Smith, Inc Market Research
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Smith, Inc. and its consultants have worked together to determine particular popular industries in the Northern Arizona area in which to invest. We have found that there is overwhelming demand for a local football team and even more demand from Arizona State University students to adopt a Division One, NCAA football team. As a result, we have researched the possibilities of investing in a sports stadium to support the team and have determined whether or not it would be a lucrative business. The Northern Arizona area is certainly a growing, commercial region; however, with its economic success comes a high cost or production and business operation. It is my intent to discuss the proposed Jack Hunt Stadium and its potential economic success. As Vice President of Market Research, I have included in our proposal an extensive study of the local and regional area to identify market viability. In this study I have explored various aspects of market research to include demand, target markets, demographics, geographic location, sales forecasting methods, and overall assessments. You will find the market has been researched extensively to gain an accurate understanding of the publics perception of the facility and potential directions that could enhance attendance and revenue.
We will begin by establishing Smith, Inc.s level of involvement in promoting the local ASU football games and other ASU athletic events. In addition to the games, I have evaluated our role in promoting the use of the student center which is intended for daily use regardless of whether or not a specific athletic event is taking place that day. The facility marketing department is to organize the events and develop a marketing plan in order to promote the events in the local community and media. I have concluded that sporting events need only to be advertised to inform ASU students of the dates and times of games versus the surrounding community which prescribes more effort in promoting our facility. In my study I have found that ASU students are craving for a popular, competitive Division One football team. The team could bring in tremendous revenue from students alone. ASU is one of very few Arizona universities that do not have an NCAA football team. However, it is not because the area or the university cannot afford to enter the league or that the local community will not support the facility, both for recreation or financially. In fact, the standard of living I the area is one of the highest in the nation and could quite easily support a local sports stadium. Thus, promoting events within the student body should not require much funding due to the already existing demand. The community requires more attention and advertising simply because families are not always aware of the events occurring
in the university.
The first step in marketing research is gathering data pertinent to the proposal. Primary data are those data that have been collected for the first time by the researcher for the specific research project at hand. Secondary data are data already gathered by someone other than the researcher or data already existing. I have exhausted all sources of secondary data simply because it is less costly and a more efficient way of evaluating the market. It is unnecessary, costly, and a poor use of time and effort to reinvent the wheel. The importance in using secondary data arises from several different factors including providing background, suggesting sample selection, and determining hypothesis. In some cases, the information and insights gained from secondary resarch are sufficient in determining the economic viability of a local sports stadium. It has provided us with the background necessary to understand the market and public. It has also guided me in determining how to poll a diverse and accurate sample of the local area population in gathering primary data.
Results of the secondary data have indicated some positive results in our market evaluation. The Fairfax area and the northern Arizona region is an increasingly wealthy and economically sound area. Businesses have a overwhelmingly high success rate and have grown steadily over the past 10 years. Investments into the area have proven to be lucrative and have instigated even more investment into area business. I have conducted an evaluation of several different firms financial statements and stock quotes over the past 10 years and its relative standing compared to other firms in the same industry. Included in this study are firms such as MRJ Technology Solutions, Synergy Inc., and the Washington Sports Club. All companies financial statements reflect economic success and steady viability.
Determining demand is the next step in researching a market. Typically, a firm will choose to invest in product demand or a service demand. In our particular business it is actually both. In product demand, we will offer retail stores selling Patriot Gear as well as commercial stores such as the Gap, Abercrombie and Fitch, or Banana Republic. The Patriot Gear store will provide for the academic and athletic needs of the students. It will cater to the desires of future ASU students, current students, and their families. Student athletes will also be able to purchase ASU paraphernalia and athletic equipment. The commercial
retail stores will lease their space and bring in additional revenue simply by its existence and ability to draw I consumers to the student center. We have selected these companies based on popular demand of the ASU student body as the students are the main focus in targeting a market to these stores. In the same manner, we have identified services to provide as well. The demand for particular services on campus has helped us to conclude that students want a more centralized, commercialized student center away from academics but existing on campus. Some services aside from the main attraction, athletic games, include restaurants, bars, and arcades. Students living on campus especially have voiced their demands. They want a local bar they can call their own in the heart of the ASU community where everyone, students and faculty, can sit down at Happy Hour and have a drink. Alcoholic beverages will also be sold for the athletic events, however, strict rules will accompany its purchase and consumption. Demand for both products and services will be met to satisfy the needs of the student body.
It is quite obvious that the ASU student body is the primary target market in our investment. Because the sports stadium exists on campus, it will directly affect those living on campus. Of course, the commuting students will also find convenience in having a large student center to cater to their needs. The sporting events are targeted at the students and the local community.