The Boston Globe has an insightful article about the Tough Mudder challenge, which began as a business plan for Will Dean while he was at Harvard Business School. The business, projected by the publication to produce more than $115 million in revenue this year, didn't even get Dean to the finals of Harvard's business paper competition.
The article discusses the grueling dynamics of the challenge, but we'll highlight some of the noteworthy items in the story that distinguish the event from a business perspective:
The article discusses the grueling dynamics of the challenge, but we'll highlight some of the noteworthy items in the story that distinguish the event from a business perspective:
- Tough Mudder brands itself as a "challenge" rather than a "race." That narrows the range of competitors tremendously, distinguishing it from the plethora of 5k races out there
- The 10- to 12-mile course includes obstacles designed by British Special Forces and participants must sign a four-page "waiver of death." This is partially to protect the event sponsor from liability, but also could be considered marketing
- Those who finish the event receive an orange Tough Mudder headband; roughly two-thirds of participants make it to the end
- Tough Mudder initially spent just $8,000 advertising on Facebook. It now has more than 3.3 million likes on the social media site
- People pay $180 to participate. Revenues were $2 million in 2010 and projected to top $115 million. Either attendance has skyrocketed or Tough Mudder has made tremendous strides with merchandising
- There is a sidebar detailing a legal battle between Dean and another firm that claims he stole their idea.
The Boston Globe article can be found here. We also found a video detailing some of the event's challenges:
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