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The Bag Nation Firms Application of Marketing Mix
Abstract
Big Nation is an event coordination company based in San Diego, California. The entrepreneurs, composed of college mates, have been doing business within the region, but they are yet to implement an effective segmentation for their product. First, the company must segment by factoring in locational, behavioral, firmographics, and personality considerations. The companys strength includes transformational leadership, creating networks within California, expanding business by additional portfolio among others. The weaknesses comprise of a lack of tracking the latest trends in event coordination. There are evident opportunities, such as an additional consumer base from the delivery of services from clothing and the use of social media for promotion.
The company needs to target corporate firms with many employees and positions by including hybrid events while extending its reach to the entire US, not only California. Big Nation must segment prices further to capture more clients by using a ticket selling strategy for various purchasers. Using the FOMO model for promotion is important as it will attract many attendees, more so the millennials. To effectively undertake a marketing mix, there is a need to partner with other marketing companies for collaboration that shall lead to a stable competitive advantage for the company.
Introduction
The firm was started in 2020 by six collegemates schooling at San Diego University. This companys key problem is how it can segment its customers in the market. The company has been conducting various events such as house parties and Valentine s Day as one way of making profits from the enterprise. The proprietors of the company charge between $15-50, and they have realized they can get significant returns from their portfolio. However, due to the changing metrics on consumerism, the company has expanded the business, though it has not resolved an effective implementation of segmented business. This report provides a solution to the problem by applying the 3Cs Model in incorporating segmentation, targeting, and positioning through product, place, price, and promotion cues commonly referred to as 4Ps in marketing.
The Company, Customer, and Competitors Model
Company
3C Model is a tool used in marketing focusing on company, customer and competition intersecting each other as seen in Figure 1, for a stable competitive advantage. Big Nation is a company that has been faring well due to the existence of the 3 Cs. This report analyzes how existing strengths can be useful to beat the competition by focusing on SWOT analysis as shown in Figure 2 for the company relating to the segmentation objectives. The companys first strength is the transformational leadership of six friends who have vast knowledge and expertise power to run the company. The collaboration in management, experience from one of the friends, and the knowledge from others who studied business management courses has enabled them to host events without fixed or variable cost.
The other strength that Big Nation has had is knowing how to segment events based on students and the public community. For example, Valentines day, with no fixed or variable cost of admission enabled them to create a network that yielded them high revenues. That key factor can be useful to observe the type of potential event attendees based on specialization, as recommended earlier (Andrea 23). For instance, Big Nation needs to organize an event that meets the attitudes and interests of senior people in the organization, such as brainstorming events that involve a notable speaker about leadership skills by focusing on a specific company. The use of Apple Ltd expo is a recommended example where the attendees will be likely to have managers and directors for upcoming companies.
Customer
The company aspect complements the other element of customer in the 3C Model in an interdependent way. Big Nation needs to understand the target purchasers of their events to enable segmented objectives, customer coverage, and market. The first group of customers for the company are students, followed by the general public Around California. However, segmenting to have specific consumers is required in this case. Under the SWOT analysis, the weakness is concentration on one region of California and targeting a few customer lines, such as those who like fashion and the ones with the capacity to visit online pages.
It is important to factor in Generation Z when implementing segmentation based on generation shift. This group makes about 25% of the US population and have shown interests in events that talk about gender equality, climate change and gun violence (Kim, and Jogaratnam 918). Therefore, Big Nation must include content that covers the above in social media since the group spends at least three hours watching mobile video per day. That move will enable the firm to be ahead of competition hence, generate more business leads.
Figure 2: SWOT analysis for Big Nation
The company must understand to expand the customer base beyond the two moves by allowing all people access to their product. In this case, changing the weakness can be through objective selling, where all demands and needs of consumers are met hence, securing a stable competitive advantage (Andrea 43). The managers need to add strategies to reach people in remote areas, more so those doing business, and explore more through special occasions. The customer coverage should not only be around California but the entire US; where the firm notes the high number of ticket buyers, and press more to keep the client for future business endeavors.
