The Success Factors of Standard Chartered Hong Kong Marathon

The Success Factors of Standard Chartered Hong Kong Marathon Presented to The Department of Business Administration 2011-12 EXECUTIVE SUMMARY This repost is studying the success factors of Standard Chartered Hong Kong Marathon. It will be collect the information and data from questionnaire survey and focus groups. Also, it will be through Value Important Performance Grid tool and SWOT analysis that more understand the performance and state of this marathon, then make some recommendation. ACKNOWLEDGEMENT This thesis would not have been possible unless someone who give the information support.

It is an honor for our group to interview Mrs. Vivian So, the Executive director of HKAAA, and Mr. Wong Ka Man, an committee of HKAAA. Our group also would like to thank some participants who attend our questionnaire survey and focus group. Their view and information gave us a lot of help for this report. I would like to show my gratitude to my supervisor, Leonard Kwan and course leader, Johnny Chiu, whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject.

Lastly, we offer our regards and blessings to all of those who supported us in any respect during the completion of the project. TABLE OF CONTENTS ACKNOWLEDGMENT EXECUTIVE SUMMARY TABLE OF CONTENTS LIST OF ILLUSTRATIONS LIST OF TABLES LIST OF APPENDICES CHAPTER 1. INTRODUCTION 2. 1 Background of Event 2. PROBLEM STATEMENT 3. 2 Statement of the Problem 3. 3 The Assumption 3. 4 Methodology 3. 5 Limitation 3. FACTORS AFFECTING A EVENT 4. 6 Public Acceptance 4. 7. 1 Social Environment – Cultural 4. 7. 2 Lifestyle 4. 7 Support from Stakeholders 4.

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8. 3 Commercial Sponsorships . 8. 4 Participants 4. 8. 5 Organizations 4. 8. 6 Non-profit organizations 4. 8. 7 Celebrities 4. 8. 8 General Public 4. 8. 9 Government 4. 8 Effective Event Management 4. 9. 10 Event Planning 4. 9. 11 Human Resource Management 4. 9 Publicity 4. 10. 12 Word of Mouth 4. FINDINGS 5. 10 Value Important Performance Grid 5. 11 SWOT Analysis 5. 12. 13 Strengths 5. 12. 14 Weaknesses 5. 12. 15 Opportunities 5. 12. 16 Threats 5. 12 Sustainability 5. 13 Potential for future development 5. CONCLUSION 6. RECOMMENDATIONS APPENDICES 2| 1. Introduction 1. 1 Background of the Event

Standard Chartered Hong Kong Marathon is one of the most significant and brand sport event for Hong Kong. This sports event has been held annually every Chinese New Year. This event is large-scale, with local and foreign people participation. Standard Chartered Hong Kong Marathon has been gaining a lot of support from companies, organizations, public, government and tourist. Prior to Standard Chartered Hong Kong Marathon, it was named “Shenzhen Marathon” and was held in 1996. Due to the lack of funds, Standard Chartered Bank become the title was sponsor of “Shenzhen Marathon”.

Afterward it has been named Standard Chartered Hong Kong Marathon. Since then the Marathon has been held for 15years. In the beginning, the number of participants of this event was limited thousand and the awareness was 1000. Until 2011, the number of participant has increased to more than 70,000 in 2012. 2. PROBLEM STATEMENT 2. 1 Statement of the Problem The purpose of this report is to find out the success factors of Standard Chartered Hong Kong Marathon. The event had a humble beginning, and very few Hong Kong people showed interest to join the race.

After a few years, Standard Chartered Hong Kong Marathon has started to gain its popularity in Hong Kong year after year. The event has become a Hong Kong branded sports event now. This report is to study the factors that attributed to its success. This report also investigates the possible strategies to sustain its success in the future. Based on the participant number of Standard Chartered Hong Kong Marathon in past 16 years, it showed in Chart 1. The figure indicates that the participant numbers are growing year after year. This proved the event has been more widely accepted by people in Hong Kong than other sports.

