John E. Ostrander Lounge
Marketing Plan
May 3, 2011
Alex Ochoa
Alison Chadez
Becky Henderson
Chris Meyer
Emily Knecht
Katie Williams
Patrick Denney
Taylor Edginton
i
Table of Contents:
Executive Summary
iii
Introduction
1
Situational Analysis
1
SWOT Analysis
8
Marketing Goals and Objectives
15
Marketing Strategy
16
Marketing Implementation
28
Evaluation and Control
30
Conclusion
32
Works Cited
33
Appendix A
34
Appendix B
74
Appendix C
75
Appendix D
78
Appendix E
79
Appendix F
80
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Signature Page
_____________________________
Alex Ochoa
_____________________________
Alison Chadez
_____________________________
Becky Henderson
_____________________________
Chris Meyer
_____________________________
Emily Knecht
_____________________________
Katie Williams
_____________________________
Patrick Denney
_____________________________
Taylor Edginton
ii
Executive Summary
The marketing plan proposed outlines the possibility of establishing a self-sustaining and
profitable facility where faculty, staff and alumni will be able host events and have exclusive
dining on the campus of the University of Idaho. Research within the hospitality industry as well
as research within the given market gave significant data that helped identify what amenities and
service outputs will be necessary and/or desired to make it a viable project. This report is
designed to be comprehensive in that all significant primary data gathered from the research
report as well as secondary research will be examined and investigated to establish goals and
objectives towards initial implementation and sustaining financial success. This plan will serve
as a flexible guideline towards market implementation to fill the needs of starting a sustainable
dining and entertainment facility, hereby known as the John E. Ostrander Lounge ( JEO).
By conducting situational analysis of both internal and external factors, the marketing plan is
able to paint a picture of features and attributes that are prevalent within the scope of the nearby
environment. The scope of the marketing plan was limited to Moscow, ID with regards to
competition of the external environment. The amenities offered by the JEO would not be limited
to that of the competition currently available in Moscow. Looking outside of the current local
market, secondary data of similar institutions around the country made it possible to set sights on
sustainable competitive advantages that only a university institution would be able to offer to its
members and patrons.
Analyzing competitors in nearby markets and conducting marketing research to determine what
amenities and features were most valuable to the target market and which of those were offered
by competitors will help to create sustainable competitive advantages. Using the data collected
by situation analysis and cross examining SWOT findings, certain reference points regarding
successful opportunities and recommendations were discovered and discussed. The market
research signifies that market demand is evident, competitive gaps exist, and certain sustainable
competitive advantages can be exploited.
The marketing plan recommendations stem from the competitive advantages that the JEO can
implement to differentiate itself from nearby competition. A university affiliated facility will
have certain competitive advantages when specializing services and catering to the needs of such
a specific target market. However, market threats in the form of boundaries from entry and the
lack of start-up capital may be too much for the creation and implementation of the JEO to be
feasible and guarantee return on investment. The marketing plan gives insight as to all possible
recommendations and competitive solutions that the JEO would undertake if capital investment
deem worthy. An extensive return on investment (ROI) pro forma is strongly recommended.
The market demand from the desired target market is apparent. The data collected from analysis
of external and internal factors points to market sustainability. The amenities of the JEO can
benefit the needs of the target market in ways that other competitors simply cannot without
significant marketing implications and promotional efforts. However, the barriers to entry for the
JEO are significant and should not be taken lightly. Investment avenues and financial research
should be conducted before feasibility of the JEO be either accepted or declined.
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Introduction
Envision a place where alumni, faculty, and staff can meet to discuss current events, research,
sports, and other institutional proceedings all while eating a meal or having a drink to end their
day. Imagine a centralized location that allows for easy access during the day time for a quick
bite to eat or refill of coffee. Visualize banquet rooms that are reserved just for its members
where there can be guest speakers, events, and private parties. While this does not yet exist at the
University of Idaho, strong demand and support show this facility would be a mainstay on
campus.
The JEO proposed in this marketing plan will offer all the above amenities as well as many
others that are explained throughout the rest of this document. The goal of this club is to be self
sustaining and built in a centralized location that offers a place for co-mingling between
matriculates of the university as well as those involved within the institution (faculty/staff). The
club will help to decrease departmentalization, increase colleague cohesiveness, and better use
resources within the university.
The selected name of the proposed club is in honor of John E. Ostrander, the first named
professor at the University of Idaho. “In August, 1892, the first faculty member, John E.
Ostrander, was appointed Professor of Civil Engineering and Mechanic Arts. With that
appointment, Engineering Education in Idaho began” (UI History Archives). With this
distinction, naming the facility after the first professor honors all past, present, and future faculty
and staff at the University of Idaho.
Situation Analysis
Customer Environment
For the JEO, the potential customers will include university faculty, staff, and alumni. All of
these individuals will make up the customer base and will be broken down into target markets
based on different factors and elements. With a new facility and no existing memberships, there
will be many opportunities in developing customer base.
Similar needs and wants are seen within all segments of our customer base. These will be
fulfilled by the JEO in offering dining services, beverages, and other provisions. Along with
these tangible products, the JEO offers members many intangible services including an exclusive
place to meet friends and colleagues, and an environment for social interaction amongst the
members.
The JEO will be a membership based facility because it gives each member a sense of ownership
and exclusivity regardless of the level of membership he or she holds. Each member will have a
sense of belonging and will be connected to a club that would be exclusive to the university.
Secondly the JEO will provide a location for cross communication and interaction between
university faculty and staff. From all departments and colleges, as well as prominent alumni, the
JEO will establish itself as a viable facility where great things can be created and implemented.
Lastly, the JEO can be used as a selling point to perspective faculty and staff seeking
professional employment. The JEO will reiterate the importance of its member’s by allowing
them their own exclusive facility; this exclusivity feature could entice future employees by
knowing they are part of a university that takes care of its own.
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The JEO will be a club/lounge that offers lunch, dinner, drinks, special events, private parties,
and other events that are organized by the members. The board rooms will be available to all
members and will serve as another venue to the university for guest speakers and other important
personnel. The JEO will be a location where members will be able to partake in events as well as
wine and dine throughout the year. A more detailed description of the amenities desired can be
found in the research report in Appendix A.
The JEO members will begin the process by first determining their level of membership in which
they wish to posses. Each level provides a different value to the member in forms of discounts
and special privileges. The level of membership that customers select depends on their view of
the value created by the JEO, and what they believe fits their needs and wants the most
appropriately.
External Environment
Economic
The world’s economic slump has plagued the business world since 2007, and although economic
activity is on the rise in the U.S., the economy has a long way to go to a full recovery (T2). Poor
economic conditions cause consumer willingness to pay to decrease while increasing the
difficulty of obtaining start-up capital (T5). The U.S.’s current economic situation will likely
decrease profit margins at the JEO and increase the time it takes for building construction to
begin. However, the ramifications of a poorly performing economy will not all be negative for
the JEO. High unemployment rates create a large market to draw employees from. The West’s
current unemployment rate is 10.7% and is decreasing at a slow rate (BLS). High unemployment
rates will allow the JEO to be more selective when hiring employees and create a high quality
work force (O14)(O11).
Along with a struggling economy the JEO will have to accommodate and plan for seasonal sales
(T6). Even though faculty, staff, and local alumni are around all year demand will be largely
based on the academic year and events that go on throughout this time i.e homecoming,
graduation, dad’s/mom’s weekend, etc. With the JEO being new and not established the expected
demand for business will be tough for the first year or so. To help offset some of the costs of
shipping in certain food products the high availability of local meats, produce, dairy products,
and beverages such as wine and beer can be utilized (O5). This will not only help in reducing
shipping and storing costs, but will boost the local economy and build a strong reputation of
buying and staying local to support the community.
Social-Cultural
The University of Idaho faculty and staff have met in the past to discuss the possibility of a
faculty staff club because they have become extremely departmentalized. Faculty and staff are
not familiar with each other and are unaware of current events within other colleges. As shown
in the attached research report and survey instrument that were implemented there is a high
demand from the target customer base for such a facility that offers certain amenities (such as
lunch, dinner, event space...etc.(O4 & O14). This could potentially pose a problem for the JEO.
With such an exclusive customer base, a negative experience could result in loss of future
business (T10). The other downside to an exclusive faculty, staff and alumni facility on campus
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is that faculty and staff may not have enough time to have a sit down meal at the JEO during
their lunch hour (T12).
The separation and departmentalization at the University of Idaho has caused a lack of sharing of
resources and information, thus not allowing the creation of cross-functional teams. This is an
issue the JEO could help solve. Furthermore, there is no place to take distinguished guests,
potential professors/administrators, or other dignitaries when they visit campus (O12). There is
also a potential opportunity to capture off campus spending that was once used to take these
guests to lunch or dinner elsewhere (O1). This is a special and unique experience and the
University of Idaho should provide the utmost hospitality to guests. All faculty and staff oriented
facilities, as quoted by the University of Southern California should be “dedicated to promoting
the intellectual, cultural and social interaction among [the university’s] faculty and staff
members” (University of Southern California).
There is also potential for some members’ status to make them feel superior to other members. If
some members begin feeling like they are not appreciated by the club, or that the other members
look down on them because they are a lower status, they may choose to leave the club if they are
an existing member. If not an existing member, they may choose not to join the JEO if they are
not interested in its exclusivity (T9).
Competition
The JEO is designed to offer multiple amenities to its members, but multiple amenities creates an
additional problem for the organization because the more amenities that are added to the club the
more competitors the JEO must manage (T1). One of the JEO’s main amenities is the restaurant,
but many dine-out options already exist in Moscow. Restaurants from fast food to fine dining all
are located within ten miles of each other in Moscow, and new restaurants are opened in the area
each year (T7). Sangria is planning on opening a pizzeria, and Boise’s Pie Hole will open a
location in Moscow before the Fall 2011 semester begins. A high number of dining options in
the area will decrease the JEO’s pricing power, but growth in Moscow’s restaurant industry is a
signal of a growing market where new dining facilities can achieve success.
Beyond a restaurant, the JEO will offer other amenities. Few establishments in the area offer a
restaurant with multiple amenities, so the JEO’s primary competitors have been identified as The
University Inn and the Elks Lodge. The Elks Lodge offers memberships, a bar, restaurant and a
golf course, and the University Inn offers restaurants, bar and lodging all under the same roof. To
successfully compete against primary competitors, the JEO should implement a differentiation
strategy that highlights the unique benefits offered by the club.
Currently at this time, the University of Idaho uses a direct billing system that allows faculty and
staff to entertain their guests and speakers off campus without having to worry about being
reimbursed. This direct billing system is primarily used at places such as The University Inn for
banquets and other university events. The creation of the JEO will allow for faculty and staff of
the university to better serve their guests via entertainment and dining without the revenue
generated to leave campus. In order for the JEO to be financially viable, the club will need to
establish a market share of this revenue source that is being lost to existing competitors.
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To increase brand loyalty and stand out against other restaurants in the implementation of an
exclusive club that only allows members to frequent will be beneficial (O7). This is very
important in that it will increase traffic in regular customers and give members an incentive to
dine because they are receiving a discount based on their membership level. This membership
will allow for a high demand for low priced alcohol and food that is of higher quality (O9,O10).
The membership fees will help to offset this lower cost and make it possible for the club to price
accordingly to attract more memberships and business.
Political
Issues pertaining to food service and other club related aspects generally reach bipartisan
agreement, so different political parties in power are expected to have little effect on the JEO’s
operations. However, every business relationship carries with it some degree of political
interaction. One of the JEO’s most important relationships will be with the organization who
controls food service at the University of Idaho.
Sodexo will likely control food service operations at the JEO, but has the option to refuse to
work with the JEO if they see the project as an unprofitable venture (T3). Since Sodexo will
likely contract with the JEO, the partnership will simplify many operational aspects at the JEO
and both parties will benefit from working together (O3). The UI recently renewed its contract
with Sodexo which offers evidence to the organization creating positive results for the operations
it manages, but Sodexo’s position in the JEO’s supply chain will put the organization in a
position to possibly abuse channel power (T4). This channel power abuse could result in
increases to the JEO’s operational expenses. To minimize the possibility of channel power abuse
the JEO will make a significant effort to create and preserve a positive relationship between JEO
management and Sodexo.
Technological
Wireless technology, social media, and improved access to information systems offer significant
opportunities for the restaurant and other service based industries. Creating a customer database
will allow the JEO management to create profiles on individual customers to gain better
knowledge of usage patterns and enable low cost, customized, direct marketing (O6). The
University of Idaho faculty and staff directory also makes the JEO’s primary target market easy
to identify and contact through email (O2). Improved direct email marketing methods are
generating positive results in the restaurant industry, and the JEO can potentially benefit from a
marketing technique that was previously deemed ineffective (Villano, 2011). Wireless devices
are plugging consumers into their social networking profiles more than ever before and as a
result social media marketing practices are being explored by innovative marketers. Social media
marketing is creating new ways for organizations to interact with customers, but since it is new
many marketers are unwilling to dedicate resources to social media until the longevity of
websites like Facebook and Twitter are further established and proven (O15, T11). Social media
can be used to improve customer relationship management (CRM), advertising, conduct low cost
market research, and has proven to be effective in the restaurant industry (Villano, 2011).
Technology can be used as a marketing and promotional tool, from updates of daily specials and
upcoming events to notifications for deadlines for event reservations. With this technology
available it creates many opportunities, but can also pose some threats. The largest aspect of
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these promotions that needs to be monitored is advertising overload (T8). The club will need to
be sure not to overload members with information and turn them away from the club because
they feel bombarded by redundant notifications.
Legal and Regulatory
In order to begin operating, the JEO will need to acquire a small business license. Some areas
charge either a percentage of sales, or a small fee in order for a business to operate (Kennedy).
The facility will also have to be inspected by the fire department to ensure the building is safe.
Along with these licenses and regulations there will be numerous permits and approvals that will
need to be taken care of before building can begin. These will include issues within the
university for building on campus, county and state building permits along with the included
fees, and city zoning restrictions.
The JEO will need to obtain multiple permits and licenses in order to operate as a restaurant and
bar. Included in these are a food handler’s license and a restaurant liquor license. In the early
stages, the JEO will likely acquire a beer and wine service license. This license is easier to obtain
than a liquor license and has less restrictions associated. This step will help to ensure the
marketing and promotions will not be set back. Along with the beer and wine license the club
will need to work to obtain license to serve liquor; the license the JEO will need to apply for is a
restaurant liquor license (O8). The application process takes 90 days, and can be revoked if it is
believed the JEO is not following the liquor laws as approved by the state (Liquor License
Application). Being able to sell liquor will be a large selling point for the club and will be a large
driver in bringing in members and business.
Internal Environment
Mission, Marketing Goals, and Objectives
The JEO will be a new club and the mission statement was created to encompass all aspects of
the JEO that coincide with the determined goals and objectives. As the club changes and goes in
different directions to meet their goals and objectives the mission statement will change
accordingly. The first mission statement for the JEO lounge reads:
The mission of the JEO is to create a unique on campus venue for exclusive use by University of
Idaho faculty, staff, alumni and community members that is both self-sustaining and
comprehensive in that it meets the needs as determined by market research. Providing this setting
can allow for inter-disciplinary meetings between members to exchange ideas and help construct
a more creative and collaborative university atmosphere. By analyzing internal and external
factors in both the university and city of Moscow environment, core competencies and
sustainable competitive advantages will be sought and utilized in order to best serve the entire
membership.
Marketing Strategy and Performance
For the JEO to be successful it is important to have a marketing strategy to follow as well as a
way to gauge and follow performance. The JEO is unestablished so there are no current
performances to examine and measure. It is a weakness because it can be hard to start something
new with unknown expectations on both the management and consumer side (W7). This also is a
strength because there are not previous assumptions and the JEO can build its reputation how
they want and control their image to appeal to their target markets.
5
The integrated marketing strategy that will be implemented will be broad so that it can
encompass all aspects of the JEO so that it appeals to all target markets, both primary and
secondary. The basis of the JEO’s Integrated Marketing Communication (IMC) will focus on
high quality food and drinks, benefits of membership, support of the university, and the
interactions between all facets of the university community. This is a membership based club
that has four distinct target markets that will help make consistent promotional activities and
segmentation (S3).
To attract different types of buyers within the segment a tiered membership will be established.
This will make it possible to attract customers that are price sensitive and those that are willing
to pay the higher membership and receive more benefits (S1). Along with different forms of
memberships the JEO will attract customers by hosting special events. This is possible due to the
fact that they university has many resources and relationships that can help to make these special
events happen (S11).
Along with not having an established membership and brand, the JEO has other weaknesses to
cover; including the idea that services cannot be stored, resold, or returned (W4). This is related
to the marketing strategy in that the JEO is foremost a service facility and the future of its
