BACKYARD PUB: INFLATABLE IDEAS CASE Harvard Case Solution & Analysis



In London, Ontario Ryan Thompson a student of Management and Organizational Studies at Western University, was searching for employment during which he came across various websites regarding selling Irish Pubs. During this process, Thompson was interested in a website where he invested in this venture while the industry required a low capital investments and in the next five years, the party supply rental industry was likely to raise by 0.9 percent. After that he came across a decision that he would establish his own an Inflatable party supply Chain Company which is known as Backyard pub. (Dunn, May 29, 2018)

Problem Statement

After studying the inflatable supply chain industry, Ryan Thompson decided to invest in the business. While he was concerned about the venture viability as the project might be unable to pay the required return of 20 percent in the initial year and around $4000 in the succeeding year. While before taking any decision, Thompson required to estimate the viability of the project from the qualitative and measurable standpoints.

Industrial analysis

The business of the inflatable supply chain Industry is versatile and demanding which can target their customers it is because the business offers various rental services having the suitable and affordable rates as compared to their rivals or other companies. However, the cost management strategies set by the business make certain the hasty growth and the profitability. The industry had versatile offers regarding rental to its customers while there is no any other industry having such versatile and affordable offers, so it helps the industry attract and create a successful market value as compared to the other relevant industry.

The geographic location of the business is the main strength of the company, which is at London, Ontario, where the inflatable party supply demand is higher than that of the other locations. The business can target a wide range of customers and provide the qualitative services by partnerships with the companies of the industry. While the company have the limited finance to expand the operations and add the inventory however the financial limitations can be managed by partnerships hence it ensures availability of sufficient capital to target the wide range of market and the founders can achieve their desire to return.

The business targets customers living within the range of 30KM. This strategy and the ideal customer’s base aid the company in managing fuel cost and overall overhands of the company. The business could be risky because of the lack of expertise and the leadership qualities in the founder hence, the flimsy marketing strategies would collapse the business. While the government would not  issue the license to the company because the founder have not enough funds and expertise, so due to lack of expertise and funds it is difficult to achieve the targeted customers market this would be the biggest threats to the company in the industry.

Geographic Segmentation

The geographic segmentation plays a vital role in achieving the customer’s value and the wide range of market. It comprises various marketing strategies that aid the business in growing the business in the certain locations. As the business of the backyard pub is in the London, Ontario, where the inflatable party supply demand is higher than that of the other locations so this could allow the company to target the wide range of market by incorporation with other companies of the industry.

The market density of BYPs is high in the region whereas various companies have set a strong market so that is why there is a wide market of BYPs in London and other locations where through a diversified strategic planning and incorporation company can expand their business in the region and this will aid to increase the revenue and profitability of the business. While the region is suitable for the business because of the valuable customers and wide range of market, whether the company can target their customers and generate the marketplace. The climate change is an influential factor that affects the business of the industry in case of backyard pub the climate of the London is much more suitable for this business, which aids the company to grow in a wide range by targeting various market places. The business targets customers living within the range of 30KM. This strategy and the ideal customer’s base aid the company in managing fuel cost and overall overhands of the company.

Demographic segmentation

Although Thompson did an extensive research on the BYP industry regarding the extension of the business by targeting the certain customers through which the business could build a strong base. The completion in the industry is significantly lower than compared to other industries, while during research Thompson found that the party supply rental industry has around 10453 companies having a revenue of 5.3 billion.

There are various BYPs customers who are using the inflatable pubs for various social events, i.e. birthday parties, corporate events, weddings and other family events as well, hence the intendant customers are either 25 years or older. SO the company main targeted age of the company might be in between to 25 to 45 years old where the company can generate the most profit and revenue. While the company can interconnect with their customers through internet and Canada post, which aid the company in determining market value.

Consumers Under 25

Most of the group of consumers under 25 were most likely to prefer the rentals for only birthday parties but they were not likely to prefer to throw in the lavish parties it is because of the limited income most of the consumers under 25 years were not likely to preferred to planning to host the corporate events which show that only 10% of the consumers falling under these customers prefer to rental.

While this might be influence the business of the as the market under 25 is not that much productive because of the low disposable income which includes the students. So, it would be a negative impact on the business if the company shifts their focus on the consumers falling under 25....

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.


Share This


Save Up To




Register now and save up to 30%.