EliPom Club Network Marketing Strategy for JDPGROUP 5 / SECTION E7

CONTEXT

Who is the principal?

EliPom, a JDP club network that develops and

operates elite JDP clubs in urban areas offering

JDP play experience alongside catering, lounge

and meeting areas as well as value added services

such as massages, coaching

Objective of the strategy deliverable:

Develop a solution to position and promote JDP

amongst EliPom target customers in London,

capturing share of wallet from competing offerings

with inferior attributes mix relative to the needs of

our segment

OVERVIEWProduct: exclusive racquet game with royal heritage combining a unique feature set of exhilaration and exertion of

tennis/squash with strategic demands of chess and prestige and exclusivity of golf and polo, while being available within

close reach of home or work and more affordable/requiring less upfront investment than comparable prestige sports

Customer Segment: a successful male business professional aged from mid 20s upwards in the high income bracket

(earning GBP 60k+), working in dense urban communes in financial services and consulting (other relationship driven, time

intensive, high income professions where employees have purchasing power starting early career), familiarity with racquet

sports, luxury tastes, future/current customers of golf, polo, upscale sports entertainment (prime seats Wimbledon, box seat

formula 1, etc), looking to socialize and build networks with like-mided people in very exclusive upscale environment – a golf

club-like scene in urban area

Positioning relative to competitors: Priced close to but below top tier golf, polo, premium live sports entertainment,

but above other in-city sports such as tennis, squash. Combining customers goals of high exclusivity, high mental challenge,

high athleticism and elite/pleasant/upscale environment with accessibility in-city. Playing a game of golf prestige and golf-

club-type experience, chess complexity and tennis exertion on a Tuesday night in center London.

Promotion and distribution strategy: attack each stage of the marketing funnel by building awareness with the

target audience through promotional offers bundled with activities they already engage in (Wimbledon, tennis, golf),

promotions through key points of customer traffic (elite sports clubs, business centers) and customer attention (Fashion

blogs, The Economist, FT), celebrity endorsements by diverse celebrities representing smarts, prestige and athleticism and

upscale professional events alongside golf and tennis word of mouth through free trials; distribution by building upscale

court facilities proximate to places of work or existing places of customer socialization

Pro

du

ct

Att

rib

ute

PRODUCT OFFERINGC

on

sum

e

Ben

efi

t

Co

nsu

me

r N

eed

Elite, Exclusive Sport

with Royal heritage

Need for status, business

need to socialize with

others in elite

demographics, desire for

privacy/low traffic/low

annoyance environment

Socializing in narrow elite,

high income circles &

luxury environments,

deeper bonds with players,

more private environment

In-city location

possible, unlike other

status sports: golf, polo

High Physical Exertion

Ability to engage in the

sport more frequently,

lower cost to arrive, more

socialization possible

Need to maximize social

and monetary utility of

sports, need to save time

Fun and health benefits,

improved conditioning,

replacing gym workouts,

while still

socially/business useful

Effective use of time,

need to maintain healthy

lifestyle and accomplish

social and business goals

High Strategy

Component / Mental

Exertion

Complexity of rules filters

for intellectual players and

adds unique prestige

making it the chess of

active sports; good for

achieving social goals

Need for 1) mental

stimulation, need to

socialize with intellectually

proximate folks, 2)

efficiency in time use –

play JDP vs chess + golf

TARGET CUSTOMER

•High income, dense urban areas with a focus on cities home to financial hubs

•Initial focus on London, U.K., with emphasis of premium boroughs, proximity to financial and technology work places

Geographic

•High income – above 50k GBP/year

•High intensity, intellectual, relationships drive professions: finance, consulting, luxury sales, senior business development

•Male, 25-40 year age group, with tennis/squash experience

Demographic

•Believe in importance of self-development, value close-knit social groups of like-minded people, highly career oriented and believe in importance of sports for networking, care about health and look for healthy sports that will keep them in shape; believe in comfort, luxury and convenience

Beliefs, Attitudes

•Improve health, maintain a healthy lifestyle through exercise

•Improve status and social standing, accede to explosive high income, high power network that can be professionally useful,

•Have fun through competition and exercise as well as mental challange

Goals

Lifestyle

• We are looking for young, successful, busy workers looking to build their careers and stay healthy, upwardly mobile and social, who value their time – this combination is best found in key financial hubs like London, Frankfurt, New York

SEGMENTS RATIONALE

•Busy lifestyle (60+ hour work week), no opportunity to go out of town for gold, polo, country clubs during the week

•Used to paying premium money for convenience and luxury (premium hotel visitors)

•Interested in bundling activities for maximum effect: e.g. sports with networking, care about proximity; live in premium accomodation

