Saket Adhikari (Shaket@gmail.

com)

CHAPTER ONE

INTRODUCTION

Executive Summary

The following marketing plan had been developed by MBA Marketing group of F1 – Karting to
obtain RM 300,000 in capital for the marketing of F1 – Karting racing facility. This plan will
serve the first three years of the venture’s operation.

The F1 – Karting will focus on serving walk – in customers and corporate and event clients
through racing sessions and facility rentals, but also will serve smaller niches with adult racing
leagues and youth camps. Walk – in business will be generated through local people, trade shows
attendees, conventioneers, and tourists/ visitors of the city. Corporate events will be sold to
business establishment and organization with Malaysia and Asia pacific (ASEAN) and leagues
will be geared towards repeated customers of the facility. Youth camps will also be available to
children’s.

The grand opening of the F1 – Karting is scheduled on January 1st, 2011. The center will be
located at Cyberjaya, Malaysia. F1 – Karting faces direct competition from mostly three karting
centers in the Malaysia market. At F1 – Karting customers will have the option of alternative
forms of entertainment through the use of a full arcade, retail novelty shop, concession stand, and
safe viewing and television entertainment.

Additionally, the F1 – Karting will features Malaysia’s longest and widest kart racing track
allowing for safer racing conditions. The track will enhance customer enjoyment of road racing
experiment and also offering the newly designed F1 kart that will allow the facility to increase
the market size by offering new racing programs to more age categories. Finally, all financial
projection for the F1 – Karting show the potential success and growth in the exiting market.

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CHAPTER TWO

2.0 Situational Analysis

F1 – Karting is beginning its first year of operation and recognizes that the marketing activities
are critical to success and there is a profitability of the business. This recreational center offers
customers with an exciting rush of high – speed go karts. It will also offer a wide array of racing
opportunities, ranging from the arrive and drive format, facility rentals, leagues, camps and other
racing. In additional to racing there will be conference rooms, arcade games, snack bar and a
retail shop.

2.1 Market Summary

We live in a society that revolves around entertainment. People are looking for things to do and
new places to experience. Entertainment industry thrives on the disposable personal income of
consumers for the success of their come place of many big events. Experience F1- Karting is
located at Cyberjaya, a new planned township with a science part as the core that forms a key
part of Multimedia Super Corridor. Located within excellent amenities and infrastructure, F1 –
karting see the potential customer engagement in addition to the universities potential of being
the place of many big events and entertainment shows.

2.1.1Target Market

By using the data gathered through primary research and studying the current scenario, we
identified two primary markets that will be targeted as well as several secondary markets to help
boost revenue. As the trend in this industry is that the majority of the sales come from special
events.

The second primary market to be targeted, walk – in racers consists of members such as local
people, tourist, trade show / convention attendants. Walk in customers represents a wide array of

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ages and demographic. Therefore, in this marketing plan we will address the interests of broad
category of people.

Secondary markets will be made of community and national business chains, for the purpose of
advertising packages within the facility. Also in this category would be children group from 10
– 17 for the youth kart racing camps, any individual above 18 years of age older will participate
in weekly kart racing leagues.

2.2. Market Demography

The profile for the typical F1 – Go – karts customers consists of the following geographical,
demographic, and behavior factors:

GEOGRAPHICS

F1 – Karting has set Cyberjaya – the IT city of Malaysia to host sporting events and convention
on an annual basis. An estimate of over 1 to 2 million visitors will visit Cyberjaya, bringing
almost 5 billion ringgit in revenue. Incoming visitors range from individual from conferences
and religious conferences to participation in sporting events. Additionally cyberjaya has been
able to launch an initiative to attracted MNC’s, Local as well as foreign universities to the area.

DEMOGRAPHICS

From the survey we found out that F1 – Go – Karts concept appeals to a broad demographic
through evenly spread percentages in the categories of age, education, and income.

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A majority of the walk – in markets for karting consists of people between the ages of 18 and 34
at a total of 40 percentages. However, a good percentage of customers aged 35 and older also
participate in these activities.

There is an even spread in the household income Go - Kart participants. The top brackets was a
RM 50,000 to RM 74, 999 income making up 22 percent of the market, followed by a vastly
different RM 10,000 to RM20, 000 to RM 29, 999 at 16 percent. The other six categories all fell
within 4 percent of each other.

