Embed Size (px)
Citation preview
Selling Your BrandUsing retail to enhance your message and their experience!
Lisa Dalton, Visitor & Cultural Services Manager, Grapevine CVB
Thomas Wilhelm, Marketing & Branding Manager, Texas State Parks
Grapevine CVB - Retail Basics
Visitor Information Centers (VIC) perform many services and offer a variety of amenities to today’s
travelers. Today, our goal is to focus on the gift shop or souvenir component.
Background: Over 25 years of employment in the hospitality industry that includes 8 hotel brands, 2
CVBs.
Currently manage 2 gift shops for Grapevine CVB, Festival Souvenir Stores and Promotional Purchases.
Texas State Parks - Retail Basics
Site specific philosophy, currently 70 parks (of ~93) with a park store operation
“Extend or reinforce the experience”
State Park Store concept implemented in 1994, generated ~$100,000 in that first year
Last fiscal year generated $4.45 million, from a budget of $2.07 million
Average park revenue was $60,900 (range from under $1000 to a half million)
Only 9 parks have dedicated store staff
Revenue returns to state park general fund, doesn’t go back into the respective store
Why retail makes sense for tourism organizations
● Enhance the customer experience● Promotional opportunity● Revenue growth● Drive Brand Message
Retail and Tourism
● Shopping Ranks in the top 3 activities while traveling
● Texas over indexes in shopping● On average visitors spend ⅓ of their
budget on retail● Travelers who engage in shopping
spend more, stay longer and have a better overall experience
● Travellers plan to spend on retail - “Treat yo’self”
Product Development
● How to Locate & Work with Vendors● Product Design● Things to Avoid
How to Locate & Work with Vendors
Identify restrictions with organization or budget.
Identify goal of souvenir purchase.
Identify target audience.
Identify if its for profit or strictly promotional.
Identify quantity and quality of souvenir needed.
Resources:
Local, State or National
Website Companies (4imprint.com)
Custom made souvenir vs. “off the shelf”
Locating & Working with Vendors
● Confirm eligibility with organization
○ (Tax status, etc)
● Promo Vendors Vs Retail Vendors
○ Specialized
○ Art Capacity
● Retail Shows:
○ Dallas Market (Sepand Jan)
○ Smoky Mountain Gift Show (Nov)
○ Las Vegas Souvenir & Gift Show (Sept)
● Other considerations:
○ Minimums
○ Production Time
○ Shipping and Art fees
○ Art Rights
Texas State Parks - Retail Standards· Products mix:
O Mission relatedO Meets the Park’s customer mixO Facilitate education & interpretation of Park’s resourcesO Provide customer convenience (i.e. aspirin, ice, batteries)O Promote the Park, Texas State Parks, or TPWDO Commemorate a current or past Park visit or eventO Communicate Park’s themes or related Park programsO Reflect a natural look and/or the park’s natural appearanceO Reflect a cultural icon or historical representation
· Procurement Standards:O Meets customer’s expectation of brand and/or name identityO Represent the highest quality for the price pointO Be individually packaged for resaleO Provide value-added components for the customer
Not for Sale:O Non-renewable natural resources (products that are finite or consumed at a higher rate than nature can reproduce them)O Cultural resources, those products that exploit a culture or cultural artifact or encourage ground disturbance or illegal acquisition
Product Design Spectrum
100%
Cus
tom
Deve
lope
d Ite
ms
Nam
e Dr
op It
ems
Site
Rel
ated
Item
s
Conv
enie
nce
Item
s
Product Mix
“Your unique product mix is the story of who you are. Tell the right one and you’ve got a huge edge on the competition. Shelves full of almost-perfects and this-will-dos won’t get it done in today’s marketplace.”
Product Design● Create a top 10 list of what souvenirs make
sense for your organization
● Does your brand or message work on these
items?
● Graphic Artist inside your organization or
contract, make sure you understand the
design fees if you go with contractor
● Staples: Logo, City, State
● Sometimes website
● Solicit Bids● Ask about shipping costs● Ask about set up fees
● Register as vendor● Make bid selection
Grapevine Top Sellers
Location Factor:
● Airport
● Shopping Area
● Competition
Guidelines: Souvenir Items that will fit in a suitcase, $40 and under, not offered on Main Street and will bring fond memories of Grapevine.
Postcards, T Shirts, Caps, Wine Related Items, Shot Glasses, Coffee Cups.
Great way to offer inventory left from events.
Organization Logos
Experience (events/sites) Logos
● Is there potential to take your branded
merchandise on the road ○ Other shops○ Events
Event Merchandise
Evolution of Main Street Fest“Poster Shirt”
2016
2017
2018
Pre-sold on Website & Ticketline
Sold out at Festival Store
Flagship ItemsCollectible Annual Ornament
SP Ornaments generate ~$5,300 /yr
Things to Avoid● Competing with Community Partners
○ Consider offering local partners
products in your gift shop
● Items that they can’t easily take with them
○ Don’t get into the shipping game
(customers expect free and fast)
● Assortment Issues / Choice Paralysis
○ Wrong size/color/style
● Weak Merchandising
○ Bad displays and poor lighting make
people want to leave
● Overstocking
○ In general and “on the floor”
○ Dated Items
● Bad Access
○ If they can’t shop easily, they won’t
● Things they can get back home
Other Considerations ● Pricing● Staff and POS System● Online Capacity & Fulfillment
Determining Pricing● Use a standard markup, (we use 2x -2.5x)
○ “Keystone” = 2x
○ Average, some items can be marked up more
than others (food)
● Merchandising costs should be included to reach
ultimate profitability goal
● Price creates value, low price isn’t always the answer
● Have an official mark down procedure
● Selling at a loss is a poor use of funds, even if it does
have promotional value
● Track any promotional/discount campaigns
Logistics● Establish rules and policies
○ Funding, pricing, goals, revenue flow, taxes,
shipping
● Revenue Generation versus Break-even
○ Quantify the promotional value
● Staffing
○ Dedicated versus additional duty
● Online Sales
○ Fulfillment
● Point of Sale System
○ Off the shelf
○ Inventory Management
Let’s Play a Game!(for prizes)
What is it called when a customer has “too many” options to choose from?
Name 2 of the 3 cities where suggested retail shows take place.
What’s the industry term for marking products up 2x over wholesale?
Questions and Answers
Thanks!Contact us:
Thomas Wilhelm
Texas State Parks
512-389-8698
Lisa Dalton
Grapevine CVB
817-410-3185
