Service Marketing Management

This marketing audit report is prepared for Camp Five to indicate how the organization is currently performing in their service level. The report is prepared based on secondary data gathered from reliable sources which is available online.

In this report the background of Camp Five climbing gym is explained to understand the current internal resources and capabilities in its preparedness for servicing their target customer in Malaysia local market. The finding of issue status as, overall and major issues of the company as below, Overall Camp Five are current in high-end customer focus and in fact the majority of regular climbers are not in the high-end categories. Although the facility and technology is excellent advance compare to others competitors, the price of service has clearly show it is unaffordable to the middle class, therefore that is lack of daily head counts.

The major problem is lacking of promotion, Camp Five current uses the strategy of word-of-mouth, as per research 100% of interviewee get the know Camp Five as from friends-to-friends referral only, many other promotions shall be implemented as to improve on the performance will be shown in TOW analysis in this assignment.

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The purpose of this report is to present the service quality from organization perspective and customer perspective point of view in delivering and receiving the service in service marketing aspect. The elements covers include the internal & external analysis of organization, gap between the customer's perception and expectation. Those factors will influence on to the organization and its services from the gym toward the end consumer directly or indirectly.

It is to help the organization to understand more about their customer and positive of new customer. Same time the current marketing promotion plan must be implementing in an effective way on it services quality ; reach the company targeted headcount for the gym. Scope of report, this report will cover the analysis in phase one, the sources of the report is based on some level of internet resources, but mostly is from interview with customers and my friends as the employee which is working in the company as manger positions.

The recommendation of this service marketing audit will be done in phase two of the following of this report. The monitoring of service will be from time to time based and this marketing service audit report accuracy credibility will remain valid for the next six month period.

Brief Background Camp Five is a place provides training and a place for training, working out and meets new friends. It is facilitated with climbing wall, cafe, Pro shop, high technology shower, kid place area and inspectorial training programs.

Training program is designed for children, beginners, leisure and advance climber or people can come for Yoga classes too. The climbing gym is operating under Switzerland management. The wall was built by climbing wall BLOCX Sdn Bhd, which is the partnership company with Camp Five, Blocx's current major project are building and developing rock climbing wall around Asia region, they head quarter is located in Oberwil Switzerland, the other office is located New Mexico America, Colombia South America and Shah Alam Malaysia.

Camp Five Sdn Bhd started its operation since 2005 in Malaysia, located inside famous landmark shopping center of Kuala Lumpur – The One Utama Shopping Complex. The internal gym's environment is housed in 10m high air-conditioned glass tower, a-state-of-the-art climbing facility inside a shopping center, next to major business suite like TV3 and IBM office, Hotel, colleges and international schools like KDU and KBU, hotel and the high end household area.

For first time customer, it is a must to join the climbing class they need to pass on climber safety examination and If you are first time in this gym customer need to pass personal climbing skill testing section is needed before customer are able to check-in and use for the service.

The steps of servicing process of Camp Five has provided as per below (Regular Customer) Regular Customer Steps of Blueprint - Camp Five |

Step 1 - Customer Arrived to gym

Step 2 -  Registration

Step 3 - Check in, payment and rental of gears

Step 4 - Collect entrance fee and drop the member card

Step 5 - Updates system with payment

Step 6 - Change attire and keep beg at locker

Step 7 - Put on climbing gears|

Step 8 - Interact with friends ; start to climb

Step 9 - Trainer provide training

Step 10 - Customer received training

Step 11 - Take beg from lock, shower and change attire

Step 12 - Return the member card ; collect rented gears

Step 13 - Collect member card and process check out

Step 14 - Customer leaving the gym

The type of target customer is sports oriented they maybe experience climber, leisure climber and explorer.

This is Malaysian or non-Malaysia, working, living and studying within 15km from Bandar Utama area, male 50% and female 50% with the minimum earning of salary RM4000 to RM20,000 with some western culture background. Camp Five's targeted customer can be separated into the following groups:

1. Student
2. Foreign Resident
3. Working Adult
4. Corporate School

Student: majority are from 15-25 years old, young male and female. Foreign students who follow their family came and living in Malaysia or coming in alone with the purpose of further educations.

As financial supported by their parents with background mostly associated with high-end society, therefore cultural is more open to adventure sports with more buying power for entertainment good.

Foreign Resident: work migration under the foreign resident, coming in and working here as temporary for certain project for 1-5 years, with very high income on average at lease RM 20,000 or more per month. Seeking for high quality lifestyle with high purchasing power, Caucasian or Asia came from high-technology's country.

Working Adult: locate Malaysian customer, working, living or studying around Petaling Jaya or KL area. In average a working person with personal income of minimum RM4000, male or female with high education level, outgoing personality and like sport.

Corporate School: group customer is those will like to come for as a company or schools event targeted for corporate team building function is not a routine activity.

