Taronga Zoo Assignment

Taronga Zoo Assignment Words: 3685

University of Technology Sydney Faculty of Business Pricing and Revenue Management Assignment By Gary Anderson (10543546), Robert Baker (10630426), Angela Chan (11080456), Fred Duarte (10796086), Mary Levy (10803928) Prepared for Dr Christine Ebling Due Date: 27th May 2010 CASE REPORT FOR TARONGA ZOO By Anderson Baker Chan Duarte Levy Associates (ABCDL) Contents 1. Taronga’s Zoo’s Strategy1 1. 1Strategic Approach & Price Position1 2. Current Analysis of Taronga Zoo’s Market2 2. 1Willingness to pay2 2. 2Consumer Behaviour and Current Pricing2 3. Pricing Decision and Future Pricing Recommendations4 3. 1Pricing for Families4 3. Pricing for Couples4 3. 3Increasing Repeat Visitation4 3. 4Managing Flow of Visitors5 4. Implementation and 4P’s6 5. References7 6. Appendices8 Taronga’s Zoo’s Strategy Our vision is to inspire Australians and our visitors to discover, explore, delight in and protect our natural world” Taronga Zoo Vision Statement (Clements 2009, pg4) 1. 2 Strategic Approach & Price Position Secondary research was used to establish Taronga Zoos competitors (Appendix 1), and their pricing versus Taronga Zoo, this provided an initial indication of Taronga Zoo’s price positioning in the market as a premium priced visitor attraction (Appendix 2).

This was confirmed through primary research, in the form of an online questionnaire (Appendix 3 ; 4). Refer to (Appendix 5) for key conclusions from this research. The design of Taronga Zoo’s marketing mix also reflects a premium position: 1. Outstanding product with extensive service and offerings. Although they have not made many changes with the animal exhibits they have innovated with items such as the twilight walk and roar and snore (Appendix 6). 2. Taronga Zoo’s price is constantly high versus their competitors and they generally have minimal special offers. 3.

Don’t waste your time!
Order your assignment!

order now

Exclusive Distribution: Only two locations, Mosman/Dubbo; limited ticket distribution channels, the website (via Ticketek), Taronga Zoo, Circular Quay Ferries and Captain Cook Cruises. 4. Heavy investment in their communication strategy with a targeted media selection. Taronga Zoo spent $88 million in 2009 on media covering a combination of television (82%), print (17%) and radio (1%) (Appendix 7). A SWOT analysis of the current price positions raised the following key points (Appendix 8): * Strengths: Established premium price positioning; strong price segmentation; and an on-line pre-pay option. Weaknesses: Lack of repeat visitation; lack of yield management; and lack of value communication; lack of price discrimination. * Opportunities: Repeat visitation pricing incentives; price bundling; and off-peak pricing. * Threats: Competitor pricing; and competitor discounts. Current Analysis of Taronga Zoo’s Market 1. 2 Willingness to pay Actual willingness to pay (WTP) may be different to the hypothetical WTP when customers visit the Zoo with their families. A price premium is a privilege given to products that are capable of providing useful benefits for consumers.

When consumers find those benefits valuable, the level of their acceptance of the price for the product becomes higher (Shirai 2010, pg 184). This holds true for Taronga Zoo as primary research shows they have a premium price and hold a high perceived value which forms a competitive advantage. Consumer Behaviour and Current Pricing Target segments have been based on the origin of visitors taken from the 2009 Annual Report (Appendix 9). When considering price perception it is important to separate these segments. Sydney Residents (51%) Cain and Meritt Jr. oted that surveys for metropolitan Zoos and Aquariums, showed that families with children were the most likely to visit Zoos (2006, p. 7. ). Taronga’s local marketing and primary research, supports that families and visitors with children form a core target segment with 50% of respondents visiting the Zoo with children aged from under 4-17. Primary research indicates that price is an important factor in the purchase decision, coming above the needs of entertainment for kids, implying the need to provide value for families (Appendix 10).

