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, 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).