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BEHAVIOR FACTORS

This F1 – Go – Karts focuses on providing consumers with an exhilarating rush of adrenaline

and excitement. Consumers are willing to spend more money to experience the F1. These
consumers have active lifestyle that includes some sort of recreation at least two or three times a
week.

2.3 Market Needs

The F1 – Karting is providing customers with a wide selection of entertainment activities. All of
these activities incorporate the newest technological advancement. F1 –Karting seeks to fulfill
the following benefits that are important to their customers:

• Convenience – Location, ease of use

• Wide range of Selection – Wide options of products and services

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• Customer Service – Full attention provided

• Price – Competitive

• Utilization of advanced technologies

2.4 Market Trends

Today market trends revolve around entertainment. Consumers are always looking for things to
do and new places for the experience. Entertainment business thrives on the disposable personal
income of consumers. Through the basic concept of karting has been in existence for some time
but very little available information is available as to the current market trends. Recently karting
has been experiencing its popularity since 1194 when Micheal Schumacher became the world
champion in the Formula One Series for the first time.

2.5 Market Growth

As the population ages, the potential market also increases. The F1 – Karting has a good
marketing program and will provide an excellent service to increase their customer base.

Karting has seen an explosion of centers across USA and Europe, the industry is still very new
and has huge potential for growth here in Asia especially Malaysia. There are chances that price
for karting going down due to competition by many karting centers throughout Malaysia.
However, one of the biggest problems is that no organizations have successfully formed to aide
in the development and future of the industry.

2.6 SWOT ANALYSIS

The following SWOT analysis captures the key strength and weakness within the company, and
describes the opportunity and threat facing F1 – Karting.

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2.6.1 Strengths

• In – depth industry experience and insight

• Creative, yet practical designers from Formula One

• The use of a highly competent, flexible business model utilizing direct customer sales and
distribution

2.6.2 Weaknesses

• The reliance on outside capital necessary to grow the business

• The lack of retailers who can work face – to – face with the customers to generate brand
and product awareness.

• The difficult of developing brand awareness as a start up business

2.6.3 Opportunities

• Participation within a growing industry

• The ability to leverage other industry participations marketing efforts to help grow the
market

• Product development

2.6.4 Threats

• Future / potential competition from already established market participation

• A slump in the economy that could have a negative effect on consumer spending on
recreation events

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• The release of study that question the safety of racers or the inability to prevent major
traumas

2.7 Competition

Competition in the karting business in Malaysia is still mild and will play a role in F1 – Karting
success. There are three good karting centers within Malaysia and none of these incumbent
establishment have either the technology or the wide range of service provided by F1 – karting
center. There are few companies that are making their presences.

• Sepang International Circuit, Sepang, Malaysia

• Extreme Part @ Sunway Malaysia

• City Karting enterprises, Shah Alam

2.8 Product and service Offering

The F1 – Go – Karts is primarily a service facility, with the main focus on providing customers
with the racing experience. The following list of products and services are: -

• Arrive and Drive Racing

• Corporate Outings

• Concessions

• League Racing

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• Retail Novelty Shop

• Youth Kart Racing Camps

• Advertising Packages

• Safe viewing Areas and Television Entertainment

2.9 Keys to success

The keys to success are designed and producing products and services that meet market demand.
F1 – Kating has three key to success: -

• Location – The center will be strategically located to maximize the profit from the
modern go – kart racing. The center will be constructed on Cyberjaya, Lake side to total
customer satisfaction ie., the experience of a wide arrays of entertainment activities from
a full arcade to snack shop, retail store featuring items from the top racing circuits and
several areas to relax and watch televisions.

• Low overhead cost – Although F1 is an expensive sport, F1 – karting management will

keep overhead cost at a minimum. The construction will be done by Protesco Bhd the
subsidy company of F1 – Karting saving approximately 30% of the construction costs.

• Wide range of products and services – F1 – Karting will also provide entertainment, not
only racing but also having a full restaurant / corporate outings / night clubs, arcades,
snack bar, apparel shop etc. this diversity will bring more customers and provide them
more ways to enjoy themselves and spend their disposable income.

2.10 Critical Issues

As a start up business, F1 – Go – Kart is still in the early stages, the critical issues are:

• Establishing itself as the premier Go – Kart racing company.

