Bowling for Business: Instead of slashing prices, add value
Posted by Admin
(This column first appeared on June 19, 2011.)
For the past two years, we have bitten the financial bullet in order to buy annual passes to Disneyland for family Christmas gifts. Selecting the handy dandy interest-free monthly installment option, we don’t buy the passes because they are cheap. In fact, our installment payments are probably higher than my parents’ monthly payments on their first house.
Also, we typically squander an additional hundred dollars or so on food and souvenirs with every trip. But we have counted the cost and decided it’s worth the investment to spend quality time with our daughters and granddaughter at the Happiest Place on Earth.
At a time when most business owners are slashing budgets and services in a mad scramble to survive, Disney thrives. Instead of drastically reducing prices and cutting back on their offerings, they continue to invest millions to improve and enhance their products. We would all do well to take a few cues from the entertainment giant:
Disney holdings are too numerous to list. But here are is a sampling:
- Parks and resorts
- Consumer products
- Cruise line
- Television stations
- Television programs
- Radio stations
- Production and distribution
- Broadband channels, subscription-based Internet services, websites and cellular services
Although he was a visionary, Walt Disney couldn’t possibly have foreseen the number of related industries his empire would one day include. But, early on, he took steps to ensure his company would never stagnate. In fact, 53 years ago in Anaheim, when he first opened the doors to Disneyland, Walt turned to a TV news reporter and announced:
Disneyland will never be complete. As long as there is creativity in the world, it will continue to grow.
When you sense a shift in consumer demand, don’t waste your time lamenting the good old days. Instead, mix it up. Take a class or hire someone “in the know” so you will be prepared to offer what customers want. For example, if your bakery profits take a hit when health concerns reduce doughnut consumption, add low fat choices to your menu.
I remember the day my industry changed forever. I was at an international public relations conference in 2007 when someone asked me whether or not I tweeted. In my 28 years experience as a marketing professional, I had never heard the term. Naturally, I assumed he was insane. Ironically, I now tweet several times a day.
Due to shifting consumer demand, we have completely changed our service line at Mountain Marketing Group to feature dynamic websites and comprehensive social media campaigns. We could have resisted the shift, like some of our fallen advertising comrades. But embracing the change has invigorated business and keeps things interesting.
My family and I stood in line for three hours last weekend to see the new Star Tours: The Adventure Continues 3-D Attraction. Disney spent millions of dollars to retool the ride, which features trips to six fictional planets told via 50 different “story adventures.” The fervor proves that people are still willing and able to spend time and money if they believe the investment worthwhile.
Resist the urge to strip your products and services to bare bones; instead, amp things up. The saying still holds true, “You get what you pay for.” Make sure your customers understand the value they get by paying you.
Build client loyalty
During the soft launch of the reinvigorated Star Tours’ attraction, Disney emailed season pass holders early invitations to ride. This type of exclusive offer does more than control traffic. When we weigh our renewal decision in December, rewards like this will definitely factor in.
Few brands are as recognizable as Mickey’s iconic ears. This is the result of billions of dollars in advertising. And while most of us have considerably less to spend, when it comes to garnering publicity, we can still learn much from Disney—for free, on a limited budget or when the sky’s the limit.
- Have fun. Regardless of the campaign, Disney maintains a sense of humor.
- Don’t put all of your advertising eggs in one basket. Positive publicity is often more effective than advertising. Invest in both.
- Stick with what works. Downplay what doesn’t. Case in point? I was hard-pressed to find anything online about the history of ineffective Disney advertising campaigns. Instead, I kept unwittingly clicking on ways to pay even more to upgrade my experience as a happy season pass-holder.
Until next time, I’ll be Bowling for Business.
Posted on June 27, 2011, in Bowling for Business, Business Tips, Internet Marketing, Mountain Marketing Group, Social Media and tagged add value, advertise, build client loyalty, diversify, reinvent yourself. Bookmark the permalink. Leave a comment.