Orlando Magic: Product Differentiation Strategy
Pride and Ferrell (1987) have noted that when a new product is introduced to a market, it must be differentiated from similar products, including those produced by its manufacturer or offered by its service provider. In the case of Orlando Magic season tickets, the new product being offered consists of two separate entities: 1) a set of varied ômini-seasonö ticket packages offered combinations of three, six, and nine games with the combinations selected by the marketing department, or a ôbuild your ownö nine-game mini-season ticket package at a higher price; and 2) mini-season ticket packages of three or six games focusing on Hispanic fans, with the ticket packages provided ticking on game days when special ôLatino eventsö are being held.
According to Haner (20040, the Hispanic and Latino market in the Orlando Magic service or cachement area is large and growing significantly. Appealing to this potentially important market segment will require the marketing arm of the team to first develop a viable product and then differentiate and position this product properly. First, the linkage of the mini-ticket package to the planned Latino-themed events differentiates this season ticket package from the other new packages being offered by the team.
Second, this product should be positioned within the context of the teamÆs larger outreach effort, which involves special events and other opportunities for the team to make a connection with the local Hispanic/Latino community. This effort should be advertised on local Hispanic radio, television and cable stations and in businesses in the Hispanic community as well. As Goldratt (1992) commented, maintaining a sharp focus on the goal of a new marketing effort or any other corporate transformation requires targeting activities to maximize the likelihood of success.
To differentiate the first set of mini-season ticket...