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[CO] Chapter 5 – Added Values Members: Sunny/Cindy/MJ/Phoebe/Ian (9 tips…

- - - - Consumers bought
        Machines & Games
        in large numbers :
- - - - Debeers:
        
        Diamonds are NOT scarce :!:
        
        MAKE :silhouettes: to perceive "scarce"
        
        Diamond engagement ring :ring:
        
        " Diamonds are Forever " campain
- - - - help each other
        
        Lower cost
        
        Guests
        
        Entertained within the resort's compound
        
        Staff
        
        Money isn't priority
        
        Love the experience
        
        Employer
        
        Pay low salaries
        
        Facilities& accommodations
        
        Simple
        
        CCA
        
        Make guards happy , everyone happy :smiley:
        
        Methods
        
        Give inmates lots of program
        
        Don't overcrowd the inmates
        
        Shouldn't pay more salaries
        
        1 more item...
  - - - Save $2
        
        Product only $1 less than before
        
        Cut price by $1.5
    - - Spend $1
        
        Customers value the quality at $2
        
        Raise price by $1.5
        
        Win-Win
      - Comfort class :airplane:
        
        The real cost of the seat =
        The lost revenue for someone who pay the seat
        
        In fact , planes aren't full
        
        Cost very little :money_with_wings:
        
        Win-Win :confetti_ball:
        
        TWA :airplane:
        
        Improved service
        
        Increase competition :arrow_up:
        
        Customers :silhouette:
        
        More legroom :boot:
        
        Other airlines :silhouettes:
        
        No price war :red_cross:
- - - - AAdvantage frequent-flyer program ✅
      - the most miles➡️ the best reward ➡️ loyalty 👏
        (Membership Cards ✅)
      - American Airlines ➡️ $1000
        Cost ➡️ a $ per $ of loyalty creation
        
        🔥Restrictions
        
        Limited seats & blackout dates
        
        Prevention of the resale of awards
  - - - Mileage Plus frequent-flyer program
      - Offer free flights to Hawaii, the Caribbean & more
    - - Loyalty effect
        Business travel market ➡️ the most miles
    - - Passengers join more than 1 program
      - Loyalty effect fades when miles're cashed in
    - - Gold & Platinum Programs👏
      - Best customers ➡️ VIP privileges
      - High cutoff levels ➡️ Gold/Platinum member status ➡️ unique
        (No dilution of loyalty effect)
      - The hit of cutoff levels 🎉🎉🎉
        Rewards ➕➕➕
  - - - Business Travellers
        ( Free tickets--- Bosses)
        
        Tax-free way
      - Bosses
        (Losers?)
    - - Overstatement of real cost
      - How to avoid displacing paying customers
        
        Restriction of usage ✅
        
        Change of terms ✅
        
        Expiration of miles
        
        Increase of required miles
    - - Competition
        
        🔥Triple -Miles War🔥
      - Let other competitors have loyal customers
        (Use such tricks)
    - - 1.Increase total pie
        2.Create loyal customers
      - Win-Win
        (Airlines & Passengers ➡️ Tourism)
      - Creation of loyal customers in other businesses
        ("Affinity"Programs)
      - Program partners
        (Make payment to airlines for affinity program) ➡️ $2 billion a year in fees
      - Over-half of miles're earned by frequent flyer programs ✅
- - - - less capacity...
      - more capacity → Lost bargaining Power :warning:
- - - - :airplane: empty seat ➡️ free trips
  - - - Keep them in
        
        :small_airplane: AAdvantage project
        
        Gold card
        
        Platinum card
  - - - Offer them VIP card :runner:
      - :iphone: Free voice call
  - - - Offer discount , reward :gift:
      - Use your superior clout &access to offer suppliers get a better price
- - - - Improve filter mechanism
        
        Improve the relevance
        service quality
        improvement speed
    - - Update user's preference
  - - - Anti-strategy
        
        Test-marketing a series of products and put the Hit Product to mass consumer market
      - Softsoap reach a huge success
        
        Competitors move in
        
        Buy out the whole capacity of the essential part of plastic pump from manufacturer
- - - - High set-up cost
        
        Less competitors
      - Inefficiency
        Niche production(advantage of Andy)
    - - Longer lead time
        
        Appealing more competitors
      - Lower cost
  - - - Become more important
        
        Doing both
        
        Intel & Microsoft become monopoly suppliers
        
        More competitors: more choices for customer
    - - Invite more players
- - - - Drive down :arrow_heading_down:
        manufacturing cost
        
        growing
        base of machines :arrow_heading_up: