Executive summery
The former North American dance champions Beverly and Robert Tangs have taken advantage of boomer’s love of dance to run their business. This forms the best time because; televisions are boosting ballroom dancing interests with renowned programs like Dancing with the Star.
As a result, the Tangs want to make lots of money through dance activities, their market segment is baby boomers particularly women. This is because the group has lots of cash to spend on dancing course. They also have a desire of making their business (Dancecape) to become a world class dance lifestyle organization based on a business brand that is global.
They have conducted their dancing lessons at Ukrainian church hall where baby boomers danced based on Tang’s instructions. However, apart from spending a lot of time instructing dancers, the Tangs have also invested a lot of money ($20,000) in making a dance video.
Their video is selling well in the US, and is trying its way in the Canadian and Britain market. They have a plan of making three websites where their clients will be shopping, socializing and downloading dance videos. As a result, they have a desire of making their websites look like dancers’ facebook. However, the problem is that, building their business and brand require a lot of money ($1.4 Million). The goodness is that they got a Tim Draper’s audience.
Draper is a capitalist having millions of ventures on the internet and have invested more in Hotmail, hence can be open minded when it comes to new ideas. Before meeting Draper, Tangs decided to hire a brand coach to assist them in preparing sales pitches. By bad lack after sometime, the couch found that Tangs are spending a lot of time to run a business that they really have no time to refine and polish the sales pitches.
The worst thing happened on the pitch day, on this day, “Tim Draper gets an impromptu lesson from Beverly and also listened to Robert’s sales pitch. The sales pitch gets off to a rocky start when Robert calls Tim “Steve” on two different occasions” (Boomer Bonanza, 2008). This was the most embarrassing moment. As a result, though Draper listened to Robert’s sales pitch, he never made any comment, be it positive or negative.
When two experts were talking about the prosperity that Danscape has made, the first expert Lina Ko whose company does baby boomers’ survey, apart from having a blog in the internet that provides the insights of needs as well as wants of Canadian consumers; and Robert Herjavec who owns a computer firm as the second expert.
Robert outlines that though Tangs are doing something they like doing; he reiterates that it is not automatic that if one does something he likes then his business is viable. He asserts that though they are targeting baby boomers, the kind of technology they are using is above such group.
So, their promotion might not reach their target population. This is because, the target population is not well versed with the facebook generation technology for their promotion strategy to succeed. He also comments that, it will be good if the young generation can be involved in the dancing activities, other than the baby boomers.
In conclusion Robert states that “Tangs need a viral marketing idea that will have broad appeal. Selling their videos through niche stores limits their market and is inconsistent with their goal of being a global brand” ((Boomer Bonanza, 2008).
On the other hand, Lina Ko does not agree with Robert’s comments. On her part, she sees boomers not being technologically backward as stated by Robert. In addition, the idea of dancing is a very nice one. This is because, most boomers like participating in exercise activities and dancing is the best exercising activity for them.
The issue of dancing also makes aged people feel much younger. In addition, she sees the idea of targeting women boomers as being the best idea; she bases this argument on the fact that, most family purchases in Canada are influenced by women. However, she advises the Tangs to put more emphasize on the kinds of words they are using.
For instance, they are using words like retirement, which most boomers don’t like hearing. Last but not least, she tells the Tangs to differentiate their market segment further; this is because they all have different needs and wants. She gave an example where, baby boomers in early 40s differ from those in mid 60s.
Background Information
The Tangs are two North American dance champions who came up together to start a business endeavor that targets boomers especially women. The Tangs have an aspiration of making their company brand name (Dancescape) to become a world class dance lifestyle based on a dance brand that is global.
Though at the beginning the Tangs spends much money to produce a dance video and a lot of time giving instructions to their students but at the end their dance video sells well in the United States. As a result, this motivates them to start venturing into other markets like Canada and Britain.
Their marketing and promotional strategy is building websites that have the latest features. However, to attain this objective, the Tangs require a lot of money. To ensure that they get money to accomplish their aspirations, the Tangs started looking for pieces of advice from other people.
For instance, they hired a coach who instructed them not to concentrate more on building their business and their brand alone, but also to spend some time refining and polishing their sales pitches. After taking these advices, their business grew rapidly as they had many boomers who had a lot of money to spend on dancing lessons.
Problems Statements or Issues:
- The Tangs think that baby boomers have money to spend on leisure.
- The Tangs want to make their company (Dancescape) a world class dancing lifestyle organization, based on dance brand that is global.
- The Tangs might have a problem in finding dance hall places to carry out their lessons.
- The tangs are always spending a lot of time giving instructions to their students.
- The tangs have also spent a lot of money ($20,000) in producing a single learn-to-dance video.
- Though their learn-to-dance video is selling well in the United States, getting into Canadian and British distribution is quite challenging.
- Though the Tangs have a good idea of creating three websites where they will be conducting their promotions, marketing and selling of their learn-to-dance video, this will need a lot of money which they don’t have.
- The Tangs spent most of their time running their business as a result, they have no time to refine and polish their sales pitch. Hence they are not ready to present their sales pitch to their audient, Tim Draper.
- On a pitch day with the Tim Draper, the Tangs ended up embarrassing themselves when Robert called Tim Draper ‘Steve’ twice.