Hence, how to this event successes in attracting so many people to participate every year allows us to better understand the reason behind its success. Thus, it helps to project whether the event is sustainable in the future. 2. 2 The Assumption Our group assumes public acceptance, support from stakeholders, effective event management and publicity are the important factor of success event. 2. 3 The Methodology In this report, we had used primary and secondary sources of information for the analysis of the critical success factors of Standard Chartered Hong Kong Marathon. 2. 3. 1 Data Collection Secondary research

First of all, we had found a lot of reference books in the library, for example, Successful Event Management, Event Sponsorship, Sports and Entertainment Marketing and Sports Marketing etc. Also, we will find the professional journals, such as the Journal of Business Research, Journal of Marketing Event Research, Journal of Marketing, Organizational Behavior etc. Then, we will have more information about the Standard Chartered Hong Kong Marathon’ success factors. Moreover, we had found the sports magazine, such as Sportsoho, these helped us to know more about Standard Chartered Hong Kong Marathon.

Moreover we found a lot of relevant information on the newspapers, such as, Singtao newspaper, Mingpao newspaper, etc. It can help us to find out more Standard Chartered Hong Kong Marathon information, such how can prepare for the event. Moreover, we had used internet to find more secondary information. For example, using Google to research information related to Standard Chartered Hong Kong Marathon. It can easy to research some useful information in the Standard Chartered Hong Kong Marathon, such as, past history and year the participant situation etc.

Also, we used Wise News to find some past news. Primary research First of all, we have interview with Miss Vivian, the Executive Director of the Hong Kong Amateur Athletic Association (HKAAA) to get more information of Standard Chartered Hong Kong Marathon. So, we can have more information about this event, such as the process of marathon, brand building etc. Furthermore, we had set questionnaires and used to interview with stakeholders such as, runner and supporter, to find out how they feel about Standard Chartered Hong Kong Marathon. We had interviewed them the days near the marathon.

We had finished 384 interviews in different place, such as, sport ground, a competition area etc. Then, it can help us to understand the customer’s behavior and expectation. We are using the following formula to decide the number of questionnaire: n=[z * se]2 Where n = sample size n=[1. 96 * 50%5%]2 z= Confidence level =384 s= sample variance e= error acceptance The latest survey has a response rate 92 per cent, a sampling error of plus or minus 5 percentage points and a confidence level of 95 percent.

On the other hand, after the Standard Chartered Hong Kong Marathon, we had interviewed with focus groups who are amateur sport members from The Citizen Athletic Association and The Hong Kong Polytechnic University Track and Field Team. We had interviewed with four focus groups that 5 to 6 people in a group. We had asked lots of questions on how they feel on the Standard Chartered Hong Kong Marathon in order to help us to draw out the analysis. Lastly, we will use the following analytical methods to analysis the success factors of Standard Chartered Hong Kong Marathon. 2. 3. 2 Analytical methods 1. Value Important Performance Grid 2.

SWOT analysis The Value Important Performance Grid can help us to evaluate the performance and areas of improvement of Standard Chartered Hong Kong Marathon. Also, SWOT analysis can let us more understand the relative strength and weakness of this sport event for organizer perspective. 3. Factors Affecting a Mega Event 3. 1. Public Acceptance Public acceptance is defined to be a clear identity and social statuses have a favorable position. Also, it get the support and love of people and their ideas and direction is have to the same goal that can establish a good reputation and word of mouth . For example, Echoes of the Rainbow?????? movie made in Hong Kong, a low-cost film production. At the beginning, this movie had few people pay attention. When this movie received the best picture in the new generation of Children’s Film Unit Crystal Bear Award at the 60th Berlin Film Festival, there are many people start attending this movie. Since this movie had received an award, it caught everyone’s attention about this film. More people accept that this king of film and story. In 2008 Beijing Olympics was very successful sport event. It is because the sportsmen from all over the world had come to support and participates in it. We all attach great importance to this event.

It is because this game has good recognition. This paper approaches the topic by first referencing to the present environment under the categories of social and lifestyle perspectives of the living environment in Hong Kong. According to the findings, we conjecture the public needs and analyze how the Standard Chartered Hong Kong Marathon can fulfill the needs and obtain public acceptance. 3. 1. 3Social – Cultural Since 1996, Lee Lai Shan won the first-ever Olympic gold medal for Hong Kong in the women’s mistral boardsailing class and was the first champion in the Asian Games representing Hong Kong, China.

