Main Objective of the Project

The main objective of this project is to determine the feasibility and strategic viability of Flik FX Advertising expanding into either the Las Vegas or Jamaican market for drone-based advertising. Students will conduct comparative research and analysis to identify the market that offers the most favorable conditions for entry, considering factors such as market demand, costs, regulatory challenges, risks, and operational logistics.

Tasks and Activities

1. Market Research and Analysis

• Analyze market demand for drone advertising in both locations, including customer segmentation and spending patterns.
• Identify key competitors and evaluate their strategies.
• Research advertising trends and cultural factors influencing consumer behavior in each region.

1. Regulatory and Legal Assessment

• Study drone operation regulations, licensing, and compliance requirements for each market.
• Document legal frameworks surrounding advertising and drone technology.

1. Operational and Cost Analysis

• Calculate labor costs for hiring 10 employees, including salaries, taxes, and benefits.
• Assess fixed costs such as office space, utilities, and equipment storage.
• Obtain shipping and logistics quotes for importing 1,200 drones from China to each location.

1. Economic and Risk Analysis

• Review political and economic stability, tax incentives, and government grants.
• Identify risks such as legal, economic, environmental, or operational challenges.
• Develop mitigation strategies for identified risks.

1. Comparison and Decision-Making

• Compare both markets using measurable criteria such as costs, demand, risks, and scalability potential.
• Perform a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for each location.
• Use a weighted scoring system to rank the feasibility of each market.

1. Stakeholder Feedback

• Conduct interviews or surveys with local businesses or potential clients to gauge interest in drone advertising.
• Gather input from industry experts or consultants for insights on each market.

Deliverables

1. Market Analysis Report

• Detailed findings on customer demand, competitor landscape, and advertising trends for each market.

1. Regulatory Compliance Summary

• Comprehensive documentation of licensing, permits, and advertising standards for drones in Las Vegas and Jamaica.

1. Cost Breakdown

• Financial analysis of labor, operational, and logistics costs for each location.

1. Risk Assessment Report

• Identification of key risks and proposed mitigation strategies for both markets.

1. Geographic Comparison Matrix

• A side-by-side comparison of measurable criteria (e.g., market size, costs, risks, and infrastructure quality) with scoring.

1. Final Recommendation Report

• A comprehensive report summarizing all findings, supported by data, and a clear recommendation for the preferred market.

1. Presentation

• A professional presentation summarizing key insights, comparative results, and the final recommendation for Flik FX’s market entry.

By completing these tasks and deliverables, students will gain practical skills in market research, data analysis, and strategic decision-making while delivering actionable insights for Flik FX Advertising's expansion strategy.

Case Study: Feasibility of Market Entry for Flik FX Advertising into Las Vegas, USA, and Jamaica

Broad Scope of the Project

This case study explores the feasibility of Flik FX Advertising entering two distinct markets: Las Vegas, USA, and Jamaica. Students will conduct a comprehensive analysis of both markets, assessing their potential for growth, operational requirements, risks, and logistical considerations. The goal is to compare these markets and identify the optimal location for entry based on measurable criteria, financial viability, and strategic fit. This study will position the two locations as competitors, with the most feasible option becoming the entry point for Flik FX.

Key Criteria for Research

1. Market Analysis

• Market demand for drone advertising in both locations.
• Competitive landscape in drone advertising and general advertising sectors.
• Customer segmentation and preferences specific to each region.
• Cultural and demographic factors that influence advertising strategies and messaging.

1. Regulatory Environment

• Legal requirements for drone operations, including airspace regulations and flight permissions.
• Licensing and permits for commercial activities in each location.
• Advertising standards and restrictions that impact creative freedom and campaigns.

1. Startup Requirements

• Business registration process, timelines, and costs specific to each location.
• Required infrastructure (e.g., office space, storage facilities) and associated costs.
• Insurance and liability coverage needs for drones and employees.

1. Operational Costs

• Labor costs for 10 employees, including drone operators, technicians, and administrative staff. (minimum wage)
• Costs of office and storage space rental, utilities, and maintenance.
• Day-to-day operational expenses related to drone maintenance and service.

1. Logistics and Supply Chain

• Shipping costs for 1,200 drones from China to each location, including transportation methods and times.
• Customs duties, taxes, and import regulations.
• Local distribution and storage capabilities for drones and other equipment.

1. Economic and Political Factors

• Exchange rate stability and its impact on costs.
• Political stability and the ease of doing business in each region.
• Availability of tax incentives, grants, or subsidies for technology-driven businesses.

1. Risk Assessment

• Potential risks such as regulatory hurdles, economic downturns, and natural disasters.
• Mitigation strategies tailored to risks identified for each location.

1. Market Potential

• Advertising expenditure trends in each region.
• Growth trajectories for drone technology and innovative advertising methods.
• Initial interest or feedback from potential clients or stakeholders in the region.

