Blue Mountain Resorts Ltd.

Case Analysis
Executive Summary
Blue Mountain Resorts Limited is facing an important decision about introducing night skiing for the
1979-1980 winter season. This strategic consideration is based on a thorough evaluation of market
demand, customer preferences, and the economic consequences of expanding operations after dark.

At the heart of this moment lies the anticipation and comprehension of market dynamics, highlighting
the importance of a comprehensive market analysis. This strategy demonstrates a strategic move in
response to evolving market conditions and customer demands, showcasing the resort's dedication to
innovation and flexibility.

Delving into night skiing showcases Blue Mountain Resorts' commitment to adapting to changing
consumer needs amidst market trends and competition. This executive summary sets the stage for a
comprehensive exploration of the strategic approaches and important assessments made in the
dynamic environment of the leisure and tourism industry.

Company Background
Founded in 1941 by Jozo Weider, Blue Mountain Resorts Limited has transformed into one of
Ontario's top ski destinations. Located only 85 miles north of Toronto, the resort covers 250 acres,
with 27 unique ski trails and 8 chairlifts, perfect for all skill levels and preferences. Guided by Gordon
Canning and the management team in the 1970s, Blue Mountain underwent a substantial expansion,
improving its infrastructure with additional lifts and new ski areas. The resort also made investments
in snowmaking and grooming technologies to enhance the skiing experience.

An emphasis on innovation resulted in the launch of "Get Moving Boards," offering guests up-to-date
details on lift operations and wait times, and "The Great Slide Ride," expanding the resort's attractions
and drawing visitors throughout the year. As Blue Mountain contemplated the addition of night skiing
for the 1979-1980 winter season, the focus remained on engaging with the market and making
strategic adjustments to meet changing consumer needs, all while upholding its reputation as a top
leisure and tourism spot.
Consumers
It is essential to grasp the diverse clientele of Blue Mountain Resorts to customize experiences that
align with their unique requirements and desires. The resort accommodates different types of skiers,
divided into three main groups: day skiers, the largest segment at 38.4%, who visit for a single day;
multi-day skiers, making up 35.5% of the consumer base and staying for two to three days; and
vacationers, representing 26.1% and staying for four days or more. This segmentation reflects the
diverse range of the resort's attractiveness, catering to both short-term and long-term visitors.

Looking at the demographics and income levels, the Blue Mountain consumer base includes a blend
of professional/managerial individuals and students, most of whom earned a middle to high income
during the 1970s. More than a third hold professional or managerial positions, while another third are
high school and college students, showcasing the resort's wide appeal among various occupational
sectors. The income distribution shows a wide range, with over half of consumers earning between
$15,000 and $29,000 per year, and a notable portion making more than $30,000.

On average, customers at Blue Mountain are typically younger, with most falling between the ages of
18-34, and mostly male. The group is mainly unmarried and lives in or around Toronto, indicating that
focused marketing tactics could be very successful in reaching this key audience. The resort's
closeness to Toronto is a significant factor in its convenience and attractiveness to this particular
group.

This thorough grasp of the Blue Mountain consumer not only guides the resort's current decision-
making but also forms the basis of its strategic direction. Understanding the preferences, behaviours,
and socioeconomic status of its customers enables Blue Mountain Resorts to customize its services,
guaranteeing a memorable and fulfilling experience for everyone who comes by.

Problem Recognition
Blue Mountain Resorts Limited is considering the possibility of introducing night skiing, which could
have a major impact on the resort's operations and market position. The main issue facing the
management, particularly CEO Gordon Canning, is assessing the viability and potential profitability of
expanding ski operations into the evening hours for the 1979-1980 winter season. This choice involves
various complexities, such as evaluating market demand, financial consequences, and the operational
difficulties of night skiing.

Adding to the complexity of the decision-making process is the dual challenge of predicting the
market's reaction to night skiing and evaluating the financial investment needed for this expansion.
Initial considerations include significant investments in lighting and safety measures, as well as
possible changes in staffing and infrastructure to support night-time activities. Moreover, the resort
must carefully assess how offering night skiing could impact its current customers and potentially
attract new skiers.

Navigating this decision is made more complex by the necessity of ensuring that any new offerings are
in line with the resort's brand identity and long-term strategic objectives. Introducing night skiing at
Blue Mountain Resorts could set them apart in a competitive market, but it may also draw attention
and resources away from other important aspects of the business. Therefore, the issue is not just
about financial investment but also about strategic alignment and market positioning.

Essentially, the problem recognition at Blue Mountain Resorts Limited involves balancing innovation
and tradition, risk and reward. Leaders must carefully navigate these waters, relying on a strong base
of market research to inform their decision-making process. One important question lingers: Will the
addition of night skiing improve the resort's appeal to its customers and stakeholders, or will it bring
about challenges that overshadow its advantages?

