Taronga Zoo
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 Strategy 1 1.1 Strategic Approach & Price Position 1
2. Current Analysis of Taronga Zoo’s Market 2 2.1 Willingness to pay 2 2.2 Consumer Behaviour and Current Pricing 2
3. Pricing Decision and Future Pricing Recommendations 4 3.1 Pricing for Families 4 3.2 Pricing for Couples 4 3.3 Increasing Repeat Visitation 4 3.4 Managing Flow of Visitors 5
4. Implementation and 4P’s 6
5. References 7
6. Appendices 8
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. Exclusive Distribution: Only two locations,
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 Strategy 1 1.1 Strategic Approach & Price Position 1
2. Current Analysis of Taronga Zoo’s Market 2 2.1 Willingness to pay 2 2.2 Consumer Behaviour and Current Pricing 2
3. Pricing Decision and Future Pricing Recommendations 4 3.1 Pricing for Families 4 3.2 Pricing for Couples 4 3.3 Increasing Repeat Visitation 4 3.4 Managing Flow of Visitors 5
4. Implementation and 4P’s 6
5. References 7
6. Appendices 8
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. Exclusive Distribution: Only two locations,
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/abs@.nsf/Products/3235.0~2008~Main+Features~New+South+Wales?OpenDocument Cain, L.P 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.73-86 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 Source: ABCDL Desk Research, 2010 Appendix 2: Competitor Pricing as of 30th April 2010 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. Source: Taronga Zoo Consumer Survey (ABCDL 2010) Appendix 6: List of innovative products