Competition
Big Nation looks at the capacity of having a stable competitive advantage that can make their events most preferred in the market. Under SWOT analysis, Big Nation experiences threat of a lack of keeping track of event trends and the latest offers in the product industry hence, facing possible slow competitive advantage. The other threat is changing consumer trends where the company has not been shifting to hybrid event coordination like many modern event organizers (Yankelovich, and Meer 4). However, the firm has been able to boost its competitive value by promoting its product through social media handles such as Instagram and YouTube.
To stay ahead of competition in events industry, Big Nation must offer fresh ideas. This includes staying updated by subscribing to journal news, and following industry gurus on social media such as through LinkedIn, Twitter and Google+ (Tkaczynski, and Rundle-Thiele 279). Additionally, the company must keep its employees loyal by paying fairly as events management pool might have limited experience. By doing that, the company is assured of riding in the same boat with other competitors hence meeting customers requirements in events.
Additionally, the existing differentiation of adding a portfolio of clothing in the product range has allowed them to grow further. Hence, that is an evidence that under SWOT analysis, their opportunities can be useful in combating possible market threats as one way of beating the competitive forces that may drag them around (Andrea 65). The current competitors for the company include Bixel & Company, and PBC Events, among others. To beat the competition, the firm must establish a clear brand image through investing in public relations and promotions such as discounts for the first one hundred attendees and ticket buyers and repeat customers.
Recommendation for Implementation of Market Segmentation Based on 3Cs Model
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The first way to implement segmentation is by looking into the geographical perspectives of the events audience. For example, Big Nation may want to run a national trade exhibition for automated doors manufactured by a US-based firm. In this case, based in California, the company may want to target every potential buyer across the United States. The strength is therefore, event managers will segment ticket buyers based on location and observe where the most tickets will be bought from (Andrea 106). However, this recommendation may not work perfectly if there are economic sanctions due to government and non-governmental policies.
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Big Nation should execute segmentation by categorizing potential attendees based on firmographics, the industry they work for, called vertical segmentation. In this case, it can be chief finance officers in tech companies or human resource managers in hospitality firms. Hence, Big Nation should take advantage of that strength of the recommendation. However, the recommendations are limited to changing dynamics in various industries, such as hospitality, that may be affected by seasons.
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Big Nation should undertake a method known as value and lifestyles segments (VLAS) which will enable event managers to group individuals based on their common outlooks, values, and attitudes (Ranallo 36). For example, this recommendation can be applied where Big Nation hosts events for activators, a segmented type of customers who are in the first line when it comes to innovation and change institutionalization into product and service offers. In this case, the strength is having an event to showcase the new value in product positioning by using a thriving company such as Apple will draw attention to this segment and enable increased reservations which translates to more events and expansion in networking; hence, business breakthrough. The challenging part of this recommendation is meeting the demands for different VLAS and balancing service provision with profitable margins in the business.
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This reports last recommendation is about segmenting customers based on behaviors from observations. Big Nation should observe from previous events the customers who purchase tickets early and those who buy late, thus, categorizing them under different segments. (Yankelovich, and Meer 6). The strength of the recommendation is that it will be possible to plan for the costs, human resources required and time needed to actualize an event hence, success in coordinating events for the directors. The setback of behavioral segmentation is that consumer traits are subject to change and may not be predicted from time to time.
Qualitative and Quantitative Analysis: Segmentation, Targeting, and Positioning
Segmentation
It is important to apply segmentation, targeting, and positioning aspects commonly referred to as STPs. The current segments for Big Nation include demographic categorization where millennials have been factored. The reason is that the company has been getting most of the customers from universities and nearby institutions means that they have segmented their business to fit the millennials demands more than baby boomers. Instagram and YouTube are other segmented aspects that can be useful in justifying their current division. In the entire industry, new segments such as regional events and charity organization functions are thriving and Big Nation need to consider these current segments (Tkaczynski, and Rundle-Thiele 284). For example, the planners may arrange for specific destination such as Caribbean or Madrid hence, implementing segmentation through regional programs to fit to the 3C Model.
