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A Service Marketing Plan for Star City Philippines Presented to Mr. Jose Luis Liongson Marketing Department De La Salle University – Manila in partial fulfillment Of the final course requirements In Service Management Submitted by: Aw, Brandon Jon Francia, Mikhail Goldwyn Martinez, Jesus Mao Soriente, Miguel Alberto MARKSEV K32

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Page 1: Star City MARKSEV

A Service Marketing Plan for

Star City Philippines

Presented to

Mr. Jose Luis Liongson

Marketing Department

De La Salle University – Manila in partial fulfillment

Of the final course requirements In Service Management

Submitted by:

Aw, Brandon Jon

Francia, Mikhail Goldwyn

Martinez, Jesus Mao

Soriente, Miguel Alberto

MARKSEV K32

April 7, 2014

Page 2: Star City MARKSEV

OUTLINE:

I. Executive Summary

II. Scope & Limitations

III. Industry Analysis

IV. Current Company/ Brand

V. Competitive Analysis

VI. TOWS analysis

VII.TOWS matrix (Max, min, avoid, watch out)

VIII. Porter's Analysis

IX. Fishbone Diagram

X. Goals and Objectives

XI. Target Segment Description

XII. Target person profile

XIII. 8 P's

XIV. Flower of Service

XV. Investment Plan

XVI. Estimates of profitability

A. Appendices

Page 3: Star City MARKSEV

I.              Executive Summary

Second to the market leader in an industry which is slowly turning into

irrelevancy, Star City Amusement Park is often plagued with problems coming from both

internal and external forces which spell doom for the company unless active measures

are taken. These are highlighted by doubts about the park’s safety as well as an

apathetic Public Relations team who seem to have other concerns not related to the

wellbeing of the company. Recognizing this by way of surveys sent out to potential

customers as well as actual inspection, the group devised methods by which Star City

can once again be relevant in the industry. A return to former glory is worked towards

and this includes a retrofitting of the park itself, highlighted safety measures, and an

entirely new Public Relations team hereby known as the “Star Friends”. With these

changes the group hopes to once again capture the interest and wonder of the broad C

customers as well as possibly entertaining more diverse individuals in the future.

II.            Scope & Limitations

The analysis and subsequent marketing plan was conducted in order to

determine the overall (financial and reputational) health of the amusement park, Star

City, with respect to the current industry and competitive market. Most of the research is

directed towards the expected consumer base (families under socioeconomic class C2

to C1) and this data was gathered by a bevy of research collection methods such as

personal interviews, online surveys, customer testimonials from various online review

websites. The study is further directed to cover brand awareness, usage, reputation,

Page 4: Star City MARKSEV

competition, and others as a basis for recommending future potential actions that may

improve the brand in all its aspects.

This study however also comes with its own limitations as the set-up plan is only

covered to primarily benefit and increase customers from the aforementioned

socioeconomic class C1 to C2 and specifically to those located within the Greater Metro

Manila area. A minimum of thirty respondents were approached by way of a survey to

form the base of the public opinion and a UAI (User-Attitude-Image) method - minimum

of 30 respondents -  while further supplementing the results with OLS regression.

III.           Industry Analysis

Officially part of the Personal and Recreation Industry, the smaller amusement

park industry have long been a regular option for locals and foreigners

Star City is part of the theme park industry in the Philippines. Its main competitor

is Enchanted Kingdom. It also used to compete with Boom na Boom before its closure.

To a lesser extent, it also competes with Manila Zoo.

Star City’s target market is families from socioeconomic class C and D. Families

from class A and B very rarely go to Star City. Most of these families have gone abroad

and visited other theme parks. They have a higher standard for theme parks and will not

patronize Star City. There are two main groups that go to Star City, families with young

children (aged 7-15) and young barkadas (aged 16-21.) Customers come from all over

Metro Manila and even from provinces to the north and south of Metro Manila.

Page 5: Star City MARKSEV

This industry is seasonal. The most profitable season for theme parks is

Christmas season, beginning December all the way to New Year. This is because C

and D class are receiving their 13th month bonus and have extra spending power. They

are looking for ways to celebrate Christmas with their young children. Last Christmas

Day of 2013, Star City management estimated at least 30,000 customers for that single

day. Theme parks are also profitable during schools’ summer break period from April to

June.

IV.          Current Company/Brand Situation

Made into fruition by media mogul Fred J. Elizalde back in 1991, Star City

(officially under the company Star Parks Corporation) was made it into an independent

park after it separated from Toys and Gift Fair in Pasay. Since then it had been

providing fun and enjoyment to the people from kids to adult through their rides, arcade

games, mini games, food and etc with great accessibility. They expanded their park

through having snow world and laser tag. Star City is very well known in the market of

Filipinos and normally associated with the broad C market. Normally, SEC A, B and

upper C, go to Enchanted Kingdom since they have the budget to go there and

transportation is more readily available to most of them. There are no other branches of

Star City. They are very accessible since they can be accessed through riding public

transportation which immensely benefits the masses

Page 6: Star City MARKSEV

With Fred Elizalde helming this company as well as the adjacent Manila

Broadcasting Company and Aliw Theater, he regularly relies on subordinates to deal

with the inflow of work-related projects. The hierarchy proceeds as follows:

        Star City has an entrance fee of 65php with no rides included. They have a 3 ride

ticket which amounts to 360 and a ride-all you can that amounts to 420. They have

additional exclusive rides and facilities offered like laser tag for 100php, snow world for

130php, scream adventure for 120php and zip adventure for 100php. As one may

observe, Star City’s business model is wholly based around providing the greatest

amount of freedom/options for the consumer to maximize his costs while trying to keep

it as low as possible. It is based around the structure of profiting from bulk sales by

customers who recognize the affordability of the product.

