1. Introduction to Report This report focuses on

1.  Introduction to Report

This report focuses on identifying potential members of Le Club Management Studio, a facility at Block 29A, which would be made available to Temasek Polytechnic students from the School of Business. The objective of this report is to identify potential members and gather their ideas to improve Le Club.

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2. Findings

Demographic profile of respondents

There were a total number of 212 Year 2 & 3 students, from the Diploma in Business (BUS), Leisure & Events Management (LEM) and Marketing (MKG) who had responded to the survey. Out of which 9% are from BUS, 32% from MKG and 59% from LEM. 30% of the students were male, while 70% were female. Lastly, 46% of the students who responded to the survey are Year 2 students, whereas 54% were Year 3 students. After conducting this survey, there are in total two segments which I have identified to be potential Le Club Studio Members.

 

The graph above compares the different courses (Marketing, Leisure & Events Management, Business) and the type of activities that students from this course engage in after school. LeClub Studio offers the indoor type of activities. For the activity “Indoor Home-Type”. 41% percent of Marketing students participated in this, 37% for Leisure & Events Management students, and 32% Business students. Using this, we can thus identify Marketing students as a potential segment of members at LeClub Studio, as they engage in activities which LeClub offers after school. The theory behind Customer Value Categories is that not all customers are the same. One of the categories of this theory which can be applied would be Most Valuable Customer (MVC). They are the customers contributing to the highest volume of customers, and refer a large number of customers, costing less to serve. In this case, since there is a match of what LeClub offers and activities Marketing students engage in, it will save LeClub effort to promote their membership as they are already potential members.

The graph above compares the Year of Study and the type of activities engaged in after school. 8% of Year 2 students engage in mall-type activities after school, while it is 10% for Year 3 students. While mall-type activities are not what LeClub studio offers, they are both indoor activities. Hence, I would identify Year 3 students as potential members of LeClub members. In the theory of Customer Value Categories, Year 3 students are considered to be Most Growable Customers (MGC). They are customers whom currently do not have actual value to the enterprise, but has growth potential.

Behavior/Attitude/Preferences

Behavior

The question “Who would you be the most likely to come to LeClub with ?”, in the survey is one which could identify behaviour patterns of the segments identified. For the Marketing students segment, the most popular companion to LeClub would be classmates, at 43%. The next most popular companion would be project group mates at 32%. Also, the third most popular companion to LeClub Studio would be their significant others, at 11%. As for the Year 3 students segment, the most popular companion would similarly be the classmates at 52%, while the second most popular would be project group mates, at 32%. The third most popular option would be coming alone to LeClub, at 6%.

 

The question “What type of activity do you prefer to do at Le Club studio ?” is another which is able to help identify behaviour patterns of the segment. For the Marketing segment, the most preferred activity to do at LeClub would be playing card or board games, at 27%. The next preferred activity would be sitting on the lounge sofas and relaxing at 22%, and the third preferred would be playing American pool or watching DVDs or movies, at 18% for both activities.As for the Year 3 segment, the most preferred activity is both playing card/board games, and sitting on the lounge sofas and relaxing at 27%. The next most preferred activity to do at LeClub studio would be watching DVDs or movies, at 24%.

Attitudinal

`There are many questions in the survey done, which could help identify the attitude of the identified segment. One question which can help identify attitude would be “My ideal club in TP would be a place to:”. For the Marketing segment which I have identified, their ideal club would be a place where it allows them to chill, relax and unwind. This is at 39%. The next idea of an ideal club for the Marketing segment of students would be a place where they could play games with friends, at 24%. The third idea of an ideal club would be gathering with friends to “chit-chat” at 21%. As for the Year 3 students segment, they would also prefer to have a club, where they can chill, relax and unwind at 40%. Similarly, the next most popular idea of an ideal club would be having a place in Temasek Polytechnic where they can play games with their friends, at 26%. The third most popular idea of an ideal club would be a place for gathering with their friends to “chit-chat”, at 19%.

                 

              

Another question in the survey which could potentially identify the attitude of segments, would be: “How often do you see yourself coming to LeClub?”. For the Marketing segment which I have identified, most students indicated that they will come to LeClub studio “two to three times a month”, at 30%. The next most popular frequency would be coming to LeClub “once a week” at 20%, while the third indication would be “not likely/ unable to say for now” at 18%. As for the Year 3 segment, the most popular indication of the frequency of themselves coming to LeClub would be “once a week” at 56%. The next most popular would be coming to LeClub “two to three times a week” at 18%, while the third most popular would be coming to LeClub “two to three times a month” at 14%.

Preferences

When LeClub knows the preferences of the identified segments, they are able to understand the needs and wants of this segment. One question that could tell the preferences of identified segments would be: “Which of the following positioning taglines would you prefer LeClub to have?”. For the Marketing segment, the most popular tagline would be: “A place to chill in between lesson time” at 30%. The least popular tagline for the Marketing segment would be “A place I can still come after I graduate” at 6%. As for the Year 3 students segment, the most popular tagline would be: “A place to chill in-between lesson time” at 74%. The least popular tagline similarly would be “A place I can still come after I graduate” at 4%.

