Unfortunately for producers of high-end leisure, luxury and sports goods, such as boats, jet skis, motorbikes, golf buggies etc, they are the first to suffer in times of economic downturn. As we have just seen with the GFC, major players in the marine game locally and abroad have had to either shut their doors or severely cut back on expenditure due to a downturn in orders. No matter your opinion on the severity and length of the GFC here in Australia, the fact is that the fear of the GFC was enough to scare people to stop buying these types of products. Add to this those people who were facing slightly harder times, the first things that they sold off was their flashy boats and cars. This means that not only is demand down, but there is also a massive surplus of supply. (Hint- just like shares, economic downturns can be a great time to pick up a boating bargain!)
What can marketers do to tackle the lopsided supply and demand situation?
Well, make the product more essential to the customer!
Maslow's widely accepted hierarchy of needs theory (1943) says that all people have 5 layers of needs, and that until the most basic and low level needs are satisfied they won't move on to the next level of needs. The 5 layers are:
- Physiological needs- food, water, air, sleep, etc. Once met people move onto;
- Safety needs- shelter, financial security, health and well-being, etc. When people feel safe they move onto;
- Social needs- friends, family, etc. After someone feels a sense of belonging they move onto;
- Esteem needs- attention, recognition, reputation, achievement. After someone feels 'important';
- Self-actualisation needs- realising one's full potential.
Most high-end luxury, leisure and sport products currently sit in the level of esteem needs. The old saying "big boys toys" couldn't be a better representation of that market (not just boys anymore of course!). You know who I'm talking about, those guys and gals that go out and buy the flashy big new boat or car to satisfy their esteem needs of attention, recognition, reputation, achievement etc. However, when times get a bit tougher;
a) they're not entering the market, and
b) those that have may be tempted to sell of and exit so that they are better equipped to serve their more basic needs.
The key in leisure marketing and sports marketing is to value add so that these luxury items satisfy more than just esteem needs.
By creating things like owners clubs, boat clubs, social riding clubs etc, these items begin being used to satisfy social needs as well as esteem needs and they'll be seen by owners and potential owners as a more essential part of their lives. On top of that people will be using their "toys" more often leading to less post purchase dissonance and higher satisfaction as well as more potential for upgrades and accessories etc.
Get their friends and families involved!
Clubs are just one idea, if you'd like to discuss other ways how we can help improve the need for your product, please give us a call.
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