        Establishing and sustaining an amusement park in Manila is not as easy as it is.

There’s a high financial barrier that has to be overcome by the owner in order to start up

Page 7: Star City MARKSEV

the amusement park business. Sustaining is another problem, since amusement park is

not a daily need of any market. There are some amusement park like Boom na Boom

that didn’t manage to survive the market. However, Star City, which had built a name in

the industry of amusement parks, remained in the industry for already 23 years even in

the midst of the seasonality of the amusement park sales.

V.           Competitive Analysis

Product

Offerings

Pricing

Strategy

Location Promotions

Enchanted

Kingdom

Child-centric

Rides and

Attractions;

Traditional

Amusement Park

Promotional

Pricing

(P500+)

Santa Rosa, Laguna

(developing

provincial location)

The Bay Family-centric

Attractions and

Tourist Spot

Promotional

Pricing

(P500-)

Manila Bay -

Seaside Boulevard,

Pasay City (highly

developed flatland

near key business

sectors)

Manila

Ocean Park

Aquatic Zoo,

Child-centric

Promotional

Pricing

Luneta, Metro

Manila (bay area

Page 8: Star City MARKSEV

Attractions, and

Social Hub

(P500++) near key business

sectors)

The original main competitor of Star City as far as amusement parks are

concerned would obviously have to be Enchanted Kingdom and their status as the

market leader in the industry. With an approximate 80% preference rating among the

public for the park  in a survey held a few years ago (symbianize.com, 2010),

Enchanted Kingdom has long held the title as the best amusement park in the whole

country.

Located in the Santa Rosa area approximately 29 kilometers from the Metro,

customers usually have to take an hour-long trip to get to the park as compared to a

relatively shorter time for Star City. These customers have all been observed to lie

somewhere around social class C2 (skilled manual workers and their families) and this

is something that is inherently shared with Star City as similar groups have been

observed in the area. Rides and attractions here are quite similar to the ones in Star

City but it seems that these are more geared towards attracting individuals of a lower

age bracket as compared to a relatively more mature theme for Star City

(smartparenting.com, 2012). Also coming with this is the fact that it is more expensive to

go to Enchanted Kingdom not only because of travelling costs but the costs of

admission are also more expensive than the promos offered by Star City. As of writing,

the weekday and weekend rates for children (36”-47”) are P250 and P350 respectively

Page 9: Star City MARKSEV

while adult rates are P500 and P600. Children below 36” enter free and unlike Star City,

there is no rate for entrance (no rides)

Apart from Enchanted Kingdom, recent developments by the SM Development

Corporation has also led to the rise of another amusement park located near the Mall of

Asia. Known as the The Bay amusement park, it is a small park recently established as

part of an expansion project by the SMDC  and runs the length of about 1.5 kilometers

along the bay. Rides here follow the traditional theme of small amusement parks with

offering such as bumper cars and Tilt-A-Whirls while their flagship ride is the MOA Eye

(considered to be the tallest Ferris Wheel in the Philippines). Prices are relatively cheap

as they charge 50 pesos for regular rides, 100-120 pesos for larger rides, and 150

pesos for the MOA Eye (depending on seasonality). This is especially dangerous for

Star City due to its proximity to a large consumer base by way of the nearby Mall of Asia

as well as the easy accessibility it offers to potential park goers.

There are also alternative sources of family-centric entertainment in Manila which

comprises the indirect competition and this is primarily represented by Manila Ocean

Park. With a similar entertainment value present here plus the fact that prices here are

based on industry standard, establishments such as this have high potential in stealing

possible park attendees.

VI.          TOWS Analysis

Page 10: Star City MARKSEV

Despite its lagging status as one of the country’s premier amusement parks

located in the Metro, Star City still can rely on a few key strengths based on its offerings

for the past few years. Like with any amusement park this would rely on a fairly

extensive variation of attractions to be offered to the public. Ranging from rides to

stages and everything and between, this is the basis of their family-centric experience

which they work to promote. Another strength that then comes from this which is the

large target market they have which naturally stems from having a product which

appeals to the whole family. Apart from having rides which provide entertainment for all,

the offerings also have to specify to specific target markets to provide a varying range of

products as well as maximize the enjoyment of each individual. Another strength they

have would be the relative flexibility of their park packages which more or less give you

freedom of which rides you want to go to and which ones you don’t. This was targeted

for the consumers which want to maximize their cost as well as somewhat bring it down

while still allowing them to enjoy the amenities of the park. So far, this has been

successful in bringing in patrons. And finally, its last strength lies in their proximity to

major residential and commercial areas which mean that the accessibility  of the park

serves as a major draw for these people because of these ease in commuting here as

well as the convenience of going to a park so close to work the public works and lives.

Their internal weaknesses are also similarly numerous as the administration

seems to make suspect choices which might have little basis. The first is their late

opening time (earliest is at 2 PM) which primarily alienates the morning crowd looking

for entertainment options. They don’t really have to start at 7 AM in the morning but 2 in

Page 11: Star City MARKSEV

the afternoon seems to throw away a prime time period of profit in the lunch hours

between 12-1. Another weakness is, like most amusement parks, their reputation for

safety isn’t very stable at the moment. Not only are there stories of accidents coming up

every once in a while, the administration also seems to not do anything to counter these

allegations. Their customer relations page have, in this aspect, become so lazy or non-

existent that their last online posts have come from at least 3 years ago. There is

absolutely no online presence kept. And finally, their attractions (and more specifically

the rides) have a general feel of being unkept and largely outdated. Efforts to update

their offerings are very minimal and this is starting to show the age of the park.