It also suggests that admission prices are considered high during the pre-purchase phase, with respondents selecting a lower price for each of the admission levels (Appendix11). However Taronga Zoo reports that overall satisfaction with price was high during the purchase/post purchase stage (Appendix 12). Motivational drivers coupled with the potential emotional ramifications of disappointing their family or partner may affect these reference prices resulting in a new adaptation level due to this immediate focal stimuli.

Reference prices can be made up of several components: the price most frequently charged; the price which the consumer last paid; the price of the service the consumer usually buys; the average price of similar services; the perceived quality of the service (Coalter 2004, pg 74). This may explain these lower pre-purchase reference price, as Taronga Zoos competitors charge less and primary research indicates this is an infrequent purchase. Taronga offers full price adult and child admissions plus a separate family rate, which is advertised under discount admissions (Appendix 2).

Prospect theory suggests that the family pricing would be more effective if the gains were highlighted by promoting the saving, as all transactions involve some form of risk and can be seen as a balance of losses and gains (Schiffman et al 2008, pg162). Prospect theory also suggests that discounts should be applied to most consumers, yet none is available for families of one child and two adults. Domestic Visitors – Intra and Interstate (21%) Tourism Australia in their report on Nature Tourism, identified domestic overnight visitors as adult couples 31% and families 31% (2009, p. . ). This corresponds with Tourism NSW data that showed in 2009 only 18% of visitors to Sydney were family groups (2010, p. 1. ). Yet Taronga Zoo offers no discounts to couples and marketing is focused on families, though there are a number of new programs that would cater for the couples market such as the twilight walks. Primary research has not provided sufficient information to draw further conclusions about domestic tourists see (Appendix 13) for further recommendations. International Visitors (28%)

Tourism data indicates that there will be a shift in international visitor demographics over the next 8 years (Appendix 14). Primary research has not provided sufficient information to draw conclusions about how this change in the origin of international tourists would impact pricing expectations see (Appendix 13) for further recommendations. Repeat Visitation Secondary research indicates there is a lack of repeat visitation (Appendix 15), yet this should form an important revenue stream for Taronga Zoo.

Repeat visitors not only represent a stable source of revenue, they also act as informally networks linking friends, relatives, and other potential visitors (Reid ; Reid 1993, pxx). Currently the only discount available for repeat visits is as a Zoo Friends member, which offers unlimited free entry into both Taronga and Western Plains Zoo for 12 months (Appendix 16). The annual report indicates that Zoo Friends only contributed 4% of Admissions Revenue (Clements 2009). Primary research also indicates hat the Zoo Friends program is not well known among target segments, with less than 2% of respondents replying that they were members of the Zoo and 4% of non-members responding they weren’t aware you could become a member (Appendix 17). Pricing Decision and Future Pricing Recommendations ABCDL’s research indicates that Taronga Zoo appear to be targeting the correct segments, however there are a number of areas they should consider developing more pricing tactics. 1. 2 Pricing for Families Current advertising for family admission fails to highlight the gains of the discount.

Pricing should also be reviewed as the current discount is less than the price of one admission, ABCDL propose that the new price should be equivalent to one free child admission and that this should be highlighted a gain. In addition, a second level of family pricing should be introduced to accommodate families with one child, and to match competitor-pricing tactics. Price Bundling tactics can also be used to create a gain as this will also fit with the current premium price position by not devaluing the current product pricing.

Currently bundling only includes ferry transport, ABCDL propose this should be extended to offers that are more enticing to local families many of whom will be travelling by car. Options may include * Family Ticket Bundling that includes Parking * Family Ticket Bundling that include Food Offers, such as 2 kids meals * Family Ticket Bundling with the Wild Aussies Children Shows 1. 2 Pricing for Couples There are no incentives for couples wishing to visit the Zoo at present yet they represent a key demographic among interstate visitors to Sydney.

ABCDL propose that price bundling be introduced for adult couples, such as partnering with another venue or Taronga product: * Purchase two adult tickets and receive a 10% discount on the Twilight Walk. * Introduce a Zoo Supper – purchase two adult tickets for day pass bundled with evening dinner. This could be good for couples who visit zoo in the afternoon. 1. 3 Increasing Repeat Visitation Research indicates repeat visitation needs increasing and that the current membership program is not well advertised or considered an option by many.

