Rational 1 for escape rooms PDF

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Activity 1 Rationale Aim of the business The aim of cryptic adventurer’s escape rooms is to expand their business Cryptic adventurers should set smart objectives to help them achieve their main aim. SMART stands for s- specific states exactly what you are going to do. Measurable which provides a way to evaluate and use metric data, achievable makes sure you can accomplish the given task, relevant which makes sure it improves in a certain way and timed which means being specific with dates and time. 1. Generate a net profit of 30% by increasing the customer base through conversations within the next calendar year. 2. Increase brand awareness to university students by 25% within the next 6 months. 3. Survey and find out in variety of ways to find the customers wants and needs and obtain information by 50% within the next year. These objectives are SMART and very suitable to ultimately reach its aim which is to expand the business. It is Vital to carry out both primary and secondary research. My primary research was done on bury new road in Manchester on the 23rd and 24th of November and my secondary research was mostly based on tutor2you with some help from other websites. All the websites I used are written at the bottom of this document.

Primary data I Interviewed 100 people between the 23rdand 24thof November. The answers are as follows: 1. 2. 3. 4. 5. 6. 7. 8.

80 of 100 attended escape rooms 50 out of 100 preferred mystery rooms 10 out of 100 liked fantasy based themes. 40out 100 preferred movie related rooms 54% said they would purchase through the company website. 22% said venue The majority would be willing to spend £9-£15 Most important for an escape room is theme, then storyline, puzzle and props tied. The least important was the group they would be with. The most prefer hint system was written clues and the least preferred was a physics person.

Secondary date

Target market Escape room games are enjoyed by a variety of people from gamers to families, tourists and friends and that increasingly, corporates use escape room games for employee assessment, management training, leadership evaluation and team building. According to Ken Ferguson, the main demographic group is aged between 25-35. Male and female.

Size, structure and trends. The UK market size of the escape room industry is estimated to be between £50-80m, with more than 1,500 escape rooms now in the UK, which is a 40% increase since 2018. There are over 350 competitors operating in the UK with 525+ venues. This shows how big the market is. The 10 largest operators have around 25% of the market; This means they can conquer the rest of the market which is only 75%. There are also many small and independent operators in the market. This means, however competitive the market is, there always is room for small businesses. For example, cryptic adventurer’s escape rooms only have the one escape room, but they are still in business, even though they have such a small percentage in the market compared to the rest of their competitors. The market for escape rooms is still growing so there’s still room for money, but the competition is very high. The trends are changing from people wanting history based escape rooms, to more movie based or computer theme rooms. During the special times of the year the demand increases considerably especially by Christmas time, school holidays and New Year’s Eve. According to Ken Ferguson, “word-of mouth” is by far the most important promotional method, I will speak more about the promotional methods in my marketing mix.

Competitors The ten largest operators of Escape rooms in the UK operate around 400 rooms which equals to approx. 25% of the market. According to exitgames.co.uk at December 2019 there were: • 1,592 bookable games (Rooms). • 355 companies in the market. • 521 escape room venues. This shows firstly how competitive the escape room market is. Below is a list of the top 5 companies in the escape room industry. All of them having at least 25% of the market, hence its worth considering their marketing campaign. Escape – 104 escape rooms Clue HQ – 69 escape rooms Escape reality - 57 escape rooms Escape hunt – 44 escape rooms

Locked in a Room – 38 escape rooms

Price Competitors including escape, hunt and escape reality charge around £15 per person, this shows that the top few companies within the escape room market are charging this amount, then they must be doing something correctly. This is very important since Cryptic Adventurers Escape charges £30 per person.

Geographic distribution The rapid expansion of the escape rooms market in the UK in the last 18-24 months means that customers now have quite a wide choice of competitors within a small geographical area, this is slightly worrying because Cryptic Adventurers Escape charges £40 for 2 people, whereas their competitors only charge £15 per person and they are all based within one area.

Validity and reliability 2018 estimate based on detailed and up-to-date information on number of rooms and typical prices for booking. Assumptions look sensible. Reliable since I collected all this data by asking 100 random people. in addition to that I got a lot of my information from tutur2 you which they got form an industry expert with widespread experience of analysing the industry, so its very reliable.

Pest analysis: Political:   

Political Government legislation requires that all data that is collected is done so with the owner’s permission and for the purpose given. New covid 19 laws. The customer database must, therefore, only include the names of those that have consented to be on that list.