The industry in general has a large number of opportunities which they can tap

onto due to their lack of any major movement in the past few years. First would have to

concern the large amount of development occurring in their surrounding area. With

malls, concert grounds, and casinos popping up in areas quite close to the park, they

can tap into this influx of consumer traffic by highlighting itself as the only amusement

park in the area which markets itself to the whole family. This is largely in part to the

rising disposable income of the Filipinos which therefore increase expenditures for

wants and luxuries. If they manage to convince the public that this is a competitive

choice compared to all the offerings around them, it can prove to be financially

successful for the company. This is primarily possible by banking on several brand

expansion opportunities available to them such as in the online sector (which they failed

to tap despite the youth being a huge part of their market) as well as other possible

aspects such as merchandising. Finally, they can also concentrate on the acceptance of

Page 12: Star City MARKSEV

corporate partnerships of tourism destinations with ticket agencies in the past. With this

not only will they bring in the local market but there is also the opportunity to tap in the

local ASEAN market as well.

The external threats also connect with the company’s strengths because it has

something to do with its proximity to local entertainment options such as casinos and

malls. Although it brings in a huge number of individuals to the area, there is also the

danger that the existing customers of the park would rather explore these newer places

rather than stay in the park. This increase in competition would actually then serve to

bring down the overall number of park patrons and if not taken care of, would cause the

downfall of Star City.

For our maxi-maxi strategies which highlight the maximization of our

opportunities with respect to our strengths, the first suggestion would be to use targeted

advertising to highlight its family-oriented offerings to the nearby public. We feel that this

is its main differentiation from its main points of competition and should be highlighted

by the company. The next is to promote their packages through its campaign to

highlight the cost benefits that they’ll be able to experience by going to the park. Apart

from their ad campaign, they should also work on key sponsorship partnerships with

travel agencies (and tourist sites) to highlight its status as a travel destination as well as

concentrating on improving its park offerings to back up their claims as a legitimate

travel destination.

Page 13: Star City MARKSEV

The maxi-mini strategies then highlight on minimizing its weaknesses based on

its opportunities and we feel that the main thing to work on would be forcing the park to

start earlier to accommodate the influx of the morning crowd during weekends as well

as the lunch-break crowd which occurs all week round. This is a main source of

profitability which is regularly unconsidered and we feel that it should be a main profit

point for the company if they want to stay competitive. Another main point to employ

would be to highlight the safety of their park by updating the public of the security

measures and protocol which the company regularly does in order to put down any

doubts and stories of accidents which may come into the public eye. The last strategy

for both weaknesses and opportunities is to increase of the effort of their customer

relations department in order to not only remain transparent of their activities but also

drum up interest for the park.

Working on threats with respect to the park’s strengths is the main point of our

mini-maxi strategies and the first is to highlight the differentiating factors of Star City

with other main points of competition such as other amusement parks and

entertainment centers. The point here is to highlight the park’s competitiveness and

show the viability of the park as an alternative means of entertainment which is easily

available to the public. Of course, the end goal is to show that Star City would be the

best choice overall. More specifically, the company would have to highlight its family-

friendly atmosphere as well as its cheap rates compared to these other entertainment

options.

Page 14: Star City MARKSEV

The last would consist of the mini-mini strategies and this looks to highlight the

minimization of both the internal weaknesses and external threats of the company. The

previous strategies have already touched on our suggestions and it looks to edit the

opening hours of the park to accommodate the earlier crowd as well as highlight the

safety features of the park which is a very important consideration point for its public.

Also, increasing public visibility in all necessary mediums such as the internet is

essential in order to earn the trust of the public.

VII.         TOWS Matrix

Strengths

S1 - Flexible park packages

(option to choose specific

rides to minimize cost)

S2 - Large target market

S3 - Varied attractions and

offerings

S4 - Proximity to major

residential and commercial

areas

Weaknesses

W1 - Late opening times

(earliest time is at 2 PM)

W2 - Negative reputation

concerning safety

W3 - Outdated attractions

W4 - Lazy customer relations

Opportunities

O1 - Increasing

potential consumer

base around its

Maxi-maxi

S2S4O1 - By way of targeted

advertising, highlight family-

oriented fun to the increasing

Maxi-mini

W1O1 – Take advantage of the

increase of potential

consumers by shifting the

Page 15: Star City MARKSEV

immediate area

O2 - Increase in

disposable income for

Filipinos

O3 - Potential brand

expansion (online,

alternative

entertainment

opportunities, etc.)

