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Climbing walls are finding their way into public schools and universities, parks, and even on cruise ships. Advertisements featuring climbers have become more and more prevalent. All of this has led to climbing becoming more of a mainstream activitClimbing has become more popular across the country as a sport and as exercise, as well as a great way of meeting new people and socialising. Advancements over the years in safety and equipment has made the sport more accessible to everyone, maintaining the ‘extreme sport’ aspect whilst limiting danger. Popularity has also been helped recently with the inclusion of sport climbing in the next Olympics, which will increase exposure and popularity of the sport and encourage more people to give it a go. One of the main attractions of climbing is that the person doesn’t need any previous experience to be a customer. Therefore, ClimbCymru will be attractive to nearly every demographic as well as an exciting addition to most events, functions etc.
Marketing and StrategyWest Wales is a prime target location for ClimbCymru, made up of 3 counties, Ceredigion, Carmarthenshire and Pembrokeshire, with a population of 384,000 and no other mobile climbing wall company based there, ClimbCymru will be in prime position to corner the market.All ages will be welcome but the primary demographic for ClimbCymru will be young people aged 5-24. This demographic makes up 22% of the total population (84,430) Many of these will have never been climbing before, with only one small graded indoor climbing wall in West Wales, the opportunity to try climbing is limited. Outdoor climbing is more readily available but requires experience, skill, knowledge and equipment that act as a barrier to entry for most people. As such casual climbers and newcomers represent the greatest potential for revenue. The secondary target demographic will be adults aged 25-44, whilst this age group is more likely to have climbed before they will also likely be in full-time employment and have less time to dedicate towards climbing and will make use of the convenience of the availability of a mobile wall.
Product/PlaceClimbCymru will supply a mobile climbing wall as well as staff and equipment (as required) to its customers. We will target 3 primary areas in order to increase exposure and garner as much business as possible. The first will be Festivals and Events, these are held throughout the year in West Wales, with 78 events already planned from January to October in 2018 in Ceredigion alone. The second will be schools. There are 52 schools in Ceredigion, 115 in Pembrokshire and 67 in Carmarthenshire. With a greater emphasis nationwide on health and fitness, schools across the country are encouraging more physical activity and introducing healthier food options. ClimbCymru will therefore provide an interesting alternative to more mainstream sports and physical activities.
Thirdly ClimbCymru will be available for hire at a variety of functions such as:· Birthday Parties· Stag/Hen Do’s· Team Building· YFC (Young Farmers Club)· Scouts, Brownies etc.· University/College events· Business PromotionsAnd anything else that is requested.ClimbCymru will not only position itself as the only mobile climbing wall in West Wales we will also be available through the medium of Welsh. The West Wales area has one of the highest percentage of Welsh speakers, especially amongst children, in the country. 19% of people in Wales as a whole speak Welsh but in West Wales this figure rises to 37%. When looking at our target demographic this number rises again:· 5-9: 57%· 10-14: 59%· 15-19: 46%This will make ClimbCymru very attractive to schools in particular.SWOT AnalysisStrengths· No direct competition in target market. We are the only mobile climbing wall in West Wales.
· Low cost of sales. After the initial outlay costs would be minimal, staff wages being the biggest expenditure.· Welsh language service. Being based in an area with a high percentage of Welsh speakers this makes us unique and attractive to more customers.
· Mobile. Distance is often a barrier to customers but being mobile this isn’t an issue.· Owner is already qualified to instruct climbing and has a DBS certificate as well as several other relevant qualifications· Increasingly popular sport. Health and fitness in general becoming more and more popular.· Low threat of substitution. Other than another mobile climbing wall the only substation would be a climbing centre and these have very high barrier to entry costs.
· Low bargaining power of buyers. We are the only mobile climbing centre in the area.· Wall can be operated by one, suitably qualified/trained, staff member.Weaknesses· By nature of being an outdoor climbing wall business would be seasonal/weather dependant and we would expect a drop in business over the winter months· New business/product to the market so little awareness. We would be an unknown in the market.· Need to train up new staff and get DBS checks. A minimum level of training in safe climbing practices would be required. Opportunities· Corner the market.
ClimbCymru could become the go-to mobile climbing wall for the West Wales area.· Purchase of another wall. · Free publicity from the 2020 Olympics Threats· Low barrier to entry due to low cost of sales after initial investment.
· Changes in insurance costs could affect profits.· Slow initial market penetration. · Any unforeseen or expensive repairs/maintenance required.
