Attractive market segment for Circustrix
Circus Trix is an American based operator of recreational parks and indoor trampoline. This park operates in the continents in Europe, United States and Asia. The company has various brand names for their parks, which includes Skywalk, High Heaven, Ryze and Gravitopia. The parks are based on themes like soft foam pits, interconnected trampolines and slack lines including ninja warriors
An attractive market segment can be defined as one that tends to offer long-term income and profit potential for a particular business. Generally, companies consider various segment offers before they plan to market to and cater to a particular target market.
The company has parks which are trampoline based theme parks and other related fitness activities. The main target market could be children aged between 10 to15. However, as observed by the companies in the other countries, the actual visitors of the park do not belong to a particular age but are considered to belong to all groups , belonging to all sexes, races and income levels (Dunning, 2012). Even tourists to the area tend to form a portion of visitors. Therefore, the most important segmentation will be the people who like to enjoy themselves and care about their fitness. College students looking for recreational activities, schoolchildren, young adults and professionals who want to keep themselves fir and event the aged population who would like to spend their time in engaging in fitness activities. All of these can be described as the attractive market segment for the company.
Pest analysis can be described as an external market research technique, which is used to analyze the external factors that exist in an industry (Griffin & Pustay, 2012). The PEST analysis involves analysis of the Political/Legal, Economic, Socio-cultural and Technological Market of the city here the business has to operate in. Pest analysis describes a framework of the various external macro environmental factors, which make use of environmental scanning component in relation to strategic management. It provides the user with various factors that need to be considered while taking relevant decisions. Circus Trix is a fitness park, which is targeting the fitness and adventurous segment of the city.
London is the capital city of England and the United Kingdom. The 21st century country`s history dates back to the Roman times. The city is a major tourist attractor with major attractions ranging from Big Ben clock, Thames River, the London eye and the Westminster Abbey.
- Political/Legal: Earlier in 2007-2009, the economy had taken an ugly turn with the recession at its peak. Presently, the United Kingdom government has been taking many initiatives to make the market an attractive one. The stability of the government along with the new move of Brexit has opened many avenues for London where it wants the city to expand and become an independent and become a hub by itself without any kind of interference from the union (Ball et al., 2012). Legal- Various changes have been made to the legislative of the city and new laws have been introduced for this purpose. The city has various legislations with respect to the safety and fitness of its citizens. Tax reliefs are given out to the investors in order to promote and lift the economy, thus providing relaxation to the investors to an extent. When the country has a stable environment then the regulations and rules are reduced.CircusTrix has to abide by these rules in order to establish in the city.
- Economic- The economy of London is although in a dicey state after its vote to exit from the European Union. Markets have reportedly been crashed however; this has not affected the spending of people (Czinkota & Ronkainen, 2013). London remains a tourist spot and a hub for the young financial professionals of the world. CircusTrix can establish their business there. The economic status of London has a very good influence on the flow of money with respect to the exports. Investors can easily be satisfied by receiving adequate results. London follows a mixed economy system, which is affected by the consumer needs.
- Social and Cultural- The working population in UK accounts for around 67% of the population while 17% of the population is children. Since, Circus Trix is not targeting a particular segment with respect to the age of the people, and instead looking for fitness oriented and adventurous group of people (Wild, Wild & Han, 2014).The age group of London is perfect for the company. The standard of living in the city has surpassed even that of the cities in the Unites States. Therefore, this city will be an idle market for CircusTrix. London is very famous for its festivals and its status for bring a major tourist attractor. Therefore, the environment is suitable for CircusTrix to open a themed recreational park.
- Technology- Being one of the most attractive and advanced city in the world, London has a good access to the internet and has advanced technological in all fields. CirusTrix can take advantage of this technology and expand its business thereby making use of the possibilities.
The city of Paris is the capital of France with a population of around 2 million people. The city is a major centre of fashion, science, arts, entertainment and commerce (Cavusgil et al., 2014). The standard of living of the people is high and the city has the third largest GDP in the European Union.
- Political and legal-Since he European Union has lost its standing in France, capitalism has failed to strengthen its roots there. The elites in politics share privileges to an absurd essence. The government debt has reached to new heights. The city of Paris is a difficult country to expand to unless one has sources in the political parties, as the city is still lost in its glorious past (Perreault Jr, Cannon & McCarthy, 2013). However, since Paris is a tourist attraction and the city depends greatly on the tourists because of the income, the city tends to provide great tax benefits as well as incentives to the investors.
- Economical-Due to strong governmental intervention, France was not greatly affected by the economic downturn, which aroused during the 2007-1009 period (Jurevicius, 2013). The government tends to impose heavy taxes on the people. City has the capacity to do well as it has heavy industries, often considered the cosmetics and luxury capital of the world. However, the tax regimes are very strict. The economy of the city is suitable for companies and firm that attract tourists as Paris depends heavily on tourism sector, as mentioned earlier. Therefore, there exists a different regime for companies. The economy was not greatly affected by the recession period.
- Social- 80% of the population is Roman Catholic. The city is a good spot for tourism however, the family life is strict. If the company wants to depend totally on the tourists who visit the countries during the peak season for its operations, only then it should consider the expansion (Wilson et al., 2012). People are inclined towards art and entertainment and therefore look forward to new entertainment sources in the industry. CircusTrix shall benefit greatly if it chooses Paris.
- Technological- In the technological domain, Paris is often considered a leader. There are various facilities available in Paris that can help in the growth of a good tech business, therefore from the technological domain Paris is a good country to expand to (Yüksel, 2012).CircusTrix can make efficient use of this technological advancement thereby making fast and cheap services in order to fulfill the needs of its consumers.
Therefore, from the discussion it can be stated that although the Britain has decided to separate itself from the European Union thereby posing risk into the market, however, the financial freedom and relaxed trade policies have gone a long way to promote development. The economy of London is still under a blow, Paris on the other hand is lost in its old world charm and strict government intervention can become a source of trouble for the company but it comes useful under the tough times. In order to maintain stability and avoid itself from any risks relating to London with reference e to Brexit, it is advisable that the country expands its operations in Paris.
References
Ball, D., Geringer, M., Minor, M., & McNett, J. (2012). International business. McGraw-Hill Higher Education.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
Dunning, J. H. (2012). International Production and the Multinational Enterprise (RLE International Business). Routledge.
Griffin, R. W., & Pustay, M. W. (2012). International business. Pearson Higher Ed.
Jurevicius, O. (2013). PEST & PESTEL Analysis. Strategic Management Insight, 13, 2013.
Perreault Jr, W., Cannon, J., & McCarthy, E. J. (2013). Basic marketing. McGraw-Hill Higher Education.
Wild, J. J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education Limited.
Wilson, A., Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2012). Services marketing: Integrating customer focus across the firm. McGraw Hill.
Yüksel, ?. (2012). Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), 52.
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