In recent years, companies in several industries have been witnessing intense competition due to new customer preferences as well as globalization and expansion. As a result, most firms have set unique marketing objectives which are being implemented through well-formed strategies. As for the hospitality industry which includes hotels, restaurants, casinos and amusement parks all of the businesses which fall under these categories maintain certain standards so as to differentiate themselves from one another. Mainly these approaches would be product development or branding or pricing strategies or promotional activities and mostly when combined result in an effective, profitable firm.
One of the firms in this industry which have impressed a huge crowd is Walt Disney, acquiring its brand loyalty through its marketing practices. A recent project under study have been the idea of product development, whereby it is considering introducing a whole new product line of new theme park rides based on the movie” Avatar”, which was a big hit in 2009 earning almost $2.8 billion in the box office. This project would possibly attract more customers to Disney Land and also sets this firm apart from any other amusement park. Using the brand name of Avatar, Disney would further increase its profits and also be able to differentiate itself setting itself a unique selling point where it can justify its high premium prices.
Other businesses in this industry might also differentiate themselves from competitors through other strategies. For example, Red Mango selling frozen yoghurt has been satisfying customers through providing healthier options in comparison to Pinkberry. Also Red Mango established its product and had been voted for as having a better taste than Pinkberry. Needless to say, it has also used its brand name as a way to distinguish its product from other stores selling frozen yogurt.
You highlighted a key ideas companies use in differentiating themselves from others: working off of previous success. Disney is working off of their original success of Avatar and expanding on it to bring in more customers. This is a universal concept that all kinds of businesses can use. For example, Subway started its $5 foot-long promotion which was very successful, and they continued this success by expanding this idea further; they now have promotional periods where you can get any foot-long sandwich for just $5. It is a key principle that seems obvious, but when implemented effective can bring in much more revenue.
ReplyDelete-Bryan Brodek
It truly is incredible how much Disney has differentiated its brand from all others. When you think of children movies, toys or even places to go, you automatically think, "DISNEY!". They have also found ways to buy out its competitors so that it is ALL Disney and no one else, i.e. Dreamworks.
ReplyDelete-Domenick Cocchiara