Economic:  

Economic Unemployment is increasing and is currently at 4.9%. National minimum wage is supposed to increase, this will impact all escape room companies’ costs, since most of their staff are on minimum wage.

Social   

Social there is changes in trends and to stay in business, business has to adapt to them. Might be too expensive for large families. They are great social events, and very popular in especially in certain times of the year, for example school holidays.

Technological

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technological social media is becoming extremely popular, there target audience will be able to use computers really well.

Swot analysis Strengths:   

loads of demand, peak at certain times of the year, for example school holidays. Relatively easy entry and low capital outlay. Variety of difficulty levels this is difficult in the industry to achieve higher levels

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excellent customer service, since the staff are permanently employed.

Weaknesses  

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Minimum wages are increasing; this will affect the escape room market as many of them are manned by people who are on minimum wage. The pricing is set high, as mentioned earlier on in primary research The majority of people I asked would be willing to spend £9-£15’ and cryptic escape rooms charge £30 per person. The pricing is higher than most competitors, Escape reality one of the most successful companies in the escape room industry, only charge £15 per person.

Opportunities 

They have the ability to update themes for the customers, as they are not very expensive to change.

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attendees to escape rooms are very high.

Threats 

There are many competitors in the same geographical area.

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Entry threats another new entrant or current supplier expansion could potentially hurt market share. while we do have a backup, the website could go down for technical reasons.

Product life cycle The escape room industry is currently in the decline section in the product life cycle graph. This means companies will have to come up with innovative new creations or themes to move from decline into extension mode.

Activity 2 marketing mix

The 7 ps 

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Product: cryptic adventure escape rooms offer 6 scenarios that are playable for the customers and you have 60 min to try and escape. They give amazing deals to university students, this is because university students are between the ages 20- 30 which is cryptic adventures target audience, like mentioned above in my target audience paragraph. Place: escape room tickets will mainly be sold via the website, but there is an option to buy at the desk, this is good because their target audience are between the ages 25-35 and they generally know how to use online the best. But there is an option to buy at the desk, as there are always going to be the odd few who do not really use the internet. Price: cryptic adventure escape rooms charges £30 per person for playing in any of their rooms, in addition, they also sell a range of merchandise. This includes hooded sweatshirts with the logo and team photographs as a reminder of the time that groups spent together in the room. The main source of income is the revenue produced by the sale of the tickets, as well as the merchandise sold. People: Team of staff which will be professionally trained in order to help the customers and audience if any problems arise. They will all be permanent staff not temporary, since they need to know exactly how the rooms works, in case a customer is having problems they need to be able to help them asap and not waste any time because they are temporary and change workers the whole time. Promotion: According to Ken Ferguson, “word-of mouth” is by far the most important promotional method guson, in terms of generating bookings. The board of Escape Hunt plc point to the critical importance of having top ratings on Trip Advisor as a source of word-of-mouth recommendations. The other main method of promotion is using paid-for advertising on social media – particularly Google Ads and Facebook. Process: The way you to get tickets for cryptic escape room is buy going on their website and buying tickets. The tickets are mainly sold online; however, you have the choice to buy additional items at the physical location.

Physical evidence: The staff are every particular to make sure everything is working correctly inside the escape rooms, tidy and in general to make sure everything is working efficiently. As they want their customers to be happy so

that it goes round how amazing cryptic adventure is, since word of mouth is their main promotional method.

Marketing Message: Our rooms are nerve-tingling, exhilarating fun”. Our rooms will give you so much excitement you would guaranteed to come back.

Media chosen I have chosen to advertise with social media, since my main target audience are people who would look at adverts on the internet rather than listening to the radio, or leaflets. I will be using:  Google ads  Facebook  Instagram I feel that these are best methods of advertising to reach out to my target audience.

The budget: The company’s budget is £25,000; this has to include everything. The company has £25,000 to spend on advertisement. In order for the company to gain customers, advertisement and promotion is necessary. Using the budget above, I will structure the budget for advertisement over the 52 week period. Social Media, adverts on websites such as Facebook, Instagram will cost about £24, 500 for it to be continuously displayed for 13 months. Total amount spent on social media is £24,500

Time scale I will be advertising continuously on all social media platforms as I feel the target audience are very active on social media all the time....