existence depends on the services that will be performed as well as the consistency at which they
are maintained.
To achieve these marketing goals and objectives there are different strengths that allow the JEO
to be feasible. The first strength is that the JEO will be a facility that offers high quality food to
its members (S6). Offering quality food will drive membership and the demand of the product to
potential members. Along with having quality food the club will have competitive pricing which
will be enticing to members because it will be more convenient to eat there than other places off
campus (S10). There are a few restaurants that are located near campus, by staying competitively
priced with them it will help maintain members and attract new ones. Another major strength of
the JEO will allow for alcohol on campus (S5). This is significant because there is not currently a
facility that can offer this amenity, with the exception of beer and wine at the Perch, which is
mostly a student/Greek establishment. Allowing for a place for members to grab a quick drink
after work without having to drive or commute is a huge selling point and will help with the
marketing goals and objectives of the JEO.
Weaknesses that will need to be overcome to achieve these goals are in establishing the club and
value to members. There is an unestablished customer base and brand name which could make it
difficult to start and become successful (W2). This uncertainty makes it difficult to establish
feasible goals and objectives because both the JEO and the members are unsure of what the
brand will be. Another weakness is that both members and those running the JEO have uncertain
expectations (W7). The managers and those in charge will have their objectives and goals that
they wish to accomplish, however there is no previous information or recommendations that can
be used to better make decisions that will benefit all involved.
6
Organizational Resources
In order to begin implementation of the JEO, there are numerous organizational resources that
can be utilized to help catapult the facility into action. At the same time, there remains some
resources that are lacking that could potentially cause serious problems and delays. The strong
resources that are available are considered strengths for the JEO.
These strengths include using the established brand and structure of Sodexo to be in charge of
food issues relating to ordering, preparing, and cooking (S2). Sodexo has established channels
which will benefit the food ordering, delivery, and purchasing; this will help to cut costs and
allow them to take on a certain amount of initial risk. Another major strength is the established
customer database. All faculty, staff, and a majority of alumni have contact information
associated with the university which makes advertising and promotion of the facility relatively
less costly and more efficient (S8).
With the JEO being located within the university the availability of quality employees is very
high which will lead to quality customer service interactions and positive consumer experiences
(S9). With the JEO primarily being a relationship based facility, customer relationship
management will be a top priority. Most of the members will have a professional background
which allows the JEO to train employees accordingly to meet consumer expectations (S15). In
order to determine the satisfaction of the members co-production with customers provides instant
feedback on the quality of the experience that they just encountered (S16). This may come in the
form of verbal praise or distaste, as well as subtle hints such as body language, amount of tip,
returning customers, and membership renewals.
Just as resources add strength to the JEO, they also create some weaknesses that have to be
addressed in order to be successful and sustainable over time. The most relevant issue is the
start-up capital and funds to implement the JEO (W1). Without an established customer base
and no determined funding from the university creates financial uncertainty.
The dependence upon a single supplier to consistently provide services can make the JEO too
dependent which can lead to control issues over prices, availability, and contractual agreements
which may not be beneficial to the facility (W6). The last major weakness deals with the fact that
the JEO could have inconsistent expectations from the view of management and from the
members (W7). Since a club such as the JEO has never been established at the University of
Idaho, there are no pre-known expectations. The only expectations that will exist are those being
created as the facility is built, as well as preconceived notions from previous experiences and
knowledge.
Cultural and Structural Issues
Within the JEO, there are numerous cultural and structural issues. Included in these issues are
both strengths to the facility and weaknesses that have large impacts. The largest strength that the
JEO offers is the on campus location that it provides (S4). This is a large selling point to faculty
and staff especially for lunch time, quick dining, and convenient drinks after work. The culture
of the club is heavily weighted on membership and the level of membership which a member
holds. The tiered membership allows the customer to choose the level that fits their needs in the
best possible way (S18). By having this tiered membership it will attract different price sensitive
7
groups of customers and appeal to a broader base. By implementing a payment scale to be
monthly or quarterly will also reduce price sensitivity among customers because they are not
paying a large amount at once, but just enough to remind them of their membership (S7).
A strength that has the potential to be very beneficial to the university and community is that the
JEO allows for cross-functional interactions among faculty, staff, alumni, and community
members (S12). From these interactions ideas on research and issues can be discussed which
could lead to a higher utilization of the university assets and the community abilities to problem
solve.
Structurally the JEO has a large potential to be successful due to the fact that is it on campus and
convenient to those that work at the university. Along with on campus location, having only one
location is beneficial because this allows for customers to come together in one place that is
established and known (S14). This will help to build a future reputation and brand name. The
anticipated building capacity also allows for another strength; it will allow banquet rooms which
will help to create outside revenue in form of special events, speakers, and private outings. The
size of the club will be able to accommodate numerous activities and the club will benefit from
this both financially and from a promotional standpoint (S13).
The largest weakness that the JEO has in regards to structure is the lack of space to find a
centrally located facility that has adequate parking that will accommodate its patrons (W3, W8).
Either the facility is located at a central location and parking is minimal, or there is plenty of
parking but the facility is at an undesirable location. These are issues that will have to be
compromised. The ideal location that will make all members happy may be nonexistent or
unfeasible.
When a faculty, staff, or alumni becomes a member of the JEO, their status within the university
will not be taken into account for certain services and privileges. The already structured statuses
and management levels will be a hard issue to overcome and could pose conflict within the
cultural structure of the JEO (W9). To help with this conflict the tiered membership will be
established. On the other end the tiered membership would create the appearance of social
classes and elitism which also could create conflict (W5).
SWOT Analysis
By analysing the external and internal environments, certain factors stand out that the JEO can
determine as either internal strengths and weaknesses, or external opportunities and threats that
can potentially be exploited in order to find a sustainable competitive advantage. The following
matrix outlines and summarizes those stand out factors and variables, and they have been
categorized as either a strength, weakness, opportunity or threat of the John E. Ostrander
Lounge. By cross examining these factors, certain recommendation strategies will formulate
which will be explained in further detail.
Opportunities
O1. U of I off campus spending
O2. Easily defined and accessed target
Threats
T1. Established competitors – high level of
competition (Many high amenities/ high capacity
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market
O3. Sodexo partnership
O4. High demand from customer base for
JEO
O5. Local agriculture and livestock
O6. Low cost, direct marketing
O7. Membership tend to increase brand
loyalty
O8. No full bar on campus
O9. High demand for low priced alcoholic
beverages
O10. Popularity of lower priced, high
quality menu items
O11. High availability of employee pool to
provide quality services
O12 U of I needs places to entertain guests
O13 High demand for event space
O14 High unemployment rates in US
O15 Improving social media marketing
techniques
restaurants already established)
T2. Poorly performing economy
T3. Sodexo may refuse to be a part of JEO
(Sodexo may see JEO as not in
scan…unprofitable because of single locations
with uncertain demand)
T4. Sodexo may abuse channel power
T5. Price sensitive customers would be hesitant of
membership fees
T6. Seasonal sales
T7. New entrants
T8. Advertising overload
T9. “Memberships” could deter customers who
do not like exclusivity
T10. Exclusive customer base – negative
experience could result in loss of future business
T11. Unproven social media
T12. Faculty/Staff do not have time for lunch
Strengths
S1. Memberships with certain privileges
S2. Sodexo is an established brand
S3. Specific target market
S4. On campus location
S5. Alcohol on campus
S6. High quality food that is catered to JEO
members
S7. Monthly membership dues reduce price
sensitivity of customers
S8. Established Customer Database
S9. Customer Service
S10. Competitive pricing to match market
value
S11. Event Space
S12. Exclusive environment makes it easier
to segment needs
S13. Building capacity
S14. One location
S15. Employee service is catered to a
professional setting
S16. Co-production with customers
provides instant feedback
S17. Location to allow for cross-functional
Weaknesses
W1. Low availability of start-up capital
W2. New establishment with un-established
brand name and customer base
W3. Parking
W4. Services offered cannot be saved, stored,
resold, or returned
W5. Tiered memberships could create the
appearance of social classes, elitism
W6. Dependence upon suppliers (Sodexo) to
consistently provide services
W7. Expectations from JEO members could differ
from Managers or decision makers
W8. Lack of centralized location
W9. Conflicts within culture of the club
depending on employment or status with the
university
W10. New facility will experience uncertain
demand
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interactions among Faculty, Staff, and
Alumni members
S18. Tiered membership offerings
S19. Lunch Buffet
Recommendations:
S1 + O2 + S10 + O13= Offer meals,
special events,groups and event space
O2 + S3 = Advertise JEO opening on
campus and focus efforts on colleges that
show more interests
S5+O8 + O9 = Open with a beer and wine
bar and pursue liquor license in the future
S10 + S18 +O9 = Use competitive pricing
and membership options to meet demand of
Faculty, Staff, and Alumni
Recommendations:
S10 + S12 + T1+ W9 = Offer membership plans
exclusively to Faculty, Staff, and Alumni
members to increase brand loyalty and reduce
uncertainty of demand
S18 +T5= Offer tiered membership plans to target
different usage levels and price sensitivities
O2 + O4 + S18 + W10= Use personal selling to
pre-sell membership plans at a promotional price
to ensure club usage and aid demand forecasts.
T6 + W6 = Enforce high standards for food
quality and customer service
O1 + W2 = Use fund commitments from
colleges to predict a portion of demand and
decrease uncertainty. explain
T11 + W7 + O9 = Correlate yield management
practices with U of I’s event calender
O5 + W6 = Advertise the use of locally
sourced materials
S19 + T12= Position lunch buffet as fast,
inexpensive and healthy meal option
O6 + O12 + W2+T9 = Use direct
marketing and social media for pre-opening
promotion, market research and CRM after
opening.
O11 + O7+W2= Use memberships to
differentiate JEO from competition, and
induce preference, liking, trial, and use.
S11+O13 = Allow members to rent event
space at the JEO
O4+S11=Allow members to form groups,
and use event space for meetings at JEO
10
Recommendations
The following recommendations are action clauses as outlined by the SWOT matrix for
developing viable strategies and competitive advantages for the JEO. This section will list those
recommendations included in the SWOT matrix, as well as further descriptions and plans for
each. By analyzing these strategies, the JEO will be able to locate and develop a sustainable
competitive advantage to exploit.
S1 + O2 + S10 + O13 = Offer meals, special events, groups and event space
The JEO has a defined target market with a defined price sensitivity and general expectations. It
is recommended that the facility offer meals that are fairly priced as compared to competitive
establishments in the area. To differentiate meals and the venue, special events, groups and event
space should be featured in the promotions to generate memberships and revenue.
O2 + S3 = Advertise JEO opening on campus and focus efforts on colleges that show more
interests
With a target market as defined as the primary target market, certain promotional efforts should
be centralized and specific. The exclusivity of the JEO means that the promotional efforts for
generating memberships should also be relatively exclusive and direct. By advertising the
opening of JEO that is implemented solely for faculty, staff and alumni, amenities that are
relevant and important to that target market should be in the forefront of the promotional
campaign.
S5+O8 + O9 = Open with a beer and wine bar and pursue liquor license in the future
By establishing a beer and wine bar in the JEO, the facility can maintain a competitive advantage
among its competitors by creating an on campus venue that serves alcohol. Currently, there is no
such establishment currently residing on campus. It would be in the best interest of the JEO to
pursue this core competency with the intent of acquiring a full liquor license in the future.
S10 + S18 +O9 = Use competitive pricing and membership options to meet demand of
Faculty, Staff, and Alumni
Creating membership options creates different value bundles that may be perceived differently
by each potential faculty and staff member. The JEO is able to create value in different ways by
offering tiered memberships. By using competitive membership incentives, such as 10-15% of
dining and beverages, the facility can maintain advantages over local competition.
O1 + W2 = Use fund commitments from colleges to predict a portion of demand and
decrease uncertainty
As stated earlier, many faculty and staff personnel entertain their guests and speakers that visit
the University of Idaho by taking them off campus for dining and drinks. These expenses are
often accounted for by the University via a direct billing system. The JEO has an opportunity to
11
secure commitments from different colleges and departments to utilize the JEO as a venue for
their guests and speakers, as well as events, and keep the revenues on campus. The JEO should
pursue an effort to establish a simple direct billing system in which all faculty and staff can bring
their guests and have it automatically billed to the university.
O5 + W6 = Advertise the use of locally sourced materials
The JEO may be obligated to follow Sodexo’s supply and reign over on campus vending.
However, the JEO should be able to tap into local markets in the area to gain the goodwill of the
palouse. Also, advertising this ability may give the JEO a sense of home grown cooking and
beverages. By gaining the support of local business, the JEO can reach other markets more
effectively, especially by reaching out to business owners who are also University of Idaho
alumni.
O6 + O12 + W2+T9 = Use direct marketing and social media for pre-opening promotion,
market research and CRM after opening
The JEO has an opportunity to reach a select target market with direct marketing techniques. By
using University list serves, as well as social media such as Facebook and Twitter, the JEO
should be able to use exclusive and specific promotional campaigns that are relatively
inexpensive and very cost effective. These techniques should prove vital when promoting the
JEO’a pre-opening membership sales. Also, the use of these promotions can be monitored and
tracked in order to better serve the JEO and set the stage for future market research, as well as
lay the groundwork for a potential customer relation management system come opening.
O11 + O7 + W2 = Use memberships to differentiate JEO from competition, and induce
preference, liking, trial, and use
By using a tiered membership strategy, the JEO is hoping to entice an amount of brand loyalty
and preference from the customer base. With invested capital into the establishment, members
will be more likely to give the establishment repeated use in order to gain a successful amount of
value out of their membership. This should cause members to feel more connected with the JEO
and less likely to use competitors for substitutes or alternative products. With a large employee
pool, it is the responsibility of the staff and amenities offered to ensure that members are
receiving enough value from their membership. It is important that the JEO help establish daily
use and entice members to develop preferences for the facility.
S11+O13 = Allow members to rent event space at the JEO
One of the distinguishing factors of the JEO is that it will be available for event space and
banquets that will cater to the needs of the University of Idaho. Accessing this market will
provide large sums of revenue that would otherwise be collected by competitors. It would be in
the best interest of the JEO to rent the event space to faculty events and academic speakers.
12
O4+S11 =Allow members to form groups, and use event space for meetings at JEO
One of the initial objectives for the JEO is to establish a creative environment for colleagues
where inter-department mingling is encouraged and expected. The facility will be equipped with
proper event space and meeting areas in order for these types of intellectual transactions to take
place. Encouraging members to attend University of Idaho event series throughout the academic
year can transform the JEO from a simple dining experience to something much more
academically sound.
S10 + S12 + T1+ W9 = Offer membership plans exclusively to Faculty, Staff, and Alumni
members to increase brand loyalty and reduce uncertainty of demand
Making the JEO exclusive to only University of Idaho faculty, staff, alumni and their guests
gives the facility a sense of exclusive inclusiveness By building this lounge especially for their
use, the members of the facility, or potential members, will be more inclined to make use of such
a facility. This type of brand loyalty to the University of Idaho should grab a significant portion
of revenue from similar competitors in the area. Given the amount of memberships sold, the
uncertainty factors of demand associated with the JEO should become reduced and more
predictable in the long term.
S18 +T5 = Offer tiered membership plans to target different usage levels and price
sensitivities
By offering tiered membership plans, different target markets of price sensitivity as well as
facility expectations are reached based on the customer’s idea of value. The JEO is essentially
offering three different products to potential members, based on their specific interests of how
often or how much they expect to make use of the amenities offered. Ideally, the JEO would
anticipate all members to be at the highest level of membership (Vandal). However, the JEO
should expect to capture the interests of more members overall if each individual member is
allowed to selected their membership level and the prices associated.
O2 + O4 + S18 + W10 = Use personal selling to pre-sell membership plans at a promotional
price to ensure club usage and aid demand forecasts
Pre-selling membership plans prior to opening is necessary in order to forecast demand for the
initial stages of the JEO opening. By determining a certain amount of pre-opening memberships
to sell, the demand for services once the facility is completed can be gauged and planned. Using
a promotional price for pre-opening members should entice more potential members and
customers to become members of the facility, become excited regarding the amenities, and
anticipate the services offered at the opening.
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T6 + W6 = Enforce high standards for food quality and customer service
One of the biggest threats to the JEO is the likelihood of seasonal sales and revenues. It makes
sense that the majority of use will come during the academic school year, and that there may be
limited use during the summer months. The JEO should plan on maintaining high quality
standards for food, beverages, as well as customer service in order to generate repeated use. Most
faculty live in or around the city of Moscow, so there needs to be something special either value
wise, entertainment, or customer service that will guarantee that they come back. The JEO
cannot afford to be a one and done type of establishment. Member satisfaction and customer
service is a must.
T11 + W7 + O9 = Correlate yield management practices with University of Idaho’s event
calendar
The University of Idaho’s current event calendar is a great way to plan JEO events and forecast
demand during these unique opportunities. Events such as Vandal athletic events should be
correlated customer management in order to best serve the members of the facility. The JEO can
use these current calendar to create their own special events and opportunities to bring in more
revenue. They can cater to the events of the University to sell the right product, to the right
customer, at the right time, on the basis of event type and the clientele who will be attending.
S19 + T12 = Position lunch buffet as fast, inexpensive and healthy meal option
The aspect the market research on the JEO that the most interesting of data was the appearance
of a lunch option for faculty and staff. The statistic came up time and time again that lunch was a
very desirable amenities that a faculty and staff club/lounge should include. Currently, there is no
faculty lounge with lunch options for midday meals. The JEO is in a unique opportunity to
capture this almost unseen market. The JEO should position itself into the lunch scene by
promoting and giving faculty and staff lunch options that they can use on a regular basis. These
meals need to be quick, relatively inexpensive, and have a variety of options in order to reduce
