F2 Driving Range for Family and Friends

Executive Summary


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F2 Driving Range is the outdoor driving range that target two communities: Family and Friends (F2). This creation of golf range with special package highlights the focus and thus provides benefits for the community since traditional driving range only target adult community especially corporate executives.

In the objective section, we discuss about the explanation of definition of objective, F2 Driving Range will have following objectives:

Sales of $451,019 within 3 year of operation, representing over 1,000 guests within the 3-year period
Year-to-year Growth of 6% in the 2nd year and 20% in the 3rd year
Maintain gross operating profit of 30% or equals to $135,306 in 3-year period
Achieve 29% of sales from Friends Packages, 30% from Family Packages and the rest from non-package customers
Open 3 outlets of F2 Driving Range through franchise system
In the profit forecast, we consider that within first three years of operation, the company can maintain 30% of gross operating profit while the communications costs including several public relation activities and advertising account for 12% of the targeted revenue.

Marketing Plan


1.                  Objectives

F2 Driving Range is the outdoor driving range that target two communities: Family and Friends (F2). This creation of golf range with special package highlights the focus and thus provides benefits for the community since traditional driving range only target adult community especially corporate executives.

Concerning the marketing plan of F2 Driving Range, there are a number of factors that should be considered ranging from the marketing objectives to profit plans. In this section, we will provide the objectives/goals for F2 Driving Range prior discussing the marketing plans, quality control plans, and financial plans.

The existence of objectives/goals is imperative since it helps an organization to minimize gaps between current and the future states. By definition, objectives are the exact form statement that is exactly formulated and provides specificity (“Strategic Planning”).

Moreover, since F2 Driving Range product’s composes of two general packages for Family and Friends and Family in addition to non-packages, we formulate different revenue target and marketing strategy for each package. In order to cope with the various kinds of customers’ demography, F2 Driving Range must always conduct routine coordination with sales manager and product manager to harmonize the product offering and the target revenue in the future. In this situation, the goals of each package coordinator must be compatible with the whole goals of the organization.

In addition to the explanation of definition of objective, F2 Driving Range will have following corporate objectives:

Sales of $451,019 within 3 year of operation, representing over 1,000 guests within the 3-year period
Year-to-year Growth of 6% in the 2nd year and 20% in the 3rd year
Maintain gross operating profit of 30% or equals to $135,306 in 3-year period
Achieve 29% of sales from Friends Packages, 30% from Family Packages and the rest from non-package customers
Open 3 outlets of F2 Driving Range through franchise system
2.                  Marketing Plans

2.1       Marketing Objectives

Concerning the above situation where F2 Driving Range does not have strong position in outdoor golf driving range since it is a new company; we suggest the several corporate objectives as mentioned above that F2 Driving Range should bear in mind in order to improve their position in the market.

In order to reach the corporate objectives, the company needs to define its details marketing objectives. Theoretically, marketing objectives elaborate points to be achieved within a given period. Therefore, marketing objectives for F2 Driving Range must be measurable such as objectives to increase revenue by 6% in the 2nd year and 20% in the 3rd year as we use in this assumption for profit and financial plans. Concerning the situation, there are about five main marketing objectives of F2 Driving Range:

Increase revenue from $135,360 thousands in 1st year to $143,481 thousands in 2nd year and $172,177 thousands in 3rd year
Introduce new attractive experience in playing outdoor golf driving range with family and friends
Enter new territories and create unique features where competitors have not offered thematic golf  driving range products
Sign franchise agreement with at least three franchisee within the next two year
Raise customers’ retention program with improved customer satisfaction such as free 1-hr overtime, members competition with attractive prizes
2.2              Marketing Strategy

Attractive and powerful marketing strategies take more than an attractive logo, advertising, and fancy brochures. An effective marketing strategy is that address the needs and wants of the customers and/or target market and systematically examine the company’s own aims, potency and weaknesses.

Once we have performed above actions, F2 Driving Range can design a practical plan to connect customers with their products in order to achieve marketing and corporate objectives. In addition, a good marketing plan does not only concentrate on public relations, advertising and communications, but also reach into customer service, after sales, customers retention program, to name a few (“Marketing Basics: 4Ps”).

