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Building the Right Product Mix

Building the Right Product Mix. Connecticut Recreation & Parks Association Learning Resources Network October 2013. Right Product Mix. most revenue and participants lowest overall and new offering cancellation rate highest participant repeat rate least amount of staff energy

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Building the Right Product Mix

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  1. Building the Right Product Mix Connecticut Recreation & Parks Association Learning Resources Network October 2013

  2. Right Product Mix • most revenue and participants • lowest overall and new offering cancellation rate • highest participant repeat rate • least amount of staff energy • best management of product development dollars • best use of promotion dollars Critical Guidelines

  3. Product Mix Responsibility • Programming Professional

  4. Think or Know • Think is about gut • Know is about numbers and some gut 4 9 7 8 2 3 7 6 5

  5. Product Mix • Products – sports, arts, aquatics • Market segments – middle school children, Generation X males, seniors • Delivery methods – camps, trips, leagues

  6. 30% Rule

  7. Market Potential/Market Share • Market potential is the total number of possible people. • Market share is the total number of those people you have enrolled/ involved. Market potential Market share

  8. Repeat Rate 30-50%

  9. New • 20-30% new • New defined as brand new or redesigned

  10. Cancellation Rate • 15% overall • 30-50% new • 2-3 times Poll Question #1

  11. Leagues Operating Margin Budget

  12. General or Targeted • General catalog works, but targeted promotions work better…show me the names

  13. Three Central Uses of Needs Assessments • Determining which customers/participants to serve • Determining what courses/events to offer • Determining how your courses/events should be offered

  14. Market Research • Part of a programmer’s job • You need to be in touch with your participants. • You need to be able to ask the right questions. • You need to be able to analyze the results.

  15. Front Line Staff Read Other Programs Evaluations Focus Group Survey

  16. Generations • Generation Y: Children & Young Adults • Generation X: Families & Fitness • Baby Boomers: Community Education & Fitness • Veterans: Community Education - product, marketing, delivery

  17. Product Development Money • 10% of operating margin over 3 years • $120,000 at 50% operating margin = $60,000 X 10% = $6,000 • Better to contract out

  18. Energy • 6-20 times salary • routine tasks centralized • stay out of day-to-day Poll Question #4

  19. Do You Have The Right Product Mix? • Programming professional are generating 6X+ their salaries and understand needs assessment • Good mix of product, market segments, and delivery methods…30% Rule…Same for Generations • Repeat Rate 30-50% • New 20%+, Cancellation Rate less than 20%, Operating Margin 40%+ • Biggest revenue generators can be targeted, thus you have names • One new initiative is rolled out each year

  20. Maximize Your Profits with LERN’s “Information That Works!” URL: www.lern.org Email: info@lern.org Phone: 800-678-5376 • FREE Registration Analysis Tool • FREE Information & Recommendations on Special Interest Areas • LERN LinkedIn Group & Subgroups • FREE Consulting Q & A • FREE Best Ideas of the Year

  21. THANK YOU! Greg Marsello www.lern.org

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