Butlins Diversifies into Dance

“A week’s holiday for a week's wage” was the slogan that first tempted millions of working class families to Butlins seaside holiday camps. The first in offered full board and free entertainment from £85 in today's money. Two years later legislation gave every worker a right to a week's paid annual leave, and demand soared.

Today a week's wage goes much further. By the 1980s many low-income families could afford overseas package holidays, and in the UK Butlins faced competition from other holiday park operators such as Haven and Center Parcs. By the end of the 1990s four Butlins had shut and two more had a reluctance to get involved with new music for been taken over by a rival. The Butlins brand was tired. fear it would deter from the traditional image In response, Butlins has diversified into new market of family holidays. But now we’re really excited segments. In May 2007, Butlins in , about opportunities with other festivals.” Somerset hosted 6,000 affluent twenty-somethings Barry Hogan, the founder of ATP, said that other enjoying the chalets, dodgems and crazy golf. Butlins organisers could well follow his example. had entered the music-festival business by hosting “It’s snobbery to look down on Butlins. You can “All Tomorrow's Parties” (ATP), a regular event which share a chalet with your partner, rather than attracts obscure bands and famous fans. The 50,000 people you don’t know in a field.” programme was similar to those at other festivals, Modern festival-goers are becoming more affluent but the venue was unusual. and less tolerant of medieval conditions. They don’t like using a filthy Portaloo or watching their tent In October 2007, will enjoy the beats washed away in a gale. Already, upgrading festival of the Balearics when the local Butlins hosts an Ibiza accommodation is a booming business. Across 30 reunion, giving clubbers the chance to relive the festivals in 2007 (including Glastonbury), revellers excitement and experiences of the summer. Butlins can choose from a variety of accommodation, now holds about 50 adults-only weekends per year including beach huts, brightly coloured plastic across its three resorts, making up some 35% of its “podpads”, and “bohemian bivouacs”. turnover. Most Butlins features go down well with a newer “We realised that, when the kids are not on generation: beds, showers and flushing loos are all school holidays, we have all these magnificent luxuries on the festival circuit, and no other gig facilities just sitting there, doing nothing,” said boasts a tropical swimming pool. And at £120 it still Richard Bates, the operations director of Butlins. manages to undercut most other festivals where “Maybe a few years back, there would have been ticket prices are often significantly higher.

Using the Butlins website (www.butlinsonline.co.uk), describe the main customer segments the company is targeting with its existing product range. Examine one advantage and one disadvantage for Butlins from attempting to diversify into new market segments. To what extent do you agree that price is the most important

Questions part of the marketing mix for Butlins?

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