O4 – Recent

partnerships of

tourism centers and

ticket agencies with

popular tourist

destinations

consumer base situated

around the area

S1O2 – Promote existing

packages as well as

formulate new packages

which highlight financial

flexibility within the park

S3O3 – Further increase

attraction variation by

exploring alternative

entertainment mediums by

way of internet and television

S2S4O4 – Increase brand

exposure by partnering with

travel agencies and

highlighting its proximity to

other tourist destinations

opening time to accept morning

park-goers

W2O2 – Highlight (or if

necessary, add) security

measures to ensure the

financially-viable public that the

park is a safe place to go to

W3O3 – Highlight product

expansion by acquiring newer

attractions and forms of

entertainment for the public

W4O1O4 – Use future

partnerships and increased

customer visibility to motivate

the customer relations

department  to improve their

performance (particularly in the

online sector)

Threats

T1 - Presence of

similar competition

T2 - External

entertainment options

Mini-maxi

S1S3T1 – Highlight

differentiating factors

between the two amusement

parks and start an online

Mini-mini

W1T1T2 - Adjust opening times

to cover morning hours to take

advantage of those looking for

alternative entertainment

Page 16: Star City MARKSEV

(casinos, malls,

museums, etc.)

campaign to show these key

differences between

competition

S1S3T2 – Similar to the

previous suggestion but

additionally, highlight its all

inclusive atmosphere as well

as significantly cheaper

offerings

options

W2T1 – Specifically, highlight

the additional safety features

that Star City employs and the

competition doesn’t

W4T1 – Increase public

visibility and transparency to

earn the trust of the discerning

public

Considering the way the park is run by its administration, the problems are

numerous: lax safety standards (and publicity), practically invisible Public Relations

team in social media, and a visible wear and tear of facility structures and attractions.

These are the main problems based on our research and the thing about this is these

are the aspects which mainly contribute to the opinion that Star City is the second best

choice for amusement park in an industry which has only two main competitors. In other

words, people are not assured of their choice to go here not only because of doubts

about safety but also the fact that their PR team (or lack of) is doing nothing to bring

people in. Obviously this is a big problem and the fact that the administration is not

recognizing this easily-solvable dilemma goes to show the quality that they put in their

work.

Page 17: Star City MARKSEV

We therefore have a few suggestions based on the TOWS analysis and for this,

we found that it was best to keep it relatively simple due to their problems being easily

solved. A visual check of the park on a weekday also debunked future doubts about

their problems as some (such as the afternoon only opening time) don’t seem to be a

hindrance to the customers but are subtle attempts at maximizing customer traffic while

keeping operational costs manageable.

The general plan is mostly centered around social media due to their lack of any

presence here and it starts with a new campaign which shows how someone can have

real fun in Star City (hence the tagline in the publicity materials). Highlighted by our

attempt at viral video teasers plus traditional poster advertisements, there is an active

attempt at highlighting the safety standards that the park employs to remove any doubts

in the minds of the consumer. Making safety the highlight of the posters would however

imply that there is something wrong with the facility so slight mentions of standards

certification and regular checkups are advised. On the more expensive side, it is also

suggested that radio ads (AM if possible) be released sometime around the summer

season to attract traffic and promote brand retention by putting it in the form of a jingle.

Apart from advertising we feel that it is also essential to introduce what we call as

the “Star Friends”, a dedicated PR team whose main job is to connect with social media

participants by way of answering queries and releasing info online. This requires that

they constantly communicate with the customers to not only make it easier for them to

get relevant information but also to acclimate these individuals to visit the park in their

Page 18: Star City MARKSEV

free time. During opening hours, these individuals are also located around key areas of

the park with duties somewhat similar of a concierge in order to make the customer

experience as happy as possible.

Finally it is also suggested that an active renovation of the park be done once

relative funding has been achieved. This is due to the fact that upon inspection, many of

the metal structures were observed to be rusty, ceiling grates left open, and key rides

being held up by wooden blocks. This only serves to add to any any existing uncertainty

the customer may currently have and is a possible deterrent to future visits.

VIII.    Porter’s 5 Forces

Factors affecting Strength of Rivalry – Strong

The competition between rivals in the market is more or less the strongest

competitive force among the other four. In the figure above, it is said that rivalry is

stronger when the demand of buyers is slow and sellers have a surplus in their

inventory, rivals are very aggressive by introducing strategies that gains them a

competitive advantage in the market, the number of competitors are increasing as well

as their capability to compete violently, the differentiation of the products is strong for

the indirect competitors, but weak for the direct competitor (Enchanted Kingdom).

As might be expected, there are also instances wherein rivalry amongst

competitors is generally weak. The rivalry weakens when competitors are not eager to

acquire a huge market share, the demand of consumers are growing, brand loyalty of

Page 19: Star City MARKSEV

the consumers are high and the products (eg. rides) of the competitors are

differentiated, buyer costs to switch theme park are high, and there are few sellers in

the market and each one’s decision does not affect the others’ business. Like any other

business, the strength of rivalry is very strong. It is not common for companies to have

an absence of rivalry between competitors because all businesses want to have a

bigger market share.

Currently, The Philippines only has two directly competing theme park

establishments: Star City and Enchanted Kingdom. There are also other establishments

that compete with Star City, however, they are indirect competitors. These

establishments include Sky Ranch and SM by the Bay Amusement Park. With the rise

of establishments such as Sky Ranch and SM by the Bay Amusement Park, buyers

demand to go to Star City will definitely drop if they do not make fresh moves to improve

their market share.

Factors affecting Threat of Entry – Weak

There are many factors that affect the willingness of new entrants to enter the

market. One of the factors is if a large number of potential new entrants along with their

resources to back them up. In effect, the threat increases because of the large pool of

new competitors that will enter the market. The second factor determines if the

candidates will face high or low entry barriers. A high barrier reduces the threat of new

competitors, while a low barrier entry increases it. Barrier to enter the industry would be

the needed capital for starting up a theme park industry. It would take a lot of planning,

Page 20: Star City MARKSEV

investors, and time to build a single theme park that would match the theme parks

already present. In fact, there are only a few theme parks in the Philippines including

Enchanted Kingdom, Sky Ranch, SM by the Bay Amusement Park, temporary pop up

theme parks during Christmas and of course, Star City.