redundancy and keep members interested. Healthy meal options are an up and coming feature
that many restaurants and eateries are currently taking advantage. The JEO should most
definitely follow suit.
Sustainable Competitive Advantage
The sustainable competitive advantage for the JOE is derived from its exclusive nature,
university affiliation, and its ability to cater directly to their customer base. Being a membership
based facility that caters to a specific customer base provides the exclusive atmosphere
individuals desire. The exclusivity will also instill a pride of membership within the customer
and add to the competitive advantage of the facility. Along with the exclusivity, the JEO would
be associated with the University of Idaho. This association would be unique to the JEO and
provide it with an advantage over the competing establishments. The final sustainable
competitive advantage comes from the JEO’s customer base. With the small and well defined
customer base, the club can easily cater their products and services to those which are most
desired by the members.
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Marketing Goals & Objectives
Establishing a set of predetermined goals and strategies for the JEO is an important step in the
marketing process. The marketing strategies tailored to the JEO must have measurable
performance data to ensure that the they are effective. If not, they must be amended to increase
the performance of the JEO. The client must be able to know where the JEO is going, the factors
to measure and document, and how to interpret that data to gauge performance once the JEO is
established. Based on the SWOT recommendations formulated for the JEO, and the differential
advantage over competitors, the following goals have been set for the implementation of the
JEO:
Gain 50% of all University of Idaho direct billing within two years of opening.
In order for the JEO to be a viable success the business potentially lost, or gained, from
University of Idaho functions is high. As stated earlier, a large portion of revenue is lost to off
campus competitors due to faculty and staff entertaining off campus. A coordinated effort will be
required to promote the JEO to faculty and guests to ensure that the club will be being utilized on
a regular basis. The University spends a large sum of money off campus entertaining guests and
classroom speakers. A conservative number of $500,000 is lost each year to the JEO’s potential
competitors as a result of direct billing (UI Direct Bill). This also does not take into account the
revenue lost by non-direct bill and later reimbursement faculty and staff by the University of
Idaho. The JEO should be able to gain the majority of this market share given sound promotional
efforts and proper customer relation management. The creation of the JEO around a University
setting gives the facility a unique advantage of being able to establish a direct billing system
through the University of Idaho by maintaining its customer relation management procedures.
By establishing the venue, the members of the JEO could have all expenses directly billed to the
University of Idaho. The formation of a “foolproof” or “relatively simple” direct billing system
to sanctioned university events and speaker series would give faculty and staff, looking for
financial reimbursement, incentive to use the JEO for its university affiliation as well as catered
amenities.
Gain a minimum of 500 pre-opening members.
The promotional efforts outlined in this marketing plan define techniques to spread information
and attract customers prior to the JEO opening. Appropriate action should be taken in order to
implement a pre-opening promotional strategy to target potential and future members. These
types of strategies are primarily incentive programs based on price to gain a member base that
will be able to support the opening and initial stages of the JEO. With this early group of
individual memberships, the JEO will be better able to forecast the demand in the initial business
cycle of the club. It is important that the JEO be able to begin on the right foot, so to say, to
ensure that the expectations of its initial members are met or exceeded. If the initial member base
becomes satisfied, that will pave the road for more members to join.
Have an 80% member retention rate in consecutive years.
Ensuring the satisfaction of value for the members of the JEO will be vital to the success of the
business. If the members of the JEO are not satisfied or they deem the value of the membership
in the club to be less than what they are paying, they ultimately will not renew membership. The
likelihood of these members returning to a JEO in future years is small. It is important that the
JEO retain as many members as possible to mitigate the costs of obtaining new members each
15
year. The customer relation management of all members must be taken seriously to ensure the
retention of its initial member base. There are some extenuating circumstances that the JEO must
be aware of, such as members leaving a feasible geographic area, etc. These circumstances
should be documented, and all other retention problems that do not have justifiable means should
be examined and researched to understand why members have not renewed their yearly
membership. This qualitative data should be thoroughly documented to make certain of customer
and member satisfaction.
Marketing Strategy
Research, internal analysis, and environmental scanning determined many aspects of how the
JEO will operate. According to the recommendations created by the analysis, memberships for
the JEO will be made available to current and emeritus faculty and staff of the University of
Idaho as well as alumni of the university. Opening membership to alumni as well as faculty and
staff, increases the facility’s total market by approximately five thousand potential members. The
privileges of the membership would be extended to the immediate family and guests of a
member, only while accompanied by that member to the club. Restrictions would be placed on
guest use to prevent the possibility of shared memberships. Guests of a member who live in the
surrounding area would be limited to one visit per 30 days and 12 visits per calendar year; while
guests visiting from out of town would not be limited on visits within a 30 day time period, but
would be limited to the 12 visits per calendar year. Member’s immediate family, which is
defined as spouses, parents, siblings, and children of the member, would not be limited on visits
within a 30 day or calendar year period. Any extended family would be considered a guest and
be limited to the same restrictions listed above.
Those who are eligible for a membership, but do not currently have a membership can obtain a
trial membership for a seven day period, at a price of half the monthly price for the given
membership level they choose. These trial memberships would be limited to a one time
occurrence, and at the end of the trial period the potential member would be able to continue
their membership by paying dues or discontinue their membership.
Three different levels of membership will be available that offer different privileges and target
different usage levels and price sensitivities. Memberships will create a sustainable competitive
advantage for the club by differentiating it from competitors and increasing brand loyalty.
The JEO will offer its members a variety of amenities, which include a restaurant and lounge
area, bar, and three multi-purpose rooms. The multi-purpose rooms will be available for rental
and used for special events and club meetings. John E. Ostrander Lounge members will have the
option to create their own groups and use the facility’s accommodations for meetings. Research
suggests that book clubs and wine tastings will be likely groups at the JEO (Chadez Denney
Edginton Henderson Knecht Ochao Williams, 2011).
The University of Idaho contracts all of its food and beverage operations through Sodexo.
Sodexo owns the right to first refusal for all food and beverage operations on the U of I campus,
and to simplify operations, the JEO will contract its food and beverage operations through
Sodexo. Sodexo makes an effort to source a certain percentage of ingredients locally and the JEO
will advertise its locally sourced fruits, vegetables, meats and other ingredients to appeal to their
16
target markets.
The University of Idaho spends hundreds of thousands of dollars off campus each year
entertaining guests, feeding athletic teams, and promoting the university. The JEO plans on using
its university affiliation so solicit a portion of this spending from each college. Doing so will
allow JEO managers to better forecast demand and guarantee traffic at the JEO. Both of which
are crucial to a new business. Providing exceptional results for its customers is the only way the
JEO can reach its goal of securing 50% of the University of Idaho’s off campus direct bill budget
within two years. This can result to $250,000 a year for the potential facility. The University’s
schedule will also be a useful tool for demand forecasting, and will help inform the JEO about
which weekends will be busier than others.
Many opportunities exist to direct market to faculty/staff members because all members of the
target market are listed in the universities directory. The JEO will take advantage of these direct
marketing opportunities to raise awareness of the club’s opening and pre-sell memberships.
Membership sales will occur almost entirely through personal sales, so it is crucial for the JEO to
hire highly skilled sales staff if the club wants to reach its goal of 500 pre-sold memberships.
For the JEO to reach its goal of an 80% member retention rate from year to year, the club must
meet the expectations of its customers. Sodexo will ensure that food and beverage quality is high
and consistent, but the JEO is in charge of creating the atmosphere at the club. The JEO’s décor
will be U of I themed to reinforce its university affiliation. In addition, the club will offer large
leather chairs and other comfortable seating options, a fireplace, books, games and free snacks.
Promoting an atmosphere where customers feel comfortable staying for long periods of time will
increase individual’s personal ties to the club and lead to a high retention rate.
Primary Target Market: U of I Faculty/Staff Members
A JEO, by definition, should cater to the wants and needs of faculty staff members. The
University of Idaho employs 928 faculty members and 2,240 staff (University of Idaho, 2011).
Faculty/Staff member age ranges from 20 to over 65, but the majority of Faculty/Staff members
are between the ages of 40 and 59 years old (Chadez Denney Edginton Henderson Knecht Ochoa
Williams, 2011). Faculty/Staff members who will use the JEO most often will live in the
Palouse area which encompasses the cities of Moscow, Pullman, and the surrounding towns like
Potlatch, Genesee and Troy. The JEO expects its most loyal customers to use the club between
two and four times a week for different activities that include lunch, dinner, special groups
gatherings, social interaction and JEO events. UI faculty/staff members have an insatiable desire
for knowledge that is displayed through the high quality research produced by the university. In
addition to their thirst for knowledge, faculty/staff members also desire intelligent social
interaction, but do not have an official place for minds to meet. To best serve the target market,
the characteristics, basic needs, and habits of UI faculty and staff members were analyzed and
the results of the analysis were used to create a marketing mix that targets faculty and staff
members.
Economic principles state that a club’s optimum membership is reached when fixed cost per
member equals variable cost per member. When applied to the JEO, this principle essential
17
means that the JEO should balance the need for cash flow with the capacity of the facility. Too
many members in the club at once will create negative experiences and drive members away.
Opening membership to UI Alumni as well as faculty and staff will increase the JEO’s potential
membership by approximately 5000 and still preserve the exclusivity that comes inherent with a
club.
Identifying Characteristics
Faculty and staff members at the University of Idaho are easy to identify because the university
lists all members of this target segment in an online directory. Beyond occupation, another
identifying characteristic is faculty/staff member’s ages. Each member of the target market is
affiliated with a sub category that pertains to their college of affiliation and research identified
significant differences in amenity preference between different colleges (Chadez Denney
Edginton Henderson Knecht Ochoa Williams, 2011). These differences will be used to inform
the JEO on which colleges to dedicate more resources to. The colleges of Art and Architecture,
Business and Economics, UI Athletics and UI Administration showed the highest interest in an
JEO, so these colleges are logical candidates for above average marketing efforts.
Basic Needs and Requirements
The JEO will be housed in a single location on the UI campus, therefore faculty/staff members
who work on the Moscow campus are the main concern of the organization. These employees
are busy with their jobs during the day and will be looking for a place to unwind after work.
Members of this target market desire a place to converse with like-minded individuals, and meet
faculty/staff members from outside of their regular circle. Some faculty/staff members will also
desire cross functional collaboration on different projects which is another step beyond simply
meeting and conversing with other university professionals.
In addition to networking opportunities, faculty and staff members also desire social interaction
for the sake of social interaction. Faculty and staff members frequently attend guest speaker
events, different clubs or groups, and other community events because they are interested in the
subject at hand or enjoy the company of the people around them in those situations. Faculty and
staff members spend more time on campus than most others in their age demographic, and are
therefore more likely to need to rent on campus or near campus event space for a variety of
reasons.
Purchasing/Shopping Habits and Preferences
Research shows that faculty/staff members are more interested in lunch, but are constrained by
time when it comes to lunch. Male faculty and staff showed a higher preference than females for
the general idea of the JEO, a bar, lunch and lounge area. Female faculty staff members
displayed a preference over males for a book club. Members from the colleges of Art and
Architecture, Business and Economics, Science, and UI Athletics indicated a higher level interest
in a lounge area, and the colleges of Art and Architecture and Business and Economics showed
more of a preference for a bar than the other departments. When it comes to lunch, faculty and
staff from UI Athletics, Art and Architecture, Business and Economics, Engineering, Law, and
18
Science displayed the most interest. UI Athletics and Art and Architecture showed higher levels
of interest in dinner than the other departments (Chadez Denney Edginton Henderson Knecht
Ochoa Williams, 2011).
Product Strategy
One of the strongest differentiating factors for the JEO is the “club” aspect of the organization.
The JEO will allow anybody to enter and use the facility, but only those willing to purchase a
membership will experience the benefits of membership.
Three different membership levels will be offered with each next level bringing a better set of
member privileges than the one before it. The table below describes the tiered membership
privileges.
Silver
Gold
Vandal
Free admission to JEO
events
5% off at JEO
Right to facility reservation
1 week from date
All Silver privileges plus
10% off at JEO
Other UI store discounts
Half off lunch buffet
Right to facility reservation 2
weeks from date
All gold privileges plus
15% off at JEO
free access to lunch buffet
First rights to facility reservations
one month from date
Bottomless coffee mug
Club members will be united at the JEO by the University of Idaho, and the club will express its
Vandal pride in every corner of the building, but unlike other Vandal themed establishments, the
JEO will showcase all aspects of the university and not focus on sports teams. UI news articles
and memorabilia that celebrate the university’s accomplishments will adorn the walls of the JEO.
Some possible memorabilia items may include Malcolm Renfrew’s test tubes, the first dollar
J.A. Albertson ever made, or Lionel Hampton’s piano keys. This decoration theme will create a
UI themed Planet Hollywood style atmosphere and educate customers about the university as
well as serve as conversation pieces.
Many of the JEO’s products like event and lounge space are associated with the building itself,
so the best way to describe the products and services provided by the JEO is to describe the
building. A floor plan for the JEO is located in (Appendix B). The JEO will seat approximately
70 customers indoors and provide up to 25 outdoor seats for regular lunch and dinner. Fine
dining restaurants experience difficulties when attempting to serve too many customers at once,
so the JEO will take a note from competitors and keep its dining capacity under one hundred.
The JEO will use its restaurant and lounge capacity to serve customers lunch, dinner, alcoholic
drinks and coffee throughout the week. The JEO will serve lunch every weekday and be open for
dinner on the highest demand days of the week (Wednesday – Sunday). A lunch buffet will be
offered to decrease labor costs during lower demand hours, but JEO members will have to option
to order from the menu as well. The JEO should be flexible with their hours in the beginning
stages of the organization because demand at the JEO is uncertain. It is possible that lunch will
be unprofitable due to faculty/staff schedules, and in such a case, the JEO should drop lunch or
19
find a new target market to fill the restaurant during lunch. Faculty members are busy at work
during the day so lunch will be designed for fast service. A lunch salad and sandwich buffet will
offer JEO members a quick easy way to get a lunch. Dinner will cater more toward a sit-down,
fine-dining crowd and will offer JEO members a place to unwind after work. Kitchen capacity
can also be used to prepare large catered meals for special events at the club.
All restaurants are forced to deal with service related issues like customer service and food
quality and consistency. Failing to meet customer standards in any of these categories will result
in negative JEO experiences and cause the club to lose business. To avoid such consequences,
the JEO will hold employees to high quality standards, and provide training to teach employees
everyday operational processes, and improve customer service skills.
Another issue related to the service aspect of the JEO is demand management. Limited capacity
the JEO to create a wait list during high demand periods. There is no way to avoid wait lists at a
restaurant with low capacity, and it is in a fine dining restaurant’s best interest to keep traffic at a
low level to ensure food quality. The JEO will only open the upper floor for dining during
exceptionally high demand periods. Doing so will reduce the number of meals per hour and
allow cooking staff to focus on quality rather than speed. Intentionally keeping traffic low will
create a larger wait list, but to compensate for the inconvenience the JEO will direct patrons to
the bar, coffee, reading materials or other activities at the JEO to give customers something to do
and increase their wait time tolerance.
Space for events like UI functions, banquets and wedding receptions is in high demand in the
Palouse area especially around large UI event weekends like Mom’s and Dad’s weekends and
football games. To increase the demand for memberships, the JEO will only allow club members
to rent event space. Three multi-purpose rooms will be available for rent on a regular basis and
the entire second floor, or the entire building will be available for large events. Capacity for the
two second floor rooms is 25 people each and the larger main floor room holds approximately 50
people.
The larger capacity room will cost money to reserve and be used for guest speaker lectures,
banquets and other large events, but the two upper floor rooms will be available for rent at no
charge and reserved for different club activities. JEO members will have the option to form
clubs within the club based around various interests and activities. These member created clubs
will use multi-purpose room space on the second floor. Some potential groups this target market
showed interest in were book clubs, wine tastings, and academic related discussions (Chadez
Denney Edginton Henderson Knecht Ochoa Williams, 2011).
Pricing Strategy
The JEO will use a different pricing strategy for each product category. Food and drink will be
priced competitively, memberships will be sold under a tiered structure, and event pricing will
coincide with demand seasonality.
The level of competition among restaurants is high due to the high number of easily substitutable
restaurants in the area. Consumer price sensitivity is higher in markets with many substitutes, so
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the JEO will not be able to charge more than the competition without risking the loss of a high
number of potential customers. To attract desirable customer base, the JEO will price its food
and drink prices based on its competition. For example, a steak dinner at the JEO will cost
approximately the same as a steak dinner at the Best Western, or Nectar and a double scotch at
the JEO will cost approximately the same as a double scotch at the Red Door, or The Garden. If
Sodexo takes control of food and beverage at the JEO they will likely price food based on
competition as well.
The JEO will offer three different tiers of membership; Silver, Gold and Vandal. The prices for
each level of membership are displayed in the table below.
Silver
Pre-Opening
Gold
Vandal
$100/Year $160/ Year $300/Year
Normal Price $10/month $15/month
$35/month
A pre-opening promotional price will be offered that allows customers to purchase a full year’s
membership with a lump sum payment at a discount. Generating cash flow is essential for a
start-up business and larger lump sums increase the amount of cash available to the JEO in the
club’s early development stages. The price of each level of membership reflects the value added
with each higher tier. Three different price points target different price sensitivities, and may
also be found to correlate with usage. A consumer who frequents the JEO almost daily is likely
to purchase a Vandal level membership, and a consumer who uses the JEO on a bi-weekly basis
is likely to purchase the Silver membership because they will not see the same value the heavy
usage consumer does.
