7. MARKETING STRATEGY
7.1 Pricing Strategy
The bulk of the services offered by Big Surf Internet & Lifestyle Café! must be regarded as ‘commodities’ and a premium pricing strategy cannot be considered. Internet, gaming, fax, photocopying and snack bar/coffee bar prices will be comparable with those in Port Elizabeth and surrounds.
Computer repair services will be charged at an hourly rate approximately 10% higher than those in Port Elizabeth. Similarly, sales of computer programmes, anti-virus software, etc. will be 12% higher due to transport/delivery costs and the costs associated with low stock turnover.
7.2 Promotion Strategy
- Advertising in local newspaper and community newsletters
- Advertising on local tourism website
- Distribution of leaflets/flyers
- Cross promotions with local businesses which, in turn, will be able to use the free ‘noticeboard’ service at the internet café
- Business-to-business networking via the local Chamber of Commerce and the Tourism Association
- Prominent signage
7.3 Marketing Budget
| Advertising (print & web): | R12 000 |
| Printing of leaflets/flyers: | R 3 000 |
| Distribution of flyers: | R 500 |
| Signage: | R 3 000 |
| Business cards: | R 300 |
| Miscellaneous: | R 2 000 |
| Total: | R20 800 |
7.4 Sales Strategy
To provide a range of complementary services which will enable the business to sell to a broad base of customers, as well as to ‘up sell’ multiple services to individual customers.
7.5 Sales Forecast
| September (launch month): | R 51 800 |
| October: | R 57 000 |
| November: | R 62 700 |
| December: | R 87 800 |
| January: | R 80 800 |
| February: | R 68 700 |
| March: | R 74 200 |
| April: | R 74 200 |
| May: | R 63 400 |
| June: | R 63 400 |
| July: | R 73 000 |
| August: | R 64 200 |
| Total revenue for year 1: | R 821 200 |
* High season: December/January (Christmas holidays); March/April (Easter holidays; July (Billabong Pro ASP World Tour surfing event).