Since them, Hong Kong people started paying more attention to our Hong Kong Campaigns. And government started investing a lot more money and time in the promotion for Hong Kong sports. In addition, Lee Lai-Shan has received “the ten most Outstanding Youth Award” and the Bronze Bauhinia Star Award in recognition of her outstanding achievements in the international sports scene. A stating of her on a wind surf board was erected in honor of her near the beachfront at Cheung Chau. Hong Kong Sports Stars Awards is an annual election organized by the Sports Federation ; Olympic Committee of Hong Kong, China.

The purpose is to encourage athletes and teams to strive for excellence. Also, it can provide role model sand inspiration for Hong Kong young people, thus help to promote sports development in Hong Kong. Moreover, it can encourage the community’s involvement in sports to further promote the sport culture in Hong Kong. Among them, Lee Lai-Shan has won numerous awards including 2000, 2001, 2002 and 2004. Government has also encouraged the public to do more exercise. And it promotes different sports and exercise for us. Furthermore, nowadays people are increasingly aware about their health and peruse a healthy way of living. In the Leisure and Cultural Service Department of Healthy Exercise for All Campaign, Launched in April 2000, the “Healthy Exercise for All Campaign” is a territory-wide event jointly organized by the Leisure and Cultural Services Department (LCSD) and the Department of Health (DH). With the slogan of “Daily exercise keeps us fit, people of all ages can do it”, the Campaign aims at raising the public’s interest in exercising and encouraging them to exercise regularly so that they can understand the benefits of exercising to health. ” This can show that doing exercise benefits for both body and mind.

Also, regular exercising can improve the health conditions, and strengthens body’s resistance to illness, trains muscles, strengthens bones and helps prevent osteoporosis. In addition since the outbreak of SARS on 2003, the public awareness to public health exercise caused more people to do exercise. All their incidents coincide with the repaid growth of participants in Standard Chartered Hong Kong Marathon from 2001 to 2006. Moreover, running is one of the most popular sports and easily practiced by people of all ages. Also, running can enhance physical fitness, strength and willpower.

Nowadays, running of the equipment has become more advanced technologically. The innovation of running supplies, clothing and footwear which become to more lightweight and offer better protection. Running gears are how made with more eye-catching color, preferred by ladies who want to live and run in a more relaxed mood. For example, running shoes are now ultra-lightweight. Shoes cage is widen to allow runners to wear comfortable with high-tech arch boosters and the stronger induction of the foot to promote runners reflex, increase their agility, run faster. Also, windproof and breathable jacket make running more comfortable and enjoyable.

Furthermore, the technological advancements now even allow smart phones to measure the running speed and pacing. It is very convenience for runner and makes more people like this sport. 3. 1. 5Lifestyle “Lifestyle is a mode of living that is identified by how people spend their time and resource, what they consider important in their environment, and what they think of themselves and the world around them. ” First of all, there is an apparent relation between slow economic growth and desire for participation in sports event. In 2003, Hong Kong has a Severe Acute Respiratory Syndrome (SARS) and bully impact the Economic. A government spokesman explained that the March to May this year. The unemployment rate and underemployment rate rose to a new high. It is because of the impact of Severe Acute Respiratory Syndrome(SARS) on the labor market intensifies, consumption and tourism, the impact on industry layoffs increase with an overall decline in employment. ” According to government year book2003 “The labour market worsened abruptly in the first half of 2003, mainly affected by the outbreak of Severe Acute Respiratory Syndrome (SARS). The seasonally adjusted unemployment rate increased from 7. per cent in the first quarter of 2003 to an all-time high of 8. 7 per cent in May-July 2003. ” “Also, Hong Kong economic situation in 2003 can showed the unemployment rate and the underemployment rate surged to record highs in the summer of 2003, a consequent of an abrupt economic downturn under the impact of SARS. ” (Chart 1) Chart 1 Unemployment and underemployment rates “Amidst the slackened labour market conditions, overall labour earnings and wages continued on a decline in 2003. The decline nevertheless narrowed down after the mid-year. ”(Chart 2) Chart 2 Earnings and wages| year-on-year rate of change in money terms)| Since more people were unemployed, so that they have more time to use the spare time for exercise running. Also, running does not cost money and is a low-consumption activity that is good exercise for most people. Therefore, most people change their lifestyle. They are love to running. In addition, running is good for health. It is because most of doctors said that running could enhance the breathing health of lung. So people started paying more attention to running. (App1) The Hong Kong Anti-Cancer Society also suggests that people to do exercise 30mins every day, such as running.