Pricing for event based products and services will be based on competition and fluctuate
according to periods of high and low demand. JEO catering services are in the same situation as
other food and beverage products, so prices will be set based on competition. Pricing for facility
rental will practice yield management using the same model the hospitality industry uses to price
hotel rooms. Renting the event room for a high demand weekend like UI Graduation will cost
more than renting the event room for an off peak weekend in July.
Yield management will also be practiced in the restaurant sections of the JEO. Like many other
restaurants lunch at the JEO will cost less that dinner. Lower cost lunch prices combined with
the convenience of a salad and sandwich buffet will attract more customers during a period of
low demand, and higher dinner prices will help manage restaurant traffic during higher demand
periods.
Low capacity at the restaurant will also manage demand at the JEO. Waiting for a table is the
largest non-monetary cost JEO members will face. Members will be able to make reservations to
minimize this cost, and customers will expect to wait for a table. Other non-monetary costs
members may incur at the JEO could potentially include the cost of poor quality service, food or
beverages. These non-monetary costs should be of much higher interest to the JEO than the cost
21
of time because bad consumer reviews will eventually destroy a restaurant’s reputation and
revenue stream. Because of this the JEO should enforce high standards pertaining to
food/beverage quality and service.
Distribution Strategy
Since a limited number of feasible locations for the JEO exist, the club should be designed to
consolidate the JEO’s products into a single building. A structure that contains a kitchen,
bar/common area, a dining room and a large multi-purpose room will capably distribute all of the
JEO’s products from a single building.
Sodexo will likely be in control of food and beverage distribution for the JEO. They will act as a
wholesaler, and create value for the JEO by simplifying the acquisition process for food and
beverage items. Since the majority of the JEO’s food and drink items are sourced from a single
supplier, Sodexo’s power over the JEO is high, but Sodexo is not expected to abuse their power
because the University of Idaho has a long history of working with Sodexo. The UI would not
continue to do business with Sodexo if they were not a good company to work with. Regardless
of whether or not Sodexo will be a positive channel member, the JEO should pursue other
suppliers to decrease Sodexo’s power as an intermediary and reduce risk.
Sodexo will require that at least 20% of the JEO’s food and beverage items are sourced locally,
but the JEO should source locally whenever possible to decrease Sodexo’s power over the JEO.
Local businesses like Vandal Meats, area wineries, and farms could provide the JEO with beef,
wine, cheese and assorted vegetables. In addition to decreasing Sodexo’s power and reducing
risk, sourcing food and beverage items locally will also decrease logistics costs.
Buy local activities can also be extended to where the JEO seeks out UI Alumni business owners
to purchase various products from. The JEO could base special events around specific alumni’s
business and use the event to advertise the success of UI graduates. Favoring UI Alumni will
follow the overall university theme at the JEO and help shape the brand image of the JEO.
In the event that Sodexo is not included as a channel intermediary, the JEO will need to fulfill
Sodexo’s duties by some other means. The absence of Sodexo in the JEO’s business model will
increase costs for the JEO. Increased cost will result because the JEO will not purchase on the
same scale as Sodexo and, therefore not receive the same quantity discounts as Sodexo. In the
best case scenario, the JEO will be able to find another intermediary that performs the same
duties as Sodexo, and avoid higher costs.
Integrated Marketing Strategy (IMC)
The themes the JEO’s IMC will focus on are high quality, “buying local”, food and beverages,
the benefits of a JEO membership, supporting the UI, and the opportunity to interact with people
from outside of one’s department. These themes address the main concerns and selling points
associated with the JEO and will provide a solid, consistent, message across all promotional
activities.
22
Direct Marketing
Both the monetary and non-monetary costs associated with direct email marketing are low. All
faculty and staff members can be contacted through the UI faculty/staff directory. Before the
club opens, emails will be sent to faculty/staff members that provide information about the club
and memberships. After the club opens, direct email will be used to inform members on
upcoming events and special promotions. Direct email marketing strategies have received
criticism in the past, but marketers are finding opt in direct email strategies to be highly effective
with the over 40 years of age demographic, so the JEO should expect exceptional results from
direct marketing (Villano, 2011).
Customer Relationship Management
Faculty and staff members are easy to identify and contact which opens up many opportunities
for direct marketing. Before the club opens, faculty/staff members will be contacted via the
campus directory and informed about the JEO. Once the club opens, member purchasing
patterns will be tracked with membership cards and the information will be stored in a database.
Member information will allow marketers to contact members with information about specials
on their favorite items, contact members who have not been to the JEO in a while and generate a
better level of customer understanding.
Advertising
The JEO will advertise to faculty/staff through newspaper, internet and posters around campus.
Advertising will be used to increase awareness of the club before it opens and communicate to
faculty/staff members about what is going on at the club after it opens. Before the Grand
Opening the JEO will advertise in local newspapers, like The Argonaut and the Moscow Daily
News. Flyers will be posted in all colleges on campus, and increased attention will be given to
colleges research identified as more favorable toward the JEO. The JEO will also have a web
page that will continue to inform the target market on the basics of the club. After the JEO
opens, advertising efforts will continue to promote special events such as speakers, wine tastings,
etc. They will inform on weekly and monthly specials, as well as continue to tell faculty, staff,
and alumni the benefits of joining the JEO at UI.
Sales Promotion
The majority of the benefits of JEO membership are centered around sales promotion. The JEO
will likely rotate specific discounts and specials to keep members interested in the club. Beyond
a percentage off each purchase some specific sales promotions will include “2 for 1” deals or
“Bottomless Drink” specials. Sales promotions like this will be rotated in and out of JEO
operations by JEO management. In addition to food and drink related sales promotions,
memberships will also be sold before the club opens to allow the JEO to meet its marketing goals
and objectives.
23
Personal Sales
Aside from servers upselling at the restaurant, personal selling will be related to membership
purchases. A JEO employee will be available during all operating hours to answer any questions
about memberships and educate potential members on the benefits of JEO membership. It will
be this employee’s duty to sell memberships.
Before opening, JEO will set up JEO booths in strategic locations around campus. These booths
will offer information about the JEO as well as provide the opportunity for the target market to
purchase promotionally priced memberships before the club opens. The importance of pre-sold
memberships is explained in the marketing strategy and goals section, and personal selling will
be the tool used to meet the JEO’s goal of 500 pre-sold memberships.
Public Relations
The JEO will use public relations to increase awareness of the club and educate consumers.
Public relations (PR) activities will occur though TV and newspapers when they write about the
JEO opening or a recent even held at the club. Restaurant reviews will act as positive PR as long
as the food quality and customer service standards remain high.
Alternative Media
Social Media offers marketers a communication channel that users check multiple times a day.
This line of communication will allow the JEO to use social networking sites like Facebook and
Twitter to conduct market research and advertise to members. One short coming of social media
marketing is that it is unproven due to its short existence. Another problem with social media
marketing and the target market is that older consumers do not use social networking sites as
much as younger consumers do. With this in mind the JEO will dedicate limited resources to
alternative media, and use social networking sits to communicate with younger members of the
target market.
Event Marketing
Since the JEO is a university related organization, the club can use venues like the Kibbie Dome
and other UI buildings for event marketing. Sponsoring an event on the UI campus or
purchasing advertising space in the Kibbie Dome will help increase JEO awareness. Social
media is a relatively new way to market products and services, and can be used to generate
feedback, improve the JEO’s understanding of the target market and advertise special events and
specials at the club. Social media marketing is inexpensive and can reach a large number of
individuals with low effort, and may prove as an effective way to communicate with younger
JEO customers.
Measurement
To measure the effects of the JEO’s promotional efforts, the club will track the number of
presold memberships and the general level of traffic in the building once it opens. The database
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filled with specific customer data will also provide insights on the JEO’s promotional efforts by
tracking customer purchasing habits. The JEO can also use the faculty/staff directory to launch a
market research study about the JEO.
Competitive Strategy
The JEO is faced with a high level of competition especially when it comes to the
restaurant/lounge aspect of the club. To effectively compete, the JEO will use membership
plans, capitalize on university relationships, and offer an on campus locations. These three
elements will differentiate the JEO from its competitors and allow the club to succeed
financially.
A strong differentiating factor for the JEO is memberships. Aside from the Elk’s Lodge and the
Corner Club few competitors offer membership plans to their customers. The Corner Club in
downtown Moscow offers a similar membership plan to its customers, and receives many
positive benefits that include high brand loyalty and predictable demand. The JEO will
experience similar benefits with its membership plans.
A secondary and equally important factor in the JEO’s competitive strategy for this target market
is the organization’s UI affiliation. Faculty and staff have more stake in the university than the
average consumer, and will be more incline to support a university related organization over one
that is not university related. A closer relationship to the university also creates a sense of
community between faculty and staff members. An increased sense of community among this
target market causes members of this segment to seek each other out in social situations.
Like all other consumers, members of this target market want to be around others like them.
Faculty and staff members share a common bond of university affiliation and will naturally seek
out situations where other faculty staff members will be. The JEO’s affiliation with the
university will attract these people because of the common bond between faculty and staff
members. No other competitor provides a UI affiliated area that is tailored toward the needs of
faculty and staff members, so this is a strong differentiating factor for the JEO.
Research identified location as one of the most important issues pertaining to a faculty staff club
(Chadez Denney Edginton Henderson Knecht Ochoa Williams, 2011). An on campus location is
attractive to this target segment because members of this segment spend a large proportion of
their time on or near the UI campus. Since a large amount of time is spent on campus,
faculty/staff members will naturally use facilities located on campus due to simple geographical
convenience and time constraints.
Secondary Target Market: Alumni
Through our primary and secondary research it became apparent that our secondary market
would be alumni of the University of Idaho. Alumni are of interest to the JEO due to large
numbers and ties to the university. This secondary market could provide large returns and early
start up capital because there are 5,500 alumni in Latah County. This number of alumni also
makes up a large part of the attendance at sporting events year round, as well as on campus
25
speakers and events. This secondary market has the potential to match and exceed faculty and
staff memberships, but demand would be based highly on a seasonal and limited basis.
Silver
Gold
Vandal
Pre-Opening
$100/Year
$160/ Year
$300/Year
Normal Price
$10/month
$15/month
$35/month
Pricing Strategy
The pricing strategy for the alumni will be the same as the pricing strategy for the faculty and
staff. It would consist of pricing food and drink competitively and offering a tiered membership
structure. The alumni price sensitivity is likely to be very high because they would use it less,
and many of them will be on campus for a limited time. Again, JEO will price entrees and
drinks competitively to competitors such as the Best Western, Nectar, and Red Door. JEO will
offer the three tiered membership to the secondary market, with the option to pay on a month to
month basis. Much of the focus will be put on the highly seasonal use of the secondary target
market. The JEO will also offer weekend trial memberships for $5 during high demand
seasons. This will allow alumni who are more risk adverse to try the facility without investing
large funds.
Though the basic pricing strategy is the same for both the primary and secondary markets, there
is a need to differentiate on a month to month basis. JEO will offer a pre-opening promotional
price where the alumni can pay a lump sum at a discounted price. This can be a great way to
induce trial and use for both markets, but it will likely work best for our primary target market.
To price competitively JEO will also offer discounted month to month membership discounts
during the football season, home stretch of basketball season, and graduation. The JEO will
offer a predetermined discount from the month to month base rate to induce trial and use from
the secondary market. This promotional discount will run during home games and will allow
alumni to purchase monthly memberships for $8. Alumni will also be able to buy a $5 trial
membership that will allow them access to all JEO amenities for a weekend.
Product Strategy
The product strategy for the secondary market is also very similar to the primary market. The
product strategy is appealing to both target markets because of the club is unique and exclusive.
Those whose choose to purchase a certain level of tiered membership will be able to experience
all the benefits that membership level allows them. Look at the table in the primary target
market product strategy to reference what the tiered membership table looks like.
While looking at the secondary market it is apparent that JEO has the opportunity to offer
alumni a campus experience that can’t be matched. Since much of the usage that would come
from alumni would be seasonal, it is important to plan for high demand weekends such as
football games in the fall. Fall will be the high demand season for alumni and will provide
them with the opportunity to rent out all banquet rooms. A major benefit of the club would be
its on or close to campus location. It will allow for an all new game day experience with
meeting and dining options on campus.
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It was said in the primary target market product strategy that it is important that the JEO is
flexible in the beginning. This also applies to the secondary market because of the uncertainty
and seasonality of their demand. The JEO has the opportunity to expand weekend operations
when seasonal demand is high. They will operate Wednesday through Sunday serving lunch
and dinner each day. The amenities offered are a restaurant/bar, lounge area, and banquet
room(s). Many of the alumni already attend the jazz festival, guest speakers, and sponsored
events on campus. Since this market already exists on campus, it is very important that we
target these JEO events at them when targeting our secondary market.
Distribution Strategy
The distribution and product strategy for both the primary and secondary target market are
similar based on tiered membership offerings. This allows anyone who wants to be a member
able to receive all benefits from the membership level they choose to purchase. The secondary
target market could also help persuade Sodexo to not refuse partnership with the JEO. Since we
have 5,500 alumni in Latah County, Sodexo could base their decision on the inclusion of the
alumni. Since we are using one physical structure in our distribution to act as a retailer, the
delivery and logistics of Sodexo for our primary target market will be the exact same for the
secondary market. See distribution channel for primary target market for full description of
Sodexo duties.
Promotion Strategy
The promotional strategy for our secondary market will be focused around trial and usage. We
will do this working with the information the university already has to complete our direct
marketing. In the beginning it is important to educate our secondary target market on the
benefits of the club. It is likely that they will not understand that they have access to full
membership along with faculty and staff if they choose to purchase a membership. Tools used
to generate revenue before opening have been discussed in pricing strategy.JEO will continue
to use these seasonal promotion prices to induce the trial of our secondary market.
These promotions will consist mainly of direct marketing. JEO will use direct mail and social
media to create awareness for the secondary market. It will be a cost effective way to reach
around 5,000 people in the target market in a small geographic area. There will also be
information booths and handouts at athletic events to educate alumni. The JEO will be able to
reach a large amount of the secondary market through newspaper as well. These promotional
message will consist of the amenities offered at the club and the unique experience it offers.
The JEO offers a competitive option for dining and drink, with an unbeatable experience. The
JEO can also create the atmosphere for alumni to interact with current faculty and staff as well
as share their UI experiences. The JEO will also use event marketing and personal selling to
target the secondary market in the same way the primary market is targeted. The goal of the
JEO is to provide a unique experience of membership and belonging that no other dining or
event center can offer in Moscow.
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Competitive Strategy
There is a very high level of competition for the JEO because of the alternatives alumni have
when it comes to dining, drinks, and banquet space. The competitive strategy for the secondary
market will be based on the same aspects as the primary target market. The JEO will use
membership plans, capitalize on university relationships, and offer an on campus location for
university events that alumni attend.
To compete with other alternatives in Moscow the JEO will use memberships to differentiate
themselves. These memberships give the alumni an experience of quality they can’t get
anywhere else. The service output flows of the JEO will be much different than alternatives.
Alumni will be drawn in by the sense of community they get through a membership, and also
the feeling of supporting the university. They will identify with other alumni and faculty and
staff who are members. This sense of community will be an important factor for the primary
and secondary markets. A final important factor when considering our competitive strategy is
the location. This draws from the primary competitive advantage and provides the alumni with
an experience on campus. This also furthers the connection to other members, and makes them
realize the reasons they keep returning to Moscow. Location also provides the alumni with a
close place to eat, socialize, and collaborate while at the university.
Marketing Implementation
The implementation approach used for the JEO will be a command implementation. Within this
plan the Board of Directors will maintain and support the marketing plan. This plan and all
ideas will then be transitioned down to lower level management. The implementation plan
below shows how exactly the JEO marketing plan will be executed; a timeline of
implementation and a tactical implementation chart can be found in Appendix E and F.
Staffing Activities
Recruitment, Selection, and Training
The JEO will initially begin with an appointed JEO Board of Directors. The Board will be
made of faculty, staff, and alumni who will be the main decision makers for the club. The
Board will be selected based on their alignment and commitment to the overall strategy and
marketing plan of the JEO. This board will be selected in Month 1 of the implementation
process in order to start implementing the club. This Board will then gather volunteers who will
aid in the pre-opening promotional and fundraising efforts of the club. Lastly, the Board will
hire a JEO manager to handle day-to-day operations and a Promotions Director to lead the pre
and post opening promotional plan. The Promotions Director will also have an opportunity to
offer experience-based internships for students to help with all promotional efforts. All
management will be hired based on experience and how well they align with the overall goals
of the JEO and marketing strategy.
The Board of Directors will be in charge of making key decisions regarding the JEO, while the
JEO Manager and Promotional Director will be in charge of day-to-day marketing and
operational decisions. After interns are hired the Promotions Director will create a Promotional
Team made of volunteers and interns who will aid in all promotional activities. Once the JEO
has been built and is ready for opening the JEO Manager will work with Sodexo to train the
employees who will work in the JEO. They will hire bartenders, wait staff, cooks, and a
cleanup crew. These employees must be well rounded individuals who have
28
relationship/communications and waitressing/cooking skills. All employees will be trained in
alignment to the marketing strategy; additional support staff will be hired as needed. Lastly, the
JEO Manger will hire an information systems employee to customize the Customer Relations
