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I am tasked with the work where I have to act on the behalf of the happy place amusement parks’ CEO. According to my own designation as the vice president of operations, it is my duty to overview the meeting and provide the possible solution to the dilemma. The meeting highlighted the facts that the overall reputation is good for the company. The company was making a profit, however, recently the profit growth is decreased while there is an increase in operating cost. According to the business strategy consultant Alex, the company should target rich families. Alex introduced the strategy of "preferred guest" card. The card will provide the preference to the customers which will save their time. Alex point is valid as most of the rich people do not visit these places due to the shortage of time. By offering them preference through preferred guest card will attract these people to visit the place. However, the consequences of the strategy can be negative. By giving the preference to the cardholders means we have to make other customers wait for more than usual. Even we make an extra queue for the cardholder, it will impact the waiting time for the non-card holders. It can lead to aggression and dissatisfaction into the customers which is bad for the company reputation. Hence, even I appreciated the idea of Alex to attract the rich customer though it is difficult for me to take the risk of dissatisfaction of the other customers. Company aim is to maintain customer satisfaction and customer loyalty without using the strategy which may result in inequality in customer preference.
There are three ways to increase the revenue that increases the average spending per visit, increase visits per customer, and attract new customers. The strategy of the preferred guest card can be used but not by providing them preference on other customers instead we can provide them discounts or make them feel special to enhance their satisfaction ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"4KJuvB35","properties":{"formattedCitation":"(Cohen and Leuschner)","plainCitation":"(Cohen and Leuschner)","noteIndex":0},"citationItems":[{"id":489,"uris":["http://zotero.org/users/local/mlRB1JqV/items/RJ9FX4RF"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/RJ9FX4RF"],"itemData":{"id":489,"type":"webpage","title":"How Can Neighborhood Parks Be Used to Increase Physical Activity?","genre":"Product Page","abstract":"Public neighborhood parks play an important role in providing venues for physical activity in urban areas. But they tend to be underutilized, especially for moderate to vigorous exercise.","URL":"https://www.rand.org/pubs/research_reports/RR2490.html","language":"en","author":[{"family":"Cohen","given":"Deborah A."},{"family":"Leuschner","given":"Kristin J."}],"issued":{"date-parts":[["2018"]]},"accessed":{"date-parts":[["2019",5,31]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Cohen and Leuschner). For instance, 20% of souvenir shops are already turned into gift boutiques. We can offer some discount to the cardholder when they buy a gift from these shops. Therefore there will be more chances that the customer will buy the preferred guest card by witnessing the appealing displays. In addition, we can offer a separate dining area or discount on food item with quality food service facilities after setting our total costs. The aim will be to increase the profit by decreasing the price of the food item but keeping it high from the total cost. Discount always attract customers whether rich or poor, especially on the food items. It is not possible for the family visit to such a place without having the snacks to enjoy. The discount strategy by purchasing the preferred guest card will not only increase the visits per customers but it will also attract the new customers.
We can promote this strategy through promotions or advertisement in which present customer’s response and their satisfactory statements can be used to target the new customers. Furthermore, customer service will handle the queries of the customers and will collect the reviews from them ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"x8BL5hUQ","properties":{"formattedCitation":"({\\i{}The Basics of Strategic Planning, Strategic Management and Strategy Execution})","plainCitation":"(The Basics of Strategic Planning, Strategic Management and Strategy Execution)","noteIndex":0},"citationItems":[{"id":487,"uris":["http://zotero.org/users/local/mlRB1JqV/items/SEGFI62S"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/SEGFI62S"],"itemData":{"id":487,"type":"webpage","title":"The Basics of Strategic Planning, Strategic Management and Strategy Execution","URL":"https://www.balancedscorecard.org/BSC-Basics/Strategic-Planning-Basics","accessed":{"date-parts":[["2019",5,31]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (The Basics of Strategic Planning, Strategic Management and Strategy Execution). These strategies will not only satisfy the customers but it will also maintain the equality among the customers as it will be the choice of the customers to avail the discount which will eliminate the risk of aggression over the people using our guest preferred card. Alex idea for preferring rich customer is useful for the short term as in the long term there will be the concern of dissatisfaction from the customers who did not use our cards while using the same card for gift boutiques and dining will be beneficial in long term as it will increase the customer satisfaction and their positive reviews will attract more customers in future.
Works Cited
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Cohen, Deborah A., and Kristin J. Leuschner. How Can Neighborhood Parks Be Used to Increase Physical Activity? 2018, https://www.rand.org/pubs/research_reports/RR2490.html.
The Basics of Strategic Planning, Strategic Management and Strategy Execution. https://www.balancedscorecard.org/BSC-Basics/Strategic-Planning-Basics. Accessed 31 May 2019.
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