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Harvard Case - Blue Mountain Resorts Ltd.: The Night Skiing Decision

"Blue Mountain Resorts Ltd.: The Night Skiing Decision" Harvard business case study is written by Terry H. Deutscher, Susan Burke. It deals with the challenges in the field of Marketing. The case study is 16 page(s) long and it was first published on : Jan 1, 1983

At Fern Fort University, we recommend Blue Mountain Resorts Ltd. proceed with the night skiing pilot program at their Collingwood location. This program should be implemented with a strategic focus on marketing, operational efficiency, and customer experience to ensure success and inform future expansion decisions.

2. Background

Blue Mountain Resorts Ltd. is a leading ski resort operator in Ontario, Canada. The company faces increasing competition from other resorts and declining snow conditions due to climate change. To address these challenges, the company is considering a pilot program for night skiing at their Collingwood location. The program would require significant investment in infrastructure and marketing, but it could attract new customers and extend the ski season.

The main protagonists in this case study are:

  • Dan O'Donnell: The President and CEO of Blue Mountain Resorts Ltd., who must make the final decision on whether to implement the night skiing program.
  • The Marketing Team: Responsible for developing the marketing strategy and budget for the pilot program.
  • The Operations Team: Responsible for managing the logistics and staffing of the night skiing program.

3. Analysis of the Case Study

To analyze the night skiing decision, we can use a framework that considers both internal and external factors:

Internal Factors:

  • Strengths: Strong brand recognition, established customer base, experienced management team, access to capital.
  • Weaknesses: High operating costs, reliance on weather conditions, limited marketing budget, potential staffing challenges.

External Factors:

  • Opportunities: Growing demand for winter activities, increasing popularity of night skiing, potential for new customer segments.
  • Threats: Competition from other resorts, climate change, economic downturn, potential safety concerns.

Financial Analysis:

  • The case study provides limited financial data, but it mentions the potential for increased revenue and profitability from night skiing.
  • A thorough financial analysis would be necessary to determine the potential return on investment (ROI) and break-even point for the pilot program.

Marketing Analysis:

  • Target Market: The night skiing program could attract a wider range of customers, including families, young adults, and experienced skiers looking for a unique experience.
  • Marketing Strategy: The company should focus on promoting the convenience and accessibility of night skiing, highlighting the unique experience and social aspects.
  • Pricing Strategy: The pricing strategy should be competitive but also reflect the added value of night skiing.

Operational Analysis:

  • Infrastructure: The company needs to invest in lighting, snowmaking, and other infrastructure to support night skiing.
  • Staffing: The company will need to hire additional staff to operate the night skiing program, including lift operators, ski instructors, and security personnel.
  • Safety: The company must prioritize safety and implement appropriate measures to ensure a safe environment for night skiers.

4. Recommendations

Based on the analysis, we recommend the following:

  1. Implement a pilot program for night skiing at the Collingwood location. This will allow the company to test the market and gather data to inform future decisions.
  2. Develop a comprehensive marketing strategy focused on attracting new customers and retaining existing ones. This should include a mix of traditional and digital marketing channels, with a strong emphasis on social media and influencer marketing.
  3. Optimize the operational efficiency of the night skiing program. This includes efficient staffing, snowmaking, and lighting systems to minimize costs and maximize customer satisfaction.
  4. Prioritize safety and customer experience. This includes clear signage, well-trained staff, and a safe and enjoyable environment for night skiers.
  5. Monitor the program closely and adjust the marketing and operational strategies as needed. This will ensure the program remains successful and meets the needs of the target market.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: Blue Mountain Resorts Ltd. has a strong brand and a proven track record in operating ski resorts. Night skiing aligns with the company's mission to provide high-quality winter recreation experiences.
  • External customers and internal clients: The night skiing program has the potential to attract new customers and enhance the experience for existing ones. It also provides an opportunity for internal clients, such as the marketing and operations teams, to demonstrate their capabilities.
  • Competitors: The company needs to be aware of the competition from other resorts that offer night skiing. The marketing strategy should differentiate Blue Mountain Resorts Ltd. from its competitors.
  • Attractiveness: The potential for increased revenue and profitability from night skiing makes this a worthwhile investment. The pilot program will allow the company to gather data to assess the financial viability of the program.

6. Conclusion

Blue Mountain Resorts Ltd. has a unique opportunity to expand its operations and attract new customers by offering night skiing. By implementing a well-planned pilot program, the company can test the market and gather data to inform future decisions. With a strong focus on marketing, operational efficiency, and customer experience, the night skiing program has the potential to be a successful and profitable addition to Blue Mountain Resorts Ltd.'s offerings.

7. Discussion

Other alternatives to night skiing include:

  • Expanding existing day operations: This could involve investing in new lifts, trails, or amenities.
  • Developing new winter activities: This could include snowshoeing, cross-country skiing, or ice skating.

The key risks associated with the night skiing program include:

  • High initial investment: The program requires significant investment in infrastructure and marketing.
  • Weather dependence: Night skiing is dependent on favorable weather conditions, which can be unpredictable.
  • Competition: Other resorts may offer similar programs, creating competition for customers.
  • Safety concerns: Night skiing presents unique safety challenges, which need to be addressed.

The key assumptions underlying the recommendations are:

  • Demand for night skiing: There is sufficient demand for night skiing to justify the investment.
  • Marketing effectiveness: The marketing strategy will be effective in attracting new customers and retaining existing ones.
  • Operational efficiency: The night skiing program can be operated efficiently and cost-effectively.
  • Safety measures: The company can implement effective safety measures to ensure a safe environment for night skiers.

8. Next Steps

  1. Develop a detailed business plan for the night skiing pilot program. This should include financial projections, marketing plans, operational plans, and safety protocols.
  2. Secure funding for the pilot program. This may involve internal financing, external investment, or a combination of both.
  3. Implement the pilot program at the Collingwood location. This should be done in a phased approach, starting with a limited number of nights and gradually expanding as needed.
  4. Monitor the program closely and gather data on customer satisfaction, revenue, and profitability.
  5. Evaluate the results of the pilot program and make decisions about future expansion.

By following these steps, Blue Mountain Resorts Ltd. can successfully launch a night skiing program that will enhance its customer experience, attract new customers, and drive profitability.

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Case Description

A large Ontario ski resort faces a decision about whether to invest in facilities for night skiing. Demand is very uncertain, so the management undertakes a market research study. Day skiers at the facility are surveyed about their potential interest during the months of February and March. The resort's management is suspicious about the validity of the results of the research, but has no time to collect further data.

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