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CASE STUDY: Marketing at Skydive the Beach and Beyond

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MARKETING STRATEGIES:  

→ PRODUCT:      

 

Actual  Product:  STB’s  actual  or  augmented  product  might  include:  

• Tandem  skydive.  • Video  &  photo  package.  • Merchandise.  • Customer  Service.  • Trusted  brand.  • Packaging.  

 

STB  “package”  their  tandem  skydive  by  surrounding  the  product  with  a  consistent  use  of  their  brand  such  as  branding  their  parachutes  in  company  colours,  sign-­‐writing  vehicles  with  the  company  logo  and  imagery,  and  ensuring  staff  are  dressed  professionally  in  company  uniform.    

Core  Product:  STB’s  core  product  is  the  tandem  skydive,  however  also  includes  the  following:  

• Tandem  skydive.  • Tandem  night  skydive.  • Learn  to  Skydive  Courses  (Accelerated  FreeFall  Course  

or  “AFF”).  • Licensed/experienced  skydivers  (“fun  jumpers”).  

 

→ PRICE:  Pricing  methods  include:  

• Cost-­‐based  pricing:  skydiving  is  an  extremely  expensive  activity!  Costs  associated  with  insurances,  planes,  av-­‐gas,  equipment  etc.  must  be  covered  in  the  cost  of  the  product  in  order  for  the  business  to  remain  viable.  

• Competition-­‐based  pricing:  competitor  analysis  helps  to  keep  STB’s  finger  on  the  pulse.  

 

Price  points  differ  across  the  company’s  locations,  check  out  www.skydive.com.au/prices  to  see  how  they  vary  according  to  location  and  state.  

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Pricing  strategies  include:  

• Price  penetration:  for  start-­‐up  locations;  during  the  low  season.  • Promotional  pricing:  Winter  Specials,  last-­‐minute  Christmas  Specials,  Earlybird  

Promotions.  

 → PROMOTION:  

STB  utilise  a  variety  of  the  methods  in  the  promotional  mix:  

• Advertising:  online,  print  and  outdoor  advertising  including  tourist  publications,  Google  Adwords  and  billboards.  

 

 

• Relationship  Marketing:  Social  media,  with  an  emphasis  on  Facebook  (see  www.facebook.com/skydivethebeach)  and  engaging  customers  and  building  relationships  via  competitions,  great  imagery,  video  content,  cheeky  banter  and  giveaways.    

• Sales  Promotions:  Coupons  and  drop  zone  promotions.  

 • Publicity  &  PR:  Celebrity  skydives  and  interesting,    

   

 

news-­‐worthy  stories”  (see  www.skydive.com.au/skynews)    

• Opinion  Leaders  &  Word  of  Mouth:  If  you  have  a  great  skydive,  you  tell  all  your  family  and  friends,  and  maybe  they  will  book  in  too!  That  is  Word  of  Mouth  marketing  –  it’s  invaluable  as  it’s  FREE!  You  just  have  to  create  an  experience  that  will  have  customers  raving  (in  a  good  way!).  Social  media  such  as  Facebook  and  TripAdvisor  reviews  help  to  facilitate  this  process.  

 

 

 

 

 

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→ PLACE:  

Direct:  

• Website  –  online  checkout  and  booking  process  (see  www.skydive.com.au  and  click  on  “Book  Now”).  

• Telephone  Call  Centre.  • Drop  Zone  sales.  

Indirect:  

• Travel  Agents.  • Online  gifting  sites  (eg.  Adrenalin,  Red  Balloon).  

 

→ PEOPLE,  PROCESSES  &  PHYSICAL  EVIDENCE:  People:  Delivering  the  ultimate  customer  experience  almost  100%  relies  on  STB’s  people.  Customers  have  direct  contact  with  Skydive  the  Beach  employees  every  step  of  the  way,  from  making  a  booking,  to  checking  in,  getting  geared  up,  trained,  meeting  their  instructor,  the  bus  driver,  pilot,  ground  crew  and  so  on.  A  skydive  for  most  people  is  a  once-­‐in-­‐a-­‐lifetime  experience,  it  is  also  an  expensive  experience,  therefore  expectations  in  regards  to  customer  service  are  high.  

Processes:  Delivering  a  high  quality  product  in  a  timely  manner  is  critical,  therefore  processes  must  be  fine-­‐tuned  to  ensure  maximum  efficiency.  

Physical  Evidence:  Providing  quality  physical  evidence  to  a  customer  is  critical,  especially  when  safety  is  such  a  key  aspect  of  the  tandem  skydive  experience.  Having  a  clean  and  tidy  drop  zone  is  imperative  in  creating  the  ultimate  customer  experience  and  making  a  customer  feel  like  they’re  in  safe,  trustworthy  hands.  

