Reference no: EM133148304

As hard as he tried, Fred Lee couldn't get his clubhouse managers comment out of his head. You know, it's not just a coincidence that the drop in our club's membership started just after the new Country Club on the South side of the city opened. The clubhouse manager wasn't trying to be critical, but the comments still bothered lee for several reasons. First his club had been the premier club in the city for several decades. The membership roster was a virtual who's who of the city's leaders: the top executives, doctors, and business owners all belong to his club. Second, the south side of the city was just the beginning to attract some development. The better neighborhoods and established residential Areas were all located on the north side. Third, the conservative nature of the club's board had ensured that little was changed from year to year in the current members seemed to like that.

The most disturbing aspect of the declining membership was that the food and beverage revenues had been falling at a faster rate than the member dues revenues. It seemed that the older and more loyal members were not spending as much time in the clubs dining room or casual grill room. Snack bar revenues were down almost 50% from just ten years ago. As Fred considered the revenue problems, he thought back to when he had first joined the club as an assistant manager nearly 15 years earlier. The pool Area and tennis court were always crowded, especially in the summer months when school was out. The club had been the site of all of the most important wedding receptions back then, but lately the wedding business had been down significantly.

The club's facilities were in great repair, and the reserves for replacements had been one of the strengths of the club since Fred had joined the management team. The city was growing, and local businesses were attracting more and more young professionals with young families. Fred was concerned that if the club continued on its current course, there would be operating deficits before the end of the decade.

-Why do you think the club on the South side of the city has affected club membership in Fred's club? What can Fred do about it?

-Develop an outline for marketing research project for Fred's club that would provide him with information about the underlining demographic trends and other buyer issues that are affecting the marketplace in which his club is located.

-List some of the important marketing issues that Fred should consider in developing a market plan to increase current member usage of the food and beverage facilities. Also list those marketing issues that Fred should consider in attracting new members to the club.