Volume 3, No. 18. September 26,2003
Reversal of fortune
Whether your economy is wracked by war, SARS, heat, rain or a currency crisis,
outside the-box thinking is one of the surest means to survival. Or, in the
case of Parque DA Monica in Brazil, backward thinking.
In a country still
struggling to regain economic vitality, the two indoor family amusement parks—one
in Sao Paulo, the other in Rio De Janeiro—themed after the popular Brazilian
television character Monica were seeing a 40 percent increase in sales the first
half of this year compared with last year. Considering the ailing Brazilian
economy last year that is only now beginning to recover, one might think that
40 percent increase figure a bit skewered by perspective.
Not so, said Francisco
Lopes, Parque DA Monica’s CEO. “Last year was tremendous,” he
said of his properties which attracted some 1 million guests. This year simply
has been even better.
The secret has
been a shift in marketing strategy. Instead of going after families with more
money, the 10,000-square-meter (107,639-square-foot) indoor parks for children
2 to 10 years old targeted families with little money, especially during off-peak
periods. “They pay less, but it’s off season,” Lopes said. “And
when they are inside the park, they will buy and eat and drink. They usually
spend more per cap than the usual customer. It’s understandable; this is
the occasion they can come to the park. They don’t know when they will
come back.”
Lopes has used
birthday parties, strong targeted advertising and school groups to promote the
Parque DA Monica to lower income families. For school groups he altered his
live shows to take on educational themes, such as recycling. The parks have
also launched driving schools—“We teach them what’s important
in terms of driving and how children must behave while their parents are driving,”
Lopes said—concluding with the opportunity to drive tyke-size cars in a
mini city. This summer Parque DA Monica introduced “Engineers of the Park”
where children work together building structures with plastic blocks and fabric.
The Sao Paulo Monica
is celebrating its 10th anniversary this year, which has also contributed to
the company’s growth. All year the park has offered parades featuring the
Monica characters, it is putting on a Halloween party next month and a “big
event at Christmas,” Lopes said.
Next year should
be even better, if the continent’s economies rebound. Overall, the amusement
industry in Latin America has been saddled with the countries’ high unemployment
and devalued currency, which makes capital improvements too costly vis-à-vis
the admission prices parks can charge guests. The upside is that attendance
continues to grow at amusement venues because “South Americans like to
go outside and celebrate and have fun,” Lopes said. As Brazil’s government
continues to slash interest rates, Lopes sees investors coming back to the market.
“I believe the Brazilian market has tremendous potential for the future.”
Even if it does not, Parque DA Monica should fare well because of the management philosophy and marketing acumen of its operators. “A good marketing strategy along with hard work, recognition of good employees and training; those are all things we know,” Lopes said. “But we also have focus. We know what our customers want and we try to reach these targets. I don’t believe in magical formulas.”
THE LOOP is written and produced by Eric Minton, Minton Enterprises, LLC. To see more examples of Eric Minton's work and Minton Enterprises services, visit www.ericminton.com.
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