SUN-QUAN

How far can we-go

Marketing Management
Group -7
 Timeline

Mass Market/
Followers

Number
of Early Adopters/
customers Pioneers End of Life

Time
 5C Analysis
1. Company – Sun Quan education inc.
2. Competitors – Other extra-curricular activities
3. Customers – People of south-east Asian heritage – Chinese, Japanese, Korean, Further division by age –
child and adult
4. Collaborators – Trying to collaborate with Ontario public schools
5. Context - PEST ANALYSIS
● Political – Recent changes in Ontario education funding indicated a potentially longer process,
● Economic – China industrial information network estimated the total market demand to be around
3.6 billion dollars; With immigration continuing in ontario from south-east asians, the demand for
GO game will rise
● Society – East Asian – Lack of time among students

Non-east Asian – Lack of trainers and material in English

● Technology – Only using WeChat for promotional activities which restricted their customer base,
 A preliminary break-even analysis (BE) for Sun Quan Education Inc. Use of formula of BEP (Quantity)= Fixed cost/ unit
price-unit variable cost.

Assume fixed cost to be F dollars. Unit cost is family-100$, individual-60$. Additional variable revenue – 10$. BEP= fixed cost/ unit price-unit
variable price. Assume that p% students choose family pack and 1-p% student choose individual packs. Therefore,

BEP = F / ((p*90) + ((1-p)*50))

65 customers 130 customers 130
at 30$ at 34.7$=4511 customers at
By looking at the table we can see that by (BEP)
=1950(Loss) 37$(safety)
Doubling the customers and charging 34.7$
Rent 1500 1500 1500
per customer the club can reach BEP with 130 Equipment(ass 500 500 500
umed)
Customers.
Fixed cost 2000 2000 2000
By charging 37$ or more they can safely cover
Other expenses 500 500 500
all the expenses of the tournament.
Marketing Cost 1000 2000 2000

Refer page 6 of the case.

Variable Cost 1500 2500 2500
Total Cost 3500 4500 4500
What are the ways through which market for Go-game could be segmented?
Q4. Apply the 4Ps of marketing mix in the case.
● Product
1. We Go, coaching classes for GO game which would help in intelligence development
2. Bring a Friend Initiative Discount Coupons
3. YouTube Sessions and Subscription ‘Go Club Online
● Price
1. There were different prices for training sessions ranging from beginner to advance - $225, $330, $375
2. 25% discount to each friend coming together for ‘Go’ Condition: On the successful conversion of the new user into customer
3. Free Demo Sessions and Workshops on YouTube
● Place
1. Educational Institutions, Sun Quan Edu Inc will be targeting Educational Institutes as a market place.
2. Southern Ontario province, Canada
3. YouTube Website will be acting as a market place for the users.
● Promotion
1. Online Content Marketing and ads, as our targeted customer base is an active internet user.
2. School Campaigning - Extra-curricular programmes of different schools
3. Online advertisement with the help of social media platform- Wechat , Kijiji
 Product Life Cycles:
❖ Introduction:

Sun introduced the game in the market by test marketing in 2014 through
online advertisements and offering private tutoring services.

❖ Growth:
The Waterloo We-GO club held a trial opening during the first half of 2016
where free GO classes were offered and house activities were organized.
Sun intends to target canadian families of east Asian origin.
 Blue ocean strategy
•Substitutes are present but there is no competitor in the Go game market
•The product of Sun Quan is unique and new for the Canadian market,
therefore its highest potential is yet to be tapped in.
•15.0% of the total population of Kitchener- Cambridge- Waterloo
metropolitan area is of Asian Origin among which 9.6% are between the age of
5-24 years.
•Go - game can help to improve the ability to concentrate, calculate,
memorize and most importantly form a good sense of judgement. Hence, it
has an opportunity of being included in the school curriculum with proper
awareness campaign from Sun Quan.