2019 SCOTIABANK VANIER COLLEGE NATIONAL MARKETING CASE COMPETITION Sunday, February 10, 2019 Flip Arts Springing to New Heights ENGLISH VERSION Prepared by: Wendy Keller McGill University © 2019. This case was prepared by Wendy Keller and is not intended to illustrate either effective or ineffective handling of a management situation. Some information may have been disguised in the interest of confidentiality. This case is for educational purposes and is not to be reproduced for other purposes other than the case competition without the permission from the author and the Scotiabank Vanier College National Marketing Case Competition. Flip Arts Springing to New Heights By Wendy Keller Darlene Traviss was in a hurry to get to her office at Flip Factory, in the northeastern part of Calgary. Yesterday’s skype video call with Kelly Schreiber, CEO of L’ExpArts, a Montreal-based marketing firm, with experience in promotion for performance arts, had made her feel cautiously optimistic, but optimistic, nonetheless. The commute to the office typically took 30 minutes, but this morning it was unusually long. Infrastructure improvement projects around the city were causing back-ups. Ranked as one of the most livable cities in North America1 and bolstered by renewed corporate investment, a mini-baby boom and migration from both within and outside of Canada2, Calgary was on a slow but steady rebound from the 2015 recessionary period.3 The morning news said the “coast is not yet clear,” referring to the influence of oil industry dynamics and trade, which would continue to impact transportation and energy costs. But economic indicators for 2019-2022 forecasted improvements in job creation, regional housing and population growth.4 As Darlene watched cars merge from two lanes to one, her thoughts drifted back to the early days of the Flip Factory concept when she offered community-based gymnastics programs for different age groups such as: 1) in an inner-city church hall and 2) by bringing soft matts and tumbling equipment to day-care centers helping to introduce preschoolers to fitness and physical activities that coincided with Sport Canada’s Active Start initiative.5 A professional athlete, trainer and coach, Darlene always looked for innovative ways to bring her love of sports to the public at large. In the summer of 2011, she moved her “Fun, Fitness for All” programs to an industrial park in the Greenview area of Calgary. With renovations and safety inspections complete, the Flip Factory officially opened for business in October of that year (Exhibit A – Mission – Flip Factory). The unique layout and structure of the facility (Exhibit B - Photos) provides flexibility to rearrange equipment and offer beginner to professional level programs for Pre-school, Youth, Teen and Adults in non- competitive gymnastics, parkour6, reverse bungee and trampoline activities. It also meets the needs of former competitive athletes seeking to maintain their fitness levels and skills. By 2014 Flip Factory programs had attracted 5000 on-site participants through its pre-school, youth, and adult programs, bookings and summer camps. Additional services to elevate the Flip experience came in the form of the Flip Café and Tot Spot, located on the mezzanine overlooking the gyms (Exhibit C - Photo). The café allows family and friends to observe gym activities and enjoy light refreshments. The “Tot Spot” with its different shapes of soft mats, jumpy castle and climbing equipment offer a non-threatening introduction to gymnastics to children five and younger. Page | 2 But Darlene wanted to expand the company’s image from being a place “just for kids” and promote a “Fun, Fitness and Entertainment” concept for all age groups. Encouraged by her employees and students who wanted to showcase their achievements and skills and an increased global interest in performance and circus arts7, she leased and renovated the 8000 square foot warehouse space (bay) adjacent to the ones housing the Flip Factory gyms and established Flip Arts/Flip X-treme in 2016. Despite a strong public and private sector network and a variety of promotional efforts, Darlene continued to meet people who had not heard about the different Flip programs and services (Exhibit D), especially those without children. And while existing members posted positive comments about their “Flip” experiences, the current level of awareness would not attract a consistent adult following for the unique fitness programs nor achieve the mission to become a hub for circus arts and stunt training in Western Canada (Exhibit E – Vision – Flip Arts/Flip X-treme.) Flip Arts/Flip X-treme The Flip Arts/Flip X-treme gym with its engineered ceiling systems (for aerial equipment), giant monkey bars, warped wall, high-falls airbag, trapezes, circus silks, teeter boards and aerial hoops, has a “more mature feel” than the other gyms. It can accommodate circus, parkour, Ninja Warrior or stunt training, or even house a