The Timeshare Beat: Jerry Sikes; With Regard to Research

"The meaning of things lies not in the things themselves but in our attitude towards them." -Antoine De Saint-Exupery-

It is not my purpose to indicate that all research reporting is similar to the fictitious account provided below, however, one wonders if the facts contained in real studies may bear some semblance to those demonstrated in the faked release.

Arizona State University was in the late stages of construction for a new coed dorm, which would contain 90 single units. In order to maintain reasonable cost in today's economic turmoil, the square feet of the actual dorm rooms was significantly reduced. Because of this space reduction the King, and for that matter, Queen size beds were given little consideration. The architect had specked out a bed, which ended up being about 6" smaller than the standard Queen and about 6" larger than the standard Twin. The University found a local manufacturer that was willing to create a sample "Prez" mattress and box spring set to the specs provided by the architect. This bed was installed in the model room the architect and the interior designer had put together for the University's consideration.

Upon receiving this news, the University decided that it would find out how the facility would be accepted by some of those who had registered to be housed in the new dorm. Of those randomly selected, the first was Hermit VonBrute, a transfer student from Scottsdale Community College and a member of the wrestling team. This student immediately stated that the bed was too small to accommodate his 6'2', 265 lb. frame and that he needed his sleep to be effective in the ring. The second student selected was Vivivan Garnett, an exchange student from Nigeria that was enrolled in the School of Nursing. Vivivan was instantaneously taken with the luxury of the room and upon trying out the bed stated: "This is perfect!" The third student was Mario Rodriquez who was a graduate student in the School of Journalism. Mario was very pleased that the new bed provided ample room for his bookshelves and computer station.

Meanwhile at Durham, N.C., the Durham Examiner was conducting an interview with a local industry representative as to why their plant had laid off several hundred workers near the end of summer. The COO of that firm indicated that the layoffs were necessary as the plant was in the process of replacing obsolete equipment. He further indicated that the replacement was almost complete and he fully expected to call back all of those workers within a few weeks. In fact he indicated that almost all mattress manufacturers were going through the same process and that because of increased demand most expected to increase their workforce in the Carolinas. As a follow-up to this story, the Examiner conducted similar interviews with those from the Cotton Industry in the same region. Spokespersons from most mills indicated that as soon as all the Summer vacations were over and their full work forces were back in the fold, the production of linen would increase rapidly so as to quicken the return to its former high level.

The most recent press releases to cross my desk was from the research firm of Zakanny, Gilbers, Morrisin and Baldwin. The first release boldly proclaimed:

X-Generation Drastically Alter Sleeping Habits.

Recently completed research conducted on behalf of Arizona State University indicates that demand is growing for the new Presidential size bed. Two out of three sampled indicated that they preferred the "Prez" over the smaller Single, or the larger Queen and King.

Major Mattress Manufacturers such as Seely, Sirta, Simmans and King Coil are currently gearing up their facilities to meet an anticipated demand. In a recent interview Joseph B. Doarity, COO of Seely stated: "We are currently retooling 7 of our 10 plants to speed up production." "In the Carolinas most of the mills are beginning to increase production of linen!" said Barnaby Prat Jackson III, the President of Imperial Cotton.

The research also clearly indicated that this demand crossed ethnic and gender lines. The sampling was evenly divided between the genders and encompassed Caucasian, Black and Mexican American. It is anticipated that this demand will grow by 1000% in the next few months.

For more information contact: Hermie Gilbers at HGibers@zgm&bpartners.com

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The second release boldly proclaimed.

X-Generation Drastically Alter Vacation Habits.

Recent completed research conducted by Zakanny, Gilbers, Morrisin and Baldwin on behalf of Arizona State University indicate that 55% of the X-Generation who are purchasing their future vacations in the retail market, are doing so by becoming members of Timeshare or Vacation Ownership Clubs which offer a new form of currency commonly identified as "Points". Many others are purchasing vacations in the resale market with hope that they can eventually convert to the "Points" type plan.

Additional research, following an extensive marketing campaign, clearly indicated that interest in the "Points" is growing as the consumer considers this alternative to actually owning real estate. Because of this growing consumer interest many additional Developers of Timeshare and/or Vacation Ownership Plans are considering the "Club & Points" prototypes for their entire new product. It is anticipated that this change in development format will spur an even greater percentage increase in this form of vacation ownership.

For more information contact: Hermie Gilbers at HGibers@zgm&bpartners.com

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zgm&b Partners find no link between these findings and prior research, which indicated that 55% of the new Timeshare or Vacation Ownership Plans coming into the market are Clubs, which offer the new form of currency commonly identified as "Points". Professor W. Samuel Regret, Senior research fellow, concluded that the "Chicken & Egg" syndrome had come into play. Additionally Professor Regret indicates that the timing of the research immediately following the marketing campaign was purely coincidental and thus did not taint the findings.

FINAL THOUGHT

One of the growing trends in marketing has been identified as "BUZZ" marketing. This marketing idea grew out of the guerrilla concept. "Virtually every major U.S. brand - from the triad (Ford, General Electric, Volvo) to the hip (Nike, Tommy Hilfinger, Palm) is dabbling in some form of the practice, " according to a May 2001 report from the consulting firm McKinsey & Co. For those who are unfamiliar with the concept it goes something like this: Buzz, viral, street, stealth, or guerrilla marketing - call it what you will - is the use of alternative tactics to spread word-of-mouth buzz about products. A typical example of buzz marketing was the approach used on The Blair Witch Project. The result: 300 people influenced 3,000 and 3 million were influenced by that 3 thousand. This grew into an audience of 30 million who went to see a lousy movie. Did you see the ads?

Many of those within the Timeshare and/or Vacation Ownership industry have been caught up in the buzz about an alternative to the old fashioned "Interest in Real Estate" concept of timesharing. The "word-on-the-street" supposedly supported by "research" was that the consumer was "demanding" more "flexibility". That "the consumer" actually wanted to purchase an airline ticket, a rental car, or some other "consumer product" with the money previously used to "purchase" their "interest in real estate". That "the consumer" no longer wanted a "vacation" for a week or more, they wanted only several two-three days "jaunts" away from "work-home". That "owning" an interest in real estate was too much of a "problem" and that having a bundle of "alternative currency" would solve all their "problems".

In that McKinsey & Co., 2001 report, Associate Principal Renee Dye stated: “I don’t think that these manipulative campaigns will go unnoticed by consumers.” She went on to say: “They’re not stupid. The concept may work now, but in the long term, I think marketers will have to opt for more subtlety.”

Or are they?