Management (CRM) database before the opening of the JEO.
Employee Evaluation and Compensation
The JEO will use a behavior-based system to evaluate and compensate employees. This system
measures employees based on qualitative and qualitative standards such as customer
friendliness, teamwork, and level of motivation. Employees at the FSC will be evaluated in the
first 90 days and then be allowed to get bonuses and pay raises as their performance increases.
Once they have been working at the club for six months they will have a second evaluation.
The managers will also be evaluated after six months by the Board of Directors. These
evaluations will be put in place to motivate employees and increase their productivity and
customer relationships. The manager will paid a salary based on average market pay and part
time employees will be paid a fair wage of slightly above minimum wage.
Employee Motivation, Satisfaction, and Commitment
The main way the JEO will motivate employees will be the culture. The JEO will be a fun and
friendly atmosphere; focused on relationships and sharing information. These employees will
be expected to get to know their customers and serve them to the best of their ability, while
following the marketing strategy. The JEO will also have small competitions, prizes, and
employee parties to boost morale and maintain employee satisfaction.
Fundraising Activities
In order to fund-raise for the start up of the club the Board of Directors will begin presenting
spending reports to the Dean’s of the Colleges outlining their annual spending from off campus
events and dining. The Board will then propose each college donates a percentage of the
amount of money they spend off campus to the JEO. This will help provide start up revenue for
the club. The promotions team will also work on providing and selling pre-opening
memberships to faculty, staff, and alumni. Allowing for pre-purchase of the membership will
provide more revenue in the early stages. The Promotions Team will also work with the UI
Office of Development so they can inform and encourage faculty, staff, and alumni to donate
funds to the start-up of the club. All fundraising will take place before the club opening in
Month 12.
Product Activities
The product activities are particularly important in developing the function of the JEO. The
JEO first must start with building design and layout, which will start in Month 3. Upon
completion of the interior design, building development will start. Within this same month the
Board of Directors will also work towards acquiring a small business license, a liquor license,
and a food handler’s license. The building will be completed in Month 7, and upon completion
the Board will start working with Sodexo to develop a menu for the JEO. The tiered
membership system for the JEO will have be created in Month 2.
The JEO will also run on a membership based informational system called the ‘CRM database’.
It will be similar to a typical restaurant order system with touch-screens for placing orders and
determining prices. Each member will be given a card upon membership registration that they
29
will bring to the FSC when they visit. Employees at the club can then swipe the card on the
machine and the member’s information will come up. On each person’s page it will show their
name, a photo of them, what their preferences are, the last time they came in, and other member
information. This card will then automatically remove the membership discount from the
check. This CRM database will be completed by an IS employee, who was hired by the Board
of Directors. The CRM database for the club will be developed starting in Month 6.
IMC Activities
Before the opening of the JEO, the Promotions Team will begin with pre-opening promotions.
They will use personal selling as the main form of promotions before the opening of the JEO.
Personal selling will consist of informational booths strategically located throughout campus.
These booths will be run by the committee of volunteers and the promotional manager. These
booths will educate faculty, staff, and alumni about what the club is, how it will be run, how it
will be funded, as well as answer any other questions people may have. These booths will also
pre-sell JEO memberships and explain the different types of membership. Once the JEO is
open, personal selling will continue with the management and service staff promoting specials
while selling products and memberships.
Before the opening of the JEO, the Promotions Team will begin with pre-opening promotions
such as selling memberships and sending direct mailers to all faculty, staff and alumni. Most of
the pre-opening promotions will begin in Month 6 before the club is built. Once the JEO is
almost ready to open in month 11 the Promotions Team will use the UI website, alterative
media such as Facebook, Twitter, etc. to promote the opening and memberships to the club.
Throughout the existence of the club faculty, staff, and alumni members will receive monthly
reminder e-mails and direct mailers to remind them of events happening at the club. Once the
JEO is up and running the Promotions Team will begin event marketing at UI sports games in
order to advertise more to the target market, while continuing to sell memberships. The
Promotions Team will throw a Pre-Opening party for the JEO in Month 12 following the
completion of the building. One month later, once everything is completed they will have a
Grand Opening of the JEO.
Evaluation and Control
The JEO should evaluate its pre-opening performance and its continuing operations. Before the
club opens, the JEO management team should conduct an evaluation of the JEO’s pre-opening
marketing activities. A major goal of the JEO’s pre-opening activities is to pre-sell
membership plans. Pre-sold memberships will give the JEO an idea of the level of traffic at the
club and generate a significant portion of cash that will be used to fund operations until the JEO
establishes itself. The management team should pay close attention to the number of pre-sold
memberships because it is one of few quantitative metrics that can be used to measure the
performance of the JEO’s marketing efforts before the club opens. To properly evaluate the
number of pre-sold memberships, goals and standards should be set for a basis of evaluation.
The JEO’s goal is to sell five hundred memberships before the club opens, and comparing this
goal to actual sales will be relatively quick and easy for the JEO management team.
A qualitative way for the JEO to measure its pre-opening activities is market research. A
survey should be distributed to faculty/staff members and alumni that will evaluate JEO
30
awareness, intended usage, willingness to pay, reasons for usage, value perception, and what
promotional activities respondents recall. This survey will give the JEO management team a
general idea of how their target market views the club, what promotional activities worked the
best, and how consumers intend to use the JEO. The JEO targets a segments that is
geographically concentrated and easily reached, so it will set its awareness goal at 90%. Other
metrics are difficult to set goals for. It is difficult to set a goal for what promotional activities
will work the best or how consumers intend to use the JEO, so the JEO management team will
use that information to shape how continuing operations will run once the club opens.
Once the operation of the JEO has been established, it is necessary that control measurements
on performance are initiated and examined to understand that successes of the JEO as well as
the not-so-successful elements of the club. The marketing audit serves as a review of past
marketing strategies to determine what in fact has gone swimmingly and what needs to be
changed. Recall that the marketing plan is an ever evolving and changing creature and that
marketing strategy encased within that plan may need to change in the future with evolving
markets and changing needs and wants. Certain controls to be taken to ensure that marketing
efforts are being effective include:
Estimating the growth of the targeted segment.
This portion of the marketing audit should be conducted on a mid-fiscal year basis. The size of
the target pool has the opportunity to either grow or decline and marketing mix strategies must
be able to adapt with these changes. An effective promotional tool to gauge this growth is
simply checking university records being attendance as well as alumni basis.
Forecast marketing segments based on market share percentage vs. promotional
percentage.
Post-opening promotional efforts should be aimed at gaining more market share as compared to
relevant competitors of the JEO. In order for marketing efforts and promotion to be considered
effective, the amount of demand and use of the JEO should coincide with increased
promotional efforts. Due to a strict operating budget in early years of the JEO, all promotional
campaigns need to be thoroughly evaluated and examined to determine their cost effectiveness.
The market strategy, in this regard, may need to be changed to better inform and eventually
convince the target market of the JEO to join or use the club on a regular basis. All aspects of
the marketing mix may need to be re-evaluated in order to better suit the target market and
forecast demand.
Member satisfaction surveys and focus groups
As stated before, one of that largest evaluation and control of internal factors would be the
satisfaction and testimony of the current members of the JEO. Data should always be
accumulating in the CRM databases regarding the behavior and habits of the current market
utilizing the facility. However, there may be some elusive construct data (such as satisfaction
and overall happiness) that databases may not be able to detect. Current member surveys and
focus groups should be undertaken to gain more insight on the overall satisfaction of the
product in order to avoid post purchase dissonance. Regular focus groups can be conducted via
a free dinner, lunch or other incentive to participate in order to gain valuable knowledge about
what is right with the JEO, as well as what is needed to be altered.
31
Financial Assessment
Estimated sources of revenue for the JEO would include membership dues and a percentage of
profits made from food and beverage sales. With approximately 2000 faculty and staff
members on campus, and 5500 University of Idaho alumni in Latah County, an expected 500
memberships could be purchased in the first year. With an average price of approximately $200
per membership, $100,000 of revenue would be generated from membership sales. JEO would
receive a percentage of profits generated by food and beverage sales at the club. Estimated
food and beverage revenue for the first year can be estimated at $420,000. This is based on a
percentage of previous years off campus direct billing numbers and estimated purchases by
members. With a conservative estimate of food and beverage costs equaling 65%, leaving 35%
for profits and 20% of profits going to the JEO, $29,400 in revenue would be generated for the
JEO through food and beverage sales. Total revenue would equal $129,400 for the first year.
Costs that the JEO would be responsible for would be salaries for managerial employees and
the fixed costs for the facility. Estimating fixed costs without a known facility or location is
not possible at this point, but assuming a managers salary of $30,000 per year, $99,400 would
be remaining to cover the fixed costs and go towards profits. This does not account for direct
billing commitments from various colleges within the university, which could produce a large
increase in revenue from food and beverage service. The magnitude of the amount would
depend directly on the commitment from the various colleges and would not be able to be
determined without further research.
Conclusion
Based on previous market research, there resides a significant demand for a faculty staff club
from University of Idaho faculty, staff, and alumni. The analysis of this demand points at
features desired for a faculty and staff club on the campus of the university that encompasses
many attributes that the target segment deem valuable and for which the target would be willing
to pay. After viewing the analysis of the external environment, mainly the direct competitors in
the university area, a JEO may have a sustainable competitive advantage based upon a variety
of factors outlined in the marketing plan. These factors range from location, to intrinsic loyalty
based on a university founded institution. The implementation of a JEO at the University of
Idaho has a unique opportunity to run off university infrastructure and support.
Several barriers to entry exist for the JEO. These include lack of startup capital, university
bureaucracy, availability of space on campus and the possibility that the primary target market
may to too small or unwilling to pay. These barriers are common for most university related
projects, and should not be viewed as final decision makers until JEO operations move from the
idea and planning stages to more concrete activities. The purpose of this marketing plan is not
to make on a final decision on whether or not to go forward with a JEO at the U of I, but rather
to begin evaluating the current market situation and give possible recommendations based on
these observations and research. Once JEO operations become more tangible, the positives and
negatives of the project can be evaluated, and the feasibility of the project can be evaluated
more accurately.
32
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<http://www.isp.idaho.gov/abc/documents/LiqLicenseApplication_000.pdf>.
“University of Idaho Timeline, 1889-Present”
<http://boise.uidaho.edu/default.aspx?pid=53385>
University of Southern California. 2004. April 2011
<http://www.usc.edu/bus-affairs/facultycenter/>.
Villano, M. (2011, April). The secret sauce part 2. Entrepreneur Magazine.
33
Appendix A:
University of Idaho
Faculty / Staff Club
Research Report
February 15, 2011
Alison Chadez
Pat Denney
Taylor Edginton
Becky Henderson
Emily Knecht
Chris Meyer
Alex Ochoa
Katie Williams
34
Table of Contents:
Executive Summary
i
Introduction
1
Secondary Data
1
Initial Survey
2
Focus Groups
2
Primary Survey
7
Descriptive Statistics
7
Statistical Analysis
9
Limitations
17
Conclusion
18
References
19
Appendix A: Focus Group Script
20
Appendix B: Amenities Survey
22
Appendix C: Amenities Survey Codebook
24
Appendix D: Faculty/Staff Club Survey
27
Appendix E: Faculty/Staff Club Survey Codebook
32
35
Executive Summary:
When looking at the possibility of establishing a self-sustaining and profitable Faculty/Staff Club on the
campus of The University of Idaho, research within the hospitality industry as well as research within the
given market will help to identify what amenities will be necessary and/or desired to make it a success.
This report will cover our research into a Faculty/Staff Club at the University of Idaho.
When starting the research secondary data was collected by researching Faculty/Staff Clubs already
established on campuses nationwide. With these established clubs previously conducted surveys, club
newsletters, meeting agendas, and pricing documents we looked at. Using this information an initial
survey was compiled regarding the possible amenities that should be offered. While conducting the
survey, faculty members were also asked questions regarding locations and other suggestions they had.
After compiling the data from the initial survey a series of focus groups were held using participants who
were chosen at random from various colleges within the University. Topics that were commonly
discussed during these focus groups included location, amenities, community development, university
presentation, membership, and value. Taking the information gathered from the secondary data, initial
survey and focus groups, a primary survey of 19 questions was developed using Qualtrics and it was sent
to faculty and staff members around the university. 1920 surveys were sent out and 356 were returned,
and with those 356 we have compiled the included data regarding the preferences of the faculty and
staff towards a Faculty/Staff Club.
Using a variety of statistical analysis methods we were able to use the data collected to develop our
results into findings regarding the Faculty/Staff Club. Among the analysis done was frequency testing to
find which amenities were most desirable to the faculty and staff at the university. Our data shows that
a lounge area, lunch service, wireless internet, and available parking are important amenities within this
market. Using Pearson Correlation we were then able to find which amenities were commonly tied to
one another; these included lunch and dinner service, being open on the weekends as well as over the
summer, and the club having a bar and lounge area available. ANOVA testing was also used in order to
define our target market using variables such as college affiliation, age, and gender of the respondents.
We did encounter limitations to our research, from both internal as well as external factors. Internal
factors that create limitations include a non-response bias were respondents did not complete the
survey, a response bias where respondents completed the survey but with inconsistent answers, and
misinterpretation of the survey when a respondent did not understanding what the question was truly
asking. External factors and issues could pertain to possible locations, availability of parking, the current
economy, capital costs, and breaking contractual agreements already in place.
With our research and analysis we have identified those amenities that are desired and the services that
the faculty and staff have expressed interest towards. From the research there is an interest for a club
to exists, but from analysis of both internal and external factors there are numerous obstacles that will
need to be further researched and analyzed to determine the possibility of the club’s existence. The
results and inferences that have been made will be used to develop new research and will be integral
part of the upcoming marketing plan.
36
Introduction:
When considering the feasibility of a Faculty/Staff Club (FSC) at the University of Idaho, the hospitality
industry is the main industry relevant to this project. The hospitality industry consists of many different
sub-industries including lodging, restaurants and event planning. This multibillion-dollar industry is one
that relies mainly on those with larger disposable incomes and excess spare time.
The main competitors for this project include organizations that offer food service and accommodations
in the Latah County. This includes hotels in the area, restaurants, and other service providers that are
competing for the available leisure time and disposable income of the potential FCS members.
FSCs have a wide range of sizes, amenities offered, and locations. According to Association of College
and University Clubs, majority of FCS’s have a board separate from the university, a club manager hired
by the university, and are on campuses with over 10,000 students. The most common amenities at FSC’s
include dining, banquet facilities, conference room rentals, and overnight accommodations. The major
activities hosted are private parties, holiday banquets, theme dinners, and wine tastings. On average
clubs with 500 people gross more than $500,000 annually, gaining most of their revenues from food and
beverage sales.
The University of Idaho faculty and staff have met in the past to discuss the possibility of a FSC because
they have become extremely departmentalized. Faculty and staff are not familiar with each other and
are unaware of current events within other colleges. This separation has caused a lack of sharing of
resources and information, thus not allowing the creation of cross-functional teams. Furthermore, there
is no place to take distinguished guests, potential professors/administrators, or other dignitaries when
they visit campus. This is a special and unique experience and the University of Idaho should provide the
utmost hospitality. FSC’s, as quoted by the University of Southern California should be “dedicated to
promoting the intellectual, cultural and social interaction among [the University] faculty and staff
members.”
This report will include descriptive statistics, methodology, survey and focus group results, and an
analysis of survey and focus group results.
Secondary Data:
In order to begin the secondary research for the FSC our team met with Professor Shook who supplied
us with a few different documents to get us started. He gave us two different surveys from other FSCs
around the country as well as provided us with copies of club newsletters, club pricing documents, and
FSC meeting notes.
We then began collecting our own secondary research by looking up pre-existing FSCs around the
nation. We searched why types of universities and colleges have them, what amenities they include,
37
member information, and organizational structure. This research showed us an abundant amount of
useful information to include within our focus group and survey.
Initial Survey:
In order to start our initial survey we used our secondary data to make a list of all possible amenities
that could be included within the FSC. We broke the list down to a list of 27 amenities and put them into
a survey on Qualtrics rating each amenity in a range from very unimportant to very important. At the
end of the survey there was a place for additional suggestions.
Once this survey was completed we requested permission to attend the current faculty meeting in the
White Water Room, TLC. We attended one of the meetings on October 22nd, 2010 at 5:15pm and set up
a table outside of the room with copies of our survey. As faculty left the meeting room we approached
them to ask if they would fill out the amenity survey. While they were filling out the survey, our team
asked the faculty questions which focused on locations, amenities, and additional suggestions for a
potential FSC. The surveying lasted until 7:00pm and at the end we collected 20 complete surveys.
After calculating the descriptive statistics, we ranked the amenities from the lowest means (low
importance) to the highest means (high importance) to develop the primary survey.
Focus Groups:
Faculty/Staff Club Focus Group Analysis
When recruiting for the Faculty and Staff Club Focus Group we went to each and every college on
campus and looked for faculty and staff with open doors. Upon finding faculty or staff we asked them if
they were interested in participating in either our staff or faculty focus group. This was done in order to
give faculty and staff from each college an opportunity to be chosen. When visiting each college all
participants were chosen at random.
Both focus groups were held in the Gary Michael Boardroom in the J.A. Albertson Building, room 311; a
digital handheld recorder recorded both focus groups. The faculty focus group was held Wednesday
November 3rd, 2010 at 4:00pm and was facilitated by Alex Ochoa. The participants included:







