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The CN Tower A Clarity of Offer Case Study

The CN Tower A Clarity of Offer Case Study. Prepared by High Traffic Marketing Institute HTMI. CN Tower. Built by CN as a communications tower Broadcast facilities: UHF, VVHF Television FM Radio, Microwave transmissions; Fixed Mobile Systems. Outstanding CN Tower Facts.

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The CN Tower A Clarity of Offer Case Study

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  1. The CN TowerA Clarity of OfferCase Study Prepared by High Traffic Marketing Institute HTMI

  2. CN Tower • Built by CN as a communications tower • Broadcast facilities: UHF, VVHF Television FM Radio, Microwave transmissions; Fixed Mobile Systems

  3. Outstanding CN Tower Facts • The tallest free standing structure in the world - 553.3 meters • Designated a Wonder of the Modern World by American Society of Civil Engineers - 1995 • Can see 160 kilometers from observation deck to Niagara Falls and New York State • Attendance: 2,000,000 a year • Restaurant rotates 360 degrees every 72 minutes • Six glass-faced elevators travel at22km/hr to reach observation deck in 58 seconds • Total staff: 400

  4. Construction Facts • Construction: Feb 1973 - June 1976 • Construction employed 1537, working 3 8-hour shifts a day • Cost $63 million • Built to withstand an 8.5 earthquake • Upper part can withstand winds of 418 km/hr • 2.79 inches within plumb or true vertical • Total weight 117,910 metric tons • 40,523.8 cubic meters of concrete • Tensioned steel: 128.7 kms • Reinforcing steel 4535 metric tons • Hollow 1200' hexagonal core provides stability and flexibility to the full height tower • Glass floor is 23.8 meters of solid glass and five times stronger than the required weight bearing standard for commercial floors

  5. The Problem In 1974, A Wonder of the Modern World was being constructed without a marketing or merchandising plan.

  6. HTMI was retained to define “the entire visitor experience of going to the Tower” To achieve this objective, it was necessary to: 1.Define a directional framework that specifically articulated the philosophy of the Tower. 2.Define the criteria within which specific merchandising and commercial decisions could be made to achieve compatibility with both the Tower’s economic and philosophical requirements. 3.Develop a series of alternative merchandise and attraction directions or themes 4.To translate the selected theme into the elements of the total visitor experience.

  7. The following was undertaken after a detailed analysis of secondary research compiled on the destination industry, consumer, competition and its historical growth and performance. Clarity of Offer ProcessStep One

  8. “Clarity of Offer” ProcessThe Crucial Step Two Armed with the information, HTMI and CN Tower management engaged in a month-long process defining the CN Tower’s philosophy. As the basis of the decision criteria/guide to decision making, the philosophy expressed the goals and values important to both protect and express in all of the Tower’s marketing activity.

  9. “The Tower is recognized as a curiosity piece which will generate a great deal of tourist traffic. Its excellent design and quality construction make it probable that in years ahead, the Tower will become an internationally recognized symbol for Toronto, Ontario, and Canada. Finally, by virtue of its name and location, the Tower will reflect strongly on the CN itself. “Not only is the Tower an architectural curiosity, a social statement and a focal point for CN, but it is a major engineering feat, whose purpose is to further the communications effort within its environment. In its construction it is futuristic, in a realistic way. Further, it is functional and innovative in how it has come to grips with the series of problems it has faced. “Similarly, the resolution of the interior environmental and merchandise problems must be equal to the Tower itself in the way it represents its communities and in its futuristic but functional resolve of the normal high traffic problems.” CN Tower Philosophy

  10. The criteria in establishing the environmental and merchandise/attraction thrust of the environment must reflect the philosophy of the Tower. Each decision should be considered in light of the following: • Does it enhance the consumer’s perception of:                                 Toronto?                                 Ontario?                                 Canada? • Does it correctly reflect the image of the CN? •  Is it futuristic in how it solves the problem? •  Is it realistic in how it solves the problem? •  Is it functional in how it solves the problem? •  Is it innovative in how it solves the problem? •  Is it simple and capable of handling high traffic in an uncomplicated manner? •  Is it profitable and does it maximize the dollar volume and dollar profit potential of the area? CN Tower Decision Criteria

