BRAND!T Marketing Targeting the right message at the right time.

Case Study: Pricing EZ Tan

EZ Tan was not generating the traffic or memberships needed to profitably operate its four salons. EZ Tag also lagged behind the industry in monthly automatic draft payment members. At the same time, EZ Tan's major competitor, with many salons and 70% share of market, was heavily advertising on radio and television. EZ Tan was clearly at a competitive disadvantage.

Work Plan
To measure EZ Tan's level of competitiveness, Brand!t conducted a thorough assessment of competitors salons and product offerings. This revealed that EZ Tan was competitive in terms of salon atmosphere and services. It also revealed that the variety of packages and pricing was complicated and confusing across the industry, offering rates on a daily, weekly and monthly basis. Additionally, a standard activation fee was typically used as a "price reduction incentive" during member sign-up negotiation.

Solution
Brand!t's recommendation was to differentiate EZ Tan by initiating the following:

  • Simplify the package pricing to two offerings, "Basic Tan" and the more expensive "Perfect Tan".

  • Gain a competitive edge and remove a member sign-up barrier by eliminating the activation fee.

  • Target the industry core customer, women 18-34 years old.

  • Communicate the new offerings by concentrating a direct mail effort in a three mile radius of the four salons.

  • Increase customer impressions by running the campaign in waves of three mailings.

Result
New membership increased 120% for the eight week period versus the previous eight weeks. 94% of new members signed up for monthly automatic draft payment, raising the overall to 83%, exceeding the industry average by 16%. "Perfect Tan" membership grew to 43% of total, exceeding industry norms. And bottom-line… EZ Tan reached profitability in all four stores.

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