Methodology
Blue Mountain Resorts Limited conducted an extensive market research project to evaluate the
possibility and market demand for implementing night skiing for the 1979-1980 winter season.
Understanding the constraints of current data, the resort's management, under the guidance of CEO
Gordon Canning, opted to conduct a more targeted study to analyse skiers' preferences, pricing
sensitivities, and demographic profiles related to night skiing.
Initial Overall Skier Survey
The basis of this research was a survey given to around 700 skiers each year. This survey was designed
to gather a wide range of skier behaviours, preferences, and demographics throughout the entire
season. While conducting this survey, it became evident that further analysis is required to fully
understand the level of interest and demand for night skiing.

Dedicated Night Skiing Survey

To fill in these gaps, Bob Boggs, a crucial member of the resort's market research team, created a
specialized three-page questionnaire specifically centred on night skiing. The survey was sent out to
almost 200 individuals at the end of the winter season, making sure that the participants were well-
informed about their skiing habits and preferences. The survey was timed strategically to gather data
that reflects a complete season's experiences and expectations.

Survey Distribution and Demographic Representation

The survey distribution methodology aimed to guarantee a diverse representation of demographics.
The surveys were handed out by Hill Hostesses in different cafeterias, with the number of
questionnaires in each location based on the cafeteria's sales, guaranteeing a diverse and accurate
sample of the resort's customers. Furthermore, quotas based on age and sex were established for the
participants, in accordance with past skier profiles, to enhance the representativeness of the data.

The resort's management gained valuable insights from the extensive survey data collected, including
information on the demand for night skiing, price sensitivity, preferred skiing times, and the
demographic profiles of potential night skiers. This information was essential for making informed
decisions about pricing strategies for lift tickets and season passes, as well as for planning marketing
and operational adjustments to cater to the expected night skiing customers.

The approach used by Blue Mountain Resorts Limited in evaluating the potential of night skiing
showcases a comprehensive and strategic method for market research. Through a mix of
comprehensive surveys and specific questions about night skiing preferences, the resort collected the
necessary data to make informed decisions.
Findings
The results of the case analysis on Blue Mountain Resorts Limited, concerning the implementation of
night skiing, are highlighted by a detailed collection of quantitative data obtained from extensive
primary market research. This research thoroughly examined the preferences, behaviours, and
demographic profiles of the resort's clientele, revealing a range of important insights. A significant
number of general consumers, specifically 44.4%, expressed a strong interest in night skiing. The
excitement was particularly strong among season pass holders, with 60.7% showing strong support
for the potential night skiing program.

Research on frequency and price sensitivity showed that season pass holders were planning to go
night skiing around 10 times, while ticket buyers were expecting to go about 5-6 times. The analysis of
price sensitivity highlighted the amount consumers are willing to pay for access to night skiing,
helping to determine appropriate ticket prices.

Financially, the data indicates that raising season pass prices to include night skiing could lead to a
substantial revenue opportunity. The projected income from the modified season pass prices, in
addition to the expected sales for night skiing tickets, indicates a significant increase in revenue.
Considering the costs for setting up and running night skiing, the financial forecasts are still positive
about the profits from this project.

Furthermore, the demographic analysis showed that the main customer group for Blue Mountain
Resorts is mostly composed of young to middle-aged, single men, mainly living in or around Toronto.
Understanding this specific group is essential for creating focused marketing plans and customizing
service options.

Alternatives
Considering the strategic crossroads at which Blue Mountain Resorts Limited finds itself, with the
potential introduction of night skiing, the management is confronted with a crucial decision that could
have a substantial effect on the resort's operational dynamics and competitive positioning. After
thoroughly examining market research data, consumer behaviour, and financial projections, two main
options stand out, each with its own implications and strategic factors to consider.
Proceed with the Introduction of Night Skiing:
Opting to introduce night skiing takes advantage of the evident market demand, as a large number of
both regular consumers and season pass holders have shown interest. This decision ensures a boost in
revenue as projected and sets the resort apart from competitors by providing a distinctive experience
that may appeal to new and returning guests looking for greater flexibility. Responding directly to
customer interest, this strategy is in line with market desires, which could expand the resort's
customer base. Nevertheless, embarking on this endeavour involves certain risks, such as the
substantial upfront expenses linked to establishing night skiing amenities. This could potentially
impact the financial stability of the resort if the actual demand does not meet expectations.
Furthermore, expanding operations into the evening brings about operational challenges that require
extra resources for staffing, lighting, and maintenance, potentially affecting overall efficiency. There is
also the possibility of overestimating market interest based on current research, which could result in
underutilized facilities.

