Disney sales are up! Last Thursday the company reported a “robust” increase in fourth-quarter earnings. Theme park sales, operating income, Disney’s television business, and other sectors all saw minor to significant increases. It seems as though the company is starting to see sales from the discounts they introduced the recession. During the height of the recession the company cut prices to consumers to offered large discounts and entice families to come. I guess the cuts paid off. Do you think other companies are starting to see a return on sales from discounts they offered during the recession?
http://www.nytimes.com/2011/11/11/business/disney-earnings-gain-30-surpassing-estimates.html
Here’s one way to raise revenue, sale wedding cakes for receptions. David Collier, pastry chef, is linking up with the Ritz in Pentagon City, run by Marriott International in Bethesda, to make and sell wedding cakes. Collier will prepare customer wedding cakes for couples getting married at the hotel. What separates him from other bakers is the type of cakes he makes. He offers over 200 variations of chocolate cakes and says he is “working the groom side of the pastry business.” He creates cakes the represents the groom’s hobbies, i.e. sports, cars, etc. $80,000 in revenue have been raised. Shannon Hadley, the hotel’s director of sales and marketing told the Washington Post: “The hotel has been able to double its revenue from wedding cakes.” The typical wedding cake is $3,000. Are themed wedding cakes the new trend for weddings and how long will it last? Could this be a new trend in hotels and how is it affecting the industry?
~Nia McCarthy
A good point was raised here, as definitely the strategy implemented by Disney during the recession improved performance. Whereby discounts caused sales increase and that emphasizes the fact that businesses usually tailor their strategies in order to overcome threats and external factors.
ReplyDelete-Lila Al-Refai
This really shows what companies are doing to provide services that others aren't. By selling the cakes in the Ritz, it is providing a partnership that is greatly positive for both parties. It allows Mr. Collier the ability to expand his business to markets he otherwise wouldn't have access to, and provides the Ritz another reason to choose them over competitors.
ReplyDelete-Domenick Cocchiara