MKTG1001 - Teamwork Essay PDF

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1.Background Australia’s first escape room, Escape Room Melbourne (ERM) creates themed spaces in which teams of people have a certain time in which they need to solve puzzles to be able to unlock the space (ERM 2020). These escape rooms provide the market with a form of social and interactive entertainment that is challenging. However, the negative impacts on the world-wide entertainment industry caused by COVID-19 such as lockdowns has resulted in businesses being forced to close venues and physical locations to abide by their respective government public health policies (Gibbs & Dubois 2020). The uncertainty and anxiety caused by the extended lockdowns throughout the pandemic has led reporters to predict that consumers are now more likely to choose online entertainment rather than in physical locations (PWC,2021). In order to maintain competitive and adapt to the ever-changing environment, ERM have made the executive decision to create virtual escape rooms with the intention to feed the growing want for online entertainment. However, their current model is not satisfying their goal to create a product that is popular and attractive to potential consumers. Hence, ERM have inquired for a marketing plan designed to create the most benefit from the current environment. This report will identify both the best-fit target market for ERM’S online escape room and how it should be positioned within the market.

2. Market Segmentation ERM has established that they would like to increase the popularity of their online escape room. By segmenting the market, ERM is able to distinguish groups of consumers with shared attributes in order to determine their desired target market and effectively target these customers (Tynan and Drayton, 1987). The four bases used to segment the market are geographic, demographic, psychographic and behavioural (Goyat, 2011). 2.1 Geographic Variables Geographic variables, such as city size and density are applicable to ERM as 87.9% of consumers living in highly populated, urban areas have access to the internet whereas in remote areas only 77.1% do. Furthermore, those with internet access in regional areas use the internet for means of entertainment much less than those in urban areas add something here?(ABS, 2018). 2.2 Psychographic Variables Psychographic variables such as lifestyle and personality are deemed relevant in the segmentation process for ERM as they are one of the major influences behind customer behaviour and choice (Cheung and To, 2019). Youth are reaching a stage of their lives where they seek independence from their parents and prioritise socialising with friends. Furthermore, online media is becoming one of the primary ways of socialising among youth (Ito et al., 2009). Corporate teams consist of individuals who are ambitious and strive to improve themselves in order to be better at their job. Individuals who fall under this segment are successful and place providing for their families at great importance. Finally, young families aim to provide and satisfy their household. They are focused on their future and becoming successful as well as developing loving and affectionate relationships with one another (Levine and Benjamin, 1977).

2.2 Demographic Variables Demographic variables such as age and occupation are important as they allow organisations to better understand their consumers as people who share similar demographics can be generalised to share characteristics (Gillian, 2011). A survey undertook by 175 escape room organisations found that about 14% of escape room players are young families, 19% are corporate groups and 19% are groups of youth (under 21) (Nicholson, 2016). 2.3 Behavioural Variables Behavioural variables such as benefits sought and attitude towards the product are of significance because it provides businesses with information to find the optimal consumer market. Behavioural variables provide insight into the real-time interactions’ customers have with the product (Greene, n.d.). For both families and youth, consumers are seeking a form of both entertainment and socialisation. Particularly in young families, consumers are after an experience that will get them all together and have an enjoyable time together that will deepen their family bond. Furthermore, businesses use escape rooms as a team developmental exercise for their employees (Tick Tock Escape Rooms, 2021). Youth Geographic  City size  Density Demographic  Age  Occupation Psychographic  Lifestyle 

Personality

Corporate Teams

Young Families

1,000,000+ Urban

1,000,000+ Urban

1,000,000+ Urban

15-21

22-45

Students

Professional

Look at Me

Young Optimism/Visible Achievement Ambitious, authoritarian

Conventional Family Life

Entertainment/Family outing Enthusiastic

Compulsive, rebellious, gregarious

0-40

Social

Behavioural 

Benefit sought

Entertainment/Social

Team-building skills



Attitude towards product

Enthusiastic

Positive

3. Target market and Consumer Profile 3.1 Target market for ERM Of the segments identified in Table 1, ERM should pursue the Youth segment. Due to the implications that COVID-19 has had on society, consumers are now more attracted to entertainment that they can access from their own home (PWC,2021). Thus, ERM should youth as

Reference List:

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Tynan, A.C. and Drayton, J., 1987. Market segmentation. Journal of marketing management, 2(3), pp.302 viewed 17th August 2021

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Goyat, S., 2011. The basis of market segmentation: a critical review of literature. European Journal of Business and Management, 3(9), pp.47-48 viewed 17 th August 2021

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Escape Room Melbourne, 2020, available at https://escaperoom.com.au/, viewed 18 th August 2021 PWC, 2021, Global Entertainment and Media Outlook 2021-2025, available at https://www.pwc.com/outlook, viewed 18 th August 2021.

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Australian Bureau of Statistics (ABS). 2018. Household use of information technology, 2016-17 financial year. [online] Available at: [Accessed 22 August 2021]. Cheung, M. and To, W., 2019. An extended model of value-attitude-behaviour to explain Chinese consumers’ green purchase behaviour. Journal of Retailing and Consumer Services, 50, pp.145-153. Viewed 19th August 2021

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Ito, M., Horst, H.A., Bittanti, M., Herr Stephenson, B., Lange, P.G., Pascoe, C.J. and Robinson, L., 2009. Living and learning with new media: Summary of findings from the digital youth project (p. 128). The MIT Press.

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Levine, M. and Benjamin, C., 1997. Values Segments. [online] Roy Morgan. Available at: [Accessed 22 August 2021]. Martin, G., 2011. The importance of marketing segmentation. American Journal of Business Education (AJBE), 4(6), pp.15-18. Nicholson, S., 2016. The state of escape: Escape room design and facilities. Meaningful Play. Greene, R., n.d. Behavioural Segmentation (And Why It’s So Important). [online] ActionIQ. Available at: [Accessed 22 August 2021]. Tik Tock Escape Rooms 2021. The Psychology Behind the Escape Room - Tick Tock Escape Rooms. [online] Available at: [Accessed 22 August 2021].

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