This situation suggests that marketing strategy becomes the heart of a marketing plan. The marketing strategy or marketing mix (4Ps) section for F2 Driving Range should include information about 4P’s (Product, Price, Promotion, and Place) as following:



2.2.1    Product Products of F2 Driving Range

A product can be a physical in nature, a service, or an idea. Product management includes several related aspects such as function, experience, packaging, services, customers’ satisfaction, etc.

Considering that customers of outdoor golf driving range come from various demographic and economic conditions, F2 Driving Range provides two general packages that represent customer’ characteristics that tend to gather in group: Family and Friends. In order to stand out the competition in golf driving range, F2 Driving Range offers two packages and non-packages. The two packages are special offering for Family, a group of customers that are family connected, and Friends, a group of customers that have no family relationship.

The key feature of F2 Driving Range is the separation of golf range for family and friends customers. For example, for customers that choose Family Packages, they will have merchandises that are suitable for Family like tea sets for father, mother and two kids and many more. Meanwhile, for customers that choose Friends packages, the merchandises are caps with similar theme, photo frame and many others.

In addition, the venues for Family Packages will be decorated with pictures and photos describing the warm relationship of a family, mini putt for children under 5 year-old. Meanwhile, for customers of Friends package, there will be karaoke Competitors’ Products

Competition of Mini Golf Course is quite intense in Minnesota since there are at least one challenging rival with strong level of capital and venues directly compete with F2 Driving Range. The two competitors are Centennial Lakes and Challenge Park. Centennial Park, the toughest competitor, is located at Edina and has a wide venue about 24-acre composing of parks and ponds. The features of Centennial Park include outdoor skating venues (esp. in winter), Centrum building’s with fireplaces, and hockey (Figure 1). Another competitor for F2 Driving Range is Challenge Park. However, there is no details information for the outdoor mini golf course in Chaska, Minnesota.


Figure 1 Centennial Park


Out of the two competitors of F2 Driving Range, we consider that Centennial Park become the toughest rival since the park features many benefits for guests and clearly target middle-to-high class of customers; the class that is often associated with golf. The spacious outdoor with combination of parks and ponds also gives benefits for Golf lovers since it resembles the exact situation of playing Golf.  In addition, Centennial Park has also beautiful landscaped grounds, swinging benches, and fountains that make it as favourite travel destination (City of Edina, 2006).

Amidst the obvious power of Centennial Park’s strengths, we find common drawbacks for the rival since the high-class features will have limited customers. This is quite different from F2 Driving Range that target Family and Friends, each can come from high or low classes of customers. Under such circumstances, therefore, F2 Driving Range has to strengthen its core competence from current only offering mini driving range course to related recreation.


2.2.2        Price

Price is about what will charge customers for products and services. Pricing scheme should consider the targeted profit margins and the possible pricing response from competitors. Moreover, pricing strategies should consist of not only the listed price but also discounts and annual membership with additional benefits such as free overtime.


Table 1      Pricing of F2 Driving Range

Friends Packages

– silver package

– gold package

– platinum package

Family Packages

Package #1 (w/o merchandises)

Package #2 (w/ merchandises)


– Adults above 12

– Children under 12
2.2.3        Promotion

Promotion deals with how to promote or create responsiveness of the product in the marketplace. A promotion plan describes the tools or tactics used to accomplish the marketing objectives. Promotion decisions are those related to communicating and selling to potential consumers.


Table 2            3-year Communication/promotion activities, budgets and time scheme, and measures for evaluation



Time Schedule
Measure for Evaluation
Press Release
Monthly and every events
News Distributed into Media
Website Updates
Any time
Web sites updated once a changes/new activities occur
Every quarter
Hard selling during recreation promotion period
Friends Packages
In-Schools Promotion
Every semester
Presentation and distributing merchandises
Family Packages
Open Table at major retailers
Every semester
Distributing brochures



The budget for communication activities is account for 12% of targeted revenue/turnover of F2 Driving Range (see Table 4). This amount is considerably acceptable since there are no exact amounts of advertising budget as percentage of sales revenue (Canada Business, 2005).
2.2.4        Place

Place is about how to bring the products together with the customers. This section describes how the products and customers “meet” or come together through sales and distribution. Moreover, describe the sales philosophies, methods, and distribution system (“Marketing Mix”).