ABCDL propose that more promotion be developed around the existing membership program to raise awareness. Secondly, that alternative loyalty programs be introduced for those unwilling to pay upfront for an annual pass. * Club card – spend more than $260. 00 on admissions and Zoo merchandise and receive a free family pass (two adults with two children). * Discount vouchers – 5% off your next purchase * Purchase ten adult tickets and receive the eleventh ticket free 1. 4 Managing Flow of Visitors Temporal Pricing

The Zoo like many venues is affect by daily fluctuations in visitor numbers with weekdays having less visitors than weekends, and late afternoon see less new entrants to the Zoo. ABCDL propose that the Zoo consider introducing temporal pricing, whereby weekday admissions are lower than weekend and that admission after 3. 30pm is half price. Yield Management Taronga Zoo opens almost everyday of the year, and visitation is seasonally dependent. As indicated in the primary research weather is a key component of the decision process to visit the Zoo, yet no seasonal price differentiation is offered.

In addition, many exhibits are shut for renovation in quieter periods of the year. To encourage visitors in the off peak season of late autumn through to early spring, ABCDL proposes Taronga Zoo introduce Yield management pricing. Namely, that they offer lower admission prices in the cooler months, this price would be competitive against other indoor attractions, while maintaining its premium positioning. ‘Pay What You Want’ Trial Secondary Research has shown that Taronga Zoo visitation is both seasonally and affected by school holidays.

Regardless of this fluctuation, the Zoo has sunk costs it needs to recover. ABCDL propose a Pay-What-You-Want (PWYW) trial in an off-peak period. PWYW is a participative pricing model in which a buyer’s control over the price setting is at a maximum level; the buyer can set any price above or equal to zero, and the seller cannot reject it. The benefits to the Zoo can be; (1) attracting new customers, (2) accounting for customer heterogeneity and providing differentiated pricing and (3) providing useful information on customer willingness-to-pay. Kim, Natter & Spann, 2009). 1. Implementation and 3P’s ABCDL recommends the implementation of the remaining 3 P’s of marketing to complement the pricing recommendations above, a detailed outline is included in (Appendix 18) with a summary provided below: Product * New family ticket for 2 adults and 1 child * Introduction of Zoo Supper * New loyalty programs * More product bundling as outlined in recommendations Place * Development of the Zoos own e-commerce site for ticket sales Promotion

In line with its premium price position, the Zoo should plan a new media campaign to communication these additional price offers to its target markets. This should include selected print media, such as Sydney’s Child, The Australian, Sydney Herald and Sydney Telegraph. Supported by selective use of radio advertising and targeted TV PR, through programs such as: Sydney Weekender; Getaway; and Better Homes and Gardens. Additional promotional activity should include: * Communicating offers through park signage advertising the new pricing offers * Communication through marketing collateral such as admission ickets, additional posters, take home pack for targeting families with children, loyalty cards * Promotion of Free child admission with family pass (2 adults + 2 Child) * Off peak advertising messages – “Avoid the Crowds” * Direct marketing to Zoo database of bundles, loyalty offers etc * More emphasis on unique features such as zoo- petting and flight shows * More promotion of other Zoo programs and price bundles such as Twilight Walk * Clear communication of gains and savings on current price list communications * Emphasis on value in communications “Full day at the Zoo”

