It is a marketing dictum that it is easier to sell more to your existing customers than it is to acquire new ones. They would be fools not to exploit their existing market. The natural tendency is to concentrate on that market with its higher margins and return on capital.
One strategy might even be to build that business, then split it off and sell it to some unwary entrepreneur who did not appreciate where the customers came from. i.e. show them Modern Jive - Ceroc, LeRoc, etc. - Videos, DVDs, Classes, Events, Workshops, Holidays, Weekends and say, truthfully, we sell to all those ...
Then rebuild the weekender business using new sites and dates ...
It would be easy to think that at its core Ceroc is a dance business, but its main actual management function is to organise and promote events. i.e. book venues, people, equipment, organise marketing and sales etc. Ceroc could split the dance training and DJ supplying aspects off, and expand event organising into other sectors. There may be eventually be some underused event location that Ceroc could buy and make much more profitable on the basis of using it as a regular venue, midweek exhibitions by day, and weekenders.
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