Delay Night Skiing and Conduct Further Market Research:

Alternatively, choosing to postpone the launch for more market research brings in a strategic break to
enhance the comprehension of consumer behaviour and interest. This careful strategy minimizes the
chances of making hasty investments, allowing for thorough planning and market research, ultimately
guaranteeing the success of night skiing if implemented. This method improves the resort's capacity
to customize the night skiing experience to perfectly align with consumer needs, based on a better
understanding of consumer behaviour and preferences. However, this choice does have its
downsides, particularly the potential loss of immediate income from the high level of interest already
expressed by consumers. Postponing the launch could give competitors an edge if they are working
on similar products, weakening Blue Mountain's position in the market. Moreover, the fascination
with night skiing may fluctuate, and any postponement could result in a loss of current consumer
interest, leading to possible changes in preferences in the future.

Recommendation
After analysing the strategic decision Blue Mountain Resorts Limited is facing about introducing night
skiing, it is advised that the resort postpone the launch and carry out additional market research. This
approach is recommended because of the risks linked to making a substantial operational and
financial commitment relying on possibly incomplete data. Postponing the implementation of night
skiing enables a comprehensive examination of consumer interest, price responsiveness, and
operational preparedness, leading to a more strategic and data-informed decision-making approach.

To improve the effectiveness of this additional research phase, various research methodologies could
be utilized:

Operational Simulation: Simulating the operational aspects of night skiing can offer valuable insights
into the logistical and financial implications of extending operations after dark. This exercise could
assist in pinpointing potential challenges in staffing, energy consumption for lighting, and snow
maintenance during night-time conditions. By running these simulations, the resort can predict
additional expenses and operational changes required to support night skiing.

Pilot Programs: Testing out night skiing on a small scale or for a limited time period through a pilot
program provides a practical way to assess the concept's potential. This method enables the resort to
assess real customer interest and satisfaction, operational difficulties, and the financial consequences
of operating the program in real conditions. Input from participants is crucial in refining the night
skiing offering before a complete launch.

By prioritizing these suggestions, Blue Mountain Resorts can collect crucial, practical insights that not
only confirm the demand for night skiing but also guarantee that when implemented, the service is
set up for success, both in terms of operations and finances. Pausing strategically for more research
shows a dedication to making decisions based on data that support the resort's long-term objectives
and the changing needs of its customers.

Chapter 6 and 7 (Data Collection)

In Chapter 6, "Designing Surveys and Data Collection Instruments," the focus is on the detailed
process of creating questionnaires that are essential for collecting accurate data for marketing
research. It emphasizes the importance of formulating questions that are clear, unbiased, and directly
related to the research goals. This chapter highlights the significance of question content, ensuring
respondents can provide accurate answers, and the importance of pre-testing questionnaires to
address any potential issues. This guarantees the gathering of accurate data that truly represents the
participants' perceptions and actions.

Chapter 7, "Sampling," explores the principles of choosing a representative sample of the population
for research. The text discusses the differences between probability and non-probability sampling
methods, emphasizing how the selection of technique influences the precision and applicability of the
research results. The chapter discusses different sampling strategies, including stratified, cluster, and
systematic sampling, each tailored to specific research questions and goals. The text also covers the
importance of determining sample size, a crucial element of research design that impacts the study's
validity and reliability.

These chapters are especially important for the case study of Blue Mountain Resorts Limited. The
resort's choice to consider implementing night skiing was influenced by market research that used
surveys to measure customer interest. The guidelines in Chapter 6 could assist the resort in enhancing
their questionnaire design to ensure they are obtaining precise and useful insights from their target
market. For instance, making sure that questions are closely related to the specific information
required and avoiding unnecessary or overly complicated questions that might skew the results or
lower response rates.

Exhibit 6.3
In addition, the sampling considerations addressed in Chapter 7 emphasize the significance of
selecting a sampling method that effectively reflects the resort's customer base. Perhaps the initial
research could have been improved by using a more thorough sampling strategy to guarantee that
the results accurately reflected the larger customer population, instead of a possibly biased group of
participants. For example, utilizing a stratified sampling method could guarantee that all pertinent
customer segments, like day skiers, season pass holders, and vacation skiers, are appropriately
represented in the sample. Enhancing the reliability of the data would provide a more solid
foundation for making strategic decisions about introducing night skiing.

By utilizing the concepts from these chapters, Blue Mountain Resorts Limited could enhance their
market research to make more informed decisions. This would require going back to their
questionnaire design to make sure it is clear and relevant and using a sampling strategy that
effectively represents the diversity of their customer base. Adopting this method would allow the
resort to collect the necessary information to decide whether to move forward with adding night
skiing, potentially resulting in a more successful implementation that meets customer demand and
preferences.