• We are focused on male 25-40 y.o. audience working in high intensity jobs like banking, consulting or tech, as this tends to be the key audience that has money and enjoys exclusive activities like golf, polo, wine clubs, etc and prizes time efficiency, which we can provide

• The sport carries royal legacy and is open to very few given complexity and lack of awareness; it offers unique bonding with very socially like-minded people (high pre-selection filter) and enables vigorous exercise that other similar-purpose sports don't

• JDP is a perfect blend of key attributes of chess/poker, golf club and tennis/athletics uniquely positioned to satisfy multiple goals that are normally tended to by different products

• Busy lifestyle professionals value exercise and networking opportunities, but do not have time to spend on a gold outing during the week or on an combination of gym and social bonding with clients, making it perfect for a EliPom JDP club experience

Rugby

Soccer

TARGET CUSTOMER & POSITIONING

Teens &

Students

Athletic

Exclusive

Children

Old, rich

businessmen

Young, low and middle-

income adults

25-40 y.o. successful,

upwardly mobile,

affluent business men

Wine

clubsSailing

Chess

Poker

Golf

Polo

Tennis

Jeu de

Paume

Jeu de

Paume

Compared to key alternative “elite”, “prestige” sports, JDP offers significantly more physical exertion making it healthier, but also more fun. By creating unique clubs with golf club/win club feel we match their prestige, which keeping athleticism.

Rugby

Sailing

Teens &

Students

Price

Accessibility

(time/distance)

Children

Old, rich

businessmen

By introducing elite Jeau de Paumeclubs across densely populated metropolitan areas in close proximity to work and residential locations of the target group, we plan to make the sport accessible to successful young businessmen, who would otherwise be out of the market.

Wine

clubs

Chess

Poker

Golf

Polo

Soccer

Tennis

Jeu de

Paume

Jeu de

Paume

Young, low and middle-

income adults

TARGET CUSTOMER & POSITIONING

25-40 y.o. successful,

upwardly mobile,

affluent business men

Rugby

Sailing

Teens &

Students

Athleticism

Mental/Strategic

Challenge

Children

Old, rich

businessmen

By emphasizing the challenge and complexity of JDP rules and corresponding game tactics we reinforce the filtering of JDP community by desire for strategic challenge and position it as a sophisticated community that features stimulation of chess-like game with athleticism of tennis or traditional sports

Wine

clubs

Chess

Poker

Golf

Polo

Soccer

Tennis

Jeu de

Paume

Jeu de

Paume

Young, low and middle-

income adults

TARGET CUSTOMER & POSITIONING25-40 successful,

upwardly mobile,

affluent business men

COMPETITION AND DIFFERENTIATION POINT

Social clubs

Exclusive sports

activities

Traditional sports

activities

• Consumer may achieve same socilazation, networking and status goals by joining eclusive, highly

priced wine clubs, wiskey clubs, gentlemen’s clubs, etc.

• Differentiation: our in-city JDP concept allows premium socialilzation and status combined

with athletics, which is key to target demographic

• Consumer may achieve same exclusivity and entertainment goals by going polo, gold, hore-

riding, saling, etc, but these games typically are highly time intensive and often offered out of

town and at high cost, making it impractical for target customer to participate in them

• Differentiation: our in-city JDP concept offers easier access by located JDP clubs near work-

places of target customers in busy commercial centers, recreating the golf-club environment and

wine club class in an athletic facility not far from work. Doing this with golf or polo or sailing is

simply impractical in metropolitan areas due to space constraints.

• Consumer may achieve same athletics and entertainment goals through traditional sports such as

tennis, soccer, basketball, squash, etc. However, none of these activities are signfularly

positioned as exclusive and cannot step up-market due to their long established image; they also

lack pre-screening that is inherent in JDP due to its complex rules and demands of the game

• Differentiation: our in-city JDP concept allows same athletics benefits as traditional sports but

also allows customers to access a highly pre-selected social network and a bespoke, upscale

environment.

EliPom Luxury Jeau De Paum clubs are there for the busy, successful,

competitive young professional, who values time, likes strategic and

physical challenges and seeks to socialize with like-minded superstars and

in a comfortable, luxurious environment on a busy late Wednesday night-

all at the same time night. With its royal heritage, club environment, bar,

comfortable recreation facilities and tactical and athletic complexity of

the game EliPom Jeu De Paum clubs are the nexus where smarts meet

prestige, networks, comfort and an amazing workout.