Concerning the F2 Driving Range, we see that the company’s decision to create thematic golf range is attractive since customers, in general, love to gather in-group; and the famous and possible groups are family and friends. In addition, the creation of thematic decoration in F2 Driving Range venues also highlights the company’s philosophy to target two general customers’ group.


3.         External Analysis

3.1       Threats

Entertainment and recreational industry has obvious threats for new entrants, which can be divided into two general substitutions; indoor and outdoor recreation. F2 Driving Range is outdoor recreation so the threats come from larger providers of outdoor recreation and indoor providers that provide new ways of playing in driving ranges. For indoor type recreation, the threat to F2 Driving Range is arcade game machines that are developed by many gaming developers such as Konami, Sega, Sony and many others. Meanwhile, the threat of outdoor recreation comes from alternative recreation that is more affordable for customers such as hockey, diving, and soccer, basketball, and many others.

In addition, another threat for F2 Driving Range is the fact that entertainment and recreational industry have barriers for entry; they are creativity and huge investment. This is because developing attractive driving range is expensive one. Another threat is customers prefer to choose mini golf course that already has reputation or strong brands such Centennial Park.


3.2       Opportunities

Although the presence of threats, F2 Driving Range still has many opportunities to generate revenue from driving range business. This is true since entertainment and recreational activities accounts for multi billion dollars and this number keeps growing as well informed entrepreneur keep finding new ways of developing new products and services.

In addition, the most common business for mini golf course developer/driving range does not merely come from annual or monthly membership fee but also comes from food and beverage, accommodation, and additional service experiences. According to one report, the industry in the U.S. also experiences an increase of capital flow from foreign investors. In total, the golf industry, including driving range, account for $7.1 billion industry includes golf clubs, balls, apparel, footwear, bags and gloves.


4.         Evaluation Control

Evaluation control is an important element in monitoring the performance of an organization including F2 Driving Range. Concerning the quality management, Deming Suggests that process improvement should follow following criteria:

Do not depend on mass evaluations to reduce mistakes. It is more effective to improve the process which will lead to better performance in the first place
Use a good program of training and self-improvement for staffs and managements
(Haller, 1993)


Based on the two criteria and considering that the bottom line of this plan is to achieve the targeted revenue; therefore following table can represent annual evaluation control plan for F2 Driving Range.


Table 3 Evaluation Control

Revenue evaluation
Quarterly (90% achievement at minimum)
Market Share
Monthly (min. 50% market share)
Customer Satisfaction Index
85% (minimum)
5.         Profit Plans

In the objective section above, we assume that the growths of business are 6% in the 2nd year and 20% in the 3rd year due to new outlet opening through franchise system. The increase in the volume of sales within the coming period would result in the following profit plan:


Table 3            Profit Plan


Assuming that there is no additional fixed cost within the 3-year, then the 6% increase in sales in the 2nd year and 20% in the 3rd year will increase the total variable cost by 6% and 20%, consecutively. It is found that the increase in sales and cost of sales by 6% and 20% in the 2nd and 3rd year will create a 30% increase in gross operating profit.

In short, the proportion of fixed cost is 57% of the total cost and variable cost is 43% of the total cost. Fixed costs compose of rental facilities and employees costs while variable costs include electricity, maintenance and many others.

In addition, the increase in sales will not shift the fixed asset since we assume that there is also an increase in fixed and variable costs by the same value of the increase in turnover.


6.         Financial Plans
Table 4 Projected Revenue/Turnover in 3-Year Period


Concerning the financial plan, F2 Driving Range offers several packages and non-packages; each with different benefits for customers. For example, for family group, there are two sub-groups and for friends-type customers, there are three sub-groups: silver, gold, and platinum. Above table represents the projected turnover or revenue within the next three years. This number is in line with the profit plan as presented at previous section.




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City of Edina. (2006). Centennial Lakes Park. Retrieved September 25, 2006 from http://www.ci.edina.mn.us/content/facilities/centennial_lakes/index.htm

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F2 Driving Range for Family and Friends. (2017, Mar 31). Retrieved from https://graduateway.com/f2-driving-range/