 

 

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→ E-­‐MARKETING:  eMarketing  is  a  key  component  of  STB’s  marketing  strategy,  and  includes:  

• Email:  Regular  eNewsletter  blasts,  communicating  new  promotions,  competitions,  latest  news  and  cool  videos  to  their  database.  

• Website:  Providing  information  about  the  skydive,  facilitating  a  fast,  easy-­‐to-­‐use  online  booking  process.    

• Search  Engine  Optimisation  (SEO):  Having  a  good  SEO  strategy  means  STB  remain  in  the  top  organic  rankings  in  Google.  

• Social  Media:  Social  Media  is  an  important  strategy  at  STB,  as  it  appeals  to  their  largest  target  market  of  18-­‐29  year  olds.  STB  primarily  focus  on  Facebook,  TripAdvisor,  YouTube  and  Instagram.  

• Google  Analytics:  Allows  STB  to  analyse  website  data  and  learn  more  about  users  and  their  online  behaviour.  

 

→ GLOBAL  MARKETING:  STB  are  not  a  global  company,  however  they  cater  to  a  global  audience  via:  

• Web  pages  in  a  variety  of  languages,  including  Chinese,  Japanese  and  Korean.  • Translated  legal  documents  that  customers  are  required  to  sign  prior  to  

participating  in  a  skydive.    

→ IMPLEMENTATION,  MONITORING  &  CONTROLLING:  STB  ensure  all  marketing  activities  conducted  have  clear  objectives  and  targets.  They  then  monitor  them  continuously  throughout  the  campaign  period  and  revise  along  the  way  as  necessary.  

 

ADDITIONAL  RESOURCES:  

Students  can  find  additional  resources  at  the  following  websites:  

• www.skydive.com.au  • www.apf.com.au  • APF  How  to  Skydive  video:  https://vimeo.com/96571020  • YouTube  channel:  

https://www.youtube.com/channel/UCXXHTrxgloolukSES8fvSvA    • Flagship  Facebook  page:  www.facebook.com/skydivethebeach      • IPO  information:  http://www.smh.com.au/business/skydive-­‐the-­‐beach-­‐ipo-­‐

ready-­‐to-­‐launch-­‐20150308-­‐13tpqd.html    • ASX  information:  http://www.asx.com.au/asx/research/company.do#!/SKB  

 

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QUESTIONS:  

 

1. What  is  the  company’s  biggest  source  of  revenue,  and  at  what  percentage?  __________________________________________________________  

2. How  many  aircraft  does  the  company  own,  and  why  are  they  cheaper  to  run  than  other  competitor’s  aircraft?    

______________________________________________________________________________________________________________________________________________________________________________  

 3. Skydive  the  Beach  is  now  a  publicly  listed  company.  Name  3  reasons  why  the  company  

decided  to  list  on  the  stock  exchange?    __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________  

4. Using  the  information  provided  in  this  Case  Study,  conduct  a  SWOT  Analysis  for  STB:    

Strengths   Weaknesses  

Opportunities   Threats  

 

 

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5. At  what  stage  in  the  Product  Life  Cycle  do  you  believe  Skydive  the  Beach  to  be  and  why?  ____________________________________________________________________________________________________________________  

6. What  are  the  five  main  customer  groups  that  Skydive  the  Beach  target?  ______________________________________________________________________________________________________________________________________________________________________________  

7. How  does  Skydive  the  Beach  package  their  tandem  skydive  product?    ______________________________________________________________________________________________________________________________________________________________________________  

8. Name  the  two  pricing  strategies  Skydive  the  Beach  use:    ____________________________________________________________________________________________________________________  

9. What  do  you  think  are  Skydive  the  Beach’s  most  effective  Promotional  Strategies  and  why?    

______________________________________________________________________________________________________________________________________________________________________________  

10.  Why  do  you  think  it’s  important  for  a  company  like  Skydive  the  Beach  to  display  positive  elements  of  Physical  Evidence?  

____________________________________________________________________________________________________________________    

11.  Name  3  key  aspects  of  Skydive  the  Beach’s  eMarketing  strategy:    ______________________________________________________________________________________________________________________________________________________________________________  

12.  How  does  Skydive  the  Beach  cater  to  a  global  market?  ____________________________________________________________________________________________________________________  

13.  Extended  response:  Examine  the  Skydive  the  Beach  website  (www.skydive.com.au)  and  evaluate  its  effectiveness  as  a  marketing  tool  (complete  on  a  separate  page).