POSITIONING STATEMENT

MARKETING ACTIONS

All target

customersAware of

offeringUnderstand

benefits

Perceive as

attractive

Can

afford itHave

access to it

Awareness gap:

target market does

not know if the

product

Understanding gap:

target market does not

know how the product

solves their problems

Access gap: JDP not

available in center cities

and therefore not

accessible to target

market

Closing the Gaps Approach:

• Focus promotion on raising awareness with the target

customer by advertising at key places were they are:• physically: usiness centers, elite sports clubs, gold clubs,

wimbdledon and other premium sports entertainment

• and where their attention is: Men’s Health, GQ, exclusive blogs;

FT, The Economist, etc.

• Build exclusive JDP clubs in center city in London together

with club-like recreational space to provide convenient after-

work access for socializing and games

The Slogan.

The slogan has multiple layers of meaning:

‘Be original’ plays with the idea that to play JDP you are a part of

something traditional and authentic but also something special, something

different to everybody else. This plays off the idea that our target market is

elitist, views themselves apart from the average person and seeks prestige in

what they do.

‘Be smart’ refers to the intellectual challenge presented within JDP,

highlighting that this is more than your average sport, it requires both

athleticism and mental agility. This taps into the psyche of our target market

who view themselves as high-brow, intelligent and successful.

‘Keep it real’ is a play on words referring firstly to the fact that JDP is Real

tennis and secondly to the colloquial phrase meaning to be true to oneself and

to be strong. This again plays off the elitist mentality of our market.

The combination of these three phrases is like a sporting mantra, like those

used by Muhammad Ali, to inspire athletes. Our mantra is to inspire

individuals to play real tennis, to be a part of something special, to set

themselves apart and to embrace the challenge, both physical and mental.

Be original.

Be smart.

Keep it real.

The logo.The logo is simple and elegant using only the initials JdP in gold and a small crown above. The crown plays with the idea that this sport is regal, aristocratic and exclusive, referring to the game’s rich history as the royal sporting choice. The gold typeface further emphasises the game’s royal connections and noble status. And the logo’s simplicity is due to the exclusive nature of the JDP playing society, it is not intended to be advertised on every street corner but rather it is a logo for those who are in the know and understand the exclusive nature of JDP.

The brand association.Agility: Agility referring to both the mental and physical exertion required within JDP. This emphasises that JDP requires more than your average sports player, it requires strategy, intellect and physical fitness.

Prestige: Prestige refers to the exclusive nature of JDP and the high status one imbues when you become a part of the JDP society. To be a part of JDP you are special, unique and above the ordinary.

Triumph: JDP is a game for winners, for people who succeed in life. This connects with our use of successful actors, sportsman and politicians in our communication tactics, highlighting that this is a game only for the best.

Agility.

Prestige.

Triumph.

The message.

In our communication efforts we will focus on emphasising the prestigious and exclusive nature of JDP. Adverts, both physical and virtual, will play on the idea that this is a club for the elite, for those who succeed and wont settle for anything less than the best. We will highlight the physical and mental agility required, how this game pushes you to your limits. The advertising will de dotted with successful celebrities, politicians and sportsmen – like Bill Clinton, Tiger Woods and George Clooney. This pushes that to be a part of JDP is to a part of something special, to be the best that you can be.

A young city worker exits his office, its dusk, almost dark. He’s almost thirty, well dressed in a three-piece suit but with his tie slightly undone. His hair is slightly disheveled. It’s the end of a hard days work. He waves goodbye to some colleagues who are passing by and heads off down the streets of London alone. We see him walking down a dimly lit street in East London, the houses are old and grand but slightly aged. The air is slightly damp and the street lights are reflected off the pavement. He reaches some beautiful ornate wooden doors, there’s no sign just an inscription above the door handle. He pushes them open. Inside the room is elegant and old-fashioned, old leather bound books line the shelves, a large marble fireplace with an open fire crackles in the corner, ornate dark oak furniture and large green leather chesterfield sofas litter the floor. Two friends, George Clooney and Tiger Woods, beckon him from the bar where they’re laughing over whisky old-fashioneds. He declines. A beautiful hostess appears holding his Mulberry scotch-grain holdall and a leather racket case. Its not the size of a tennis racket but a real tennis racket. He slings it over his shoulder and follows her down the corridor. He disappears into a room. The camera fades out and in the last moment you see him appear, dressed in beautiful white sports gear, racket in hand walking out onto a magnificent real tennis court, smiling. And the slogan reads….”Don’t settle for less.”

Rationale behind the advert.The advert emphasises that this is a game for successful individuals who want to be a part of something special and original. The club isn’t vulgarly advertised, its discreet and exclusive and only those who understand its significance know where to find it. Once inside the club is personal and tailored to your needs but also authentic and old-fashioned reminding us of the game’s rich history. We see people like George Clooney and Tiger Woods drinking at the bar to highlight that this is a club for winners, for people who succeed and are the best at what they do.