A PESTEL Analysis of Camp Five Sdn Bhd, this model is designed measure on the macro-environment could effect on the organization. Includes with Political, Economic, Social, Technical Environmental and Legal issue, on average social issue carries the most weight in the climbing gym industrial, due to it is an experiential goods and services.

Political Factors. Change in trading rules, Camp Five it is owe by a Sweden Company may influence the business trading terms. Tax, the rate will change in rock climbing product and equipment, all climbing equipment is imported good. If government is not stable company may re-locate in the investment in other part of SE Asia.

Economy Factors. Exchange rates will influence of company income, because company HQ is in Europe. National incomes and unemployment rate, determinate customer willingness to spend on leisure product like gym servicing.

Inflation rate will influence on the wages of staff and operation expense, exchange rate of equipment, due to the product are all imported, when Euro and Dollar price down.

Social Factors. Customer change in taste in switching of interest in this gym, aging of society, if this city gets older than the target group (aged of 14-45) will the target customer group will get smaller. Education and income level increases, people tent to concern more with health issue and increase in working-out in gym. If working hours increase the number member able to visit at week days will decrease. Migration flows increases; our customer will increase, and due to climbing sport is more popular in foreign country.

Technology Factors. The uses and for sales climbing devices and equipment is important product in our Pro-Shop, and the technology being use to with in the gym, free Wi-Fi connection, fully air-conditions, high technology shower systems, water filler give customer with a confinable gym environment as well as the auto- belaying device, customer can still climb while waiting for their buddies arrived.

Legal Factors. Climbing environment is designed with anti-fire and safety pat material and cushions.

It is always monitored by instruction eying around. Safety training and handbook ensure all customers understand the safety rules in the climbing gym and rules of use climbing equipment. Employment rules follow as per Malaysia government guideline in employment handbook. Camp Five apply Malaysia Law system where the mother company from Sweden applies EU law.

Environmental Factors. Encourage customer and staff reduces on use of plastic water bottom and encouraging drinking in refilled directly from pipe, recycle bin services is provided. Encourage customer to use cotton towel in the gym and cafe instant of paper.

Weather change, determines people likeness to climbing indoor or outdoor the day and the location, easy access to gym.

The uniqueness of Camp Five has believed in providing the best environment and the best service in Asia, with high quality level of modern lifestyle and beauty of sports. And all employees in any position and time are responsible to customer safety first, staff must take action to help and remain ensuring the individual safeness in climbing environment.

The strengths of Camp five they provides high technologies in wall climbing technologies following the latest and most up-dated as Europe standard, they’re the largest gym also the best climbing in Malaysia, further Malaysia Climbing Campion is working under Camp Five, all others is also professional certified training by UIAA. They are 10,000 square feet with located inside a shopping hall, gives customer all connivances, right in the middle of city.

Price is too high for medium end climber or either some student which have time to come as compare to the others gym is about 25-40% higher than other like PutraJaya adventure and Mad Monkey gym, although they does not have the same location advantage. High operation cost, due to the rental, hiring of employee with design maintain and operating, they also have small customer group with attracted to this sports.

Customer group can be increase into varies of group including, student, working, employee and government, open new market, increase in brand royalty and awareness. Increase in open competition number of event for member’s link with international, tight up with UIAA| Treats| Customer may change in interest of climbing, low season people prefer going for holiday, change location to climb.

This report concludes that Camp Five is good place to youth people to work-out and meet new friends, Camp Five has the great quality and it is very suitable for the Malaysian marketing in it expansion. However in total they are lack of awareness, as rock climbing is still a very new sport for Malaysia as compare to the west, therefore promotion is an essential. Overall customer has a good rating with the service provided by Camp Five but however due to the other competitor in the marketing has some influence on customer perspective therefore the building the brand and royalty customer with in the climbing network is important.

Customer overall has a high interest in rock climbing and I can see they are quite royal to the interest, but due to the most majority of climbing is in the low-middle end, rating of customer the price over is too high and not expectable by most long term climber, they will prefer to seek for other alternative to climb although the location may not be as convenience. Camp Five should take customer in as lower price and get more royalty customer, focus on headcount is not important, however the suggestion for Camp Five will be presented in phase 2 of the assignment.

REFERENCES

1. Camp Five Sdn Bhd 2012, viewed 31 July 2012, ;http://camp5. com/;
2. BLOCX Sdn Bhd 2012, viewed 30 July 2012, ;http://www. blocx. com/projects/camp5. html ;
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13. Christopher Lovelock and Jochen Wirtz (2011), Services Marketing – People, Technology, Strategy. 7th ed. , Upper Saddle River, New Jersey: Prentice Hall Porter’s Model
14. Chapman, A 2004-2009, Porter’s Five Forces Model, BusinessBalls. com, Leicester, England, viewed 19 August 2011, ;http://www. usinessballs. com/portersfiveforcesofcompetition. htm; Others
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