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• Pursue controlled growth that dictates that expenses will never exceed the revenue. This
will help protect against recession.

• Inaccurate Sales projection

• Constantly monitoring customer satisfaction, ensuring the growth strategy will never
compromise service and satisfaction.

• Injuries to visitors

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CHAPTER THREE

3.0 Marketing Strategy

The key to the marketing strategy facing F1 – Karting is to identify its potential long – run
opportunities given its market experience and core competences. The set of tasks necessary for
F1 – Karting is to come out with marketing strategies and plan , connecting with customers,
building strong brands, shaping the market offerings, delivering and communicating values,
capturing marketing insights and performance, and creating successful long – term growth.

A full time Marketing manager will be a vital part of the F1 – Karting management team.
Marketing managers will be responsible for the assuring customer satisfaction, generating public
awareness of the type of entertainment offers at the center.

3.1 Purposed Mission

F1 – Go – Karting mission is to provide the customers with the F1 experience go – karting that
provides customers with racing experiences. We exist to attract to attract and maintain customers
with range of products and services.

3.2 Marketing Objectives

• Host sporting events and conventions to generate over billion dollars on an annual basis

• Maintain positive, strong growth each quarter

• Development of new market and accelerate product and service development to meet
customers’ needs and work together effectively as one team

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3.3 Financial Objectives

• Increase the profit margin by 1 percent per quarters

• Maintain a significant research and development budget spur future product

development.

3.4 Target Markets

We live in a society that revolves around entertainment. People are looking for things to do and
new places to experience and karting is one of such new experience. With a world karting
growing steadily, the niche for this sport has been created. The aim of this is to expand this
market by promoting Go – Karting by providing them the F1 experience as well as giving an
option of alternative forms of entertainment through the use of a full arcade, retail novelty shop,
concession stands, and safe viewing and television entertainment. Our products are targeting the
potential racers and the recreational groups, because they are the fast growing. Moreover
entertainment business thrives on the disposable personal incomes of consumers.

There is very limited information available on the number and demographic on cart racing. In
kart racing, approximately 96% of participants are male with 48% being between the ages of 22
and 35. While males are the predominant karts racers, female also are enjoying kert racing. New
target market can be created on business and corporations as they can use these facilities for their
outings and events.

3.5 Positioning

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F1 – Go – Karting will position itself as the premier karting company. This positioning will be
achieved by leveraging F1 – Karting competitive edge: industry experience and passion. We are
confident that the new facility will be prosperous and become the premier karting center in the
state. The company will look to acquire a share of the existing market as well as increase market
size by offering unique programs to new age groups.

3.6 Strategies

The objectives are to position F1 – Go – Karting as the premier karting company. The marketing
strategy will seek to first create customers awareness concerning the offered products and
services and then develop the customers’ base. The main strength is to give customers the F1
Experience that will lie in the highly differentiated approach of the facility. This experience will
offer entertainment for the whole family by offering racing camps for childrens which will lead
to interest from parents and their participants in the sports. The facility will encourage its
customers to gain an interest in other motor sports, and will allow them convenient shopping for
apparel of their favorite drivers in the retail shop.

The other marketing approach will be advertisement placed in numerous industry magazines.
The automobile industry is supported by several different glossy magazines designed to promote
the industry as a whole. We are confident that our karting with the F1 experience will appeal to
the local people and visiting tourists and will capture a significant portion of the current market
as well as increase the market size. We are determined to make F1 – go – Karting Malaysia’s
premiere facility for karting.

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3.7 Marketing Mix

F1 – go – karting marketing mix compromises the following approaches to pricing, distribution,

advertisement and promotion and customer service

3.7.1 Pricing

The F1 Experience will utilize pricing that will consistent with the other facilities in the market.
Each walk – in racing session will cost the consumer RM100 for a 25 lap session. In addition to
racing they will receive he use of one head sock, driving suit, helmet. They will receive a
computer generated statistical read – out of their performance after each session.

Corporate outing and special events will be priced on an individual basis, depending on the total
packages that the company or group is seeking. Youth kart racing camps and adult kart racing
leagues will be attractive to customers as they allow more time behind the wheel for a lower cost.
Youth camp will be priced at RM 25 per entry and adult racing league will have entry fee of RM
40 per entry.