The advert.

The storyboard.

The outdoor advert.

The outdoor advert aims to intrigue potential JDP players.

All they see is an anonymous man, well-dressed, athletic

and sharp. He’s carrying a holdall but you don’t know

why. And then they read the slogan and Jeu de Paume.

They see themselves in the man in the advert, they want

to be the smart, dapper man with the bag. It wets their

appetite and forces them to investigate and find out more

about JDP. Its clear in the advert that JDP is not selling

itself, its above that – if they want to be a part of it they

have to find it.

The advert appeals to young, successful city workers. The

advert would be placed in the Canary Wharf area, in and

around the banks and law firms as well as on the pages of

the FT, City AM and the Economist.

• Premium Pricing: a unique

sport that replaces a bundle of

expensive activities for

customer ; competing with

high luxury exclusive, capital

intensive offerings (golf, sailing,

polo)

• Price needs to high to cover

high fixed costs associated with

higher number of service staff

and high cost of real estate in

urban areas in the UK

• Combination of membership

revenues (to drive higher

retention and loyalty and club-

feel) and spot hire of courts

(for better utilisation)

Pricing Considerations

• We will compete against

sporting clubs like tennis,

sailing & golf

• Normal pricing model of the

competition is normally a fixed

fee (approx GBP 300 p.a) +

usage fee (approx. 30 GBP /

match) . Total combined annual

cost = GBP 1860 for heavy

users + cost of time lost (days)

and travel to and fro location

• Our value proposition will be

a) urban locations (closer to

busy customers) b) Unique

sporting facility with high end

ambience c) will displace the

need for bundling competitors

offerings

Pricing vs competition

• Monthly membership fees –

GBP 150 - includes

unlimited use of the court

as well as free food and

drinks, plus usage of

networking events. Annual

cost on this scheme = 1800

GBP

• Spot rates – GBP 60 per

hour, includes use of the

court only. Assuming 1

game per hour per week,

annual cost = 60 x 52 =

GBP 3, 120

Pricing Scheme

*Annual cost (assuming average of 1 game a week) = (30 x 52) + 300 = GBP 1860

PRICING

Typical Club Parameters Typical Club Member

Number of Courts 2Avg. Players Per Game 4 Average number of hours played 0.27

Size of Court 408Opening Hours 16 Revenue from value-added services (food, products, etc) £100.00

Size of Courts & Penthouses 816Avg. Court Utilization 75% Cost from value-added services (food, products, etc) £ 20.00

Size of non-Court areas 163Avg. Number of Members 2699

Total Size of Club 979Number of Employees 6 Pricing

Rent Per m^2 £60.00Avg. Salary Per Employee £25,000.00 Membership Cost £ 150.00

Hourly Rental Price of Court £ 60.00

Fixed Costs Variable Costs

Total Rent £58,752.00Salaries £150,000.00 Expected Revenue, Cost and Profit

Insurance £1,175.04Maintenance £96,000.00 Membership Revenue £ 404,850.00

Total Fixed Costs £59,927.04Total Variable Costs £246,000.00 Court Usage Revenue £ 1,440.00

Value-added Services Revenue £ 269,900.00

Minus Costs

TOTAL Club Costs £305,927.04 Club Costs -£ 305,927.04

Value-added Sevices Costs -£ 53,980.00

Cost Per Member £113.35 TOTAL PROFITS £ 316,282.96

ELIPOM JDP CLUB MONTHLY ECONOMICS:

Average Revenue per Customer per Month: 250.5 GBP

Average Cost per Customer per Month with value added services: 133

Average Margin per Customer: 117 GBP

LAUNCH STRATEGY: AWARENESS AND DISTRIBUTION

Build a pilot JDP

court

Launch advertising

and awareness campaign

Create momentum for the new

club

Offer try-out incentives to

target customer

group

Roll out clubs across

London

Build a pilot JDP

court and exclusive

sports and

recreation club in

the Canary Wharf

vicinity close to

target market

customers

Launch advertising

campaign in financial

papers such as the

FT, City AM and the

Economist. Target

men’s journals such

as GQ and Men’s

Health

Create viral video featuring

numerous successful

celebrities to post on

youtube, create momentum

for the new club. Advertise

in exclusive London clubs

such as Soho House,

Groucho and Canary wharf

bars.

Bundle entrance tickets to

new club alongside

exclusive sporting events

such as Wimbledon and

Queens. Offer recreational

space for corporate events.

Sell club memberships at

events.

Once

engagement has

started, build

new clubs in

profitable areas

across the city