Participant A: Journalism and Mass Media
Participant B: Business and Economics
Participant C: Art and Architecture
Participant D: Business and Economics
Participant E: Business and Economics
Participant F: English
Participant G: Business and Economics
38
The staff focus group was held Thursday November 4th, 2010 at 4:00pm and was facilitated by Daniel
Lemus. The participants included:








Participant A: Department of Mathematics
Participant B: Business and Economics
Participant C: Journalism and Mass Media
Participant D: Career Advising
Participant E: Service Learning
Participant F: Orientation Programming
Participant G: Greek Advising
Participant H: Telephone Services
Included below is an analysis of common themes found in each focus group followed by an analysis of
common themes found in both focus groups.
Faculty Focus Group Common Themes:
Location
During the faculty focus group the location of the potential FSC was the most important issue discussed.
The faculty wants a place that is close and easy to access, rather than having to go off campus to use the
services and amenities provided by the potential club. Having a central location on campus was very
important to them when considering a place to eat for lunch or dinner. Participant F said, “Having the
faculty/staff club centrally located would be one of the biggest selling points for me because I want a
place that I can easily walk to from my office or classrooms.” The faculty also said that they thought it
would be easier to get a larger turnout at collaborations and events if the FSC was closely located to
where they work.
Another topic they discussed was keeping control over the potential FSC. They decided that if it was
centrally located, it would be easier for the faculty and staff to keep control over it. If it was located off
campus or at the golf course it could be taken over by an outside group. Participant E said, “If it were
located at the golf course or some other off campus site, it would make it harder for the faculty and staff
to access to it. Also, other groups like the athletic department could possibly try to find a way to use its
services or make it theirs.” The faculty wants a place that is theirs where they can socialize and
collaborate with other professionals not only on a personal level, but also to talk about academics and
their respective professional fields. They feel that this would be very beneficial to further department
collaboration and bring the University closer together. It would give them a great opportunity to solve
issues each department might have by using each other as resources instead of a possible outside
source.
39
Amenities
One of the themes that found to be most important to the faculty at the focus group was amenities,
more specifically lodging, food and drink. Considering lodging, many other faculty clubs have six to
twelve rooms available. They are used for potential faculty members going through the interview
process and touring the campus. Participant C said, “When I was hired, the University put me up in a
local hotel, but it would be great and very appealing to have lodging on campus.” The faculty agreed
that having lodging in a FSC would provide a more personalized experience when hiring within each
department. Participant B also said, “I am familiar with the lodging that Washington State University
used to have and think it would be a great benefit to have at the University of Idaho.” The faculty made
it clear that when they have potential new hires at the University, it is very important to give them a
personalized Idaho experience.
The faculty also said lodging would be beneficial when they have distinguished guests in town.
Participant E said, “When distinguished guests and speakers come to the University they have to move
around town and get away from campus. It would be nice to have an option to keep them on campus to
get the full experience. It would be another special gem for the University to distinguish itself from other
universities.” Each department has many distinguished guests every year. The faculty would like to have
a place for them to stay on campus where they can interact easily with their potential department and
other faculty members during their stay.
The faculty made it very clear that they would really like to have a faculty and staff only dining option on
campus. Participant E said, “During the 1980’s the University had a dining hall for faculty only in the
Student Union Building, which I really enjoyed.” The faculty wants a place they can go on campus for
lunch that is convenient and provides the option to interact with other faculty members. Participant G
said, “I would enjoy having an option to eat on campus for dinner when our department has
distinguished guests in town, or take my wife and family.”
Having drinks available at the FSC was also of great interest to the faculty. The faculty said that they find
it hard to interact with other faculty members outside of their respective departments. Participant C
said “I would like to have a place close by to grab a drink after a long day or week where I can interact
with other faculty members.” Participant G said, “It’s hard to have collaborative conversations with
faculty members in such places as the Commons. Having a club where we could get drinks and have
these kinds of conversations is much needed.”
Community Development
Establishing a sense of community was a popular theme amongst the faculty participating in the focus
group. Participant A noted, “Having a Faculty/Staff Club would allow members to mingle while providing
a multi-functional meeting space.” It would function as a practical location for many different
departments to intertwine and could potentially incorporate a social scene that seems to be lacking at
this university. Participant A also said they didn’t realize that the faculty and staff meetings currently
held one Friday a month “were meant to be social.” Members would be able to socialize with people
40
from other departments in a pleasant atmosphere. Participant F went on to explain, “Any time you can
get faculty together is typically a good time.”
Not only would a potential FSC create a stronger sense of community amongst members, but it would
also allow for different themed events to take place. Participants in the focus group brainstormed
numerous events that would be appealing to them. “Having guest chefs come in to highlight a menu and
a potential winery would be a fun and exciting time. We do have many wineries in the area, some even
as close as give miles away,” Participant B explained. Participant E also expressed his desire for potential
holiday themed dinners to be available at the potential club. “Many people don’t have a place to eat
Thanksgiving dinner and have nowhere to go, so my wife and I would like to invite them to a nice
Thanksgiving dinner. If there was a club, we would be excited to bring them there.” Other members of
departments explained that they have minimal holiday celebrations, but would like a place to mingle
with different faculty and staff from other departments on campus.
The faculty only has monthly or bimonthly meetings now to interact outside of their departments. They
are very interested in having a place on campus where they can go weekly to have that same
experience. The group agreed that a FSC could provide many opportunities for greater department
collaboration and could potentially enrich the experience for guests while on campus.
Membership
Membership was a topic that was brought up during the focus group multiple times. When asking the
participants in the focus group who they believed should be eligible for membership to the potential
FSC, they first answered mainly with faculty, staff, and families, however the conversation seemed to
snowball from there. Participant G said, “Faculty, staff, and families should be allowed to be members,
but why not allow guest passes? Alumni visiting with deep pockets could be quintessential guests.”
Overall, they came to a consensus that guest passes, like you would have at many other types of clubs,
should be an option.
One particularly interesting idea came up when discussing the possibility of partnering wish Washington
State University. Participant C suggested a “reciprocal relationship with Washington State University, as
many faculty and staff that work at U of I live in Pullman, and many faculty and staff that work at WSU
live in Moscow.” Participant D and E really liked that idea as that also pertained to them. This may also
help lessen costs of the club if members of the FSC’s at WSU and UI could use their membership
interchangeably at each place.
Overall, the faculty felt that faculty and staff should create the core membership. Having occasional
guest passes and including family members was important to them as well. They wanted to make sure,
however, that the potential faculty and staff club remained primarily faculty and staff and that other
organizations at the University do not try to take ownership.
41
Staff Focus Group Common Themes:
Location
A strong theme found among the staff in this focus group was the location of the FSC. We found that
most staff would like the FSC to be located very close to campus and within walking distance. “ I barely
have time in my day to leave my office, so if it is close and has great amenities I may visit even if it just
for some coffee.” said Participant C. Many of them thought that the place should be close because the
time it takes to get there would take time out of their day. “Free time isn’t available and even during a
lunch hour people are eating at their desks. So if it is close people may go to it.” said Participant G. Some
agreed that even if it was on campus they still may not be able to find the time to go there. “If the
location is too far of a walk for me then I won’t go” said Participant H.
Community
We found that most of the staff members in the group wanted a FSC that offered community
development amenities. “I think it would be a fabulous place to congregate with people from all
departments and learn about what is going on throughout the university” said Participant B. Participant
G said “if they brought in speakers for multiple different areas of interest then that would be a way to
get faculty and staff to participate.” They all agreed that the FSC should offer food options even if it is
something just like coffee and donuts for them to meet and chat before or during work. Participant A
said “It would be nice to have it open day and night so we could congregate after work as well.”
Value
Many of the staff members were concerned with price and the value that they would get for the price
they pay. They thought that the club would need to provide something unique and worthwhile to induce
people to pay money to join and take time out of their day to visit. Participant E said “I wouldn’t even
pay $5 a month for a FSC if we only had coffee and donuts and it was just a place to hang out because I
can do that elsewhere.” However, participant A said “I would definitely pay more for a faculty/staff club,
especially if there was a nice restaurant and a nice place to take visiting company.” Most people agreed
that the price of the facility would depend a lot on the amenities offered at the club.
University Presentation
Many staff in the focus group thought it was a great idea for a FSC to offer overnight accommodations
or places that were nice to take external dignitaries or potential employees. Participant C said “I have
always thought it would be a good idea to have overnight accommodations for guests that come here.”
Participant B said “When I lived in Spokane there was a great faculty/staff club with overnight
accommodations, restaurant, and meeting rooms. I really liked it because it made the school seem a lot
more professional to visitors.” Participant H stated “It would be great to have a restaurant area where
we could host professional dinners and interviews.” Most participants agreed that having a nice place to
meet and have a quiet lunch or interview would be beneficial to our campus.
42
Faculty and Staff Common Themes
Overall there seemed to be three common themes: Location, Community Development, and
Amenities/University Presentation. The majority of the focus group participants thought that if there
was a FSC that it should be located on campus in order to save time getting there. Having one centrally
located to all departments is what they thought would be ideal. The second theme that was important
was Community Development. Most participants thought that including events, speakers, and a place to
socialize and build community would be really important. Lastly, Amenities/University Presentation
seemed to be extremely important. Most participants wanted a place where they could put up potential
employees, visitors, and dignitaries while also having accommodations such as lodging and food. They
also all came to a consensus that the FSC should be a classy and sophisticated area for everyone to
collaborate.
Primary Survey:
When creating the primary survey, we compiled information from secondary data, the initial survey, and
important focus group topics to create a 19 question survey on Qualtrics. While working with Professor
Shook, we were able to create an informative cover page, giving a general definition of what a FSC is,
explaining how to take the survey, what the information was being used for, and featuring
confidentiality and anonymity information. Please see Appendix B for a copy of the survey, cover page,
and code book.
Professor Shook reviewed and approved the survey and cover letter; our team then emailed the survey
to all faculty and staff featured in the 2010-2011 University of Idaho Directory. Each team member sent
the email to faculty and staff members via the blind carbon copy email feature. We did not include
student emails.
The survey was open from Tuesday November 30th, 2010 through Thursday December 7th, 2010. There
were 1920 emails sent out and 356 responses. After closing the survey, we analyzed the results using
Qualtrics. Please see the Relationship section for more information on the results.
Descriptive Statistics:
The sample size of our primary research survey was able to represent our University population well.
The survey tool was e-mailed to our specific target segment with an effective respond rate of 18.54%.
The survey instrument was sent to 1,920 active members of the University of Idaho’s faculty and staff. In
all, we compiled all the returned surveys via Qualtrics that combined to a total of 356 completed
surveys. The amount of completed surveys that allowed us to obtain data on our sample was of
adequate size.
43
The demographic questions on our survey allowed us to segment our sample size on three primary
factors: Gender, Age, and UI College residence. The majority of respondents to our survey in terms of
gender are female. We had a total of 191 female respondents, making the total percentage of female
respondents 53.65%. This number is not completely alarming or statistically significant, but still a factor
that deserves noting. This could primarily be due to the amount of discrepancy between male and
female faculty and staff at the University of Idaho, but further research would be needed to make this
connection.
Our survey segmented our sample by age into 10 different segments, ranging from < 25 years old to >65
years old. The majority of our survey was the 50-54 age group, with 54 total respondents. While the age
segment with the least amount of respondents was the youngest age group, < 25 years old. The rest of
our age groupings are for the most part pretty balanced in size of respondents. We believe that this data
will be most useful in segmenting the market based on amenities desired. Simple correlations can be
derived from our data that can be used to segment our sample between age as well as amenities
desired. From here, targeting different segments will begin to take more shape.
Segmenting based on UI Colleges was part of the survey instrument to better define our segment to see
what colleges in the University were responding the most and which colleges were determined in using
what amenities were sought. The largest group in this segment was those who reside in the U of I Admin
building or Administration services with a sample size of 57 respondents. Closely following we those in
the College of Agriculture and Life Sciences with 38 total respondents. This information will prove useful
when catering to each colleges needs and desires with a FSC. One college may be more likely to want
banquet rooms for college events while another would want a different amenity altogether. Our
smallest segments were UI Athletics, Art and Architecture and Law.
Based on our data segmenting and demographics, it is apparent the data to formulate descriptive
relationships between variables is present. Further research via additional survey instruments simply
based on demographics is not necessary or would not satisfy a cost/benefit analysis. However,
additional information needs to be gathered on specific habits of or segments in order to understand
what will be provided to best serve each segment:
The idea of an additional survey to gather more data on similar demographics of our sample was
discussed and decided to be implemented. The purpose of our additional data is to gather more precise
data on certain amenity factors that the FSC could utilize. Our second survey tool will provide more
useful primary data on specific habits of the University sampling population.
The primary survey that was issued to the UI faculty and staff lacked certain psychographic and
behavioral questions to which segment the sample. The factors that will be most prevalent in another
survey would be focused on the daily habits of each segment in our data. Discovering the eating habits
of segments within the University is vital information to the success of the FSC. How many times faculty
and staff eat lunch on campus, how much will they spend, how far are they willing to travel, and what
food are the looking for are the direct questions that need answers in order for the survey to segment
the sample based on behavioral and even psychographic variables.
44
Statistical Analysis:
Pearson Correlation: Amenities and Activities
A Pearson Correlation Test was run between the questions pertaining to potential amenities and
activities at the FSC. The ten highest correlations were Lunch and Dinner (.799), Open during the
summer and open on weekends (.755), Guest speak series and Book clubs (.745), Lounge and Bar (.743),
Banquets and Conference Room (.682), Lounge and Lunch (.666), Wireless internet and Open during the
summer (.652), Wireless Internet and Conference Room (.651), Lunch and Bar (.643) and Bar and Wine
tastings (.641). Most of these correlations make sense because similar amenities and activities are
correlated with each other. It is logical that someone who wants the FSC to offer lunch will likely want
the FSC to offer dinner.
The correlation that makes the least sense is wireless internet and the FSC being open during the
summer months. There is no obvious connection between these two amenities, but our team
speculates that the correlation could be reflective of a general acceptance of both amenities. The mean
for the wireless internet amenity was one of the highest at 4.0533, and the mean for the FSC being open
during the summer was 3.5763. Both these means suggest a general level of importance for both of
these amenities and this is likely where the correlation came from.
T – Test: Old group vs. Young group
To compare the differences between 25 – 39 year olds with people over 55, the first thing we did was
create a new variable in SPSS. The new variable coded 25-39 year olds into one category and subjects
over 55 into another category. The over 55 category accounted for 32% of the sample, the 25 – 39 year
old category accounted for 25% of the sample. The remaining subjects whose ages ranged between 40
and 54 made up the remaining 57% of the sample and were not part of this particular test.
This new variable allowed us to run T-tests for the two groups’ amenity preferences. The amenity
categories tested were banquet reception facilities, conference rooms, lounge, bar, lunch, dinner,
wireless internet, availability of onsite parking, open on weekends, open during the summer, wine
tastings, holiday banquets, guest speaker series, book clubs and private parties. Our hypothesis for the
test was that there would be significant differences between the two groups’ amenity preferences.
The results of the T-test did not support our hypothesis. No significant differences were found between
the two groups for any of the amenity preference categories. No difference in amenity preference
between the two age groups suggests that subjects have the same preferences regardless of age.
T – Test: Interested vs. Non Interested
The next T-test we ran took a look at the differences between subjects who identified themselves as
interested or very interested and subjects who were indifferent, uninterested or very uninterested in an
FSC. To separate these two groups, another new variable was created. This new variable recoded
subjects who marked interested or very interested (4 or 5) into one group and subjects who marked
45
neither interested or uninterested, uninterested or very uninterested into a second group. 41% of
respondents fell into the interested category, and the remaining 59% of respondents fell into the
uninterested category.
T-Tests were conducted between these two groups for the amenity categories banquet reception
facilities, conference rooms, lounge, bar, lunch, dinner, wireless internet, availability of onsite parking,
open on weekends, open during the summer, wine tastings, holiday banquets, guest speaker series,
book clubs and private parties. The hypothesis for these tests was that significant differences would
exist in amenity preference between the interested group and the uninterested group.
After the analysis, many significant differences were identified between the two groups. Differences
were identified for Banquet/Reception Facilities, Conference Rooms, Lounge, Bar, Lunch, Wireless
Internet, Open During Summer, Guest Speaker Series, and Private Parties. It is logical to say that these
two groups would differ in their amenity preferences. Generally someone interested in a FSC will rate
specific amenities higher than a subject who is not interested in an FSC. Our analysis supported this
hypothesis, and, if the differences between the two groups are the sole focus on the interpretation of
the test, the results do not reach any conclusions that cannot be attained through basic logic. This is
why it is important to note the amenities the two groups agreed upon.
No significant differences were found in amenity preference for the Dinner, On-Site Parking, Open on
Weekends, Wine Tastings, Holiday Banquets, and Book Clubs. The fact that no differences existed
between the two groups suggest that if these amenities are included in the FSC, the club may attract
members who were not necessarily interested in an FSC and increase overall membership.
T-Tests: On or Off Campus Preference
This T-test separated the sample based on whether subjects thought the FSC should be located on or off
campus. Approximately 80% of respondents indicated that they would prefer the FSC to be located on
campus. The hypothesis for this test was that significant differences would exist in amenity preference
