Toronto Ultimate Club Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Critical Issues

The sales growth had fallen down
There is a high turnover of 500 members per year.
The market has become increasingly competitive.
The Club was losing its market share
A marketing plan should be developed to achieve high market share.

Situational Analysis

Over the past 30 years, Ultimate Frisbee has been embraced and promoted by local not-for-profit clubs whose members love the game. As the sport became popular, and other clubs and various profit-seeking organizations exploit this opportunity to make profits.

TUC has established a strong image amongst its members, which isevidenced by the fact that players are playing with the same group of friends for over five years.Previously,the target market of the club had beenUltimate players, who wanted highest quality of Ultimate Frisbee in the Greater Toronto Area.

Currently, the market has changed with time and TUC’sgeneral manager, Robinson, look for other customer segments such as youth.It wants to strengthen its relationship the youth young professionals, visible minorities, post-secondary students, and grad student.

There is only one major competitor that TUC competes against and it is the for-profit organizations because they have the most similar offerings to TUC. The main competitors are Recreational Sporting Club (RSC), Everyman Sports, and West Side Sports (WSS).

In 2008, the closures and bankruptcies of major financial institutions triggered recession in the United States. As the economy of Canada relies on the American economy, the recession spilled over to Canada. The unemployment rose to 7.2% and the disposable income and the spending of people decreased.

It would become difficult for the Club to survive if it does not address critical issues and increase its market share and sales revenue.

Decision Criteria

The sales should be increased by 10% per year and this rate should be maintained.
The turnover must be decreased to 100 members per year.
The market share of other market segments should reach 25%.

Alternatives

New Product

The first option is to change the product. There should be new rules in the game such as the introduction of time. Moreover, the beginners’ league could be added to the portfolio. The cost of adding such a league would cost 9,180 weekly and approximately 13 teams would be required to break-even (Exhibit 1). The registration of more teams would result in weekly profits.

Other clubs have experienced success with different variations of the existing rules. This would enhance the brand name of the Cluband attract new members. The first and third decision may be met but this option will not be affected.Nevertheless, the TUC has operated under standard competition rules since the outset of its establishment, and switching the rules could confuse existing members and make it hard for them to see.TUC already offers a broad assortment of programs and teams for their members, and creating a new team would increase cost and need for field space.

The toronto ultimate club Case Solution

Change of Prices

The second option that the company could consider is changing their membership.Prices.
This option may address all the decision criteria. It may retain customers, attract new one and allows to penetrate in other market segments. However, it may reduce revenue that the club makes corresponding to increased field costs.

Promotional Tools

The Edge

This method would generate the revenue of $10400 for the Club over the cost of $4820. It has 800,000weekly listeners out of which 30% (estimated) falls into the target market.The profit from this option would be $5580 (Exhibit 3).

This method would increase awareness about the product offerings and may increase the sales and market-share in existing and new markets. However, it may not retain those individuals. Also, this is an old medium and the youth may not be attracted by this medium thus not allowing the Club to cover its costs.

Toronto Star

The objective market is assumed to be 20% of 1 million and the conversion rate is 0.15%. The resulting revenues and costs are $22,500 and $20,224 with profit of $2276.20% of readers were 18 years to 34 years, which is the current market of TUC members. Majority of Toronto Star readers are over the age of 50 years old. The advertisement would be placed on1/8 pg horizontal. It may increase the market share as this option would attract 300 customers. However, it may also help retain existing customers as they would be happy to be associated with the reputed customer................

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