  11. Series of Alternative Themes/Marketing Positionings A series of 20 alternative Tower “entire experience” or “theme” alternatives was developed. In turn, four alternatives were developed in greater detail. 1.Tourist and Travel 2.Toronto  3.Canada  4.The Entertainment Centre

  12. The Entertainment Centre Positioning • To create a total year-round entertainment environment that is an attraction itself apart from the Tower, that caters to tourists and locals alike; that is alive and shifts its profile to meet the public’s entertainment needs by time of day. The essential nature of this approach is commercial versus non-commercial. It will have its high points, but basically, it must have a human, middle-class and/or common touch. • It has a personality – a daytime personality and a night time personality. During the daytime the focus is on the Tower and family fun. As we approach 10 o’clock in the evening the focus swings to an adult night life centre.

  13. Clarity of Offer Process: Step ThreeSpecific Marketing/Merchandise/Attraction Recommendations The recommendations covered every aspect of the Tower’s interface with the public including: A.Parking Lot B.The FrontStreetBridge • Reception Area D.Lower Mall E.Upper Mall F.Retail Space G.Below Pool Space H.Tower Pool Bar I.Main Observation level J.Upper restaurant K.Commercial Advertising Space L.Staff M.Ticket Marketing N.Major Entertainment Areas O.Sound/Audio P.Lighting Q.Flooring

  14. Step Three - Examples of Decision Criteria to execute programme recommendations  The Retail Shop The pace is set in retail by the merchandise offered. Souvenirs are difficult given that typically they trade on traffic and tend to be parasitical, and predominantly made off shore. The decision criteria were used in the decision-making process. Results: Management • Cara, a Canadian company was selected as the contractor. Merchandise • In line with the philosophy and decision criteria disciplines were established and formed a part of the contract: • All merchandise carried had to be manufactured in Canada and identify with and/or represent the principle constituents: Tower, Canada, Province of Ontario , Toronto. Profitability • CN Tower received 25% of gross sales… very profitable arrangement for both parties. 

  15. Step Three - Second example: Decision Criteria to execute programme recommendations The Front Street Bridge A task was given to the architect to design a bridge glass structure that would take on a neon effect at night – an umbilical connecting Toronto with the Tower. HTMI was asked to work out a way of paying for the bridge – it was not in the original budget. Working with the architect an integrated advertising signage system of 50 individual back to front fully lit advertising panels that served to light the bridge provide a solid revenue stream. The decision criteria were used in the decision making process with the following results: Management • A Canadian advertising sales company was contracted. • Advertising Panels • In line with the philosophy and decision criteria disciplines were established and participating advertisers had to meet the criteria. • Profitability • The CN Tower received a 40 – 50% commission on gross sales which proved to be a very profitable arrangement for both parties. In the case of the Tower over a three to five year period the revenues received more than paid for the cost of the bridge. 

  16. Clarity of Offer Process: Step FourManagement HTMI’s involvement in management had two dimensions: • On-going coordination of marketing decision-making process • Assisting in hiring and contracting of program management.

  17. CN Tower Gift Shop Front Street bridge to CN Tower

  18. Summary • Significant portions of the recommendations were executed and expanded upon. • Implementation of the programme commenced in the Fall of 1974 and was completed in June 1976. • The process was ongoing. • Subsequent to the opening and well into the 1980s, the marketing and merchandising decision-making process was managed within the decision criteria. HTMI participated fully in this process for approximately 10 years.

  19. Contact Us High Traffic Marketing InstituteAttention: Richard Mathieu or Leonard Knott12 Sullivan StreetToronto Ontario M5T 1B9Tel (416) 807 8354E-mail rmathieu1@bell.net or leonard.knott@gmail.com www.htmi.ca

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