They claimed that, running can prevent the disease. Since then more people are interest in doing exercise. ————————————————- Furthermore, the World Health Organization suggested people to do 150mins exercise every week. This can make the body became healthily and lengthen the life by 3years than without doing exercise. ————————————————- ————————————————- Therefore, people need to health and good life time, they take action to running. It can benefit for their health.

It can show that the Standard Chartered Hong Kong Marathon increase the participants join to after 2003. Moreover, every person has different a way of living and habits. Their lifestyle reflects the attitudes and values of a person. Ms Vivian So, the Executive Director of HKAAA said that “Running is not limited to any place and no need to pay any money. Anyone can do it. However, if one plays football, basketball etc one needs to have a large group of players. Therefore, running is very convenient. ” This explains why distance running has become popular in the present busy lifestyle of Hong Kong people.

Leung Yiu-chung a member of the Legislative Council also said that when he was young who like swimming, running, hiking, football, table tennis, volleyball etc. But most of sports need to have a partner. After he started working, it become difficult to find a partner does exercise together. Therefore, he chose running because he can do it alone. He has been running which run for more than 20 years. Ken Yuen, Hong Kong Commercial Broadcasting Corporation Limited of presenter said that running need only sport shirts, pants and shoes which can be done alone.

Running is very convenient for him. There is one thing in a common, many people working busily. It is difficult to meet friends to do exercise together. Therefore, running can fit in to the lifestyle of new generations. Then, a study on consumer behavior can explain why people join the Standard Chartered Hong Kong Marathon. We apply the theories of Maslow’s Hierarchy of Needs to explain it. “Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics.

It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people’s wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. ” It is mean the consumer behavior is a buyer decision making process, it includes individual, groups. The groups are like the family, friends, media, leader or artist. Participant will influence with them when they make decision. Consumer behavior is “The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. ” Behavior occurs either for the individual, or in the context of a group (e. g. , friend’s influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). ” We can understand consumer behavior is affect by individuals, groups, or organizations. The consumer behavior also knows people’s need.

So, people join the Standard Chartered Hong Kong Marathon is effect by their making decision and what they needs. Otherwise, the participant also will use their knowledge, experience to join it. Maslow’s Hierarchy of Needs (chart. xx) “Maslow’s hierarchy of needs is a theory in psychology, proposed by Abraham Maslow in his 1943 paper A Theory of Human Motivation. Maslow subsequently extended the idea to include his observations of humans’ innate curiosity. His theories parallel many other theories of human developmental psychology, all of which focus on describing the stages of growth in humans.

Maslow is use the terms Physiological, Safety, Belongingness and Love, Esteem, and Self-Actualization needs to describe the pattern that human motivations generally move through. ” ————————————————- The Needs can identify why participants join the Marathon. Physiological need is base on eating, drinking. Participates need a healthy body. Safety is meaning ensure public safety, such as how the events management provides enough facilities to protect participants. Belonging and love is base on with friends, family together. Participants may join this event with friends, families.

Esteem is the glory of participating in the race to makes them satisfied. The self challenge is when the participant makes a breakthrough in their finishing time or finishing the race by challenging their potential. ————————————————- Participants join the race as they think that they can gain a great experience or achieve their personal goal in the Standard Chartered Hong Kong Marathon. Chart 5 Through our questionnaires, we find that near a half part of participant motion that they join this marathon as for self- challenge. About 24% participants join because of the health.

Impact of peer and family and honor respectively is 11% and 14%. Also, these had a 2% was participated with company or a litter bit number for other reasons. So, we would understand that achievement is really importance as the personal goal and this may cause the reason that why the number of participants is continuous growth. Maslow’s Hierarchy of Needs Higher– Level Needs Lower – Level Needs ————————————————- ————————————————- 3. 2 Supports from Stakeholders It is important to cooperate with stakeholder in an event.

