Ship-to-Shop
Horton Plaza
San Diego
In 1993 California banned gaming on any ships that dock in more than one
state port while en route to a foreign destination. Consequently, most
cruise ships bypassed second and third ports of call in California--and
San Diego lost millions of dollars in tourism revenue.
Horton Plaza and its retailers lobbied heavily to overturn the
legislation, which finally was reversed in January 1997. As a result,
some 350,000 cruise-ship passengers eventually would return to the area
each year, bringing with them a $19 million annual economic impact.
But the return of the cruise ships was no guarantee of an increase in
sales. To ensure that its retailers benefited from the increased tourist
market, Horton Plaza's marketing and management would have to find a way
to encourage the cruise-ship passengers to shop at the center.
OBJECTIVES
1. To increase sales by 5% on the days cruise ships dock in San
Diego, and increase overall center sales by 4%.
2. To establish a partnership with the San Diego Port and the Royal
Caribbean cruise line to maximize marketing efforts.
3. To generate $5,000 in co-sponsorships.
IMPLEMENTATION
Horton Plaza's team decided to expand upon an existing, successful
shuttle service that ran between the center and local hotels. The new
"Ship to Shop" cruise-ship shuttle would offer complimentary
transportation between the port and the shopping center to cruise-ship
passengers and crew.
To offset the costs of operating the shuttle service, the center's team
sought retail sponsorships, promoting the program as an excellent
opportunity to drive sales. Planet Hollywood and Macy's signed on as
co-sponsors, lending name recognition to the program.
Ship to Shop kicked off with Horton Plaza's participation in a ceremony
welcoming back cruise-ship passengers. And every time a cruise ship docks
at San Diego Port, Horton Plaza customer service representatives are
their to greet disembarking passengers and to promote the center and its
services. The center also co-sponsors maritime entertainment, to create a
festive atmosphere.
In addition to the easy, complimentary transportation to the center,
shuttle riders are offered special discounts at more than 35 Horton Plaza
stores; another incentive is the gift-with-purchase of a San Diego
edition of the Monopoly game.
As part of its promotional efforts, the Horton Plaza team developed a
relationship with Royal Caribbean and On-Board Media publications, which
produces the cruise line's in-cabin magazine and on-board video. As a
result, Horton Plaza Park was featured on the magazine's cover and in the
video, the only regional shopping center in San Diego to be
represented.
RESULTS
Ship to Shop has brought waves of customers to Horton Plaza on what were
typically slow retail days. On days that cruise ships dock in San Diego
sales have increased by 18%. Year-to-date, centerwide sales are up 6%.
Since its inception at the end of January, more than 4,000 customers
have used the complimentary shuttle service. Shuttle riders' average
expenditure is $74.45, a total of $302,490 in sales so far.
The shuttle's co-sponsors have contributed $2,540 to date and will have
contributed $6,380 by year's end. Expenses for the shuttle service are
minimal, with a cost-to-sales ratio of only 2.8%.
CREDIT
Owned and managed by: TrizecHahn Centers
Professional recognition to: Cherilyn Megill, marketing
director; Lisa Yamaguchi Pak, tourism and media manager; Bob Doherty,
general manager.
EXPENSES
| Shuttle | $6,400 |
| Logo/signage | 1,115 |
| Print ad | 3,529 |
| Subtotal | $11,044 |
| Less sponsorship | 2,540 |
| Total | $8,504 |
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