The threat of entry is weak due to the fact that after several years of its

existence, only Enchanted Kingdom serve as their direct competitor. It would probably

take many more years to come up with another theme park as big as both Star City and

Enchanted Kingdom. Moreover, putting up a theme park would need a lot of permits

and regulations, which would be difficult for people who are planning to be part of this

industry. However, Sky Ranch and SM by the Bay Amusement Park as new entrants

may be a threat of Star City if they grow exponentially in the future. As of now, several

people are now aware of these place, and most of them either went already or planning

to go in the future.

Factors affecting Competition from Substitutes – Weak

In the figure above, it explains the factors that affect the competition from

substitute products in the market. The competitive pressures from substitutes are

stronger when the substitute products are easily accessible to the market, the

substitutes are attractive to the consumers (oftentimes cheaper than the primary

product), the substitutes are deemed better than the primary products, and purchasing

substitutes benefits the consumers because of the low cost of switching and they have

grown accustomed to using them.

Page 21: Star City MARKSEV

In contrast, the factors that weaken the competition from substitute products are:

the substitute products are not easily accessible to the market, substitutes are more

expensive than the primary products, and the consumers would have higher costs if

they switch to substitutes.

In terms of the theme park industry, Star City’s competition from substitute

products is weak since switching costs will be higher when customers transfer to

Enchanted Kingdom. Moreover, Enchanted Kingdom is not easily accessible to the

market as compared to Star City because it is located in a farther location and

customers will have to pay toll in order to get there.

Factors affecting Bargaining Power of Suppliers – Strong

The strength of supplier bargaining power is strong when the competitors in the

industry incur higher costs if they switch to alternative suppliers, resources provided by

the suppliers are scarce, the supplier’s inputs are of such distinct quality and unique

which can be an important material that the competitors need in their business, and if

the amount of suppliers is only limited.

There are factors in which describes if the strength of supplier bargaining power

is weak. Such factors are: the resources being supplied is easily accessible for the

competitors and they need not to get from the supplier themselves but can acquire it

from retailers with the same price offered by the suppliers, sellers switching to

alternative suppliers costs are low, substitutes for raw materials emerges, a surplus of

resources available, current industry members contribute a relatively large amount to

Page 22: Star City MARKSEV

the supplier’s sales, and if the current industry members would opt to manufacture their

own goods for their business.

Factors affecting Bargaining Power of Buyers – Strong

The factors that strengthen the buyer bargaining power include buyers switching

to competing brands and to substitutes costs are low, a large pool of buyers whom

purchases in large quantities demand concessions, sellers depend on the buyers’

amount of purchases, the buyers’ demands are declining, there are only few buyers in

the market so sellers have to compete for those buyers, the reputation and identity of

certain buyers are important to the sellers, the buyers’ knowledge on the product

improves, buyers have the choice to cancel their purchases if dissatisfied, and some

buyers pose as a threat to the seller’s business.

The buyer bargaining power is weak when buyers purchase from the sellers in

smaller quantities, buyers switching to competing brands and to substitutes costs are

high, there is a growth in buyer demand, the seller’s reputation is important to the buyer,

and the seller’s product is of higher quality or unique over other brands.

For Star City, the bargaining power of the buyers is weak because when buyers

switch to competing establishments like Enchanted Kingdom, it will cost them higher.

Star City has a good reputation and has unique products as well, thus customers will

prefer it because it offers a lower price.

Page 23: Star City MARKSEV

IX.          Fishbone Diagram

X.           Goals & Objectives

With respect to the specific objectives of the program, it is essential that these be

divided into sub-terms in order to accurately map out those which are immediately

Page 24: Star City MARKSEV

needed and those which happen to be necessary for the future. This will then be divided

into three periods: Short Term – one year, Medium Term – two to three years, and Long

Term – four to five years.

        The current brand situation is the main basis for these objectives as the group

has highlighted problems in the aspects of safety (and its reputation of), lax public

relations personnel, and outdated attractions throughout the park. The goals and

objectives of our proposal are listed below:

Goals

To create a positive and exciting image to be associated with the brand

To achieve industry leader status in the business and customer opinion

To remove any consumer-made correlations between the park and lack of safety

To consistently provide world-class service

To actively communicate and improve from consumer feedbacks

To train and develop the employees to be part of the amusing factor of the park

Objectives

Short Term Objectives (one year)

o 30% of the target market will be aware of the park, promos, and safety

measures

o 15% of the target market will prefer Star City as the premier amusement

park

Page 25: Star City MARKSEV

o 8% increase in Star City ticket and merchandise sales

o 15% increase in Star City market share

o Implement “Star Friends” PR Team

o Release online and radio advertisements

Medium Term Objectives (two to three years)

o 50% of the target market will be aware of the park, promos, and safety

measures

o 25% of the target market will prefer Star City as the premier amusement

park

o 15% increase in Star City ticket and merchandise sales

o 25% increase in Star City market share

o Implement facility renovations

Long Term Objectives (four to five years)

o 65% of the target market will be aware of the park, promos, and safety

measures

o 40% of the target market will prefer Star City as the premier amusement

park

o 30% increase in Star City ticket and merchandise sales

o 45% increase in Star City market share

o Explore attraction expansions (if possible)

o Explore territorial expansions (if possible)

XI.          Target Segment Description

Page 26: Star City MARKSEV

A. Demographics

Age Teenagers:

14-19 years

old.