A good stakeholders’ support can make the event more successful. In the Standard Chartered Hong Kong Marathon, we can see that it has received a good support from participants, celebrities, general public and the government etc. 3. 2. 1 Commercial Sponsorship Sponsorship is a contribution to an activity (typically in sports, arts, entertainment or causes) by a commercial organization in cash, or in-kind, with the expectation of achieving corporate and marketing objectives. Sponsorship continues to represent a popular way of cutting through advertising clutter and reaching potential customers.

Commercial sponsor can increase the media and marketing leverage which can let the event become more large-scale. The scale of a representative event can’t be too small. A large scale of an event can attract and increase the number of people to join or to pay close attention to it. Also, it can cause by the public and media to discuss and report the event. – For instance, Cathay Pacific/Credit Suisse sponsored the Hong Kong Sevens Rugby Match was one of the successful model in the early years. Cathay Pacific/Credit Suisse was the title commercial sponsors.

Because of the sponsorship, Suisse Hong Kong Sevens become more popular and large-scale. And, the event has been well known. Because it makes the event become more representative and attract the number of people to pay attention to it. Regarding Standard Chartered Hong Kong Marathon, because of the sponsorship of Standard Chartered Bank, making had more resources to promote the event. Also, commercial sponsor can increase the media and marketing leverage which can let the event become more large-scale. A large scale of an event can attract and increase the number of people to join or to pay close attention to it.

A part from that, it can cause by the public and media to discuss and report the event. Therefore, it prove that commercial sponsor is also one of the reason why caused the marathon be more success. 3. 2. 2 Participants The Standard Chartered Hong Kong Marathon started in 1997. Since then, it has been gaining in popularity. In the past thirteen years, it made record in entries every year. Now it has become a signature international sporting event in Hong Kong and was recognized as a “Brand Hong Kong Event” by the Hong Kong Special Administrative Region Government.

The continuous growth of the number of participants, it proves that people support the event. Chart 1 Also, Standard Chartered Hong Kong Marathon has attracted a lot of international athletes from over seventy countries and regions, including China, Chinese Taipei, Ethiopia, Indonesia, Japan, Kenya, Kyrgyz Republic, Malaysia, Mongolia, Morocco, Poland, the Netherland, New Zealand, Russia, Ukraine and Singapore. It is because people believe that Standard Chartered Hong Kong Marathon is a large-scale and well-known running event.

These may cause that why they are interested and support for the marathon. Participants join the race as they think that they can gain a great experience or achieve their personal goal in the Standard Chartered Hong Kong Marathon. Chart 5 Through our questionnaires, we find that near a half part of participant motion that they join this marathon as for self- challenge. About 24% participants join because of the health. Impact of peer and family and honor respectively is 11% and 14%. Also, these had a 2% was participated with company or a litter bit number for other reasons.

So, we would understand that achievement is really importance as the personal goal and this may cause the reason that why the number of participants is continuous growth. A part from joining the Standard Chartered Hong Kong Marathon, participants can achieve their personal goals. We find that about 70% of participants had joined more than one times. It can show that a great part of number were repeat participate. Chart xx Chart 6 Also, all of interviewer motioned that they will participate in the Standard Chartered Hong Kong Marathon again.

It can see that participant generality enjoyable and think the higher value than payable in this marathon. So, the continuous growth of the number of participants, it proves that people support the race. 3. 2. 3 Organization On the other hand, Standard Chartered Hong Kong Marathon also has attracted a lot of companies and organizations’ support. Some companies and organizations like Standard Chartered Bank, LI & FUNG, Hong Kong Institute of Certified Public Accountants have joined corporate challenge or SME Marathon Cup.

Furthermore other education groups include The University of Hong Kong, Hong Kong Baptist University, The Hong Kong Polytechnic University and The Hong Kong Institute of Vocational Educational etc. They were many staff and students who participated in it. The purpose that they may not to win for the race, they only want to have a nice day and enjoy the event. They may only want to express the support to a meaningful cause. These show that organizations’ support for the event. ————————————————-

For example, Standard Chartered Bank has 2800 staff running in Marathon 2012. It is means participants had affected by each other’s within these groups. Through the organizations we can identify the reasons that made this event became successful. 3. 2. 4 Non-profits organization Standard Chartered Hong Kong Marathon is a large-scale sporting event. Therefore it needs lots of volunteers to make the event orderly. Ms Vivian So, the Executive Director HKAAA, said that volunteers are important for an event and good services can attract potential customers.

