Problem:
To define the strategy of Adrenaline Air Sports in order to stay competitive in the region and ensure the sustainable profit growths.
Competition:
Competition is not very big for this particular area of recreation ? skydive. The closest drop zone is about three hour drive which is quit far even for American standards. The price range for jumps and offered service is similar in all drop zones.
Symptoms:
- Target audience is not defined
- No professional approach in marketing
- Shortage of parachutes and bigger plane
Alternatives:
1. Professional marketing company should be hired to make clear and understandable advertising campaign.
2. Target audience should be narrowed to:
- Virginia Tech college students in Blacksburg
- People who come and stay at the Smith Mountain Lake
3. More used parachutes should be bought and one of the small airplane could be sold for future purchasing of bigger twin-engine propeller plane
Recommendations:
1. Marketing has been without strategy and everything has been done unprofessionally. Professional marketing company should be hired to make pushing advertisements at Virginia Tech College and area around nice Smith Mountain Lake to target college students and those people who has come for active recreation to the lake area. When we analyze sales of 2001 we can see that most revenue comes from beginners ? almost 2/3 of all sales and only 250 flights a year (500 beginners) were made with these people who jump with instructor. But in the same time veterans are making approximately 1400 flights a year (5500 jumps), but sales percentage from total is only 1/3. More energy should be spending to attract more beginners but not figuring out why people afte ...