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Marketing Plan for Boyne Mountain

Christina Russell

Aaron Rambow

Lyndsey Loveberry

Brian Lechel

Dr. Tanawat Hirunyawipada

MKT 300 / TR 12:30

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I. Executive Summary:
Boyne Mountain Ski Resort was founded in 1947. From there this company has grown into one of

the top ski resorts in the state of Michigan. Boyne’s mission is to have customers “experience the lifestyle”.

At Boyne Mountain we enhance our tradition and reputation by providing our guests with world-class service

that creates memorable experiences. Our team has a passion to serve resulting from a work environment of

respect, opportunity, and fun. Our commitment to our guests and staff ensures success for everyone. That

stated we have developed a marketing plan to potential increase sales from a specific target market. The

target market we selected was the 18-25 male and female beginners that are interested in skiing and

snowboarding that live in the Boyne Mountain Area. We selected this market because there is a larger

demographic around Boyne Mountain. Also for the reason they are not trying to market to that specific area.

If they would try to utilize this target market they would greatly increase their revenue.

We’ve set a marketing objective in place to increase the number of sales of Boyne Mountain for the

18 to 25 beginner skier and snowboarders that live in the Boyne Mountain area by 15% by the end of 2010.

The marketing strategy will consist of multiple forms of promotion including personal selling, mass selling,

and sales promotion. The main objective that will pull this target market in would be the prices changes that

would affect the target market.

In order to effectively make these objectives accurate, we have researched and done competitive

market analyses to determine how other firms would react to the growth and marketing strategies soon to

be in place. With carefully planned implementation and control laid out by quarters, the marketing strategy

should stay on target and well-organized.

Boyne Mountain has been extremely successful in marketing and communicating to its target

demographic over the years. With its continuing success it will surely continue drawing more customers to

the mountain. The plans are set in place or Boyne Mountain to be one of the most successful ski resorts in

Michigan.
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II. Environmental Analysis:
S.W.O.T Analysis: (Agency Analysis)

STRENGTHS: We need to continue offering a variety of family activities at reasonable prices. Continue

offering the best ski atmosphere in northern Michigan. Continue providing world-class customer service.

WEAKNESSES: We are not bringing many teenagers to our resort. Adapt more efficiently to current trends

in the industry. Incorporate ways to lower prices while maintaining quality.

OPPORTUNITIES: We need to find ways to attract skiers to our resort rather than our competitors. Develop

new and innovative ways to attract all of our target markets.

THREATS: We need to find ways to surpass our close competitors, Nubs Nob, Crystal Mountain, and Shanty

Creek.

S.W.O.T. Analysis: (Target Market: Beginners)

STRENGTHS: They have a strong following with local skiers and snowboards. Also their brand name is well

known which will attract many customers from around the area. Great customer service.

WEAKNESSES: competitors and high prices. Do not offer many beginner runs.

OPPORTUNITIES: Need to offer more beginner runs for the young adult demographic to increase revenue

THREATS: Resorts with lower prices. Resorts that offer more activities

III. Growth Strategy: Market Penetration

Boyne Resorts market growth strategy is market penetration. Teens are already are a part of the

current market that Boyne is directed at. Boyne needs to make their ski resort more attractive to the teen

market. Continuing to modernize and renovate the current resort is one of the many efforts that Boyne can

make to hit the firm's target market. Creating resorts and lodges that are up to date and modernized could

help in turning teens to Boyne Mountain. Large flat screen televisions, Wi-Fi, high tech audio equipment, and

contemporary decorations and furnishings are elements that may be inviting to the teen market. An

additional idea that helps with market penetration is appealing to the target market through developing

closer relationships with the customers to stay loyal; this could include a frequent skier club or card with

different benefits depending on the amount of times you come to Boyne.

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IV. Marketing Plan Objectives:

 Increase the number of sales of Boyne Mountain for the 18 to 25 beginner skier and snowboarders that

live in the Boyne Mountain area by 15% by the end of 2010.

 Become the Best 4 Season Resort Company In The World By 2015.

 Continue building a positive reputation and goodwill by promoting Boyne as high quality by 2010.