References ABS 2008, 3235. 0 Population by Age and Sex, Regions of Australia 2008, Australian Bureau of Statistics Canberra, viewed 1 May 2010, http://www. abs. gov. au/ausstats/[email protected] nsf/Products/3235. 0~2008~Main+Features~New+South+Wales? OpenDocument Cain, L. P. and Meritt, D. A. 2006, The Demand for Zoos and Aquariums, Cambridge University Press, New York Clements, Z. M. R. a. D. 2009, Taronga Zoo Conservation Society Board 2009 Annual Report, Sydney. Coalter, F. 2004, Reference Pricing: Changing Perceptions of Entrance Charges for Sport and Recreation, Journal of Managing Leisure, Vol 9, pp. 3-86 Department of Resources, Energy and Tourism (2010), Key Facts – Tourism, DRET, Canberra Kim, J. Y. , Natter, M. , Spann, M. 2009, Journal of Marketing, Vol. 73, no. 1, pp. 44-58 Reid ;Reid Schiffman, L. , O’Cass, A. , Paladino, A. , Ward, S. , Kanuk, L. 2008. Consumer Behaviour 4th Ed. , Pearson Education, Sydney Shirai, M. 2010, Analyzing Price Premiums for Foods in Japan: Measuring Consumers’ Willingness to Pay for Quality-Related Attributes, Journal of Food Products Marketing, Vol. 16, no. 2, pp. 184-198. Tourism NSW 2010, International Travel to NSW Year End December 2009, TNSW, Sydney

Tourism NSW 2010, Travel to Sydney Year End December 2009, TNSW, Sydney Tourism Research Australia 2009, Nature Tourism in Australia 2008 Snapshot, TRA, Canberra Appendices Appendix 1: Direct and indirect competitor set9 Appendix 3: Value of attractions9 Appendix 5: Key conclusions from primary research10 Appendix: Characteristics of marketing mix in a premium price positioning11 Appendix: List of innovative products11 Appendix 8: Media Coverage12 Appendix 9: SWOT Analysis13 Appendix 10: Origin of visitors to Taronga Zoo14 Appendix 11: The top five most important reasons for visiting zoos:14 Appendix 12: Reference Pricing14

Appendix 13: Visitor Customer Satisfaction Levels – 12 month average:15 Appendix 14: Limitations and Further Research Requirements15 Appendix 15: International visitors16 Appendix 16: Taronga Zoo Visitor Numbers17 Appendix 17: Zoo Friends Pricing19 Appendix 18: Membership and Awareness of Zoo Friends Program19 Appendix 19 – Detail 3P’s Implementation20 Appendix 1: Direct and indirect competitor set Source: ABCDL Desk Research, 2010 Appendix 2: Competitor Pricing as of 30th April 2010 Source: www. taronga. org. au, www. myfun. com. au, and www. featherdale. com. au.

Appendix 3: Value of attractions How would you rank the value the following attractions for value 1 being the worst value and 10 being the best value? | Answer Options| 1| 2| 3| 4| 5| 6| 7| 8| 9| 10| Rating Average| Taronga Zoo| 3| 4| 8| 11| 44| 29| 30| 24| 12| 8| 6. 14| Sydney Bridge climb| 10| 15| 16| 18| 28| 20| 18| 22| 5| 21| 5. 65| Powerhouse Museum| 8| 6| 17| 11| 47| 24| 26| 21| 8| 5| 5. 58| Sydney Aquarium| 8| 8| 14| 12| 60| 21| 22| 18| 5| 5| 5. 39| Maritime Museum| 7| 11| 19| 19| 59| 20| 16| 11| 2| 9| 5. 12| Featherdale Wildlife Park| 10| 18| 13| 14| 53| 19| 24| 15| 5| 2| 5. 5| Luna Park| 10| 14| 23| 27| 38| 20| 22| 13| 2| 4| 4. 86| Ocean world Manly| 7| 12| 21| 17| 72| 18| 15| 7| 2| 2| 4. 79| Sydney Wildlife World| 6| 21| 17| 19| 64| 17| 16| 5| 3| 5| 4. 77| Sydney Tower| 9| 15| 29| 18| 52| 15| 15| 12| 5| 3| 4. 76| Source: Taronga Zoo Consumer Survey (ABCDL 2010) Appendix 4: Value Map Source: Taronga Zoo Consumer Survey (ABCDL 2010) Note: In developing the value map we utilised average price of adult, child and family (2 adult & 2 child); only direct competitors used. Appendix 5: Key conclusions from primary research 1.