- After their sales pitch presentation, they received neither positive nor negative comment from Tim Draper; hence they are left in a state of dilemma not knowing his next plan of action.
- Though they are doing what they love, this does not mean that their business will be automatically viable; they still have to do more.
- Since they are using facebook generation technique to promote their products, their target population might not be well versed with this kind of technology.
- Though the Tangs want to develop a global brand, they are only targeting boomers, leaving out the youths; this fact limits their goal of becoming a global brand.
- The kind of language being used by the Tangs might not please their target population.
- Due to the fact that their target population comprises of individuals with different ages, their needs and wants differ greatly, hence there is need to segment their market further.
Situation Analysis
Strengths
- They are former North American dance champions, hence are already known and most people might wish to associate with them.
- They have done good timing as TVs are boosting ballroom dancing interests.
- Their target population (baby boomers) is the best market since they have disposable cash to spend in dancing lessons.
- In addition, since they are targeting women, women always have influence when it comes to family purchases, so they are targeting influential population.
- They can get church halls to use them as classrooms to offer their dancing instructions.
- Their learn-to-dance video is already selling well in the U.S market.
- They are well versed with technology hence; they can use facebook generation technologies.
- They are doing what they love doing so, they are not straining.
- Their business is liked by many because it makes people feel young.
Weaknesses
- The Tangs have no enough time to do all things they are supposed to do, like refining and polishing their sales pitch.
- They don’t have enough money to do all they want to do.
- They have hard time finding sponsors.
- Tangs seem to be broad minded in a manner that they are concentrating on bigger things like building their business and brand name, forgetting to concentrate on little but important issues like polishing and refining their sales pitch.
- They seem to be having hard time when entering new markets like Canada and Britain.
Opportunities
- Since their learn-to-dance video is selling well in the United States, they can make a lot of money to expand their business.
- Though they have no money, there are sponsors who are open minded when it comes to new ideas.
- There are TVs which are promoting ballroom dancing; hence they can use the same to promote their business.
- Since boomers like exercising to keep themselves young, dancing is the best practice to achieve this objective.
- Due to the current expanded technology, the Tangs can promote and distribute their products easily hence, their company can become global.
- Their target market is not technologically backward thus they can be reached through up-to-date technologies.
- There are individuals who are ready and willing to give them halls to use them as classes. These are for instance church leaders.
Threats
- There are chances that other dancing schools might be opened.
- Finding baby boomers willing to take dancing lessons might be hard
- If church leaders and other people stop lending them halls to use them as classrooms, then they will be negatively affected.
- There are chances that their target population might not be well versed with the kind of technology they are using.
- They are dealing with a diversified market niche hence, satisfying them might be hard.
- The population they are dealing with is very sensitive to some words hence; they might not like their language.
Criteria
- Looking for boomers to undertake dancing classes.
- Finding a place to offer their dancing classes.
- Finding sponsors.
- Getting money.
- To make money.
- Building three websites.
- Producing learn-to-dance video.
- Hiring a coach.
- To promote their business and brand name globally.
Constrains
Internal Constrains
- Financial constrains; in case the Tangs are not able to get sponsors like Tim Draper, it will be very hard for them to establish global business. This is because, they will not be able to create their websites hence, promoting their classes and product distribution will be very hard for them.
- Time management; the Tangs have no enough time to carry out all the activities they want to undertake. For instance, they have no time to refine and polish their sales pitch.
- Personality; the Tangs are not perfectionists, they over look smaller but important issues and concentrate more on broad issues like building their business.
- Language problems; there are some words like retirement, which their clients might not like.
External constrains
- Financial constrains; in case Boomers could not afford to pay fees for their course or even afford to purchase their learn-to-dance video.
- Finding dancing halls; the Tangs might face it rough to find owners of dance halls to let them use their halls as classrooms for free.
- Sponsors; it might be very hard for the Tangs to find sponsors who are open-minded on new ideas.
- Diversified population; t he Tangs are targeting women boomers aged from 40 to 60s, this means that satisfying their differing needs is very hard
Alternatives
- To find students and market, the Tangs can use facebook generation kind of technology to attract many boomers who are willing to undertake dancing classes.
- To find classes, the Tangs can go to dance hall owners and even make a deal with them that some of the dancing lessons will be used to entertain those in attendance.
- To make more money, the Tangs can keep their expenses low, increase the number of boomers, apart from increasing the sale of their video sales.
- To get sponsors, the Tangs can attend some marketplace talks where experts will guide them on how to improve their promotion and refine their sales pitch.
- To deal with diversified market, the Tangs can segment their niche market further.
Recommendation
I hereby recommend that the priority should be looking for boomers and attending market place talks. This is because, without students dance halls and other things will just be useless. On the other hand, attending marketplace talks will help them gain skills and knowledge on how to get sponsors and promote their products hence, increasing their sales. Other alternative are not as significant as the two.
This is because dance halls will only be used as lecture rooms, used for teaching students who will attend their lessons after gaining interests through Tangs’ promotion. In addition, in case their sales pitch is good, sponsors will start looking for them. As a result, all other alternatives relays majorly on the two alternatives which should be prioritized on (Laermer & Simmons, 2007).
References
Boomer Bonanza. (2008). Shall we dance? Web.
Laermer, R. & Simmons, M. (2007). Marketing. New York: Harper Collins.