments. The same will be distributed through an extensive promotional

campaign in front of universities/college and a few other selective locations.

4. Internet Communities

Different Internet communities would be set to promote our service, like Orkut, Hi 5,

Yahoo chat rooms etc5. Cable network commercials

Our commercial ad which is in the process of being shot these days will be run across different cable

networks in areas like Chaklala, Askari, Westridge, and Islamabad.

6. Demo competitions

To generate a general awareness a friendly competition will be held towards the end

of the first month of operations between different colleges of Islamabad and

Rawalpindi and organizations, which are willing to participate.

7. F.M Ads

Audio Ads would be run on F.M 89 between 8am to 9am and 6pm to 7:30pm.

References

67


68/68

Bowling Club

1. Mr. Tauseef Zaman

Director New DevelopmentBrunswick International, United Kingdom.

2. Col. Rahid AliReal State ManagerJinnah Park, Rawalpindi

Electronic references

http://www.brunswickbowling.com/planning

http://www.britannica.com/ebi/article-9273315

http://ks.essortment.com/figureskatingh_rlzl.htm

http://www.iass.com/bus.html

http://www.ten-pinbowling.com/about_TenPinBowling.htm

http://www.referenceforbusiness.com

http://www.smeda.org

http://www.bowlingalley.walkerart.org http://www.abc.net.au

Books

Marketing Management by Philip Kotler

Principles of Marketing by Kotler and Armstrong

Marketing Management by Micheal R. Czinkota and Masaaki Kotabe

bowling club

Documents