Standard Chartered Hong Kong Marathon had thousands of volunteers serving the runners and the organizer beyond the track to ensure the race can go on smoothly. Volunteer physiotherapists, overseas invited runners’ liaison team members and photographers etc. The volunteers in Standard Chartered Hong Kong Marathon come from all walks of life and all of them regarded the volunteer work very challenging. Therefore, it can prove that non-profits organization is important for an event enter in successful. On the order hand, in order to let the marathon carried out more smoothly, it s important to have non-profits organizations’ support, like Scout Association Hong Kong – Hong Kong Island Region, Auxiliary Medical Service etc. Without their support, the event can’t continue as such smoothly. 3. 2. 5 Celebrities The Standard Chartered Hong Kong Marathon has received a lot of support from celebrities. Since 2004, artists like EO2, Fiona, Sky etc, they played games with participants, sang and share their experiences on running at the Marathon Expo. On the day before the marathon, there was a cheering concert to boost the morale for participants and volunteers.

These make the event more interesting and attract more potential customers to join. Also, Standard Chartered Hong Kong Marathon Ambassadors personally participated in the event, for example, Andy Hui, Alex Fong etc. These can prove that how the celebrities supported the event. Celebrities are important endorsers of the marathon. Therefore, from 2001 to 2006 the participants’ number has significant increase and one of the reasons that maybe participants want to support their idols. On the other hand, Mr. Donald Tsang Yam-Kuen, the Chief Executive, presented at opening ceremony and supports the participator.

Moreover, lots of support from celebrities and famous people, likes Mr. Ricky Wong Wai-kay, Chairman of the City Telecom (H. K. ) Limited. Mr. Timothy T. T Fok, GBS, JP President of Sports Federation & Olympic Committee of Hong Kong, China, they helped promote the vision of Standard Chartered Hong Kong Marathon to their employees as well. These may attract more people to join the race. A part from these, it proves that the Standard Chartered Hong Kong Marathon has received a lot of support from celebrities and these may cause the reason that why marathon are success. 3. 2. General Public Moreover, in order to let the marathon conducting more smoothly. Standard Chartered Hong Kong Marathon caused large scale road closure, making it inconvenient to a lot of people who live along the race track. However, no public protest against the road closure has been heard. According to Apple Daily on February 24, 2012 “Road closure would certainly cause inconvenience to some people, but for the marathon road closures was definitely better than New Year Parade, fireworks, Celebration Parade is worth. ” showing that the public accept holding a mega event like this.

Also, Ms Vivian So, the Executive Director HKAAA, said that it can prove the popularity. The event has been support by the popularity, though it may have caused a little disturb to the neighborhood. It showing that most of the public accept for the Standard Chartered Hong Kong Marathon and they are support Hong Kong for holding such kind of international activities. 3. 2. 7 Government Standard Chartered Hong Kong Marathon is now being recognized as a “Brand Hong Kong Event” and a “M” Mark sporting event by the Hong Kong Government.

It has attracts more than 70,000 participants taking part in this challenge in 2012. In order to contain a greater amount of participants, government has done a lot of measures, such as road closure. Moreover, in order to let the marathon conducting more smoothly, Hong Kong Police Force and Hong Kong Road Safety Patrol had send out a great amount of human resources to support the race. On the order hand, Standard Chartered Hong Kong Marathon normally starts early in the morning (5 a. m. ). In order to support the marathon, MTR Corporation started its trains earlier.

Also, those runners who could not reach the pre-set specific time limits need to board the official buses. These special service can see that how government support Standard Chartered Hong Kong Marathon. 3. 3 Effective Event Management 3. 3. 1 Event Planning “Event planning is the process of planning a festival, ceremony, competition, party, or convention. Event planning includes budgeting, establishing dates and alternate dates, s