Although the company has networked in the public community, its strategy fits demographical segmentation, which is not enough to create more business and sustainable operations. The potential segments based on the 3C Model include firmographic segmentation and behavioral segmentation (Market Segmentation, Target Market Selection and Positioning 5). The reason is that having hosted several events, Big Nation can analyze data and get to know the type of customers they deal with and group them according to their demand.
Targeting
The company has hosted house parties, organized live concerts in San Diego, and expanded its business to offer clothes for its customers. Therefore, Big Nation has been targeting entertainment, fashion, and party lovers. However, there are audiences that the company can target based on the major trends in event coordination. For example, part of their targeting should be based on corporate retreats and trade expos for companies with more than 500 employees located within California (Sirohi par.6). This will gather knowledge about the company that needs event coordination by checking their goals of hosting retreats whether for employees or customers. This new trend has been rampant in the US particularly, in service industries where firms incorporate social ties in their corporate frameworks (Andrea 23). This target can be a significant game changer because it can add to their company metrics, as seen in their 3C Model hence, make a high volume of sales.
Positioning
Setting products apart to enable the target audience to choose from many competitors is important. Big Nation has positioned itself by allowing varying costs for admission for its events and introducing the new portfolio to capture the attention of buyers. For example, being on YouTube is a functional positioning that enables virtual selling. However, this move requires differentiation by sieving the content used to promote the business (Market Segmentation, Target Market Selection and Positioning 3). Additional expansions through the introduction of live concerts are one way the company has positioned itself for competitive marketing.
Big Nation ought to position itself to meet the need of their customer, as reflected in 3Cs Model in the first part of this report. That can be done by incorporating hybrid events, a major event coordination consumer trend. It means positioning to allow access to online events for people who do not have time to attend a physical meeting due to their schedules. Since the report recommended segmentation based on firmographics, this can be the suitable segment to apply hybrid events to fit the 3Cs Model by taking the competition element. For example, Microsoft 2020 conference was held virtually where Event Leadership Institute charged $2395 per head with more than 6000 attendees being admitted (Sirohi par.8). That kind of positioning is what Big Nation LLC must adopt so that they strengthen their business and create significant brand awareness through mass communication.
Marketing Mix Elements for Big Nation
Product
The existing product that Big Nation offers is event coordination. This product is more of a service than a concrete item that can be touched physically. Big Nation must understand who needs its services and the function it serves to the customers. In this case, the function includes satisfying the potential buyers include corporate firms and social organizations such as families and groups. These people need event coordination services due to the shift in how business is done, the desire to belong to the digital clock, and exploring other endeavors.
Big Nation must introduce its services aligning with the 3Cs and STP to remain relevant in the market. In this case, they must state the companys responsibility and brand according to the various customer groupings using a segmented strategy that positions the firm for competitive advantage. For example, Bridgestone Tires is a B2C event sponsorship that defines products clearly in event marketing (McCabe par 12). The NFL Draft gave people more chances to get excited about football by snapping their picture mid-air, as seen in Figure 5 below (McCabe par 12). That enabled people to have moments worth disclosing the details to many fans. For example, it can be for VIP indoor diving, where the company shares graphics of a serene and enclosed environment full of endless fictional fun that can motivate people to attend.
Price
Setting the price is important to take care of the buyer and the companys goals from the product offered. Big Nation offers a price range between $15-50 for admission to their locally arranged event. For example, the price for a live concert would be lower than that of a company seeking to have a trade expo since the client level and demand are different. There must be value for the set price as it determines the competitive nature of the business and maintains the customer database (Andrea 91). Price can enable positioning through discounting as seen in Figure 4, bonuses, and happy hours. Big Nation must apply one of the above depending on the segment in place. For example, in ticket selling, efficacy can be achieved through early bird rates, discount codes, and referral codes, as shown in Figure 6 below.
