Over the past 20+ years, H2R has been able to assist some amazing companies. Some large. Some small. Some national. Some local. Our expertise means that we’ve had the opportunity to help many organizations with issues over the years. And we’ve found that no one solution can fix every problem. However, there are a few clients that stand out in our minds that have truly used research to make changes for the betterment of their organizations.
Newport Beach & Company
In early 2015, H2R was contracted to conduct a Marketing & Media Effectiveness Study for the Newport Beach & Company’s Spring Shoulder Season Leisure Marketing Campaign. The research showed that the campaign generated excellent awareness, reach and incremental travel revenue—all well above the H2R Proprietary Industry Norm for destinations with similar budgets. Additionally, the efficiency of the campaign was excellent and returned $76 dollars in incremental spending for every dollar spent on marketing. Extrapolated across incremental visits, this equated to $21.5 million in visitor spending that would not have occurred without that marketing campaign.
Not only was research used to craft this excellent campaign but also to measure its success. And, in January of 2016, the campaign became a finalist for the Best Marketing Campaign in the California Poppy Awards. Referencing the finalist award, Doug McClain said,
Each year, Newport Beach and Company uses the previous year’s research and recommendations from H2R to create better and more efficient marketing campaigns. Armed with thorough research with proven results, Newport Beach knows the right mix of media that will bring incremental visitation and spending to the Newport Beach area.
Hershey Entertainment & Resorts
In 2015, the Christmas season was coming up for Hersheypark theme park in Hershey, PA. The price for visiting during the Christmas season hadn’t increased for many years, and park operators needed to know how that price was perceived in the marketplace, the price elasticity of demand and the intent to purchase tickets for the coming season. Additionally, new product was being considered for the park, so would this warrant an increase in price? H2R Market Research recommended conducting Pricing Research to answer these questions.
The research used several different pricing models to test the elasticity of the prices for Hersheypark during the Christmas Candylane festival. Results indicated that while an increase in price would decrease demand slightly, the increase in revenue would more than make up for any losses in attendance. Additionally, the optimal price point for guests was nearly $2 higher per ticket than what was currently being charged, indicating that guests were willing to pay more for their tickets to the park.
In the end, Hersheypark decision makers were able to increase the price of a general admission ticket to the park by $2 that year, bring in more than 300,000 guests for the festival and generate an additional $600,000 in ticket revenue. All because of a relatively small investment in research to ensure their decisions were the right ones before moving forward.
Leslie Ferraro, Director of Marketing for Hershey Entertainment and Resorts had this to say about working with H2R: