Below are the key external factors that Influence Metropolis zoos current and future business. PESTLE The main political factor affecting Metropolis Zoo is that local and central government has reduced their grants and subsidies to the zoo because of the decline in visitors and economic recession. This has a big impact on the zoo because the lack of fund Limits the zoo opportunity for growth as majority of the public funds Is use to pay for maintenance. If the number of visitors increase, the government may consider increasing Metropolis Zoo funds again.
Economic factor will have its biggest impact on Metropolis Zoo during recession. This is because consumers will go to theme parks or other zoos that offers better value for example, consumers may watch National geographic (2012), an entertainment channel that provides different information about animals at home rather than spending time and money on zoo visits. In term of social factor, families are in doubt to visit zoos because they think zoos are no longer safe and pose a risk for their child and their own life.
For example, a Siberian tiger escaped from its cage in San Francisco Zoo on Christmas day, had been shot dead by police after it killed a 17 years old visitor and hurt two others victims (Henry 2007). This kind of incident makes people doubt zoo quality of work and revive. From the case, another social factor that tainted the zoo image is the environmental concerns stimulated by animal rights activists who continued to protest about the captivity and exploitation of animals. Technologies have change customers experience in entertainment and leisure activities.
This affects Metropolis Zoo's business because its competitors are already using technology to make their attractions more appealing and interactive. Plus, customers know get updated news/information and incoming activities through zoos' official website (SSL London Zoo 2012). If Metropolis Zoo's management does not incorporate modern technology in its business to enhance the visiting experience, it will lose out to its competitors who offer better entertainment services through the use of technology. Ethical and environmental factor that affects Metropolis Zoo is that it has to stay ethical to its business principles while facing short of funds.
For example, providing a better and suitable living environment, food, living quarters, and medical care than the law requires could be part of the ethics Metropolis Zoo practices to live up to its high standards of conservation quality. Environmental factor such as weather also affects Metropolis Zoo because some animals are not suitable to live in the zoo's local weather. Therefore, it has to make sure these animals living environment are comfortable all year round and it is also a requirement of the Law Licensing Act 1981 (Born Free 2012).
Legal affects Metropolis Zoo because to run a zoo, it needs to follow the law set by government. One of the rules that it has to comply is to operate the zoo under the Zoo Licensing Act of 1981. This regulation is set to protect animals in the zoo by providing suitable living environment, food, living quarters, and medical care as the Asia requirement for all zoos (Born Free 2012). Because of this law, Metropolis Zoo cost of running is high and they can't cut it down even when the funds are low because their zoo license will be withdrawn if the animals basic needs are not met.
Porter's Five Forces There are four key forces from Porter's five forces that impact Metropolis Zoo's business and its future performance. Indirect competition. There are more than 150 zoos in United Kingdom that can provide the similar facilities and environment for wild animals and also customer convenience (UK Zoo Regional List 2008). Indirect competitors are safaris, theme arks and adventure parks within an hour's travel time of the city that also competes in the family day out environment.
These indirect competitors can provide personal and great experience for customers as they provide a more interactive, exciting and value for money experience. The second factor from Porter's five forces that affects Metropolis Zoo is threat of substitute products or services. During recession, customer looks for value for money services especially for vacation and entertainment. They will find tourism and leisure activities costing the same as visiting a zoo or higher if it has equal or higher entertainment satisfaction value.
From the case, families are able to substitute their visit to the zoo with adventure parks or zoological gardens with develop fun parks alongside their animal enclosures and other places of interests. The bargaining power of customers that Metropolis Zoo has targeted has also increased because they now have choices on where and how to spend their money on entertainment or family day out as competition in the industry intensifies. According to I-J Zoo Regional List (2008), there are more than 150 zoos in United Kingdom (I-J) alone. This means customers have the bargaining power to choose which zoo they will like to visit.
Other than that, safaris and theme parks provide an alternative choice to zoos because they are able to provide personal and unforgettable experiences (Out of Africa Wildlife Park 2011). Intensity of competitive rivalry is another key factor that will seriously affect the performance of Metropolis Zoo. The tourism industry competition has intensified especially in the family day out because organizations in the industry offer almost the same experience as Metropolis Zoo and are starting to use technology to compete against each other.
Besides, zoo at the outskirts of the city may have more space and hush have more variety of animals making them more attractive to customers since customers like to see a variety of animals if the zoo/safaris offers the same price as Metropolis Zoo. 2. 2 QUESTION 2 Metropolis Zoo has two broad market segments which are business-to-business (BIB) and business-to-customers (BBC). The business customers of Metropolis Zoo include schools (both private and public) from kindergarten, primary school and secondary school. Other BIB segment will be universities and tour agencies.
To enforce what is being taught in school, schools usually organize educational trips as part of their curriculum. Their principal customer choice factors (CUFF) are enhance the learning, the learning from the program may be forgotten after a while Non Clarke 2005). Therefore, a school is a segment which zoo can target since schools often organize trips to zoos for its students. According to Moss and Season (2010), the learning potential that zoo has to offer outside "formal" education is by allowing students to view the animals and the response of school students to them.
This is a market segment that can be Metropolis Zoo repeat customers in the future. Universities it is another business market segment because zoos and universities can org together to come up with an undergraduate program in zoo science with part of the tuition fees going to the zoo. As mentioned by Macaroon and Bator (2003), the partnership between Friends University and Sedgwick County Zoo in Wichita, Kansas is a successful program because "the program combines modified biology curriculum with the specialized instruction and practical experience provided by the curators and keepers at a zoo".
Thus, Metropolis Zoo can cooperate with universities in its city because this market segment is able to provide a sustainable income. The virtual laity (IVR) technology that would be implemented will enhance the learning experience of university students enabling Metropolis Zoo to charge a higher price because the primary CIFS for universities are knowledge/information and variety. The next BIB segment is local and worldwide tour agencies. This segment will help bring in visitors for Metropolis Zoo by including Metropolis Zoo in their travel package.
Tour agencies primary CIFS are service, price and zoo layout. Thus, the adopting IVR technology in the zoo will improve the service Metropolis Zoo is able to provide making them favorable towards the travel agencies. Metropolis Zoo can also discuss with tour agencies about advertising the zoo to the tourists by giving them commission that has already been included in the ticket pricing and tour package. In the BBC market, the segments include family-minded group, tourists and university students.
According to Minute (201 1), family-minded group are people in the family lifestyle (mostly parents), have children and to be aged 35-44 years old. This market segment is more likely to visit entertainment-led attractions such as theme parks and zoos/ wildlife parks. Their primary CIFS are service, price and information. They emphasis ore on service by wanting the facilities to be family-friendly and entering attractions with family friends to get group discounts (Minute 2011).
Apart of spending time with their family, they also want their children to gain knowledge about wildlife. From the forum Circle of Mum (Sheehan 2010) and Lifelines (Stefan 2007), most parents will bring their child to the zoo around the age of 1 to 12 years old. Thus, the IVR technology that is to be implemented has to be family-friendly along with other facilities and activities to appeal to this segment. Tourist is also the main market segment for the zoo because tourist would like to explore the specialist and activity of each country's zoo.
Their primary CIFS are Metropolis Zoo is able to attract tourists from all over the world who would like to experience virtual reality in a zoo which is not available in their own country. This segment can be reached through travel agencies or travel information websites. University students majoring in zoo science is another major BBC market segment for Metropolis Zoo. Tied together with the cooperative undergraduate or postgraduate program with universities, these university students may be required to do research while they have hands-on training in the zoo.
Thus their primary CIFS are knowledge/information and the variety of animals the zoo has. The IVR technology will benefit these students according to Guttering (2009), he mentioned that Allison et al. And Bowman et al. Evaluated the education efficacy of the Virtual Reality Gorilla Exhibit' in Zoo Atlanta on a group of university students and found that Virtual Education (EVE) benefits students' learning and served as a useful complement to the learning modules.
Business-to-Business (BIB) Market Segment List all possible factors influencing customers' choice of supplier/brand (CIFS) I Segment name I Characteristic I Profile I Principal choice factors (Primary CIFS- o more than 3) | Service * Zoo layout * Information/ knowledge * Variety * Price I School I * Inclusive of kindergarten, primary school and secondary school * Organize trip for students and make it part of their curriculum. * Visits are approved by the students' parents and government.
I School with children from the age of 5 years old to 17 years old * May visit other zoos outside the cities I * Information/knowledge * Price I I University I Collaborate with the zoo to do offer zoo science program * Let the students use the zoo information or services for research I * Universities in the same city of the o * Offer zoological courses I * Information/knowledge * Variety I I Tour agency I * Organize trip for the tourists * Introduce the famous destination for tourists I * Plan the tour itinerary for tourists. * Expert in customize trip for different customers.
I * Service * Price * Zoo layout I Business-to-consumer (BBC) Market Segment * Service * Zoo layout * Information * Variety * Price I Tourist I * They are here to site seeing * Have interest on the new things I Young adult * Adventure * Overseas tourist I * Service * Variety I I Family- minded I * They have young children * They want their children to increase the knowledge I * Middle- income family * Have children between the age of 5-12 years old * Give a lot attention to their children I * Information * Service * Price I I University students (undergraduate/postgraduate) I * Do research for assignments and dissertation * Visit the zoo to explore their understanding of the animals I * Loan, part-time working, scholarship and parents sponsorship * The age from 20 years old to 30 years old I * Information/knowledge * Variety I From the SOOT analysis in Appendix 3, we recommend Metropolis Zoo to invest in IVR entertainment technology because it gives them an opportunity to overcome the wreaths mentioned and has been proven successful by Zoo Atlanta (Guttering 2009). Below are the strategic and operational marketing objectives after the investment. The strategic objectives are: 1. To have 1 million visitors by the end of Year 3. 2. To increase the number of visiting school children by 9% at the end of Year 3. 3. To increase profit by 10% within 5 years. The operational objectives are: 1. To increase the new customer conversion rate from 1 in 20 prospects to 1 in 15 within 2 years after installation. 2. To have 30 tour agencies promote the zoo to prospective consumers by end of Year 3. To have at least 5 universities work together with the zoo to conduct zoo science undergraduate program by end of Year 4. Below are the strategic marketing recommendations aimed at achieving the objectives stated above according to the ups. Product/Service For schools, the zoo can offer a variety of education package according to the education level of the school to encourage visits. For kindergarten level, the package should include interaction with animals, explanation and educational videos as these children Just started learning about their surroundings through formal education. As or primary and secondary level, the package should include live demonstrations about how animal are trained, in-depth information and virtual reality activities.
This is because at this age, they understand and appreciate knowledge more. As for universities, Metropolis Zoo and universities should come up with zoo science undergraduate programs that are able to attract students to take up the course. The program should cover the use of the zoo facilities including the IVR technology by students, classes conducted by zookeepers and curators. Metropolis Zoo can also set up an external portal with the universities giving students access to the zoo information about animals and research for a fee. Part of the tuition fees for the program will go to the zoo. As for tour agencies, Metropolis Zoo can develop a special tour package that consumers can only sign up through the agencies.
The package will also cover the commission the zoo will pay to the agencies each time consumers sign up. This package is not available online and over the counter. For the BBC segment, Metropolis Zoo can develop a package depending whether the consumers are going alone, with their family or a group of friends and agenda of can tailor a package for students depending on their age, agenda of visit and whether to include the use of IVR entertainment technology in the package. Price For the BIB segment, Metropolis Zoo will need to adapt contract pricing and price discrimination pricing. Contract pricing will be used for tour agencies and universities whereas price discrimination will be used for schools.
In contract pricing, Metropolis Zoo and the university agrees on a certain amount or percentage to be paid to the zoo from the tuition fees and also the use of the zoo facilities by the students when they do conduct their practical training in the zoo. As for tour agencies, the entrant will state how much the special package price will be depending on the quota of consumers for the month and also covers the commission Metropolis Zoo will give to the agency. For schools, customer-segment pricing will be used because there will be different package for each educational level. The package for kindergarten schools will be the cheapest and the price will increase for primary school and high school as the package has more activities.
For the BBC segment, Metropolis Zoo will also be using customer-segment pricing. Usually, zoos will charge lower admission fees to students, senior citizens and group package. In addition, they may have different prices for families depending on the number of people. Metropolis Zoo should also use price skimming because of its image as one of the leading zoological gardens and added with the implementation of the IVR entertainment technology, customers are more willing to pay a premium price. This can help cover the investment cost for the IVR entertainment technology. Metropolis Zoo should also use time pricing because there are certain seasons where it can charge a high price.
For example, most zoos charge higher prices during summer to coincide with summer vacation and lower prices for other seasons to encourage ales. Place For place, we will be recommending Metropolis Zoo on where and how to sell its tickets and packages to its desired target market. According to Minute (201 1), consumers purchasing behavior of tickets have change to the online platform. 42% of customers buy online because of discount and lower prices (Minute 2011). Therefore, Metropolis Zoo can set up online ticket purchasing, and encourage online buying with discount rate to cut down on the zoo's administrative cost and provide convenience to customers.
Providing convenience can increase customer conversion rate. Customers to purchase tickets and provide up to date information. According to Minute (2012), the use of smart phone and mobile website has increased and will continue throughout the year. Many people use their smart phone as the second screen of to find information. Metropolis Zoo should make use of this technology as it provides convenience and information on the go to customers. Another place to have the tickets and package sold is during universities open day when potential university students (local and overseas) find out about the courses they are interested in and the local attractions available in the city.
Metropolis Zoo can also sell their tickets and package through tour agencies or travel agents by product bundling to get lower price and better package when they buy in a particular quantity. Another place is the city local tourist information centre. Promotion There are few promotions that will help achieve the marketing objectives stated above. Metropolis Zoo can sell their tickets online by using sales promotion. For example, visitors are able to get cheaper ticket price through early bird promotions. Metropolis Zoo can also provide customization for the ticket package to meet the different preferences of different visitors. For example, consumers can choose to buy only admission ticket only or add other activity fees such as live animal performance or IVR entertainment experience in the zoo.
One time purchase of multiple activity tickets will be cheaper than buying separately. Furthermore, Metropolis Zoo also can collaborate with other websites to do sales promotion. For example, using Group to sell bulk discount vouchers for a limited time. For schools, their promotion will be first time free visit to let school teachers, staffs and the students to view the zoo environment, facilities and activities that comes with he package that has been designed for them. By doing so, the schools' teachers and administration staff will consider taking up the package Metropolis Zoo offer to them. Metropolis Zoo can also do promotion through exhibition.
For example, setting up a booth in its partnership universities' open days to create awareness about the undergraduate program it has developed with the university and also about its existence and offers. According to the Robin Jones from the case, he mentioned that IVR is able to bring excitement to the visitors and more experiences about wildlife through virtual technology. Therefore, Metropolis Zoo can sponsor its venue and allow consumers to use their IVR entertainment technology for free when Nags or government hold and event there. As for advertising, Metropolis Zoo can use tour agencies to advertise to prospective customers to increase the numbers of visitors.