Featherdale Wildlife Park, Ocean World and Sydney Tower have a value advantage position as they have higher perceived value than perceived price; 2. Sydney Aquarium and Sydney Wildlife World are within the value equivalent line indicating they are in an optimum price position; 3. Taronga Zoo is in a premium position with high perceived value and perceived price. Source: Taronga Zoo Consumer Survey (ABCDL 2010) Appendix 6: List of innovative products * Australian Walkabout * Boral Youth @ the Zoo * Family friendly NYE events * Fearless at Taronga * Roar and Snore * School holiday programs – Zoo Adventures Short Courses – Animal Training and Photography * Sunset Walks * Twilight Concerts * Twilight Safari * VIP Aussie Gold * Wild Aussies Children’s Shows * Wild Australia * Zoorise * Zooper Birthday Parties * Zoosnooz Source: Taronga Zoo website Appendix 7: Media Coverage Source: Taronga Zoo 2009 Annual Report – (Clements 2009) Appendix 8: SWOT Analysis Appendix 9: Origin of visitors to Taronga Zoo Source: Taronga Conservation Society Australia 08-09 Annual Report (Clements 2009, p. 16. ) Appendix 10: The top five most important reasons for visiting zoos: 1. Fun 2. Opportunity to see/learn about/photography animals 3. Nice Weather 4.

Price 5. Entertainment for the kids Source: Taronga Zoo Consumer Survey (ABCDL 2010) Appendix 11: Reference Pricing What price would you pay? Admission Type| Mode Response| Actual Price| Adult| $26-32| $41| Children (4-15)| $19-25| $20| Family (2 Adults ; 1 Child)| $54-60| n/a| Family (2 Adults ; 2 Child)| $68-74| $104| Student| $19-25| $25| Senior| $19-25| $25| Source: Taronga Zoo Consumer Survey (ABCDL 2010) Appendix 12: Visitor Customer Satisfaction Levels – 12 month average: Source: Taronga Conservation Society Australia 08-09 Annual Report (Clemenents 2009, Pg. 16. ) Appendix 13: Limitations and Further Research Requirements

The market research into Taronga Zoo was subject to limitations. Time and money were limited which affected the scope of the survey. As a result sample size was unrepresentative of the number of annual visitors at 0. 0125%, and biased toward unmarried, NSW residents without children. In addition, 35% of respondents had not visited Taronga Zoo in the past 5 years and only 5% of respondents were international residents. The market research also did not provide adequate data on international visitors or detailed information on intra/interstate adult couples both of whom represent a key target segments.

Further research is recommended for both these key segments to establish both perceptions on price and value, and pricing preferences. The experience of the researchers can affect the quality of the initial research design and subsequent questionnaire so it is important to note that the researchers in this instance are relatively inexperienced. In addition, it was not possible to organise a focus group during the exploratory stage, which would have aided the project, and potentially highlighted other areas for research. Appendix 14: International visitors

In 2009, the origin of the top 4 tourism segments to Australia and Sydney were the UK, China, New Zealand and the US. Chinese tourism grew by 28. 5% Origin of international visitors to Sydney 2009 Source: Travel to Sydney Year Ended December 2009, (Tourism NSW 2010, p. 2. ) Inbound travel to Australia, top 10 markets, 2009 Source: Key Facts – Tourism (Department of Resources, Energy and Tourism 2010, p1)) Future forecasts predict China will grow to the largest segment by 2018. Tourism from India is also predicted to increase while Middle Eastern tourists will enter the top 10.

This will represent a significant change to Taronga Zoo’s current target segments, and impact consumer needs, concepts of value and reference pricing. Australia’s top 10 inbound markets, ranked by value, 2018 Source:Key Facts – Tourism (Department of Resources, Energy and Tourism 2010, p2) Appendix 15: Taronga Zoo Visitor Numbers Taronga Zoo noted in their 2009 Annual Report, that domestic travel remained buoyant in comparison to international tourism, which lead to greater competition for the domestic market among Sydney attractions (Clements 2009).