based on where respondents though the FSC should be located. This T-test tested means for the
amenity preferences for banquet reception facilities, conference rooms, lounge, bar, lunch, dinner,
wireless internet, availability of onsite parking, open on weekends, open during the summer, wine
tastings, holiday banquets, guest speaker series, book clubs and private parties.
The results of the test showed significant differences for the importance of lunch, conference rooms,
wireless internet, onsite parking, open during the summer, wine tastings and guest speaker series and
supported our hypothesis, but this test is not necessarily useful because the FSC will more than likely be
located on or very near campus. The fact that such a high number of respondents indicated that they
would prefer that the FSC be located on campus, implying that our study should focus on the needs of
the larger group. On another note, many of the respondents who indicated they would not want the
FSC located on the U of I campus likely are employed by the university in Boise or Coeur d’Alene. Our
study is not necessarily concerned with the preferences of off campus employees because they will
more than likely not become members of the FSC.
46
Willingness to Pay
The question pertaining to how much respondents would be willing to pay per pay period was difficult
to analyze because it was an open ended question. This allowed respondents to write in a range and
likely contributed to the above average non response to the question. Of the 314 respondent sample,
240 respondents contributed a useable response to the question. 24% of respondents indicated they
would pay nothing for a membership. 10% of respondents indicated they would pay $1 -$4 per pay
period for a membership. 26% of respondents indicated they would pay between$5 and $9 per pay
period for a membership. 28% of respondents indicated they would pay between $10 and $15 per pay
period for a membership. 8% of respondents indicated they would pay $16 - $20 per pay period for a
membership. 2% of respondents indicated they would pay $21 - $25 per pay period for a membership,
and 3% of respondents indicated they would pay over $25 per pay period for a membership.
Even though this data is incomplete, we still see a few interesting implications from the frequency
analysis. A high percentage of respondents indicated they would pay nothing for a membership. This
may seem alarming at first, but keep in mind that faculty and staff who do not work in the area were
also included in the survey so that may have contributed to this large unwillingness to pay. The data is
heavily skewed toward the $5 to $15 per pay period range with 54% of respondents falling into the two
categories. This implies that the cost of membership should likely fall somewhere in this range.
Time Spent in Moscow
When analyzing question 11 (what percentage of your time is spent in Latah County over the summer
months) the question was broken down into three percentile ranges. They were: 75-100%, 50-74% and
0-49%. Then the corresponding respondent percentages for each percentile range were calculated.
78.873% percent of respondents indicated that they spend 75-100% of their time in Latah County over
the summer months. 10.563% of respondents indicated that they spend 50-74% of their time in Latah
County over the summer. 10.569% of respondents also indicated that they spend between 0-49% of
their time in Latah County over the summer.
These results indicate that approximately 80% of faculty and staff are in Latah County over the summer.
For the 10.569% of respondents that spend between 0-49% of their time in Moscow could be attributed
to the faculty and staff that do not live in Latah County. This suggests that keeping the FSC could be
open during the summer months.
Frequency Tests:
Membership Payment Plan
When analyzing what type of membership payment plan faculty and staff would prefer a frequency test
was run to evaluate the rate to which respondents preferred an annual, semi-annual, monthly, or biweekly payment plan. When looking at the results 36% of respondents indicated that they wanted a Biweekly payment plan while 32.9% preferred an annual payment plan. The remaining 31.2% was split
47
between 23.3% wanted semi-annual and 7.9% indicating a monthly payment plan was preferred. The
result for this test was not what was expected. When running the frequency test it was expected that
respondents would indicate a higher response for a monthly payment plan.
Management Group
When running a frequency test on whom respondents wanted to manage the day to day operations of
the FSC 62.2% of respondents wanted it to be voted on by the Board of Directors. 16.8% of respondents
indicated that they would like an outside organization to oversee operations. Only 10.9% of
respondents preferred the Alumni Organization to oversee operations and 10.2% thought University
Officials would be best to oversee operations.
Location
When looking at the frequency test for which location they would prefer for a FSC at University of Idaho
23% indicated they wanted it located Perimeter Dr. 20.7% of respondents reported that they wanted a
different location (The Commons, Administration Building, where Human Resources is currently located,
and the Alumni Center). 19.7% indicated the SUB was where they would prefer the club to be located,
while 18.3% preferred the golf course. Brink Hall was the location 15.7% of respondents preferred,
while only 2.7% of respondents wanted the FSC to be located in the Kibbie Dome.
Membership Eligibility
When looking at who respondents felt should be eligible for membership to the FSC 84% felt that faculty
should be included, and 80.6% felt that staff should also be included. Half of respondents (50.6%) felt
that Alumni should also be eligible for membership. Family members were also believed to be eligible in
40.7% of respondents, while 34.6% of respondents believed that sponsored community members
should be as well. Grad students and retired faculty were among 11.8% of respondents who felt they
should be eligible also.
Amenities
When analyzing frequencies for questions 2 and 3 (importance of amenities and importance of activities
influencing the likelihood of joining a FSC) the following amenities were looked at: banquet/reception
facilities, conference rooms, lounge, bar, lunch, dinner, wireless internet, availability of onsite parking,
open on weekends, open during the summer, wine tastings, holiday banquets, guest speaker series,
book clubs and private parties. We looked at the top two frequencies on the scale for those questions
(very unimportant to very important).
33.4% of respondents indicated that banquet/reception facilities were important, while 26.63%
indicated they were neither important nor unimportant. 40.6% of respondents indicated that
conference rooms were an important amenity while 24.2% indicated that it was neither important nor
unimportant. 37.3% of respondents indicated that a lounge was important, while 21.7% indicated it was
very important. 25.3% of respondents indicated that a bar was important, while 21.3% indicated it was
neither important nor unimportant. 43.9% of respondents indicated that serving lunch was important
48
while 24% indicated it was very important. 34.3% of respondents indicated that serving dinner was
neither unimportant nor important while 31.4% of respondents indicated that it was important. 47.3%
of respondents indicated that wireless internet was very important while 30.1% indicated it was
important. 29.1% of respondents indicated that availability of parking was important while 27.5%
indicated it was very important. 30.9% of respondents indicated that being open on the weekends was
neither important nor unimportant while 28.4% indicated it was important. 42.4% of respondents
indicated that being open during the summer was very important while 21.5% indicated it was neither
important nor unimportant. 30.3% of respondents indicated that wine tastings were neither important
nor unimportant while 24.4% indicated that it was very unimportant. 31.2% of respondents indicated
that holiday banquets were important while 29.9% indicated it was neither important nor unimportant.
45.8% of respondents indicated that having a guest speaker was important while 21.6% indicated it was
neither important nor unimportant. 33.9% of respondents indicated that having book clubs were neither
important while 30.131.7% indicated it was important. 32.9% of respondents indicated that having
private parties in the FSC was important while 29/5% indicated that it was neither important nor
unimportant.
The results suggest that respondents indicated that the amenities they would most prefer were a
lounge, availability of lunch, wireless internet, and the availability of parking. The amenity that was least
important to respondents was wine tastings.
Frequency Analysis: College
To start getting an idea of what colleges would be most interested in an FSC, a cross tabulation was run
between college affiliation and the question that asked general level of interest in an FSC. Next the
percentage of respondents who rated their general interest as interested or very interested was
calculated. The percentage of respondents who ranked the idea of an FSC as a 4 or 5 for the total sample
was 40%. The College of art and Architecture ranked highest with 84% of respondents rating the idea of
an FSC as 4 or 5 (n=6). The following are the results for the rest of the UI colleges in order from highest
to lowest. College of Business and Economics 64% (n=14), College of Science 63% (n=19), UI Athletics
60% (n=5), UI Administration 56% (n=57), College of Letters Arts and Social Sciences 51% (n=39), College
of Engineering 50% (n=16), College of Law 43% (n=7), College of Natural Resources 39% (n=23),
Graduate Studies 34% (n=6), College of Education 29% (n=17), College of Agriculture and Life Science
21% (n=38).
These percentages begin to give our team an idea of which colleges might be the more interested in an
FSC than others, but it is important to keep in mind that some of these percentages may be nonrepresentative of the actual population due to low sample size.
Frequency Analysis: Household Size
A cross tabulation similar to the one described above was run between general level of interest in an
FSC and the number of members in a household. The percentage of respondents who rated the idea of
an FSC for the total sample was 40%. 44% of households with three members rated the idea favorably.
Single member households came next with 42% of respondents rating the FSC favorably. Two member
49
households 42%, four member households 34% and five member households 25%. These statistics
again give our team an idea of whether or not household size is a useful segmentation variable. The
results imply that three member households and single member households are the most interested in a
FSC.
Frequency Analysis: Age
The final cross tabulation was run between age and the general idea of the FSC. The percentage of
favorable ratings for the total sample was 40%. Respondents under 25 rated highest with 50% (n=2)
rating the idea of the FSC favorably. Following is a list of the results in order from highest to lowest. 3539 year olds 48%(n=31), 45-49 year olds 46% (n=45), 60-64 year olds 46% (n=26), 25-29 year olds 45%
(n=22), 40-44 year olds 40% (n=37), 50-54 year olds 37% (n=54), 30-34 year olds 34% (n=26), 65+ year
olds 34%, and 55-59 year olds 33% (n=73). These results give an idea of what age groups might be the
most interested in a FSC, but the same problems of low representation of certain groups may cause the
data to be non-representative of the population.
50
ANOVA Tests
ANOVA: College Affiliation
In order to identify possible target segments, AVOVA tests were run between the survey question that
asked respondents to mark which college they were affiliated with and the questions that asked
respondents to rate the importance of different amenities. The ANOVA test is used to determine if the
mean value of a certain group is significantly different from the mean value of the sample. Amenity
questions are considered statistically significant if their results return a significance level of less than .05.
After questions are flagged as statistically significant, group mean values can be compared to identify
which groups differ the most from the sample mean. The test allowed our team to determine which
colleges might be more interested in a FSC. Below, the results of the ANOVA test are listed. Amenities
flagged with statistically significant differences are listed in each column.
ANOVA Results: College Affiliation v. Amenity
Administration
Athletics
Ag and Life
Science
Art and
Architecture
Business and
Econ
Education
Engineering
Graduate
Studies
Law
Letters, Arts
Social Science
Natural
Resources
Science
General
sig. .000
Banquet
sig. .009
Lounge
sig. .016
Bar sig.
.003
Lunch
sig. .001
Dinner
sig. .006
Parking
sig. .027
3.157
3.80
2.47
3.24
3.24
2.79
3.57
3.57
2.92
3.28
3.28
2.51
3.74
4.2
3.49
3.41
3.40
3.05
3.73
3.80
3.08
4.17
3.67
4.34
4.0
4.34
4.0
3.34
3.86
3.27
4.0
4.07
4.47
3.87
3.60
2.76
3.375
2.67
2.75
3.44
2.34
3.19
3.75
2.50
2.63
3.50
2.17
2.81
4.0
2.84
2.36
3.27
2.89
3.50
3.75
2.17
3.14
3.44
3.34
3.73
3.17
3.53
3.50
3.25
4.0
3.65
3.24
2.97
4.17
3.18
3.84
3.28
3.69
3.26
3.83
3.14
3.43
3.84
3.04
4.0
3.74
4.37
3.84
3.68
These results imply that UI Athletics, The College of Art and Architecture, The College of Science and the
College of Business and Economics have the highest level of interest in a FSC. This information can be
used in our team’s targeting and segmentation plan.
51
ANOVA: Age
A similar test was run between the amenity importance questions and age. Each column in the table
represents an amenity where statistically significant differences exist. The results imply that 25 to 29
year olds and 60+ year olds may be the best segments to target. 45 – 49 year olds also consistently have
a high mean value for each amenity to this group may also make a good target.
ANOVA Results: Amenity Importance v. Age group
under25
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65 and
over
Dinner sig.
.055
Parking
sig. .024
Weekends
sig. .032
Summer
sig. .002
3.50
3.73
3.40
3.19
2.77
3.52
3.22
2.98
3.16
3.75
4.50
4.23
3.80
3.40
3.19
3.81
3.34
3.38
3.19
4.12
3.0
3.81
3.40
3.39
2.64
3.50
3.13
3.23
3.0
3.5
3.0
4.14
3.72
3.50
3.06
4.11
3.46
3.43
3.61
3.5
Guest
Speaker
sig. .004
2.50
3.82
3.20
3.72
2.97
3.81
3.57
3.24
3.0
3.0
Book Club
sig. .008
2.50
3.26
2.92
3.18
2.67
3.30
3.25
2.77
2.44
2.71
ANOVA: Males v. Females
Another ANOVA test was run to determine where males and females differed in opinion on the
importance of different amenities. Statistical differences between genders were found for the general
idea of a FSC, lounge, bar, lunch and the book club. Below a table lists the results of the ANOVA and the
corresponding means for each gender.
ANOVA Results: Gender v. Amenity Importance
Amenity
Significance level
Male mean
Female mean
General Interest
.03
3.09
2.82
Lounge
.001
3.56
3.12
Bar
.001
3.22
2.73
Lunch
.028
3.67
3.40
Book Club
.019
2.82
3.12
The results of the ANOVA show that males value the general idea of an FSC more highly than females.
Males also see the amenities lounge, bar and lunch as more important than females. Females rated a
book blub as more important than males. This information may be useful when our team is developing
marketing mixes for our identified target markets.
52
Limitations:
In the design process there are different limitations and issues that can be problematic. Internal as well
as external factors contribute to these limitations and issues. The internal limitations comprise of the
research design that was implemented and executed. These limitations can come from the survey
structure, bias response, non response, and misinterpretations by the respondent.
For the survey the first limitation is non-response bias. Non-response bias occurs when people simply do
not take the survey. This can be shown in our sample/response rate, this rate shows the percentage of
responses by how many surveys were sent. The next limitation is response bias, this bias occurs when a
respondent attempts to complete the survey but their answers are inconsistent due to a rushed
response. The last bias pertaining to the survey is misinterpretations. This happens when a respondent
is not clear of what the question is asking and may guess or omit answering therefore compromising the
validity of the survey.
When we were analyzing our survey the following limitations where identified. We did not identify if
the survey respondent was a member of the faculty, or the staff. This posed problems when we were
analyzing our data because we could not draw conclusions based on their position. Although identifying
whether or not respondents were faculty or staff members may have been beneficial, our team decided
to avoid the contention between faculty and staff members and not ask them to identify their affiliation.
Another limitation that was found was concerned with pricing. Respondents were asked how much they
would be willing to have taken out of their paycheck for the FSC. This question was open ended, and
made it difficult to run analysis on. When trying to do analyses of the respondents’ percentage of time
they spend in Moscow we ran into problems because this question was open ended, and some results
had to be thrown out when the data was being cleaned. The last limitation with regards to our survey
was that there was a low sample size for certain colleges. Low sample size in different colleges may
cause the results to be non representative of the actual population.
The external limitations and issues that are relevant to the FSC include but are not limited to location,
parking, economy, capital costs, and breaking contractual agreements with possible competitors. Within
location there are a couple different issues. The first of these issues is whether the FSC should be on
campus or off campus. To be on campus the club would have to follow different university regulations
and standards. Another issue with the location on campus is that there are not many options for a club
to be centralized, this includes both available space in existing buildings or open lots for construction.
Conversely if the club was to be off campus the likely hood of it being utilized is dramatically decreased
due to lack of convenience.
The next limitation is related to parking. If the FSC were to be on campus at an ideally centralized
location parking would become a large issue. Currently parking on campus is already an issue and by
adding another venue would increase this issue unless extra parking was build to accommodate. The
issue with creating extra parking is directly related to our previous issue on available space and adds to
that implication. Along with these two issues the current state of the economy and the willingness of
faculty and staff to pay for this facility is a major issue. The willingness to pay initial set up costs and
53
membership dues may prove to be difficult due to current economic times. Excess spending for
individuals has declined and it would be difficult to convince people to pay for a membership to a club
that does not have a previous reputation.
It is important to discover the methodological as well as environmental limitations when conducting
market research. With prior knowledge of these weaknesses, they can hopefully be assessed and
strategies can be better utilized to be more efficient and successful.
Conclusion:
With our research and analysis of results we can suggest many different factors that can determine the
elements of the purposed FSC. We have identified those amenities that are desired and the services that
the faculty and staff have expressed interest towards. We can also conclude that the location of the FSC
in relation to campus and available parking will pose an issue to the overall success of the club. From the
research there is an interest for this club to exists, but from analysis of both internal and external factors
there are numerous obstacles that will need to be further researched and analyzed to determine the
possibility of the club’s existence. The results and inferences that have been taken away will be used to
spearhead new research and will be integral part of the upcoming marketing plan.
54
References:
Prepared for ACUC. (2009, January 3). Club management information services. Retrieved from
http://www.acuclubs.org/FinalPhase1RptMar09.pdf
The harvard faculty club. (n.d.). Retrieved from http://www.hfc.harvard.edu/
The ohio state university faculty club. (2007). Retrieved from http://www.ohio-statefacultyclub.com/
University club. (2004). Retrieved from http://www.usc.edu/bus-affairs/uclub/about/index.html
University inn best western. (n.d.). Retrieved from http://www.uinnmoscow.com
University of washington club. (2007) Retrieved from
http://depts.washington.edu/uwclub/index.htm
55
Appendix A:
Focus Group Script
1. Introduce ourselves
 We are conducting a market research study for our market research class
 Be friendly, tell them to be comfortable, and that we are interested in their thoughts
 Say our names
2. Explain what our project is
 A faculty/staff club is a physical building offering many amenities to faculty and staff.
The general purpose is to promote the sharing of ideas, resources, and projects
relevant to departments on campus
 We are doing basic research of the viability of actually having a faculty/staff club.
We are doing research to see if it’s possible and if there is a demand for one. This is
an exploratory study.
 STRICTLY FOR MARKET RESEARCH-not a go or no go project.
3. Explain we are recording with a handheld recorder and note taker.
4. Confidentiality and Anonymity
 Tell them all answers will be kept confidential and will only be used for this study
within this class. This study is done by students and we won’t sell this to anyone.
 All feedback received will be used as a group and not on a personal basis
 There isn’t any pressure to answer the questions. Any input you have is valuable.
5. Ask them to go around the room and introduce themselves with their name and
department
6. Any questions before we begin?
LETS GET STARTED
Questions:
1. Why don’t you think there has been a faculty staff club at the U of I before?
2. If there was a faculty staff club would you join it?
a. How often would you use it?
3. How important is it that the faculty staff club is located on campus?
a. Parking?
i. Potential locations
4. What amenities are important to you at a faculty staff club?
a. What would you mainly use it for?
5. What amenities are unnecessary for a faculty staff club?
6. Who should be allowed to be members of the faculty staff clubs?
56
7. Should it be allowed for faculty staff club members to have guest passes?
8. What type of payment should exist for the dues?
a. Taken out of paychecks/monthly dues/etc?
9. Have any of you worked at another institution with a faculty staff club?
10. What other options do you think could exist for interactions with faculty/staff without
having a faculty/staff building?
11. Do any of you attend current faculty/staff meetings?
a. How often
b. Why or why don’t you?
c. What is your favorite aspect about these meetings?
57
Appendix B:
Amenities Survey
Q1 Please rate the importance of the following facility amenities in influencing your likelihood to join a
University/Faculty Club.
Very
Unimportant
Unimportant
Neither
Important or
Unimportant
Important
Very Important
Banquet/Reception
Facilities