Place
This refers to the consideration of where the product is available to potential customers. Big Nation offers event coordinating services which are abstract products in nature. The placement depends on the goal of reaching the customer, where a definite place can be identified. The case study firm has introduced social media pages from which its services can be booked. Additionally, a clothing line can operate virtually by home delivery concept to the customer. The company has official brick-and-mortar offices where reservations can be made from. However, to facilitate more bookings, the company must collaborate with ticket-selling companies such as CMX Cinemas and TodayTix to reach more customers (Ranallo 105). However, this recommendation might fail if the partnered company ruins its reputation with time.
Promotion
This is the advertising part of the products and services achieved through marketing the offers to potential customers. Promotion can create a wide customer database and combat competition favorably. Big Nation promotes its event services through social media and networking, where retaining a customer means a potential recommendation to other service buyers. That is one of the strengths that Big Nation has employed, and through that, the company has achieved profit realization. This report recommends the use of fear of missing out (FOMO), where content is created to lure attendees to attend by showing how they will be at a loss for failing to attend. That can comprise of a short clip with comic connotations by a reputable advertiser on the same. More than 69% of millennials make purchases based on FOMO, whereas 60% of the same have experienced the fear (Trustmark Team par.6). For example, Figure 7 shows advertising based on the FOMO model. Big Nation must also consider using the Model to position and segment its selling strategy.
Conclusion
Big Nation is an event organizing company started by six friends in San Diego, California. The companys main problem is how to undertake effective implementation for the segmentation of its business. The following is a summary of specific recommendations:
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Use of locational segmentation to find areas with possible leads.
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Application of behavioral segmentation to divide attendees according to their traits.
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Segmenting by firmographic perspectives where grouping is done according to industrial specialization.
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Personality segmentation techniques of identifying specific attributes then grouping clients based on common values.
All that can enable combatting competition in the market and increase positioning levels that promote the business for customer retention. For example, the company can target an expo firm with many employees whereby lead is generated from advertising by using the FOMO method. Additionally, Big Nation needs to adopt hybrid event coordination, one of the industrys major trends. The company can collaborate with organizations such as CMX Cinemas for ticket selling, where a discounting strategy shall be applicable.
Works Cited List
Andrea, Driessen. The Non-Obvious Guide to Event Planning (For Kick-Ass Gatherings That Inspire People). Ideapress Publishing, 2019.
Clampet, Jason. Event Pricing Strategy: The 2020 Guide . Skift Meetings, 2022, Web.
Kim, Kakyom, and Giri Jogaratnam. Analysis of The Nascar Hall of Fame Exhibition Event: A Generation-Based Market Segmentation Approach . Event Management, vol 23, no. 6, 2019, pp. 913-926. Cognizant, LLC, Web.
Market Segmentation, Target Market Selection and Positioning. Havard Business Review, 2006, pp. 1-5.
McCabe, Kristen. Event Marketing: The 10 Best Types of Events . G2, 2018, Web.
Ranallo, Diego. Event Marketing. Bocconi University Press, 2018.
Sirohi, Aastha. Top 7 Event Marketing Strategies & Ideas. Constant Contact, 2022, Web.
Tkaczynski, Aaron, and Sharyn Rundle-Thiele. Event Market Segmentation: A Review Update and Research Agenda . Event Management, vol 24, no. 2, 2020, pp. 277-295. Cognizant, LLC, Web.
Trustmark Team. 7 Real Examples You Can Copy of Using Fear of Missing Out (FOMO) In Advertising Trustmark . Trustmark, 2022, Web.
Yankelovich, Daniel, and David Meer. Rediscovering Market Segmentation. Havard Business Review, 2012, pp. 2-10.
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