Service Marketing Report: AJ Hackett Bungy Jumping Market Analysis

This report provides a comprehensive analysis of AJ Hackett Bungy Jumping's service marketing strategies. It begins with an introduction to service marketing and then delves into the background of the business, exploring its establishment and expansion. The report examines the market conditions faced by AJ Hackett, highlighting its competitive advantages and opportunities for growth. It then focuses on market positioning, explaining how AJ Hackett has built its brand image and attracts customers. The target market is identified as young people worldwide who are seeking adventure. The main discussion section thoroughly analyzes the marketing mix 7Ps (product, price, place, promotion, people, process, and physical evidence) as applied by AJ Hackett. The report concludes with recommendations for future strategies, suggesting diversification of services and broader target audience. The report provides a strong understanding of service marketing in the context of an adventure tourism business.

Service Marketing

INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Background of the business...............................................................................................................3
Marketing conditions.........................................................................................................................4
Marketing positioning........................................................................................................................5
Target market....................................................................................................................................5
Main discussion.................................................................................................................................5
CONCLUSION.....................................................................................................................................6
RECOMMENDATIONS.......................................................................................................................7
REFRENCES........................................................................................................................................8

INTRODUCTION
Service marketing is the technique of promoting economic activities offering by the
company to their customers. It includes the procedure of selling services such as health
treatment, telecommunication, hospitality, car rental, air travel, professional services and so
on. This report is based on AJ Hackett case study of Bungy jumping which is currently an
operation in Australia, France, China and Germany. As well as expanding in Russia and
Singapore in every place they are offering basic menu of bungy jumps or any other local
specialities of particular place. This assignment is going to explain market conditions and
positioning. Along with target market of bungy jumping services and its marketing mix 7Ps.
MAIN BODY
Background of the business
This business is named on the person Alan John Hackett who is known as
commercialisation of bungy jumping and he is boned in 1958. AJ Hackett Cairns was
established in 1990 and provide Bungy Tower to Australian’s only with jump menu which
include 16 various jumping styles from mild to wild. As well as this was only site which
offering BXM bungy jump off a 50-metre tower. AJ Hackett continuous their trend for
maintaining world record and he is providing their services in France, China and Germany.
Moreover, their aim is to cover world so he is expanding in Russia and Singapore also. Most
important in this adventure is safety of the individual for this he and other staff members take
care of as well as involve all the safety measures while doing bungy jumping. Along with
this, they are offering menu full of bungy jumping’s to the population of several countries
with proper safety.
Marketing conditions
Marketing condition is the characteristics of marketing in which an organisation is
going to entering or launching a new product. Mainly it includes level of competitions,
number of competitor firms, market growth rate and so on. In simple term it can be said that
marketing condition is the economic environment for business, investing and employment.
Whereas, Favourable conditions are those which make it easier to start a business, grow,
enjoy investment returns and find employment. On the other hand, Unfavourable conditions
make markets more competitive and challenging. Hence, in the case of AJ Hackett market

condition is not competitive and they have opportunity of business expansion as well as
growth. Because it was the only business who is offering bungy jumping to the different
country population with wide menu card. The following are common types of market
conditions explanation of these are as follows:-
 Assets price – In bungy jumping there is requirement of several safe guards and other
tools related to the same activity. This is the investment of AJ Hackett Bungy but after
sometimes value of these assets get decrease or it may become wastage also.
 Capacity - Industries go through periods where demand is far higher than supply.
Firms rush to add capacity and supply increases. This leads to a period where supply
is far higher than demand. Because it was the first and only company which offering
bungy jumping.
 Business model - New business models that may represent an opportunity or a
challenge for an industry.
 Competition – For AJ Hackett there is no competition in market because it was the
first business who is offering bungy with variety of menu from simple to wild.
 Stability - The political stability of a nation or region because AJ Hackett is
expanding their business in several other countries and their aim is to cover entire
world. For example, a government that is predictable, reliable and reputable may be
conductive to business and investment.
Marketing positioning
The term refers to consumer’s perception over a brand or product/services. Market
positioning is a process of building image or identity in consumer’s mind set towards a
particular brand or product. Attractive positioning depends upon company’s strategies to
increase their market share and customer satisfaction. Many companies uses different
customer relationship strategies such as CRM, post sales services, social media marketing
etc. Attractive market positioning can also be established by modifying product attributes or
benefits, product price, its quality, usage and applications and its competitors. An effective
research of internal and external business environment plays crucial in maintaining good
market position in customer’s perception. AJ Hackett have their good image or position in the
market because he is the first man who bring bungy jumping business in the world and
offering variety of bungy jumping to youngsters. His aim is to cover entire world which result
in making good perception of people and also in attracting them.