Conference Rooms





Overnight
Accommodations





Lounge





Golf Course





Tennis Courts





Indoor Racket
Sports





Work Out Gym





Swimming Pool





Bar





Dining Service





Breakfast





Lunch





Dinner





Catering





Wireless Internet





Availability of On
Site Parking





Open on
Weekends





Open during
Summer





58
Q2 Please rate the importance of the following activities in influencing your likelihood to join a
University/Faculty Club.
Very
Unimportant
Unimportant
Neither
Important or
Unimportant
Important
Very Important
Themed Dinners





Wine Tastings





Holiday
Banquets





Weekly
Brunches





Guest Speaker
Series





Book Clubs





Cooking Classes





Private Parties
(such as
weddings,
retirements,
award
ceremonies)





Q3 Please leave any additional comments or suggestions you may have below:
59
Appendix C:
Amenities Codebook
Variable
Description
Q1A
Banquet/Reception
Facilities
Q1B
Q1C
Q1D
Q1E
Q1F
Q1G
Q1H
Q1I
Coding Instructions
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
Missing Value
Scale
9 = No response
Ordinal
Conference Room
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Overnight
Accommodations
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Lounge
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Golf Course
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Tennis Courts
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Indoor Racket
Sports
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Work Out Gym
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Swimming Pool
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
60
Q1J
Q1K
Q1L
Q1M
Q1N
Q1O
Q1P
Q1Q
Q1R
Q1S
Bar
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Dining Service
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Breakfast
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Lunch
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Dinner
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Catering
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Wireless Internet
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Availability of OnSite Parking
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Open on
Weekends
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Open during
Summer
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
61
Q2A
Q2B
Q2C
Q2D
Q2E
Q2F
Q2G
Q2H
Themed Dinners
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Wine Tastings
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Holiday Banquets
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Weekly Brunches
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Guest Speaker
Series
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Book Clubs
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Cooking Classes
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
Private Parties
1= Very Unimportant
2= Unimportant
3= Neither Important or
Unimportant
4=Important
5= Very Important
9 = No response
Ordinal
62
Appendix D:
Faculty/Staff Club Survey
A faculty/staff club is a physical building offering many amenities to faculty and staff. The general
purpose is to promote the sharing of ideas, resources, and projects relevant to departments on campus.
Given this explanation, how interested would you be in becoming a member of a faculty/staff club at the
University of Idaho?





Not Interested at All
Not Interested
Somewhat Interested
Interested
Extremely Interested
Please rate the importance of the following facility amenities in influencing your likelihood to join a
Faculty/Staff Club.
Very
Unimportant
Unimportant
Neither
Important or
Unimportant
Important
Very Important
Banquet/Reception
Facilities





Conference Rooms





Lounge





Bar





Lunch





Dinner





Wireless Internet





Availability of On
Site Parking





Open on
Weekends





Open during
Summer





63
Please rate the importance of the following activities in influencing your likelihood to join a Faculty/Staff
Club.
Very
Unimportant
Unimportant
Neither
Important or
Unimportant
Important
Very Important
Wine Tastings





Holiday
Banquets





Guest Speaker
Series





Book Clubs





Private Parties
(such as
weddings,
retirements,
award
ceremonies)





Assuming that you became a member, what type of membership payment plan would you prefer if a
Faculty/Staff Club existed on campus?




Annual
Semi-Annual (per semester)
Monthly
Bi-Weekly
How much would you be willing to have automatically withdrawn from your paycheck every pay period
(every two weeks) to support a potential Faculty/Staff Club?
64
Who do you believe should be eligible for membership in a University of Idaho Faculty/Staff Club?
(Please check all that apply.)






Faculty
Staff
Family Members
Alumni
Sponsored Community Members
Other ____________________
What group would be best in managing day to day operation of a University Faculty/Staff Club?




Board of Directors (voted on by members)
University Officials
Alumni Organization
Outside Organization (e.g. Sodexo)
Would you prefer the potential Faculty/Staff Club to be on campus or off campus?
 On campus
 Off campus
Which location would you prefer for a Faculty/Staff Club at University of Idaho?






Golf Course
Brink Hall
New entry (Perimeter Drive)
Kibbie Dome
SUB
Other: ____________________
65
Would you be interested in sharing a potential Faculty/Staff Club with an alumni center?
 Yes
 No
 No Preference
What percent of your time is spent in Latah County over the summer months?
Have you been affiliated with a Faculty/Staff Club at another institution?
______ Yes
______ No
If Yes Is Not Empty, Then Skip To Where was the faculty/staff located a...If No Is Not Empty, Then Skip To
Are you male or female?
Where was the faculty/staff located and what did you like/dislike about the club?
Are you male or female?
 Male
 Female
66
What college or service area do you work for?














University Administration
UI Athletics
College of Agriculture and Life Science
College of Art and Architecture
College of Business and Economics
College of Education
College of Engineering
College of Graduate Studies
College of Law
College of Letters, Arts, and Social Sciences
College of Natural Resources
College of Science
Idaho Center (Boise, Coeur d’Alene, Idaho Falls, Twin Falls)
Other: ____________________
What is your age?










Under < 25
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65 +
How many members (including yourself) do you have in your household?





1
2
3
4
5+
67
Appendix E:
Faculty/Staff Club Survey Codebook
Variable Name
Interest
Question Number
1. How interested would you be
Coding Instructions
1=Not interested at all
in becoming a member a of a
2=Not interested
faculty/staff club at the University
3=Somewhat Interested
of Idaho?
4=Interested
5=Extremely Interested
99=No Response
A through J
2. Questions A through J
1=Very Unimportant
2=Unimportant
3=Neither Important or
Unimportant
4=Important
5=Very Important
99=No Response
A through E
3.Questions A through E
1=Very Unimportant
2=Unimportant
3=Neither Important or
Unimportant
4=Important
5=Very Important
99=No Response
68
Variable Name
Question Number
Coding Instructions
Payment
4. What type of payment plan would
1=Annual
you prefer if a faculty/staff club existed
2=Sem-annual
on campus?
3=Monthly
4=Bi-weekly
99=No response
Withdrawal
5. How much would you be willing to
None
have withdrawn from your paycheck
every pay period to support a
faculty/staff club?
Faculty
6-1. Who do you believe should be
0=No
Eligible for membership in a
1=Yes
University of Idaho faculty/staff club?
(Faculty Members)
Staff
No Response
6-2. Who do you believe should be
0=No
Eligible for membership in a
1=Yes
University of Idaho faculty/staff club?
(Staff Members)
Family
99= Not Applicable/
99= Not Applicable/
No Response
6-3. Who do you believe should be
0=No
Eligible for membership in a
1=Yes
University of Idaho faculty/staff club?
(Family Members)
99= Not Applicable/
No Response
69
Variable Name
Alumni
Question Number
6-4. Who do you believe should be
Eligible for membership in a
University of Idaho faculty/staff club?
(Idaho Alumni)
Sponsored
6-5. Who do you believe should be
Eligible for membership in a
University of Idaho faculty/staff club?
(Sponsored community members)
Other
6-6. Who do you believe should be
Eligible for membership in a
University of Idaho faculty/staff club?
(Other)
Management
7. What group would be best at
Managing day to day operations at
University faculty/staff club?
Coding Instructions
0=No
1=Yes
99= Not Applicable/
No Response
0=No
1=Yes
99= Not Applicable/
No Response
0=No
1=Yes
99= Not Applicable/
No Response
1=Board of directors
2=University officials
3=Alumni Organization
4=Outside Organization
99=No Response
Campus
8. Would you prefer to have the
1=On Campus
Potential faculty/staff club
2=Off Campus
On campus or off campus?
99=No Response
70
Variable Name
Location
Question Number
9. What location would you
Coding Instructions
1=Golf Course
prefer for a faculty/staff club
2=Brink Hall
at the University of Idaho?
3=New entrance
4=Kibbie Dome
5=Sub
6=Other
99=No response
Sharing
10. Would you be interested in
1=Yes
Sharing a potential faculty/staff
2=No
club with an alumni center?
3=No preference
99=No response
Summer
11. What percent of your time
None
is spent in Latah county over the
summer months?
Gender
12. Are you male or female?
1=Male
2=Female
99=No response
Employment
13. What college or Service
area do you work in?
1=University Administration
2=UI Athletics
3=College of Agriculture and
Life Science
4=College of Art and
Architecture
71
5=College of Business and
Economics
6=College of Education
7=College of Engineering
8=College of Graduate
Studies
9=College of Law
10=College of Letters, Arts, and
Social Sciences
11=College of Natural Resources
12=College of Science
13=Idaho Center (Boise, Coeur d’Alene, Idaho Falls,
Twin Falls)
14=Other
99=No response
Variable Name
Age
Question Number
14. What is your age?
Coding Instructions
1=Under <25
2=25-29
3=30-34
4=35-39
5=40-44
6=45-49
7=50-54
8=55-59
72
9=60-64
10=65+
99=No Response
Household
15. How many members
1=1
(including yourself) do you have
2=2
in your household?
3=3
4=4
5=5+
99=No Response
73
Appendix B:
74
Appendix C:
75
76
77
Appendix D:
78
Activities
Staffing Activities
1. Appoint a Faculty Staff Board of Directors
2. Gather volunteers
3. Appoint FSC manager
4. Appoint Promotions Director
5. Offer student intern opportunities to help with promotions
6. FSC employees (wait staff, cooks, cleaning, busser, dish washer etc. ) hired
7. Create promotions team made of volunteers and interns
8. Incorporate policy for employee compensation, hiring, firing, training, evaluation for future and current employees
9. Purchase CRM database
10. Hire person to customize CRM database
Fundraising Activities (before opening)
1. Present report to Deans of colleges and ask for percentage of their campus spending
2. Provide pre-opening membership to raise money for opening
3. Work with UI Office of Development to inform and encourage faculty, staff, and alumni to donate
Product Activities
1. Interior design development
2. Building design and layout
Building built
3.Menu Development
4. Aquire a small business license
5. Aquire liquor license
6.Food handlers license
7. Development of CRM Database
8. Develop tiered memberships
9. Plan special events and activities
IMC
1. Begin pre-opening promotions such as personal selling memberships, direct mailers via email to all faculty, staff, and alumni
2. Develop television, newspaper, and radio spots to promote the opening of the club
3. Use online marketing such as the UI website, alternative media such as Facebook, Twitter, etc. to promote opening of club & membership
4 Send out Direct Mailers via emails to all faculty, staff, and alumni in the area
5. Begin Event Marketing at UI sports games
6. Continue selling memberships at FSC
7. Pre-Opening of FSC upon completion of building
8. Grand Opening of FSC
Promotions Team
Promotions Team
Promotions Team
Promotions Team
Promotions Team
Wait Staff & Manager
Promotions Team/Board/Waitstaff/Manager
Promotions Team/Board/Waitstaff/Manager
Board of Directors and Sodexo
Board of Directors
Board of Directors
Board of Directors
IS Employee
Board of Directors
Promotions Chair
Board of Directors
Board of Directors and Sodexo
Board of Directors
Promotions Team
Promotions Team
Mike McCollough and Steve Shook
Board of Directors
Sodexo and Board
Sodexo and Board
Promotions Director
Sodexo and FSC Manager
Promotions Director
Board of Directors
Board of Directors
Board of Directors
Assigned Responsibility
Month 1
Month 1
Month 10
Month 1
Month 1
Month 11
Month 2
Month 1
Month 6
Month 6
$0
$5,000
$100
$0
$1,000
$0
$0
$0
Month 6
Month 11
Month 9
Month 6Month 14
Month 13Month 12
Month 13
$40,000 Month 8
$100,000 Month 3
$13,000,000 Month 7
$0 Month 8
$0 Month 3
$101,000 Month 3
$0 Month 3
15,000 Month 6-10
$0 Month 2
$0 Month 11
$0 Month 2
$0 Month 6
$0 Month 2
$0
$0
$35,000
$35,000
$0
$0
$0
$0
$2,000
$0
Required Budget Estimated Completion Time
Appendix E:
79
Month
Staffing Activities
1. Appoint a Faculty Staff Board of Directors
2. Gather volunteers
3. Appoint FSC manager
4. Appoint Promotions Director
5. Offer student intern opportunities to help with promotions
6. FSC employees (wait staff, cooks, cleaning, busser, dish washer etc. ) hired
7. Create promotions team made of volunteers and interns
8. Incorporate policy for employee compensation, hiring, firing, training, evaluation for future and current employees
9. Hire person to develop CRM database/IS employee
Fundraising Activities (before opening)
1. Present report to Deans of colleges and ask for percentage of their campus spending
2. Provide pre-opening membership to raise money for opening
3. Work with UI Office of Development to inform and encourage faculty, staff, and alumni to donate
Product Activities
1. Interior design development
2. Building design and layout
Building built
3.Menu Development
4. Aquire a small business liscence
5. Aquire liquor licence
6.Food handlers liscence
7. Development of CRM Database
8. Develop tiered memberships
9. Plan special events and activities
IMC
1. Begin pre-opening promotions such as personal selling memberships, direct mailers to all faculty, staff, and alumni
2. Develop television, newspaper, and radio spots to promote the opening of the club
3. Use online marketing such as the UI website, alternative media such as Facebook, Twitter, etc. to promote opening of club & membership
4 Send out Direct Mailers and e-mails to all faculty, staff, and alumni in the area
5. Begin Event Marketing at UI sports games
6. Continue selling memberships at FSC
7. Pre-Opening of FSC upon completion of construction
8. Grand Opening of FSC
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Month Month Month Month Month Month Month Month Month Month Month Month
1
2
3
6
7
8
9
10 11
12 13 14
Appendix F:
80