V. Customer Analysis:
Our current customer analysis consists of the family segment. This segment is the demographic of

young to middle age parents, with children between the ages of seven to sixteen. Aside from the local

customers the typical customers come from the geographic region of Lower Michigan. This includes various

cities such as Grand Rapids, Lansing, and Metro-Detroit area. This segment has the most buying power and

is the primary customers of not only Boyne Mountain, but the entire ski resort industry. These customers

typically spend the majority of their money during their stay at Boyne on Ski lift tickets, food and beverages,

lodging, and ski school/snow activities. This market can typically be reached through billboards, televisions

advertisements, brochures, newspapers, magazine advertisements, and radio advertisements. Another key

characteristic of this market is that reputation is important. A good time at Boyne means a positive outlook

and usually a recommendation to others. A bad experience can lead to negative exposure to others and

losing the previous customer, typically for good. This demographic market wants four main objectives to be

met to ensure a positive experience. They want a fun and exciting get away from their average lives. A ski

resort where the parents can relax without worrying about their children. Lastly, ski packages that

accommodate families with fair prices for various activities.

VI. Competitive Market Analysis:

Boyne Mountain’s main competitors would be Shanty Creek located in Bellaire, MI and Nub’s Nob

located in Harbor Springs, MI. Both companies are located on the perceptual map and Shanty Creek would

be the closest competitor towards the target market. Both Shanty Creek and Nub’s Nob fall onto the

inexpensive lift tickets side of the map. That stated Boyne Mountain would need to extend their marketing

strategy to compete better with these companies. We developed a competitive analysis comparing Boyne

Mountain to its two main competitors for our target market.

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Competitive Analysis

Attributes of Boyne Mountain Attributes of Nub’s Nob Attributes of Shanty Creek

Size (i.e.  67 downhill runs, up to 1  53 Downhill Slopes of Ski  49 Runs at 2 Mountains
square feet, ¼ miles in length able terrain. (Summit & Schuss)
# of seats)  4 four-place chairlifts  450 Vertical
 six-place high speed (Located at Schuss Mtn)
chairlift  Longest Run: 5,280 feet
 2 two-place chairlifts (Located at Schuss Mtn)
 3 three-place chairlifts  Lifts: 5 quads, 2 doubles,
 2 rope tows 4 surfaces & 1 magic
 Ability to transport carpet.
19,200 skiers per hour  2 Terrain Parks and pipe
 Half pipe and terrain park
Features • Ski and snowboard rentals Night Skiing offered every  Four parks spread across
(detail) and shops evening except Tuesdays and 2 mountains
• Alpine and snowboard Sundays beginning Jan 3.  Riding and jibbing available
rental and repair 2007. 12 hours a day, 7 days a
• Vertical drop of 5:: feet week
second highest in northern  Groomed daily and
Michigan. (Second only to maintained throughout
sister Boyne Highlands the day
Resort.)  10+ jumps
• 35 km of cross country  Slope Difficulty:
skiing  37% Beg./Novice Slopes
• 29% beginner, 41% 30% Intermediate Slopes
intermediate, 30% expert 33% Adv./Expert Slopes
Fees (i.e. Lift Tickets (M-F) (Sat- Sun) Lift Tickets (M--F)(Sat- Sun) Lift Tickets (M-F) (Sat- Sun)
individual, Adult (20+) $43 $51 Adult (20+) $43 $51
group) Youth $38 $43 Teen (13-19) $38 $44 Adult (18-54) $46 $43
Child (up to 8yrs) Free Child (9-12) Free* $39 Teen (13-17) $39 $34
Seniors (65-69) $38 $43 Child (up to 8yrs) Free Child (9-12) $32 $27
Seniors (70+) Free Seniors (65-69) $31 $41
Seniors (70+) Free Child (up to 8yrs) Free
* When accompanied by Seniors (65-69) $39 $34
skiing parent.
Market They serve the skiers and They serve the skiers and They serve the skiers and
segments snowboards around Boyne snowboards around Nub’s snowboards around Shanty
focus Mountain and other areas Nob area and other areas Creek area and other areas
around Michigan. Which around Michigan. Which around Michigan. Which
include teenagers, adults, include teenagers, adults, include teenagers, adults,
children, and elderly. children, and elderly. children, and elderly.
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VII. External Market Environment and its impact on the Growth Strategy:

