Sunday, March 11, 2012

Spring Break: Good or Bad for Popular Destinations?


Every year, babbles about spring break plans start sprouting after winter break. Destinations are brainstormed and flights are booked. While I can’t say I’m participating in a “college spring break” this year, I know many people travelling to Punta Cana, Cancun, Fort (“Frat”) Lauderdale, Las Vegas, and Puerta Vallarta. Despite many students trying to save a few dollars by driving to their destination of choice, money will be spent upon arrival. Despite the magnitude of the city’s marketing efforts, spring breakers will be found throughout the country.

Different cities choose to attract college spring breakers. For instance, the Daytona Beach Convention Center does not spend any marketing dollars on Spring Break. The hotel chooses to focus on the family visitor, but does not turn down any groups of students. On the other hand, Panama City allocates a good portion of their budget to enhance its reputation as an exciting spring break destination. Depending on the type of image the city is trying to maintain, locals have different views of the economic benefits spring break brings the community. As stated in The Daytona Beach News Journal, “Community boosters estimated Spring Break pumped $120 million into the local economy, but many felt negatively publicity generated by the event outweighed the benefits.” With the city hoping to attract family vacations, MTV hosting spring break did not help promote positive PR for Daytona Beach through various fights, one fatality, and an increase in burglaries and rape reports.

It’s very interesting to compare the opinions of locals living in spring break hot spots. Some are very supportive of the economic boost spring break provides to their community, and several stores rely on this business. However, others look down upon the partying and negative image college students bring to their city. I believe cities have more control over the publicity spring break generates than they think. Through taking an approach similar to Daytona Convention Center -- keep the  focus on the target customer. If a city/hotel does not wish to advertise to spring breakers, it should not spend any money towards doing so. Rather, through marketing to its desired consumer, the location will maintain its image and likely draw less attraction to those looking to party nonstop for a week in March. The majority of college students aren’t seeking a family resort when making their plans. They look to dominate a student friendly location where they will be among a sea of other college students.

The article includes a quote from Kyriakos Drymonis, a Daytona Beach restaurant owner, stating, “You never get a second chance to make a first impression. You have to let people see the product.” It is imperative that cities maintain the reputation they wish to possess. For instance, spring breakers visiting family vacation spots may likely look to return when they, one day, have a family of their own.

The article I reference in this blog can be found here: http://www.news-journalonline.com/news/local/east-volusia/2012/03/06/spring-break-fun-begins-in-daytona-beach.html

Monday, March 5, 2012

Best Buy Cinema Now: How Best Buy Decided to Compete with Netflix


With the drastic increase in technology the past few years, companies are determined to find ways to stay competitive with trends. Netflix has completely changed the movie rental business. Individuals are now able to rent movies and TV shows from the convenience of their home, and receive these items via mail only a few days later. The convenience and ease of this process resulted in the company to gain popularity and become very successful. While Blockbuster attempted to compete through creating a similar program, I believe its brand name hindered the program’s success. Everyone continued to associate Blockbuster with the experience of going to the store and physically looking through the vast selection of films. I find it interesting to discover other companies attempting to compete with Netflix as well. Best Buy, although not in the movie rental business, exclusively, created Best Buy Cinema Now. This service allows customers to instantly rent or buy movies online. The movies are downloaded to your computer. While this service has consumers pay per movie, versus a fixed monthly fee, Best Buy has not done a good job advertising it. The service is not even easy to find on the company’s website. Slightly more differentiated from Netflix than Blockbuster’s at home rental service, I feel Cinema Now could gain interest and popularity if it was better promoted. The instant access to movies and TV shows paired with low prices would interest consumers who value convenience and speed.

Failing to inform the public about a new offering can be equivalent to not even providing the product/service. Unless a company is able to rely heavily on word of mouth and a strong reputation, customers will not know about specific items unless the company advertises the benefits of them. While introducing services that mimic market leaders can be advantageous, and a means to stay competitive, it is important for firms to plan and implement their strategy well.