CASE STUDY Rock Sport: Consuming Rock Climbing Where can one go and relax while having a thrill-seeking adventure? Ever heard of vertical yoga? Would you, could you, imagine being 30 feet off the ground in a tranquil state of mind, knowing you have just reached a new high? Tom Rosecrans began an adventure of a lifetime when he bought out two partners of Rock Sport Indoor Rock Climbing (www.rocksportny.com). A small-scale facility with varying degrees of difficulty ranging from beginner to advanced bouldering, the setting may be small in square footage, but it sure fills the desires of experienced climbers. Never having owned his own business, this high school teacher powdered his hands and held on tight, taking his venture to new levels ten years later. With over 36 years of rock-climbing experience, Tom has experienced destinations on a global scale, including two expeditions to the Himalayas. Running a business of passion could be overwhelming, so Tom kept things relatively manageable, never really trying to outdo or grow the business beyond modest proportions, satisfied to own a part-time "hobby" business. However, the situation has changed and Tom has decided now is the time for adjustment, and with good reason. A few months ago a newer, big- ger, brassier indoor rock climbing gym opened just 20 minutes away and is drawing excitement from Rock Sport's current customer base as well as the public. With few choices and immediate needs, Tom must use consumer 4 | P a g e RMIT MKTG 1050 Take-Home Final Assessment Sem 1, 2022 (MELB) research to determine how to increase Rock Sport's target market and client base through innovative new programs. Outdoor rock climbing, or mountaineering, began in Europe in the early 1800s, though the first mountaineering club wasn't started until l857. Rock climbing for recreation came much later in the 20th century, when styles, grading, and equipment were all brought together and turned the adventure into a sport. In the 1980s alternatives were made for busy climbers; indoor facilities that took less time to manage were designed to have different degrees of difficulty and to allow realistic experiences for the sport enthusiast. Climbing is both physically challenging and psychologically rewarding. For example, major progress can be made in improving one's cardiovascular health, muscle tone, and weight loss. But one of the great benefits of rock climbing is the thrill and joy it brings, as well as a pure sense of achievement. Children love the challenge in a risky environment, while parents enjoy the safety features in today's indoor gyms. Having fun with family, friends, or finally reaching one's personal trail goal is satisfying. A simple focus group conducted at a gym even revealed customers speaking of "peak performances and experiences," conditions indicative of the intrinsically satisfying "How" state of motivation. However, there are some negative perceptions in society today regarding rock climbing, many stemming from cautious Baby Boomers. Survey research revealed the following possible obstacles: fear of falling, fear of heights, low self-image while climbing (embarrassment), and even the fear of failure. All were cited as reasons why adult participation in rock climbing has declined over the years. On top of this, cost and time limitations were also mentioned by survey respondents. Tom's biggest challenge is drawing in new people or markets to try rock climbing. He is convinced the sport can be viewed as another "soft recreation" alternative similar to kayaking and bicycling, In fact, he has made it a personal mission to get more Baby Boomers like himself to try the sport. The children's market is not the problem. Hundreds of GenerationY parents are bringing their kids to the facility for birthday parties and non-competitive meets. In addition, students from the local community college are also regular customers who share their experiences on social media like Facebook. No, the younger demographic segments are not the issue. As such, Tom is now challenged to change this negative attitude among the Generation-X and Baby Boomer market segments. Other indoor gyms have grown their businesses by making the needed changes in facility offerings and programs. In the past, strong athletic men were the avid climbers; today the average climber is in his or her mid-20s, with the number of children right behind and growing rapidly. There are stories of toddlers climbing indoor rock walls in just diapers, and even fiveand six-year-olds on open mountain ranges climbing better than most adults, which shows how they will become the new generation of the sport. Women have slowly gained interest in the sport mainly due to themed nights and special events. Many believe that rock climbing is for the 130-pound, athletic, out-going type and miss that rock climbing can fit anyone who is willing to try. There has even been a national marketing campaign introduced to stress the safety of climbing. Currently, most of Rock Sport's customers are the children of Generation Xers in the athletic programs and some college students. Tom would like to encourage Baby Boomers and parents of the children that use his facility to give indoor climbing a try. Convincing the older generations of the health benefits and the fun and exciting adventures is tricky today. Their opinion of adventurers is young and fit, not parents and grandparents. Changing the views of these age groups is challenging and can cost quite a bit of money and time if not done correctly. Soon Tom will pass the business off to his daughter, but not without leaving her a strategy that ensures sustainable growth forward. Ideas include moving into a larger facility, revamping the website, increasing social media use, and bringing in yoga and Pilates instructors to lead classes. Creating large competitive events that showcase the facility and spread awareness are other possible ideas. As such, Tom is challenged by what the future holds and eager to turn ideas into action plans Guidelines: • Answer any one Question from below 2 (between 580 to 600 words) • Write at least 2 reference, Harvard referencing style • No Plagiarism Question Four “Tom would like to encourage Baby Boomers and parents of the children that use his facility to give indoor climbing a try.”.. “Soon Tom will pass the business off to his daughter, but not without leaving her a strategy that ensures sustainable growth forward. Ideas include moving into a larger facility, revamping the website, increasing social media use, and bringing in yoga and Pilates instructors to lead classes. Creating large competitive events that showcase the facility and spread awareness are other possible ideas.” Yet, Tom’s daughter Sarah kind of disagreed. Sarah has recently been highly influenced by “me too” movement and became passionate about female empowerment. Gender is a powerful demographic variable. Using gender as a strategic tool is common in market segmentation (e.g., Diet Coke for females and Coke Zero for males). Marketers generally develop strategies in terms of product offerings, marketing communications, and retail stores in using gender strategies. Explain how Sarah could capitalise on possible gender strategies in developing Rock Sport as a female centric business without compromising the male customers. Elaborate your answer with examples. (7 marks). Answer [wordcount = xxx} Question Five Tom recently read an article about “premiumization”. Contrary to all other promotional avenues, Tom now believed that premiumization of Rock Sport is the best way forward if they are to succeed. Having searched online, Tom also believed that Melbourne has a large number of successful rock climbing/ bouldering businesses, and some of them have uniquely premiumised their business models; and he excitedly said “Aussies are pretty good at preimmunizing stuff, and let’s hire an Aussie to premiumise Rock Sport”. Rock Sport has advertised for a marketing consultant/ advisor who knows about premiumisation. Seeing that you had studied a case study on premiumisation in your tutorial, you applied for the position. Upon your application, they quickly got back to you and asked to write a 600-words essay on “How would I premiumise Rock Sport?”. Write your essay.(7 marks). Answer: [wordcount = xxx}
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