Hard Rock International (HRI) produces different products for different population segments and as the HRI product line grows so does the variety of segmenting markets. For a long time cafes were the cash cows for the brand because they housed the rock shops and merchandise that was sold for large profit margins. The target market for cafes are vacationing young to middle aged married people with and without dependent children.
Souvenirs such as pins and glassware have been marketed to repeat buyers with a collecting habit. Collectors are frequent buyers and they are willing to pay higher than market value for products. Their personality for collection is a sought after trait for marketers. Pin and glassware enthusiast often obtain valuable merchandise particularly city branded items though trading and selling. For example a collector from California may desire a city branded hurricane glass from Fiji but doesn’t want to travel there to get it so the collector will buy t from another collector via the internet.
Collectors are emotionally attached to the product and brand. They are heavy users or consumers because of the high volume and frequency of their purchases. HRI tries to create heavy users by offering loyalty programs. Pin enthusiasts have their own rewards program (The Pin Club), separate from HRI other frequent buyer program (The All Access Program). With the Pin Club Card, customers get 10% off every purchase and can preview and purchase specialty pins before they arrive in stores.
Hard Rock LIVE! is another new product from HRI. Hard Rock LIVE are music venues which have arena style concerts. This product’s target market changes depending on the artist or group playing at the venue. A very established artist like B.B. King will attract an older crowd and an underground rock band would attract young unmarried people without dependents. This particular group has a large disposable income. They are highly involved in music, they frequent music blogs and use social media to follow their favorite bands.
HRI has built new properties where gaming is allowed and many of the new properties also have casinos. Building a resort that include services such as infinity pools, tennis courts, spas, and music venues is a strategy to appeal to a higher end consumer. By having Vegas style shows and gaming, HRI is showing the world that they have the same level of quality as other high end gaming resorts.
Hard Rock wants to move out of the restaurant category and into the gaming and resorts industry. Hard Rock International (HRI) is developing its global image as a luxury brand aimed at tourist seeking a nontraditional yet luxurious experience.
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