Appeal of LeClub Studio

 

The question; “Things done well in LeClub Studio” can identify how do LeClub appeal to the identified segments. For the Marketing segment, many students agree that the facilities at are one of the things done well at 35%.The next thing done well, would be the ambience at LeClub, at 31%. As for the Year 3 students segments, it is similar to the opinions of those in the Marketing segment. At 40%, the Year 3 students segments believe that the facilities are the many things well done in LeClub studio.

While there are things that are done well, there are definitely things which could have been improved on. For the Marketing segment, things that could be improved upon would be overcrowding and that the location or distance is inconvenient, at 24% for both factors. As for the Year 3 segment, overcrowding is one of the reasons for students to not come to LeClub studio at 25%. The next would be that their timetable does not allow them to come to LeClub at 21%.

Priorities for Improvement of LeClub Studio

The improvement made to LeClub would lead to an increase in potential members from the identified segments. For the Marketing segment, it can be seen that students would like an improvement in terms of Food and Beverage options, and in the design/décor of LeClub, at 18% for both. Next, for the Marketing segment, students would like to have an increased variety of games and increase in noise control at 12%. 30% of the Year 3 students would like for LeClub Studio to organise activities and workshops, an improvement which LeClub can make. Also, 23% of the Year 3 students believe that an improvement such as the design and décor could be made by LeClub.

With this suggestion on the improvement on various factors by the identified segment, I believe that the Servqual Model can help LeClub Studio to identify gaps on their service which will ensure for the minimal service to be provided. One service gap is which may happen to LeClub would be Gap 3, the service delivery gap. This means that at the customer purchase stage, the service personnel had failed to follow the specification or operating procedures set by the top management. This could occur because of poor training, or miscommunication, with the fault lying with the service staff. This can be seen where some of the students from the Marketing segments believe that LeClub studio could improve on noise control. For example from the graphs and explanations above, the top management could have set into place Standard Operating Procedures (SOPs) in case of any noise disruption, but it was not put into place by the service staff at LeClub studio. Perhaps, further training by the Teachers-In-Charge of LeClub for the students helping out would be beneficial as they can educate on more of the operating procedures made in place for different situations. This could then help with the noise control situation at LeClub.

3. Recommendation

Through the survey done, I would recommend for LeClub to implement a limited time period product trial in conjunction with a recommend-a-friend programme. The Year 3 students are considered the Most Growable Customer (MGC) under the Customer Value Category. As stated above, 10% of the Year 3 students engage in mall-type activities. What LeClub Studio offers to their members are indoor home-type of activities, which on some level is similar to mall-type of activities. Implementing a limited time period product trial would then be an incentive for the Year 3 students segment to become members. As what LeClub offers is not entirely similar to the activities that Year 3 segment, this limited trial would encourage them to join for the membership. Furthermore, this limited time period product trial would generate interest and buzz. LeClub would also be able to collect customer information, which will aid them in promotions in the future. In the graph above, 52% of the Year 3 segment has indicated that they will go to LeClub with their classmates. If one brings along their classmates, there would be a reward given to that person. With the recommend-a-friend programme, LeClub is able to increase their membership base. Hence, I would recommend for LeClub to implement a limited product trial programme, in conjunction with the recommend-a-friend programme for the Year 3 students segment. This programmes to increase membership for LeClub amongst Year 3 students should be held in the early stages of LeClub’s opening and details on the membership programme to be sent to all students in their senior year through the student email.

As for the Marketing segment, I would recommend for LeClub to implement the membership programme for super-users. 30% of the Marketing segment would come to LeClub “two or three times a month”. Even if the Marketing segment is more likely to sign up for the membership with LeClub since they engage in indoor home-type activities similar to what LeClub offers, they do not utilise the membership to the fullest. With a membership programme targeted at super-users, this would engage and motivate them.The benefits which follow would then encourage them to come to LeClub more often, henceforth building brand ambassadors. Furthermore, LeClub would be able to generate niche buzz and interest in their membership.

Lastly, I would recommend for LeClub Studio to use a touch map to blueprint service process flows. This touchmap is done to ensure the necessary checks and considerations in case of service bottlenecks. With this touchmap, LeClub would then be able to prevent any possible issues and decrease the number of reasons that prevent the identified segment from coming to LeClub.

4. Conclusion

In this report, I have identified in total 2 segments which are potential members of LeClub- the Marketing segment and the Year 3 segment. Using questions in the survey to identify the behaviour/ attitude/ preferences of the segments, the appeal and possible improvements, I have in total three recommendations: Limited time-period product trial with the recommend-a-friend programme, a membership program for super-users and touch mapping for service flows.

With the data and recommendations, LeClub is able to identify the potential members, and also improve LeClub.

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