Retail clothing merchandise will be priced at the manufacturer’s suggested retail price, and
snacks foods and drinks will be priced slightly above these suggested prices. Even at this higher
mark – up, costs will be lover that of other facilities.

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3.7.2 Place

Malaysia hosts hundreds of sporting events and conventions which generate over a billion ringgit
for the country on annual basis. Each year, an estimated 5 million visitors visit Malaysia bringing
about 5 billion ringgit in revenue. Malaysia chose to use sports as an economic and community
tool, and backed the construction of sports facilities and marketing strategies to attract top
sporting events. The F1 – go- kart will be located in cyberjaya and is less than half an drive from
Kuala lampur. Cyberjaya is Malaysia fastest growing town because of the presence of
Multinational companies as well as Universities.

3.7.3. Promotion and advertisement

We will use a variety of promotional avenues to gain more interest from the community and
ensure that they will continue to use the F1 – Go – Karting experience for their racing apparel
needs. Promotions to be used are as follows: -

• Free Tee Shirts

• Newsletter

• Press Releases

• Awards

We will have to carefully develop an advertising campaign to promote the F1 – Go – Kart

xperience, as a majority of the customers are obtained through the word – of – mouth. The F1
experience as construction gets under way, and will heavily promote the unique features of the
facility. The following advertising methods will be used to spread the word of the new facility
and increase the public knowledge of this form of entertainment.

• Phone Book (Yellow Page)

• Flyers

• Newspapers
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• Corporate magazines

• Radio

• Television

3.7.4 Consumer service

F1 – Karting will provide service to its customer before, during and after the purchase. It will be
a series of activities designed to enhance the level of customer satisfaction. F1 – Karting
philosophy is that whatever needs to be done to make the customer happy must occur, even at the
expense of short – term profit. In the long term, this investment will pay off with a fiercely loyal
customers base that is extremely vocal to their friends with referrals.

3.8 Marketing Research

F1 – Go – Kart tested its products not only with its principles, who are accomplished racers but
also with the many dedicated and new users. The existence product testing by wide variety of
users provided F1 – Karting with valuable product feedback and has led to the market strategy.
Online rating system and competitive analysis are some of the marketing research services.

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CHAPTER 4

4.0 Controls

The purpose of F1 – Karting marketing plan is to serve as a guide for the organization. The
following areas will be monitored to gauge performance:

• Revenue: Monthly and annual

• Expenses: Monthly and annual

• Customer satisfaction

• New Product Development

4.1 Implication

The following milestone identifies the key marketing program. It is important to accomplish each
one on time and on budget.

Table: Milestones

MILESTONE PLAN
Milestone Start Date End Date Budget Manager Department
Marketing Plan Completion 1/01/10 1/02/10 RM 0 Saket Marketing
Web site Completion 15/02/10 14/3/10 RM 25,000 Outside Marketing
Advertisement Campaign 15/02/10 14/10/10 RM 8,000 Anas Marketing
Promotional Campaign 1/06/10 1/09/10 RM 10,000 Bashir Marketing
Development of retail 1/01/10 1/109/10 RM 0 Hussain Marketing
Channel

TOTAL RM 42,000

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4.2 Contingency Planning

Difficulties and risks:

• Over-estimating demand.

• Problems generating visibility.

• Mistaken assumptions regarding the future development of the business area.

Worst case risks may include:

• Determining that the business cannot support itself on an ongoing basis.

• Having to liquidate equipment to cover liabilities.

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References

• Kotler, et al. (2009), Marketing Management: An Asian Perspective, 5th edition.

Singapore: Prentice Hall.

• Peter, J. P. and Donnelly J. H. Jr. (2008), Marketing Management: Knowledge and

Skills, 9th edition. Boston: McGraw-Hill.

• Aaker, D. A., (2008) Strategic Marketing Management, 8th edition. Hoboken, N.J.:
John Wiley & Sons

• Sarah Sturmon Dale, “Go – Karting for Executives,” Times (July 30, 2001)

• Andrw M. Whisler, “The F1 experience”, Entrepreneur, Singapore: Prentice Hall

• “The History of Indor Karting,” http:

//www.karting.co.nz/indoorgrandprix/historykart/

• “Amusement technology Management,” http:// www.e-kmi.com

• “indy Motorforce, “The Indy Partnership, http://www.indypartnership.com

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