Economic Environment:

The economic environment will have a major impact on the growth strategy for Boyne Resorts in

Michigan. In 2::8, the economy is in a “mild recession” and potentially heading to a full recession. Experts

expect people to take fewer trips and head to less expensive travel destinations. Skiing is often considered a

costly and upscale type of recreation or vacation. Due to the fact that it is a luxury, Boyne may suffer from

the economic downturn. Another important economic factor specifically affecting the ski industry is global

warming. Snowfall is a crucial and essential element for Boyne. In the 1997-1998 winter season, lighter

than usual snow fall resulted in business losses of $144 million. If this trend of dwindling snowfall were to

continue, the impact on Boyne Resorts could be catastrophic. The state of the U.S economy is integral to the

state of Boyne resorts. If the economic downturn continues, people will have less discretionary income to

divert to recreation and travel.

Political and Legal Environment:

The political and legal environment has a considerable influence on the growth strategy for Boyne

Resorts. Environmental and zoning laws regarding construction can limit the amount of growth and

expansion the resort can do. Also, employment limitations and regulations can affect business. Federal

regulations limiting the amount of foreign workers can leave the resort lacking in skilled employees in

positions such as ski instructors, snow making experts, and ski-patrol specialists. Were this to occur, Boyne

Resorts might be forced to limit and reduce its services to customers. This environment has the potential to

be a hindrance to Boyne.

Technological Environment:

The technological environment is important for the growth of Boyne Resorts. Boyne recently made

some modern updates to its lodgings. The latest technology, including large flat screen televisions, highly

efficient heating and air conditioning units, and the latest audio technology have all been utilized in Boyne’s

remodel. These updates have the potential to be advantageous to its growth.

Cultural and Social Environment:

The cultural and social environment is having a tremendous impact on ski resort images’. “Going
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green” and maintaining environmentally friendly practices is a fast growing trend in business. Skiers may

even be more environmentally conscious then the generally population. According to the spokes person for

Mount Sunapee, "Most people that ski also like to hike, golf, bike—they live outside. Our guests are concerned

about the environment, so becoming a green resort is what we think our guests would like us to do." Many

ski resorts are “going green” by using wind power. Boyne Resort of Michigan has yet to use wind power but

other Boyne Resorts such as, Sunday River and Sugarloaf, have already begun using wind power. Boyne also

engages in other environmentally friendly practices like recycling and planting trees for CO2 conversion.

According to President Stephen Kircher, “Most of our efforts have been in existence since before it became

en vogue to be "green" and thus, we, like many things we do/have done – stayed under the radar.” The

existence of many of these practices already puts Boyne ahead of the “going green” curve. The external

marketing environments can have potentially negative or positive effects on the Boyne growth strategy.

VIII. Differentiation and Positioning:

Difficult Runs

Treetops
Sugarloaf

Nubs
Nob

Crystal
Mountain
Expensive Lift Inexpensive Lift
Tickets Tickets
Shanty
Boyne Creek
Mountain

TARGET
MARKET

Beginner Runs
The Positioning Chart suggests that the “Target Market” wants a resort that offers numerous

beginner runs on the mountain with inexpensive lift tickets. The chart shows that Boyne Mountain is doing a

reasonable job offering more beginner runs with less expensive lift tickets. There is not one competitor that is
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reaching the specific target market. While Boyne is close they still can do more work to be the lone supplier

of this target market.

IX. Market Strategy:

Target Market: Beginner Skiers and Snowboards.

Specific demographic and geographic: The demographic is 18 to 25 male and female beginners

that are interested in skiing and snowboarding that live in the Boyne Mountain Area.

Psychographics:

 Owning and renting skies

 Day skiing and snowboarding

 Low prices for lift tickets

 The amateur skier and snowboarder

How this market segment spends their money:

 Use their money to rent skies and snowboards at the mountain

 Spend their money at the ski shop buying winter merchandise for skiing and

snowboarding

 Utilizing the concessions to buy food and drinks while at the mountain.

