Six Flags Case

Dear Ms. Hoover,

As you requested on September 15th, I am sending you a report which weighs the benefits and downsides of the preferred guest card you are considering to launch, and I hope that the information will help you make the right decision.
After having worked for 5 years at Six Flags as a marketer in consumer research, I have dealt with several cases similar to yours. Therefore, I firsthand know how difficult it is to meet everybody’s expectations. However, I would like to stress that the issue you are facing is directly related to my field of expertise. Throughout this report I will work towards a potential solution to your problem which hopefully will facilitate your decision making process.
It is important to mention and
understand Paradise’s historical backgrounds and its problem before one draws any conclusions. Paradise Parks was founded by Francis Hoover and started out during the 1960s. The main concept the business tries to communicate is that families visit the theme park aiming to relax and get away from the habitual and stressful everyday life. It stands for an unforgettable experience full of adventure and fun.
However, tastes are ever changing and competition has become tough; the business is facing financial difficulties.
One way how to fund money into the business is through the introduction of the preferred guest card. This card promises the customer free parking spaces, no queues, and immediate seats in restaurants within the parks. Moreover, revenues are expected to grow and probably more important is the idea of attracting a new high-income target group. Even though the benefits seem to be very attractive, there are also drawbacks such as rising discrimination and conflicts between customers with and without a preferred guest card. Another very important question to be answered is, whether Paradise Parks is ready to make some changes in the business, such as launching the preferred guest card or if it plans to continue operating according to its
traditions.

Before analyzing the up- and downsides of the preferred guest card I would once again like to stress the business purpose of Paradise Parks: It stands for having fun an experiencing an adventure even if it is short and lasts for one day. On the other hand, we have to keep in mind that the business is suffering financial difficulties which need to be solved. The majority of Paradise’s parks customers (excluding children) are parents with an average income, meaning that parents coming to visit the park with their children are often economically restrained.
The preferred guest card, as afore mentioned, promises a lot to the card holder such as free parking spaces, no queues and immediate seats in restaurants which seem to be very alluring.
Furthermore, it is to attract a new market segment consisting of rich people. However, the drawback is that these people are often timely restrained because of their jobs and would probably visit the theme parks not as often as average income customers. Even though the preferred guest card is developed for customers to achieve benefits, it also will raise attention to discrimination within the two customer groups who are or not in possession of such card. Customers not having such card will perceive immense disparity treatment and might develop a negative image of Paradise parks, which then would have dramatic consequences for the business losing customers. One very important aspect to be mentioned is the fact that the concept of the preferred guest card will merely smooth or reduce the waiting line problem for card holders only, but it is incapable of solving this ever going problem for all customers. Important is to notice that the disadvantages outweigh the benefits in the case of the preferred guest card, since the business has comparably a huge portion of average income customers than high income ones, meaning that the majority will suffer and not benefit from such
invention.
One alternative is to design interactive waiting spaces where all customers can participate in activities instead of waiting in queues while they enter the actual theme park. The disadvantage in such idea would require Paradise to invest in short-term by loaning money in order to realize the new business idea. However, this will pay off in long-terms since queue problems will be abolished and what is probably more important, none of the customers has to suffer unequal treatment. Another positive outcome from such invention will involve the expenditure customers will make while they wait in such interactive sports. Parents will spend little money on keeping their children active and calm while waiting for a ride in the actual theme park area . The overall results will benefit all sides; parents, children and the business.

After having analyzed Paradise Parks’ current position it quickly becomes obvious that there is need for changes which are to improve and not completely change the whole image of the business. The preferred guest card implies a change, yet, not good enough to prove potential in long-terms. Therefore, I do not recommend this alternative since the business has to be very careful when making decisions. Therefore I suggest to prove the competitiveness and functionality of such idea by inserting tests. After having completed this stage I further would recommend to evaluate the tests and if needed, refine and shape the new business idea.