Tag Archives: competition

by | Wednesday, January 24, 2024 · 7:56 am

Where do you golf?

How many readers are golfers? Wait. How should we define golfers? Are they regular players on a golf course consistently, or do we include folks who like the driving range but rarely walk onto a course?

The definition of ‘golfer’ has certainly been blurred by the expansion of Topgolf, as well as fueled by the use of technology in simulators and driving ranges. According to the National Golf Foundation, the number of people going to these locations now is greater than the number of people playing golf on outdoor courses.

And that’s a good thing for the golf industry in general. Long-viewed as an expensive, elitist sport dominated by males, the changing role of technology in golf now opens the sport up to more people who want to drive a ball, but not necessarily spend thousands of dollars and hours on it. Anytime an industry can introduce new consumers to its value, it has a chance of keeping the consumer’s interest.

Plus, Topgolf is more social than traditional golf courses. Topgolf’s approach is much more social, hosting groups of players with tables, couches, food and drink. Microchips embedded in the golf balls track shots, allowing golfers to virtually compete with each other, play famous courses and video courses.

As a result, some traditional country clubs and golf courses are also now more agreeable to revising old traditions and loosening dress codes, as well as designing new and entertaining games for the course and speedier play.

No need to yell “fore” on this tee.

Group Activities and Discussion Questions:

  1. Poll students: Who would consider themselves as golfers? How would they define the market? Where and when do they play golf?
  2. Show Topgolf’s website: https://topgolf.com/us/
  3. Poll students about their Topgolf experience.
  4. Who is the target market for Topgolf?
  5. What is an off-course golfer and how can it be reached?
  6. Divide students into teams and have them research the trends occurring in golf both on-course and off-course.
  7. ALTERNATIVE: Have students explore Topgolf as a franchise investment.

Source: Feuer, W. (1 December 2024). For the first time, most golfers play off-course. Wall Street Journal.

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by | Thursday, December 28, 2023 · 7:57 am

McDonald’s has a New Restaurant Concept Inspired by Aliens!

It’s widely acknowledged that McDonald’s is a top global brand with thousands of restaurants around the world. But now the company seem to be focused on additional places not just on the globe, but in the universe. It’s launching a new concept cafe called CosMc’s (get it? Cosmic?) that will be in a much smaller space and four drive-through lanes for to-go foods only.

CosMc’s has a much smaller footprint than the traditional McDonald’s restaurant and does not have a dining area, but does have four drive-through lanes and a menu heavily focused on drinks and snack sandwiches. No burgers and fries in sight.

The first CosMc’s location recently opened outside of Chicago. According to a  McDonald’s news release “CosMc’s menu is rooted in beverage exploration, with bold and unexpected flavor combinations…”

The menu features unique iced drinks with out-of-this-world flavor, and foods such as Egg McMuffin, small sandwiches, ice cream, and snacks. CosMc’s is focusing on the growing trend of consumers who want take-out food, not dine-in. According to market research firm Circana, only 14% of fast-food meals are eaten in-stores, with the rest going to take-out foods. And, when it comes to beverages, Starbucks estimated that roughly 75% of its U.S. beverage sales are from cold drinks.

CosMc’s claims to have served millions of aliens, but that might just be marketing hype (really?)

We’re ready to blast into outer space, iced drink in hand!

(Note – CosMc’s is named for an orange alien mascot shown in past McDonald’s ads who tried to transport McDonald’s food back to his home planet.)

Group Activities and Discussion Questions:

  1. Show video about CosMc’s: https://youtu.be/sGWGShv_UVA?si=1NPI4reQ6fxrcxsw
  2. Show CosMc’s website: https://cosmcs.com/
  3. What company is CosMc’s competing with using this menu?
  4. Discuss competition: Who are the direct competitors for this product? Indirect competitors?
  5. Divide students into teams. Have each team compare CosMc’s menu with a competitive menu. What are the points of difference (what makes CosMc’s menu different from competition)?
  6. Where can CosMc’s excel? Where can it fall short?

Source: Haddon, H. (6 December 2023). McDonald’s to launch CosMc’s, an alien-inspired restaurant serving slushes to-go. Wall Street Journal.

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by | Monday, November 13, 2023 · 7:00 am

Streamflation – Paying More for Streaming?

Have you heard the term “streamflation”? It’s a phrase being used to explain the increasing prices for entertainment streaming services.

On average, the cost of a major ad-free streaming service has increased by roughly 25% in the past year, with more increases to come. These increases account for the roughly $219 per month that consumers pay for subscriptions. That’s $2,628 per year!

Let’s take a quick look:

  • YouTube TV – in 2018 it cost $40; compared to 2023 at $73.
  • Netflix – in 2018 it cost $11; compared to 2023 at $15.49.
  • Disney+ – in 2019 it cost $7; compared to 2023 at $14.
  • ESPN+ – in 2018 it cost $5; compared to 2023 at $10.
  • Peacock – in 2018 it cost $5; compared to 2023 at $6.
  • Apple TV – in 2019 it cost $5; compared to 2023 at $7.

And don’t forget about music streaming such as Spotify, Tidal, and Apple Music – all of which carry a monthly fee.

Some fees can be reduced if viewers are willing to accept advertising as part of the service. For example, Netflix has prices of $6.99 per month for ad-supported viewing, compared to $15.49 per month for ad-free viewing.

Why the steep increases? Because most streaming services have been losing money to the tune of millions, if not billions, of dollars. But can companies raise prices and expect customers to stay loyal?

What will you pay?

 Group Activities and Discussion Questions:

  1. Pricing is a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  2. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  3. Poll students: What do they pay each month for streaming?
  4. Show video about streaming inflation: https://youtu.be/WNhkP9Q2gNs?si=18CUvNE8Oms-K46f
  5. Which pricing strategy is being used by streaming companies?
  6. Divide students into teams. Have each team research the prices being used by the various streaming companies (Disney+, Netflix, Apple, Hulu, etc.). Include both ad-free and ad-supported prices.
  7. Draw a table on the white board that lists the companies and their prices.

Source: Whelan, R., Flint, J., Rattner, N. (15 August 2023). Streamflation is here and media companies are betting you’ll pay up. Wall Street Journal.

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