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BACKYARD PUB: INFLATABLE IDEAS Case Solution & Answer

BACKYARD PUB: INFLATABLE IDEAS 

Consumers in between 25 to 44

The consumers falling in between of 25 to 44 years old were likely to prefer parties which include corporate parties, family events which might be around 40.7 %. Most of the revenue generated by the rental industry by targeting the group of consumers falling in between of 25 to 44 and having the strong buying capacity. According to the research, this range mostly comprises couples having the capacity to host various events which would cause the generation of enough profit for the rental industry. The company would have to focus on these consumers, which could generate the huge revenue for the company and with the proper business marketing strategies rental industry could expand their business by providing the versatile and qualitative services to their consumers.

Consumers 45 to 64.

The group of consumers falling in this group age had a second largest market where the industry could generate over 37 % of revenue by targeting the age group of 45-64. It is because these groups have strong buying capacities and having largest disposable income and rented party supplies for corporate events, birthday parties, family parties and other millstone events.

The most essential part to be a successful business in this industry is providing the satisfied services and operations to their consumers, so the retention of consumers would be ensure so industry can engage and target these group industry could successfully generate huge revenue and profitability.

Four Ps of Marketing

Marketing is the fundamental part of the business to target and generate the market value for the industry. The business can be expanded by applying various marketing strategies which strengthen the market of the company in the industry as compared to the other companies of the industry. The fundamental marketing strategies that aid the company in targeting the most desirable market include Price, Product, Promotion and Place.

Price

The BYP had different feasibility offers for their consumers so that they can easily avail the services of the industry. The three rental packages or offers include Package 1, Package 2 and package 3 whereas the package one was rented for approximately $475, the second package was rented for $650 while the last package was rented for around $700 for the period of 24 hours where the company had introduce a convince package which was purchased for around $75 only.

Product

BYP provided various qualitative services and operations within the affordable prices which aid the company in the retention of the consumers and the generation of new consumers across the country. As above mentioned the company offers three different rental packages consumers could easily avail the packages for 24 hours while having an option of purchasing convenience package for $75. While the process took approximately 10 minutes to set up and setting down the inflatable pub where the setting up and setting down were scheduled according to the consumer preferences. So by providing such quality of the services industry could successfully create the productive market place across the London.

Place

Thompson rented in the London within a radius of 30 kilometers that aid the company to reduce the cost of fuel and other transportation expenditures.  It would be the productive market for the company with the least expenditure while had the capability of generation of the profit and revenue to the company. So, it would be the best opportunity for the company to expand its business across the London by incorporating with the other companies of the industry.

Promotion

The promotion of the new set-up business would be expensive through online marketing, but it would be the best marketing platform to promote the business and could be productive for Thompson and his business. There are two fundamental methods to promote the BYPs business it might be CPC (Cost per click) or CPM method (Cost per thousand impressions) as Thompson considered various advertising platforms, including Facebook, Instagram, and Google AdWords and Canada post.

The best platform for the promotion of the BYPs is Facebook instead of other, platforms it is because Facebook owned Instagram where the founder could targeted various customers through this platform by spending the least coast as compared to the other platforms. Through the cost per thousand impression method and cost per click Method Company can promote their products through these methods on FB and Instagram. The users of the both population density of the customers on the Facebook and Instagram are higher than others so it would be the best opportunity for a company to generate and promote their business.

Recommendations

Since in this case it was stated that Thompson could consider the project workable if he could withdraw 10,000 in October and from the second year he could withdraw 4000 per month’s salary. According to the cash projections, it is visible that he could withdraw an amount of over 4000 in October and over 10,000 per month. So the project is workable for him. And he should invest in the venture.

Conclusion

The BYP’s inflatable supply chain is the versatile industry and it can generate profitable revenue for the company. As Thompson have lack of expertise and financial funds to start its business, but he have opportunity to collaborate with the other companies of the industry and could build a strong financial base. The main target of the company is a range of 30 km in the London which would help to reduce the transportation expenditures. The company has three packages to their consumers, having range of 18 to 69 years old. Whereas have various platforms to promote their business while the best platform to promote the business is Facebook and Instagram where the company could generate the dense market of consumers….

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