Amusement parks main target segment are usually

teenagers around the age of 14-19. Because they are

more amused in having fun rather than just doing other

things. Furthermore, adults are less likely to go to these

places with a main purpose of having fun. Therefore, the

target age is 14-19. But then, since these people are less

likely to have their own source of income, with that, they

are able to drag their parents along or ask money from

them to enjoy Star City.

Gender All genders Star City is very vast in terms of their offering to the

customers. They have arcade games, rides both extreme

and light, food stalls, shooting games, mini games and etc.

Because of this, any gender can be their target. And often

times, it became a dating place of the youth.

Education High School

to college

Ages 14-19 revolves around educational level of High

School to college.

Income SEC Broad C The main target is Broad C because  there is less

competition in this market in the industry since Star City is

the most dominant in Manila and the costs of entrance and

the goods and services inside fits most this bracket.

However, Class A and B are more likely to go to

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enchanted Kingdom since they see it as better and well off

than Star City. And they have the means of going to

Enchanted Kingdom and the means to pay for the goods

and services of EK.

Occupatio

n

Students Students and young professional are less burdened about

earning money and what they have to do since they don’t

have a family to feed and monthly bills to be paid.

Location Metro Manila,

mostly Manila

Transportation in Metro Manila is easy since there are

various transportation systems developed in Metro Manila.

B. Psychographics and Behavior

From the UAI survey that we conducted, we found out that 97% of our

respondents are aware of Star City. The mediums on where they learn Star City  are

listed below:

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Great percentage of the respondents learned about Star City from their family

and friends, few learned it through social media, tv, radio and newspaper. It seems that

the word of mouth of the consumers was the main medium of knowledge of Star City.

Out of the 31 respondents, 84% had been to Star City for last 5 years showing that the

trial rate is very high from those who knew Star City.

84% of the respondents like to ride the rides in the amusement parks they  went

to before. However, 77% of the 31 respondents are aware of the accidents and at some

point, heard that there are usually accidents in the rides of Star City.  But only 29% of

the 31 respondents said that they are discouraged to take the rides because the

accidents they heard, while the other 71% said that they will continue to ride the rides of

Star City and other amusement parks.

We surveyed the people on what they think about Star City in many aspects

namely: safety as a whole, convenience in heading there, value for money, ride

entertainment, games entertainment, interior design and most of all, how much are they

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willing to go to Star City in the scale of 1-10, 1 lowest and 10 is the highest. Since every

respondent has purely random answer and they have almost unexplainable behavior to

represent as a sample of the market through descriptive statistics, basic multiple

regression model was used to determine the interrelationship of every variable

mentioned above with respect to their level of willingness in going to Star City. The

estimation outcome will shows us to which specific variable will the willingness of the

respondent be responsive. The result shows that there are 2 out of 6 variables that are

significant. The perception of the consumer towards the safety of Star City and their

perception about the value for their money in going to Star City are the most important

factor that drives the level of willingness of the respondents to go to Star City or not.

While other factors such as, convenience in going to Star City, ride entertainment, game

entertainment and interior design are only slightly significant, which means that they do

not affect the willingness of the respondents to go to Star City or not.

XII.         Target Person – Profile

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Meet the Bersabe family. The Bersabe family loves spending quality time

together. The children in the family are risk takers and they are thrill seeking individuals,

thus Mr and Mrs Bersabe often take them to places the children would enjoy. Despite

the fact that the parents dislike going to theme parks, they are urged to go in order to

make their children happy. In fact, they have been to Star City a couple of times

already. They often go there due to the accessibility and affordability. In terms of safety,

they believe Star City offers safe rides and perform safety precautions every time, so

they really trust the institution.

This is Mike from Makati and along with him are his friends from one of the clubs

he joined in school. The other guy brought his brother with him. The three friends have

been going to Star City with their own families since they were young. They continue to

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enjoy the park after all these years. They like the new extreme rides like the Star

Frisbee and Star Flyer. They think the price of Ride all you can is worth it. They think

this is especially true when they enjoy the park on weekdays because of the very short

line on rides. Adding more rides every now and then is important for them to continue

patronizing the park. Like most people their age, they rely on online materials in order to

plan out their next trip and take advantage of all the promos that they can get (as of this

time, they used their school IDs for discounts)

XIII.    8 Ps of Marketing

A. Existing 8P’s

P NI S VS E

Product Elements ✓  

Price and other Cost

considerations

Place, Time & Cyberspace ✓

Promotions & Education ✓

Productivity & Quality ✓

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Process ✓

Physical Evidence ✓

People ✓

1. Product Elements - Very Satisfactory

The main product of Star City is family-centered entertainment. They provide

wholesome fun to the whole family. Rides range from small kiddie rides to pulse-raising

rides like Star Flyer (Inverted roller coaster) and Star Frisbee. There are also carnival

type games and arcades. For some parents who don’t ride, they have many options

when it comes to food. There are small food stalls like Tender Juicy and Potato Corner

to fast foods like Chowking, Greenwich and other small food establishments like Ihaw-

ihaw restaurants. There is an area leased out to vendors of all kinds of items. There are

clothes, toys, accessories, henna tattoo, etc.

2. Price and other cost considerations - Excellent

As we tested on a Wednesday night, the entrance fee with no rides costs Php65.