However according to Tourism NSW, overall travel to Sydney in 2009 was down for both the domestic and international segment (2010 p1 ;2) Domestic Overnight Visitors Source: Travel to Sydney Year End December 2009 (Tourism NSW 2010, p1) International Overnight Visitors Source: Travel to Sydney Year End December 2009 (Tourism NSW 2010, p2) As can be seen visitation to Taronga Zoo (including Western Plains) has remained fairly stagnant since 2002/2003 around the 1. 5-1. 6 million mark. Source: Taronga Conservation Society Australia 08-09 Annual Report (Clemenets 2009, Pg. 6. ) Tourism levels for Sydney have fluctuated in this period while the population of NSW has risen. According to the ABS, since 30 June 2008 the population of NSW has increased by 311,600 people or 4. 7 %,(ABS 2009). This correlates to the small growth seen in visitation numbers from 02/03 to 08/09, which averages at 2% and suggests that any slight changes in visitor numbers to Taronga Zoo have been related to population and tourism changes rather than an increase in repeat visitation or successfully attracting new target segments. Appendix 16: Zoo Friends Pricing

Appendix 17: Membership and Awareness of Zoo Friends Program Members| 2%| Non-Members| 98%| Main reasons for becoming a member were: Had a child| 40. 0%| To enjoy the animals| 40. 0%| To support the zoo| 20. 0%| Main reasons for not becoming a member were: Don’t frequent enough| 52. 5%| Not interested| 36. 1%| Other – Didn’t know existed| 4%| Source: Taronga Zoo Consumer Survey (ABCDL 2010) Appendix 18 – Detail 3P’s Implementation Product A new product “family ticket with 2 adults and 1 child” should be included as part of the product range

Taronga Zoo should consider creating unique experiences like ‘Zoo Supper’, A loyalty card scheme with a printed ‘Club card’ and ‘zoo stamps’ needs to be developed to promote repeat visitation. Additional value driven ‘Food stamp’ and ‘next purchase’ discount vouchers will also need to be printed. Place Currently, Taronga distribute via direct sales on-site at the Zoo and over the Internet through ticketek. com. au. Consideration should be given to developing an e-commerce site within the existing Taronga Zoo website to capitalise on sales from their web traffic.

Website visitors could be rewarded with controlled temporal pricing reductions. Promotion ABCDL recommend that Taronga Zoo recommendation additional communication of price offers through park signage such as: Free parking with family ticket; 2 x Free kids meals with a family ticket; and (4) 10% discount on the Twilight Walk etc. ABCDL recommend that Taronga Zoo promote these price changes by developing designs on all printed tickets to advertise the new value bundled pricing options. Additional posters, flyers and signage will need to be developed nd displayed around the zoo, particularly the entrance and exit points. Consideration of a take home pack may need to be considered, targeting children. ABCDL recommend communication of the gain of a “free child” when purchasing a family ticket, collateral, signage and website and should be communicated through other channels including ticketek. To assist in managing the quiet periods at the zoo, advertising material could be developed to promote the benefits, including the ‘lack of crowds’ during the off-peak seasons. This messaging may appeal to families wanting to avoid the foot traffic during peak season.

The Zoo should be gathering consumer information in order to build a database and communicate via direct mail techniques various offers and bundles as well as the temporal pricing in order to entice repeat visitation. More emphasis should be placed on the Zoo’s unique features such as Zoo-petting activities, and flight shows. The zoo should implement a new communication strategy that bundles and quantify the clear number of product offerings such as Twilight Walks and roar ; snore. Taronga Zoo’s price lists need to change at the zoo and on ticketek. om. au to reflect the new pricing structure. The Zoo should communicate its new prices and clearly communicate the percentage of savings that consumer has made when they purchase pricing at the various display points to encourage a positive gain/loss experience. E. g. Purchase a family ticket (2 adult and 2 child) and you will save the value of one child. The communication messages should promote ‘a FULL day at the zoo’, emphasising that Taronga Zoo is a much longer experience than its competitors, therefore offering value for money.

How to cite this assignment

Choose cite format:
Taronga Zoo Assignment. (2020, Nov 22). Retrieved January 23, 2021, from https://anyassignment.com/samples/taronga-zoo-6736/