Essay on Finance Maru Case Study

666 WordsNov 24, 20143 Pages
Finance Case Study: Maru Batting Center Professor: Jeannette Monaco Student: Lydia Lin Organized Chart Segments / Features Little Leaguers Summer Sluggers Elite Ballplayers Entertainment Seeker Description Boys and girls age 6-15 Adults, price sensitive Men women age 16-35, elite players No particular interest, price sensitive Motivation Learn how to play Practice for the baseball season Practice skills Night out, leisure activities Time period in the year Preseason months of Feb and March Summer Cost workers labor cost ¥1,500/hr 2 workers 1 instructor (¥3,000/hr) 1 worker 1 worker 1 instructor (¥4,500/hr) 2 workers Earn ¥6,500/hr ¥3,000/hr ¥7,500/hr ¥4,000/hr Avg hr/year 10hr/year 4hr/year 20hr/year 1.5 hr/year Promotion Sponsored…show more content…
3. Which is the most attractive customer segment for MBC to target? Explain your reasoning. In my opinion, I think the “Little Leaguers” is the most attractive customer segment for MBC to target. First of all, due to the reason that most of the children in Japan tend to play softball and baseball, Little Leaguers has a high retention rate of 75%. This is really high compare to other customer segments. 10% of their customers become regular customers. And their core segment is really large as well. All of these above reflected the large amount of customers that Maru can gain. Second, though this segment needs two workers and one instructor, their parents are still willing to pay extra more to let their children experience and learn from the batting center, which results a ¥500 in their hourly margin. Comparing to other segments, Little Leaguers might have the lowest hourly margin, however, every customer purchased ten hours (second high among all segments) in average per year, which lead them to ¥5,000 for their annual margin. Third, the acquisition of customers with the cost of ¥10,000 isn’t too large to cover up with the profit in following years. The middle school teams that Maru sponsored will receive clothes with MBC logo and phone number on the arms. And the MBC advertisement will also be shown on the league rulebooks. This is a great placement marketing that can efficiently increase

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