Using Ansoff’s Corporate Strategy Matrix and the internal/external analysis we will be using a combination of market development and market penetration, so as to corner the market before the emergence of any competition and to increase brand awareness. PricingOur price list varies according to request. Hourly rental: £100 Half-day (4hours) rental: £ 280Full-day (8hours) rental: £500Therefore for example providing that the average sales are half days and we are booked from 15 half-days a month the business would generate revenues of £50,400 (p/y)For festivals, venues etc that we must pay for a plot or pitch we would then charge per customer at £3 for 5min. At maximum usage this would generate £144 p/h based on 4 climbers every 5min.All prices include 2 staff, equipment and setup/dismantle time. If the customer provides it’s own staff then the cost of one member of ClimbCymru staff will be deducted from the rental rate. The second staff member is compulsory due to assembly/dismantle requirements.
These pricings are lower than similar companies in North and South Wales and lower on average than companies based in England. This is based off quotes received from several businesses using a mobile climbing wall directory (http://www.mobileclimbingwalldirectory.com/#Event_Higher) and from field research information gleaned from 6 years of working in the outdoor activities business, including working with a mobile climbing wall at several festivals/events a year. Whilst ClimbCymru doesn’t have direct competition in its area of operation these price points have been set with the intention of penetrating the market as quickly as possible and after initial setup cost climbing walls have low cost of sales.Initial Costs· Mobile Climbing Wall & Trailer: £30,000· Safety equipment (harnesses, helmets etc): £3000· Insurance: £2,000-£2,500 (p/y) with £5 million public liability (required by law)· Servicing/Maintenance: £2,500-£3000 (p/y) PromotionInitial exposure will be important, ClimbCymru will be entering the market with no name regognition or knowledge of what is provided, therefore there will be several different methods of promotion and advertising. Schools get a 20% discount in the first year of business, the loss of income from this will be offset by increased business with schools providing increased exposure directly with our target demographic and indirectly with parents/guardians.
This will positively affect bookings for birthday parties and youth groups.Marketing on social media will play an important part in promotion. Social media channels such as Facebook, Instagram etc will be used to spread awareness and give customers the opportunity to review and recommend ClimbCymru for the benefit of future customers. We will also hold a competition with a prize of a free half-day booking, to enter customers must like and share our social media pages.
More traditional forms of promotion will also be used. Local radio station ‘Radio Ceredigion’ has, over the course of 2017 managed an average of 12-17,000 listeners every week, and an advert airing during the school run between 8 and 8:30, would directly target our primary demographic as well as parents/guardians and teachers. Being local radio the cost would OperationQuality control and customer satisfaction is important to ClimbCymru and as such, everything will be done to ensure the customer gets exactly what is advertised and, hopefully, what is expected of us. ClimbCymru will us Total Quality Management (TQM) to ensure this. We will use TQM because the secondary staff member will, amount of business depending, most likely be part time and having a standardised code of conduct will ensure quality even if we have personnel changes. For example:· Standards of customer interaction including levels of coaching and encouragement, especially with younger children, will be set and agreed upon by all staff members with an emphasis on customer awareness and satisfaction.
Any training required will be given before any interaction with the customer, ensuring consistently high-quality service.· A structured checklist for care and inspection of safety equipment will be set to encourage high standards and ensure customer safety. This will also prolong the life of the equipment, keeping resupply costs down.· Improvements can be achieved with further staff training e.g.
Climbing Wall Award (CWA) Technology Quality ControlThis will be achieved by following the British Association of Climbing Walls (ABC) code of practice (https://www.abcwalls.co.
uk/about/code-of-practice/) and complying with all relevant regulations and legislation:ADIPS: The Amusement Device Inspection Procedures Scheme (www.adips.co.uk)HSE: Health & Safety Executive (www.
hse.gov.uk)WAHR: Working at Height Regulations (http://www.hse.gov.uk/pubns/indg401.
pdf)LOLER: Lifting Operations and Lifting Equipment Regulations (http://www.hse.gov.uk/work-equipment-machinery/loler.htm)PUWER: Provision and Use of Work Equipment Regulations (http://www.hse.
gov.uk/work-equipment-machinery/puwer.htm)Inspection of the safety equipment will be carried out by Gareth Tucker, who is a ROSPA Approved PPE (Personal Protective Equipment) Inspection Competent Person. The inspection and any necessary maintenance to mobile wall itself will be carried out by an independent registered inspector and engineer so as to comply with ADIPSHuman Resource ManagementIdentify your strategy for employee resourcing, development, pay and performanceClimbCymru will initially operate with 2 staff members. The primary staff member will also be the owner of the business Gareth Tucker