1) Identify the (most important) segment: (from previous post)
There are two typical demographic parameter groups that are attracted to the country club’s product:
Segment 1: 70% of the customers are wealthy NY/NJ Jewish "young families" with school-age children or younger who reside year-round
Segment 2: the remaining 30% are wealthy, NY/NJ Jewish “snow bird” couples who live active lifestyles so do not want to be around “a bunch of old people”
The most valuable segment is the “young families” segment because there are more people in the household they will spend more at the club, i.e. each person will be enrolled in activities at the Club, dinner for a family is a higher check average than for a couple dining, etc. Moreover, older couples, even if involved in daily sports and activities, still tend to spend less while in retirement.
2) Conduct research. You can interview the people in the marketing department, talk with managers, rely on your own personal experience, interview customers, etc.
There are two typical demographic parameter groups that are attracted to the country club’s product:
Segment 1: 70% of the customers are wealthy NY/NJ Jewish "young families" with school-age children or younger who reside year-round
Segment 2: the remaining 30% are wealthy, NY/NJ Jewish “snow bird” couples who live active lifestyles so do not want to be around “a bunch of old people”
The most valuable segment is the “young families” segment because there are more people in the household they will spend more at the club, i.e. each person will be enrolled in activities at the Club, dinner for a family is a higher check average than for a couple dining, etc. Moreover, older couples, even if involved in daily sports and activities, still tend to spend less while in retirement.
2) Conduct research. You can interview the people in the marketing department, talk with managers, rely on your own personal experience, interview customers, etc.
I told the General Manager about the assignment, and he told me to talk to our Direct of Membership and our Marketing Manager, who "know all about it" since it is key to performing their job functions. The marketing manager is responsible for targeting the desired customers and the Director of Membership is the one who interacts with customers to get the sale and builds relationships with the real estate agents.
3) Fill out the process. Simply describe each step of the process, just as you have done in the two "Case" exercises.
3) Fill out the process. Simply describe each step of the process, just as you have done in the two "Case" exercises.
[Need Recognition] The family finds out they have to relocate for work or they start their family so their need changes to either be near family or be in a family-oriented environment
[Information Search] The real estate agent assists with the information search. Most typically, we rely on the real estate agent to introduce the couple or family to the community. The club or the real estate agent can provide a tour of the club's facilities but only the agent can show the home. Whether we provide the club facilities tour or not, we are responsible for property always being "show-ready" and having up-to-date brochures of our property.
[Evaluation] They shop around before they buy because this is a big investment and life decision! We know that our potential customers go next door and look at the country club communities in the area. The real estate agent is going to show them all their options for the lifestyle they are looking for, and many are still in the same school zone. Shoppers need to know what each club offers and costs.
[Purchase] Our competitors are high quality clubs that have won the same quality awards that we have, but our product is differentiated as the "young club" so customers who decide to move in to our club are choosing based on community cultural fit. The ultimate decision of where to live is based most on how well the family feels they are a fit at the club than the house they are buying, since they have the financial ability to modify the home or demolish it to build the home they do want.
[Post-Purchase Evaluation] This goes on constantly while they live in the community. Every program they participate in, every time they eat at the restaurant, and every other product they buy, they evaluate whether they got their money's worth. They also visit the neighboring clubs as guests and as participants in our club's programs, such as our golf team playing against a neighboring club at their course. They are aware of what the other clubs have - the clubs they chose not to buy at - and want to make sure our community continues to be better than the evaluated alternatives. As club management we constantly collect member feedback and continue to use it to upgrade our facilities and modify our club products.
--> [Need Recognition] Something changes in the family that shifts their needs. The two most common reasons why our customers move out: (1) the adults enter into retirement planning and do not want the club lifestyle anymore, or (2) the family is required to relocate either due to work or to be near family elsewhere. Most our customers leave because of the first reason. As the kids grow up and move away, the parents are aging out of wanting to be committed to the high-cost environment of a residential country club and all the family-friendly activities that originally appealed to them for their children's benefit.
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