Thursday, March 8, 2012

Business-Level Strategy

Tough Mudder is the most expensive in the industry, yet the company employs a combination focus-differentiation strategy that ensures unique and valued event experiences among targeted markets.
  • Best developed and recognizable brand name
  • Everyone knows the value associated with finishing a Tough Mudder race
  • Focus strategy is on one, distinct race (*toughest in the world) creates a consistent image.
  • Are not targeting people just looking to complete a fun, mud run (Warrior Dash) or trying to create something for everyone (Spartan Races).  They only want the mentally and physically tough -- and it is a challenge people have to train for.
  • Under Armour sponsorship really sets them apart and above from the rest of the industry.
    •  Adds to the "coolness" factor and high performance.
  • I also think the higher prices give customer perception of quality and reaffirms that Tough Mudder is the toughest and best.  People are glad to pay a premium for this.

Example:  Registration prices for Tough Mudder Twin Cities on May 19th

First Week Special Until September 23 $80
Early Bird Discount September 24 to October 24 $100
Tough Discount October 25 to December 15 $110
Mudder Entry December 16 to March 31 $125
Final Entry April 1 to May 12 $150

Example:  Registration prices for a Spartan Race in Texas on May 19th
$60.00 November 19th (Early Bird)
$70.00 December 19th
$78.00 January 19th
$83.00 February 19th
$87.00 March 19th
$90.00 April 19th
$95.00 May 2nd
$100.00 May 16th (Registration Closes)                                

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