Ride all you can (RAYC) is Php420, and 3 rides of your choice is Php360. 4 rides are

not included in RAYC and have separate payments: Lazer Blaster (Php100), Snow

World (Php130), Scream Avenue (Php120) and Zip Adventure (Php100). There is an

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“End of School Promo” running from March 24 - April 26, 2014 that discounts RAYC

tickets for only Php320 for students with valid ID. Food is more expensive than in malls.

We ordered a bacon-wrapped hotdog on bun from Tender Juicy for Php70. Fast food

prices in Chowking, etc. are standard. Parking was free because we parked along the

road near Aliw Theater.

3. Place, Time and Cyberspace - Satisfactory

Star City is located within the Cultural Center of the Philippines complex in Pasay

City. It is easily accessible by public transport via the LRT, then transferring onto jeeps

that pass through CCP. Traffic varies greatly in the area. When we went there around

5pm, traffic was light. But on weekend nights, when the park attracts most customers,

traffic becomes extremely heavy.

Posted park times are 4pm - 12am on Monday - Thursday, but when we asked

the security guard, the tentative closure time is 10:30 pm. They adjust park closing time

based on the number of people still inside.

Star City has a very good website. Ticket prices, park hours, ride details and

contact info are presented. Tickets can be bought online, the credit card payments

processed by PayPal. They also have great presence on Facebook with their page

having 101,000 likes. Promos are posted everyday by the page admins.

4. Promotions and Education - Needs Improvement

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Star City has many promotions depending on the season and holiday. The most

recent promos are “End of School Promo” and “Easter Circus” - on Easter Sunday April

20, kids 10 and below get 50% off on RAYC tickets. These are shared on their

Facebook posts. I am not aware of Star City promotions through other media.

 

5. Productivity and Quality - Needs improvement

Star City provides a good value for money proposition. The only place that

provides the same service, Enchanted Kingdom, is far away and more expensive. The

Ride all you can ticket only costs Php420 and patrons can already enjoy so many rides.

The problem we saw was in the kiddie section. There are small rides and arcade games

there that are no longer functioning and only take up space.

The environment is clean and well-maintained. There are numerous trash cans

so that people are encouraged to throw trash properly. The no smoking policy is strictly

enforced in the premises and there are numerous signs posted. The restrooms are

clean. The problem we experienced was the smell in the enclosed areas. Ventilation

was insufficient that there is an unpleasant smell of mixed foods, concrete, metal, etc.

This lessens the ambiance and overall experience of Star City.

6. Process - Very Satisfactory

We went to Star City at 5pm on a Wednesday. We easily parked near Aliw

Theater. The queue for tickets was light and we were able to purchase them quickly.

We bought the admission only tickets worth Php65 each. Belongings are checked

before entering. We went around Star City for about 2 hours.

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7. Physical Evidence - Poor

Star City gives tickets for each payment and a receipt. For some rides, there is

an optional picture that customers can avail of. However, it seems that there had been a

lot of complains regarding the facilities, equipment etc are kid of rusty and old. They

should improve it that the physical evidence would not be hindrance but a factor of

attraction.

8. People - Poor

The Star City employees are okay but they have not been extremely lively,

specially they are expected to amuse the people inside the amusement park. But it

seems that they missed out a lot of their job. In addition, other customers seem to be

contributing to the not so good ambiance of Star City since most of the mare just

wearing slippers, basketball short and very unpleasant clothings. At some point they

affect the whole park experience a lot.

B. Proposed 8 P’s

1. Product Elements

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The services offered by Star City are complete. There are the kiddie and extreme

rides, and food stalls for parents. The quality of the rides can be improved through

better fit and finish, theme, etc. They just have to ensure the safety that the product

element would remain excellent and accidents would be a small factor.

2. Price and other cost considerations

The pricing strategy of Star City is excellent. The RAYC is the most popular and

patrons think the price of Php420 is just right.

3. Place, Time and Cyberspace

Star City’s prime location, being easily accessible and frequented by many

people, also brings about the problem of traffic. Star City needs to help lessen the traffic

in the vicinity so that patrons would be able travel to Star City easier and thereby

improve overall experience.

Operating times should be adjusted. The opening times should be earlier. There

should also be a standard closing time, not an adjustable closing time depending on the

amount of people.

Online presence could also use improvement. There should be more interaction

between Star City and its patrons. There should also be more fun content that would

serve as an appetizer for the fun that patrons would experience in Star City.

4. Promotions and Education

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There are many promotions Star City makes depending on season, holiday,

event, etc. The problem is the limited media through which they communicate these

promotions. They should promote these through print ads, radio ads, TVCs.

5. Productivity and Quality

The overall experience of Star City still needs improvement. They should improve

on the ambiance of the park. The smell of the park should be made better through

proper ventilation. The fit and finish of the rides should also be improved. The

atmosphere of Star City is associated with a carnival. The exposed wires and metals,

small non-functioning rides and games, etc. limits the overall ambiance of the park. The

park should be renovated.

6. Process

The entrance of Star City could be improved. The entrance is also the exit of the

park, which could get very congested during holidays.

7. Physical Evidence

Star City could add their own branded apparel, accessories, and other various

souvenirs. These could also serve as promotional materials for the park. They can also

serve free Star City manufactured souvenirs on special occasions.

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8. People

The staff of Star City should undergo training in customer relations. They are a

crucial part of the service. To keep in line with the image of family-centered

entertainment, the staff should be very welcoming and friendly.

