by Kelowna Marketing Consultant Larry Arrance
I had the opportunity to experience my first Luau a couple of weeks ago on the beautiful island of Oahu. As a devoted student of marketing strategies the outing for me was more than just a chance to soak up some Polynesian culture, copious amounts of booze and pig out on the banquet. I got the chance to see a well polished machine in action – The Hawaiian Luau.
The marketing began at our free breakfast sponsored by the Airline. It turned out to be the most expensive free meal I ever had. The presenter (unscrupulous salesman who you’ll learn about in another article) began his pitch for the Luau telling us that you cannot honestly say you’ve had the Hawaiian experience unless you’ve been to an authentic Hawaiian luau. Surprise, surprise their company was the only one offering the real thing. He made this point many times.
Although I didn’t much care for the presenter’s style I had to admit I liked the marketing strategy of offering different experiences at the same event. You had the opportunity to pick from two different packages; VIP or poor cousin (not the exact names but same connotation). The more expensive package came with better food and seating. It is important to have multiple price points. A one size fit’s all price will cost you customers.
The day of the Luau we were picked up by the tour bus. Once on board, the Tour bus escort (very entertaining and engaging salesperson) pumped us up and sold us on the wonderful experience coming our way. Then he used a very clever and effective sales technique on us. He made it seem like he was letting us in on a little secret that would let us get more value from the price we paid for the Luau at the expense of the Tour Operators. Our packages came with three tickets each for alcoholic beverages. His secret strategy was to go into the gift shop and purchasing our own glass tumblers (only 8 dollars each). This would give us an extra 3 ounces of drink for each ticket. Brilliant strategy because hundreds of guests at each luau would be buying these tumblers thinking they are being smart. That is an easy $7.50 in profit per glass. The extra 9 ounces of beverage (if they used all three tickets) would have been a minimal cost to absorb.
Once at the Luau they herded the passengers into a very scenic area on the beach overlooking the beautiful waves crashing in with a breathtaking horizon in the background. The perfect setting for your group photographs. They are quite smart in that they do not mention any price for the photo at that moment. You do not see the photographs until you are back on the bus for the ride home. This is done for a couple of reasons. First, you’ve more than likely had at least a couple of drinks and your decision making process is somewhat impaired. Secondly, you’re asked to make your purchasing decision in front of the rest of the group. This applies both the principle of Social Proof (others are doing it so it must be the right thing to do) and Peer Pressure (we don’t want to look like cheapskates). Thirdly, you’ve probably had a good time and you’d like that experience to keep going. The professional quality photo is offered as a way to always keep your memory vivid for years to come.
What are the marketing lessons here? Think of your business or services as an experience. It should have a before, during and after segment to the marketing and sales. Keep refining the processes until it is a well-oiled marketing machine like the Hawaiian Luau.
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