floor-to-ceiling Black Box Theatre with room for 90 seated audience members. Much like the gymnastic programs, Flip Arts/Flip X-treme programs are offered as three-month long Fall, Winter and Spring sessions with two summer sessions in July and August. Depending on the age group and level of difficulty, class sizes range from 8-18 members, with a coach to participant ratio of 1:8. Flip X-treme programs such as Ninja Warrior and Parkour are held Mondays and Wednesdays. These are very popular and fill up quickly. They are followed by Stunt Training classes. Between them, the gym is booked from 4:30pm - 8:30pm. Flip Arts Circus and Aerial and Acrobatics programs occupy the gym on Tuesdays and Thursdays from 4:30pm – 9:30pm and much of day on Saturdays. (Exhibit F - Programs.) With some exceptions, program classes are priced at approximately $20/hour, and run 60 to 90 minutes each, for 10 to 11 weeks. One-hour drop-in circus aerial classes for adults are available for $25.00. Summer Circus camps (five days each) are offered in July and August for $485.00/participant and include an end-of-camp show to demonstrate participants’ skills and promote the benefits of the Flip programs. Two Cirque du Flip Circus Arts training programs are also available each year. Registrants (9 – under 18 years) must have a solid base of gymnastics, trampoline and circus skills. The cost for 22 weeks of intensive work with professional coaches in aerial hoop, silks, trapeze, Russian Bar, Chinese Pole, teeter board8 and acrobatics is $1020/participant. Each training program culminates with two 45-60-minute matinees held “Under the Big Top” complete with professional costumes, make-up, lighting and sound management (Exhibit G.) Ten percent of the gross revenues of these shows are donated to organizations such as the Calgary Food Bank, Alberta Children’s Hospital Foundation and Kidsport.9 Tickets for the 2018 December Cirque du Flip production: The Grinch Who Stole Christmas were sold for $15 for pre-teens and $20 for teens and adults. A different theme is scheduled for June 16th, 2019. Page | 3 Part of the success of the Flip Organization stems from the experience of 20+ part-time and full-time coaches, trainers and staff that together foster a culture of transparency and support and create a community environment. Trainers and coaches are recruited internally for the tweens and teens programs and professional performance groups (e.g., Cirque du Soleil10) and former professional athletes for more complex programs. Flip pays for workshops offered by Circus Labs (Langley, BC) or Spectacle Blue (Okotoks, AB) and brings in gymnastic and circus arts experts to train employees. Safety awareness and practices are paramount for both employees and participants. Circus arts, ninja warrior, stunt and parkour type programs are very demanding. Special measures are taken to inform every one of their responsibilities and the best and safest ways to enjoy what the business has to offer. Integrated Marketing Communications Mix: Thirty thousand dollars were spent in 2017 to promote Flip programs and services. This included advertising in a local Chinese newspaper serving the Calgary region, inviting grandparents to encourage their children to try the Flip Factory programs. The ad resulted in a 25% increase in enrollments over the previous season. In 2018, member tracking showed that 25% of new enrollments for Flip Arts/Flip X-treme programs were reached through word-of-mouth or “Bring a Friend” initiatives. Social media attracted another 20%, advertising (print and electronic) brought in 5%, with organic Google search efforts and party bookings equally responsible for attracting the balance of new members. The 2018 Flip Organization marketing communications budget was $15,000. Tactics included: Regular advertising in Calgary’s Child magazine as well as online community boards and portals. Use of Facebook, Instagram, Twitter, YouTube and the company website at www.FlipFactory.com to connect with the target audience. Social media pages use similar designs; they are colorful and feature photos of members performing gymnastics, circus arts or parkour as well as updates or invitations for events. The website is professionally designed and provides history, photos of performances and descriptions of programs. Registration can be done via Amilia11 or by calling the Flip office directly. “Follower” trends are tracked on Facebook. Search engine optimization and social media analytics are in the early stages. Bonus Week: One week prior to the start of a season, discounted rates are offered for drop-in classes for various programs. The classes are promoted on Facebook, the front office and on the Flip website. Approximately 90% of individuals who took advantage of the discounted rates offered for September drop-in classes, enrolled in a 2018 Fall program. Bring a Friend day: Towards the end of the seasonal programs, participants can bring one friend to the last day of classes.