XIV.   Flower of Service

Existing

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Proposed

Based on the Flower of Service as well as what has been passed through in the

TOWS analysis, there are multiple key objectives with respect to the service plan. The

first objective is to find a way to increase online social activity as compared to the

company’s previous efforts because prior to this, no replies to queries made online have

been done since 2012 and even more striking is the fact that their last online post was

made last 2011. In todays competitive market this is unacceptable because it alienates

a large amount of individuals who depend on this medium to get the info that they need.

Star City making itself not available to these customers can only translate to lower ticket

sales as these individuals deviate over to the park’s competitors. The second objective

is to reassure potential consumers of the safety of this park because of the fact that the

most recent write-ups about the park have mostly been about deaths and suicides.

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Although press releases have been used to relax the public, reassurances are needed

to be kept constant in order to truly relax the mindset of potential customers. To sum it

all up, it is essential that the consumer experience be kept as relaxed and enjoyable as

possible. Apart from the previous suggestions, additional measures need to be taken

such as renovating the surroundings to make it look cleaner and more secure by way of

park renovations and increasing security measures by way of additional CCTVs and

roving guards.

With the mechanics of this program laid out in the rest of the paper with the

online campaign, retrofitting, and revamped PR management, it is up to the group

assigned “Star Friends” to act as the proponents of the project. Given that they act as

the face of the company with respect to their customer-related activities, a key part of

their job is also to ensure that the same quality of service is extended to the rest of the

project as well. They will be given key parts in managing the various aspects of the

revamp while being led by senior management individuals who are there to regulate and

mold the concepts of the Public Relations crew.

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XV.        Investment Plan

Particulars Cost Breakdown and details

Star Friends -

PR team

One Star Friend is paid 15,000php a month - 20 Star Friends.

Star Friends will increase in number continually during the

renovation on year 2 up to the renovation and acquisition of new

ride on year 5.

Facebook

Advertisement

Facebook advertising has options on how much is our budget for

the month and it will be consumed on how many clicks the page

will have. This advertising will be placed on the side of random

people’s newsfeed and some in the games.

Budget for this is 50,000php on the first year and increasing

consequently throughout the years since we are expecting that

preference on Star City would change.

Radio

Advertisement

Radio advertisement production cost 50,000php and another new

production on the start of 4th year because we encourage the

retention of our Star City Radio ad for 3 years.

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Placement of ad in Love Radio, an affiliate of Star City’s mother

company, costs exactly 159,840php for one year, 50% bulk

discount package is already inclusive of the amount.

Minor

Renovations

Minor renovations start at the 2nd year of the investment plan. This

will include the wall paint, repainting of rusted rides, new lightings,

furnitures etc.

This will start on the 2nd year.

Budget allocated: 10,000,000php

Major

renovations

Major renovations includes selling of old rides and acquisition of

new rides based on the preference of the consumers. Furthermore,

the redesigning of the interior will be also part of this investment

plan and if there is a chance to territorial expansion, we will take it.

Major renovations are very costly, thus this will start on the 4th

year of investment plan.

Budget allocated for new interior design:

25,000,000php - 4th year.

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35,000,000 php - 5th year.

Budget for new ride acquisition is 50,000,000php, Reflected in the

estimate of profitability is the depreciation of the new ride for 10

years.

Utilities Utilities are affected by the investment plan since the lightings of

the park will be change in the long run and there will be new rides,

therefore, electricity consumption will increase at the same tim

Training and

Development

Training is essential if we want Star City to have amusing

employees. They have to be trained well and be developed as a

part of the company’s goal

XVI.   Profitability Estimates

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XVII. Appendices

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A. Survey Summary Result

Do you know Star City?

Yes 30

97%

No 1 3%

Have you been to Star City?

Yes 26

84%

No 516%

From where did you come to know star city?

Family 21

31%

Friends 26

39%

Social Media 710%

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TV 710%

Radio 3 4%

Newspaper 1 1%

Other 2 3%

Do you ride the rides at any amusement parks?

Yes 26

84%

No 516%

Do you think it’s dangerous to take the rides in Star City?

Yes 13

42%

No 18

58%

Have you heard of any accidents occurring inside Star City?

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Yes 24

77%

No 723%

Did this discourage you from actually going on amusement park rides?

Yes 929%

No 22

71%

How would you rate Star City’s safety?

1 1 3%

2 1 3%

3 1 3%

4 310%

5 723%

6 1 3%

7 929%

8 516%

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9 310%

10 0 0%

How would you rate the convenience in going to Star City?

1 2 6%

2 1 3%

3 2 6%

4 0 0%

5 2 6%

6 310%

7 413%

8 929%

9 2 6%

10 619%

How much can Star City give value for your money (sulit)?

1 1 3%

2 310%

3 1 3%

4 2 6%

5 723%

6 310%

7 723%

8 516%

9 1 3%

10 1 3%

How much fun do you think Star City's RIDES can offer to you?

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1 2 6%

2 1 3%

3 1 3%

4 413%

5 723%

6 2 6%

7 413%

8 619%

9 310%

10 1 3%

How much fun do you think Star City's GAMES can offer to you?

1 0 0%

2 413%

3 413%

4 310%

5 619%

6 413%

7 826%

8 2 6%

9 0 0%

10 0 0%

Do you like the interior design of Star City?

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Yes 10

32%

No 21

68%

What is your willingness level to go Star City?

1 310%

2 1 3%

3 723%

4 1 3%

5 413%

6 310%

7 826%

8 310%

9 1 3%

10 0 0%

B. Multiple Regression Results

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C. Poster

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