1. Geographic Comparison Metrics

• Demographics (population size, age distribution, and income levels).
• Tourism statistics and patterns, including seasonality and visitor spending.
• Quality of infrastructure (transportation, communication networks, and technological adoption).

1. Cultural and Social Factors

• Attitudes toward technology and drone usage.
• Preferences for outdoor events or visual campaigns.
• Impact of festivals, events, or tourism seasons on advertising opportunities.

In-Depth Geographic Comparison

Las Vegas, USA

• Advantages:
• High tourism traffic with an annual influx of over 40 million visitors, offering a consistent audience base.
• A hub for entertainment and innovation, making it receptive to cutting-edge advertising methods.
• Established infrastructure and connectivity, ensuring logistical efficiency.
• Favorable conditions for large-scale events and promotional campaigns.
• Challenges:
• High costs for labor, office space, and regulatory compliance.
• Saturated advertising market with significant competition.
• Strict FAA regulations governing drone operations in crowded areas. (Drone regulations in America is changing.)

Jamaica

• Advantages:
• Tourism-driven economy with strong ties to outdoor advertising opportunities.
• Lower labor and operational costs compared to the USA.
• Unique cultural appeal that aligns with vibrant and creative advertising campaigns.
• Government initiatives to attract foreign investments and promote technology-based businesses.
• Challenges:
• Limited infrastructure in certain areas, which could impact logistics and operations.
• Smaller overall market size compared to Las Vegas.
• Potential challenges in navigating local regulatory and licensing processes.

Segment Breakdown for Research

1. Market Analysis

Checklist:

• Identify key industries and sectors that are likely to adopt drone advertising.
• Compare tourism statistics: annual visitor numbers, visitor demographics, and spending habits.
• Analyze advertising trends specific to each location and industry.
• Research local consumer preferences for high-visibility advertising mediums.

Data to Support Findings:

• Tourism board reports and advertising expenditure statistics.
• Competitor analysis reports for each location.
• Surveys or focus groups conducted with local businesses.

2. Regulatory Environment

Checklist:

• Research differences in drone regulations between the FAA (Las Vegas) and local authorities in Jamaica.
• Document all permits required for operating drones commercially in both locations.
• Evaluate restrictions on advertising content and campaign execution.
• Examine enforcement policies for non-compliance.

Data to Support Findings:

• Drone operation manuals and legal frameworks.
• Consultations with local legal experts or aviation authorities.

3. Startup Requirements

Checklist:

• Estimate costs and timelines for business incorporation.
• Compare the ease of setting up banking, utilities, and other operational systems.
• Research the availability and cost of local talent.
• Identify potential suppliers or partners for equipment and services.

Data to Support Findings:

• Local government guides for business registration.
• Cost breakdowns for infrastructure and operational setup.

4. Operational Costs

Checklist:

• Conduct salary benchmarking for key roles in each location.
• Analyze tax obligations, including payroll taxes and corporate taxes.
• Compare fixed costs like office rental, utilities, and equipment maintenance.

Data to Support Findings:

• Local labor market reports.
• Real estate listings for commercial properties.

5. Logistics and Supply Chain

Checklist:

• Research shipping costs, timelines, and preferred providers.
• Identify potential storage and distribution facilities.
• Compare costs for customs clearance and import duties.

Data to Support Findings:

• Shipping quotes and schedules.
• Documentation of import regulations and tariffs.

6. Economic and Political Factors

Checklist:

• Review economic stability and growth indicators for each region.
• Compare government incentives, such as tax breaks or grants.
• Assess currency exchange risks.

Data to Support Findings:

• Economic analysis reports.
• Incentive program details from government agencies.

7. Risk Assessment

Checklist:

• Identify legal and compliance risks specific to drone advertising.
• Analyze potential weather disruptions or natural disaster risks.
• Evaluate cultural or societal resistance to drone technology.

Data to Support Findings:

• Historical data on legal and operational challenges.
• Reports on weather patterns and natural disaster risks.

Comprehensive Project Checklist

1. Initial Research:

• Gather secondary data on demographics, market size, and advertising trends.
• Define key performance indicators (KPIs) for market viability.

1. Primary Research:

• Conduct interviews with local business leaders and stakeholders.
• Survey potential customers to gauge interest in drone advertising.

1. Analysis and Comparison:

• Use a weighted scoring system to compare metrics (e.g., costs, risks, opportunities).
• Perform a detailed SWOT analysis for both locations.

1. Risk Mitigation Planning:

• Develop contingency plans for identified risks.
• Outline cost-effective strategies for overcoming barriers.

1. Final Recommendation:

• Compile findings into a comprehensive report.
• Justify the selected market with data-driven insights.

This expanded case study framework ensures that students conduct thorough research, make detailed comparisons, and provide actionable recommendations for Flik FX Advertising's market entry strategy.