Target market
It is a group of potential customer who most likely to buy company’s product or
services due to attractive or needful offerings provided by the company, and target market
can be made profitable by focusing on marketing efforts by organization to reach its
customers. Target markets involves dividing a market into segments and then make a focus
on marketing efforts on one or a few segments that consists of those customers whose needs
and desires are most closely match to company’s offerings. It is a key to attract new business,
increase sales and business success. Offering of the AJ Hackett increase heart beats and need
proper safety measures which can be handling only by youngsters. Hence, target market of
the same organisation is young people at worldwide level. Basis which is included by AJ
Hackett while targeting market are as follows:-
 Age – The same organisation is targeting only 18 to 25 years old people because this
sport is mainly liked by the youngsters.
 Gender – Male and female both are targeted by the AJ Hackett for their offerings.
 Geographic location – The same organisation has target overall world because their
aim is to provide services around the globe.
Main discussion
Marketing is the activity which involves transfer of goods from the producer or seller
to the consumer. It is the process which involve advertising, shipping, storing and selling.
Moreover, principles of marketing involve 7Ps i.e., product, price, place, promotion, people,
process and physical evidence. Explanation of these are as follows :-
 Product – It is the item which is build or produced by the company for satisfying need
of particular group. Product can be tangible or intangible as it can be in the form of
services or goods. An organisation ensure that product should be correct as per the
demand of customers. AJ Hackett is offering Bungy jumping services to their
customers which attract large number of people because they are only one who was
first to offer it.
 Price – It is the amount which is paid by the customers for enjoying or purchasing
goods and services. While setting price of the product marketer must involve the
perceived value of that goods. As well as there are three major pricing strategies such
as market penetration, skimming pricing and neutral pricing. AJ Hackett is using
market penetration strategy while offering their bungy jumping services to the
customers.
 Place – Placement or distribution is much important part of the product mix
definition. Because company have to position and distribute the product in a place that
is accessible to the potential buyers. There are several distribution channels such as
intensive, exclusive, selective and franchising. While distributing service of AJ
Hackett at worldwide level they are using franchising option because cover world
without any such strategy is not possible.
 Promotion – It is very important component of marketing because it boosts up brand
recognition and sales. Promotion is comprised of several elements such as sales
organisation, public relation, advertising, sales promotion and so on. AJ Hackett is
using advertising for promoting their services which typically cover communication
method which involves television advertisement, print media, radio, internet

advertisement and so on. Such activity help in attracting customers, public relation
and several more. For company it is important to chose correct method of promotion.
 People – Target market and people both are related to the business because they are
the one to who goods and services will be sell. There is requirement of through
research for identifying that whether there are enough people in target market which
is demanding for certain types of goods and services. AJ Hackett is bungy jumping
business which is targeting only youngsters because their offering is adventures and
old age peoples can’t do that. When a business finds people who genuinely believe in
the products or services that the particular business creates, it's is highly likely that the
employees will perform the best they can.
 Process – The systems and processes of the organization affect the execution of the
service. It could be your entire sales funnel, a pay system, distribution system and
other systematic procedures and steps to ensure a working business that is running
effectively.
 Physical evidence - In the service industries, there should be physical evidence that
the service was delivered. Additionally, physical evidence pertains also to how a
business and it's products are perceived in the marketplace. It is the physical evidence
of a business' presence and establishment. A concept of this is branding.
CONCLUSION
From the above assignment it has been concluded that bungy is the adventures sports
but it require proper safety while doing. AJ Hackett is offering bungy with proper safety and
variety to different country population. Moreover for them market condition in not much
competitive and they are targeting mainly youngster because they are found of adventures.
Most important is that they have opportunity of business expansion and their aim is to cover
entire world.
RECOMMENDATIONS
From the above discussion it has been recommended that, AJ Hackett have to add
some other adventures also in their menu which attract not only youngsters but to the old age
people. Moreover, for covering entire world it is important to target different age group
peoples not only youngsters. Categorised sports as per the age group which will attract large
number of people and bring several more opportunities for them. Although, respective
organisation have to keep in mind all the 7Ps of marketing mix while making strategy for
their offerings in the market area. All this involves product, price, place, promotion, people,
process and physical evidence.

REFRENCES
Books and Journal
Sargeant, A., & MACQUILLIN, I. (2016). Marketing for nonprofit organisations. In The
Marketing Book (pp. 555-576). Routledge.
Shaw, S. (2016). Airline marketing and management. Routledge.
Chong, W. K., Bian, D., & Zhang, N. (2016). E-marketing services and e-marketing
performance: the roles of innovation, knowledge complexity and environmental turbulence in
influencing the relationship. Journal of Marketing Management, 32(1-2), 149-178.
Russell-Bennett, R., Wood, M., & Previte, J. (2016). A services approach to social marketing.
In Looking Forward, Looking Back: Drawing on the Past to Shape the Future of
Marketing (pp. 330-330). Springer, Cham.
Tort, F., & Vermorel, C. (2018). U.S. Patent Application No. 10/081,773.
Sewell, R. H., Woehl, R., Moschner, J. D., & Harder, N. P. (2018). U.S. Patent Application
No. 15/942,951.
McCoy, B. R. (2016). Digital distractions in the classroom phase II: Student classroom use of
digital devices for non-class related purposes.
Lusch, R. F., & Vargo, S. L. (2014). The service-dominant logic of marketing: Dialog,
debate, and directions. Routledge.
Borremans, D., Lacroix, M., Le Lannic-Dromard, K., & Ropars, M. (2016). U.S. Patent No.
9,255,229. Washington, DC: U.S. Patent and Trademark Office.
Chung, B. H. V., Burke, P. J., & Sadoway, D. R. (2015). U.S. Patent No. 9,153,803.
Washington, DC: U.S. Patent and Trademark Office.
Brown, R. L., & Harmon, R. R. (2014, July). Viral geofencing: an exploration of emerging
big-data driven direct digital marketing services. In Management of Engineering &
Technology (PICMET), 2014 Portland International Conference on (pp. 3300-3308). IEEE.
Mihailović, B. (2017). Marketing services the hotel and resturant. Ekonomika, 63(1), 19-30.
Wirtz, J., & Lovelock, C. (2016). Services Marketing: People, Technology. World Scientific
Publishing Company.
Moors, M., & Kim, T. (2018). U.S. Patent Application No. 10/109,751.
SAHEL, H. B., Langlois, O., Herou, J., & Germanaud, L. (2018). U.S. Patent Application No.
15/756,608.