 Purchasing lift ticket packages

 Buying hotel rooms

Why this market was selected:

We selected the 18 to 25 beginner skier and snowboarder market because there is a larger

demographic around Boyne Mountain. Also for the reason they are not trying to market to that specific area.

If they would try to utilize this target market they would greatly increase their revenue.

Product:

The product of an organization is defined as the need satisfying offering of a firm. Boyne USA offers a

service rather than a good, in that the customer does not actually purchase anything tangible. Customers of
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Boyne USA are purchasing an experience; the product is the ability to use the mountain for a set period of

time. Boyne USA pushes this idea with their philosophy. Boyne Mountain’s philosophy begins with 3 words,

experience the lifestyle. This is Boyne’s main objective for its customers. After their customers leave their

resort they want them to be able to look back and say “I experienced the lifestyle”. We can achieve this

philosophy by promoting Boyne as a highly respectable resort known for its high-quality.

Place:

Place is defined as making goods and services available in the right quantities and locations, when

customers want them. The Place of Boyne USA is defined ultimately by the weather, as temperatures must

be below freezing before snow can be made. Stressing the first two concepts of the definition, making

services available in the right quantities and locations, should be Boyne USA’s main goal. Boyne USA has

expanded greatly in the past and is continuing to expand today. When looking at the Place objective of

location, mass amounts of market research should be done before selecting possible expansion sites. Aside

from expansion sites, Boyne should look into other channels of distribution to promote the ticket sales.

Online, other resorts, and local ski shops would be good to target to promote purchasing tickets in advance.

Promotion:

Personal Selling- involves direct spoken communication between sellers and potential customers.

Personal selling options include telemarketing, online personal selling (i.e. e-mails) It’s important to

remember that personal selling should allow the Boyne’s marketing mix to cater to each individual customer.

Mass Selling- is communicating with large numbers of customers at the same time. The main form

of mass selling is advertising. Mass selling advertising options includes radio advertisements, television

commercials, billboards, mass mailing, newspaper and magazine advertisements, and internet advertising.

Mass selling publicity options could potentially include large scale events (i.e. competitions, concerts), and

fundraiser events.

Sales Promotion- refers to those promotion activities—other than advertising, publicity, and personal

selling—that stimulate interest, trial, or purchase by final customers. Sales promotion options ideas include:

ski and snowboard competitions, half-off ski nights, bring a friend day, teen night, early bird special (earlier

open), and single’s day. The promotion of “College Night” would be the most useful in gaining a greater

market share with our target market.

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Price:

The pricing objective is to make a significant growth in the market share of 18-25 beginner skiers and

snowboarders. Our current customers are not very price sensitive because they have quite a bit more

discretionary income then our target market. The prices are more expensive for the target market that we

are trying to connect with. These new prices will be more likely to draw in the target market of young adults.

The new lift ticket prices are still competitive with local competition, but still uphold Boyne’s high quality

standards.

Old Prices New Prices

Lift Tickets (Mon-Fri-) (Sat- Sun) Lift Tickets (Mon-Fri-) (Sat- Sun)
Adult (20+) $43 $51 Adult (20+) $38 $46

Youth $38 $43 Youth $38 $43

Child (up to 8yrs) Free Free Child (up to 8yrs) Free Free

Seniors (65-69) $38 $43 Seniors (65-69) $38 $43

Seniors (70+) Free Free Seniors (70+) Free Free

X. Implementation and control:

 Throughout the 2009 year we would begin renovations to change the look of the lounge and

progressively make it modernized.

 1st quarter of 2009: This is the mid-to-end winter season so strong advertisements would be put into

place for the 2010 season.

 2nd quarter of 2009: This is typically a downtime for winter sports so advertisements geared at

reminding customers would be put into place. Promotional events could take place to continue to bring

customers to Boyne Mountain.

 3rd quarter of 2009: To really stand out a major marketing plan could go into place on promoting the

change in lift ticket seats for the Adult (20+) prices. This would really help draw our target market to

Boyne.

 4th quarter of 2009: Continue to promote the new lift ticket prices and remind customers why they

enjoy Boyne Mountain so much, because of the EXPERIENCE we provide.