The CN Tower
A Clarity of Offer
Case Study
Prepared by High Traffic Marketing Institute
HTMI
CN Tower
• Built by CN as a communications
tower
• Broadcast facilities: UHF, VVHF
Television FM Radio, Microwave
transmissions; Fixed Mobile Systems
Outstanding CN Tower Facts
• The tallest free standing structure in the world - 553.3
meters
• Designated a Wonder of the Modern World by American
Society of Civil Engineers - 1995
• Can see 160 kilometers from observation deck to Niagara
Falls and New York State
• Attendance: 2,000,000 a year
• Restaurant rotates 360 degrees every 72 minutes
• Six glass-faced elevators travel at 22km/hr to reach
observation deck in 58 seconds
• Total staff: 400
Construction Facts
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Construction: Feb 1973 - June 1976
Construction employed 1537, working 3 8-hour shifts a day
Cost $63 million
Built to withstand an 8.5 earthquake
Upper part can withstand winds of 418 km/hr
2.79 inches within plumb or true vertical
Total weight 117,910 metric tons
40,523.8 cubic meters of concrete
Tensioned steel: 128.7 kms
Reinforcing steel 4535 metric tons
Hollow 1200' hexagonal core provides stability and flexibility to the full height
tower
Glass floor is 23.8 meters of solid glass and five times stronger than the required
weight bearing standard for commercial floors
The Problem
In 1974, A Wonder of the Modern
World was being constructed
without a marketing or
merchandising plan.
HTMI was retained to define “the entire visitor
experience of going to the Tower”
To achieve this objective, it was necessary to:
1. Define a directional framework that specifically articulated the philosophy
of the Tower.
2. Define the criteria within which specific merchandising and commercial
decisions could be made to achieve compatibility with both the Tower’s
economic and philosophical requirements.
3. Develop a series of alternative merchandise and attraction directions or
themes
4. To translate the selected theme into the elements of the total visitor
experience.
Clarity of Offer Process
Step One
The following was undertaken after a detailed
analysis of secondary research compiled on
the destination industry, consumer,
competition and its historical growth and
performance.
“Clarity of Offer” Process
The Crucial Step Two
Armed with the information, HTMI and CN Tower management
engaged in a month-long process defining the CN Tower’s
philosophy.
As the basis of the decision criteria/guide to decision making, the
philosophy expressed the goals and values important to both
protect and express in all of the Tower’s marketing activity.
CN Tower Philosophy
“The Tower is recognized as a curiosity piece which will generate a great deal of
tourist traffic. Its excellent design and quality construction make it probable
that in years ahead, the Tower will become an internationally recognized
symbol for Toronto, Ontario, and Canada. Finally, by virtue of its name and
location, the Tower will reflect strongly on the CN itself.
“Not only is the Tower an architectural curiosity, a social statement and a focal
point for CN, but it is a major engineering feat, whose purpose is to further the
communications effort within its environment. In its construction it is futuristic,
in a realistic way. Further, it is functional and innovative in how it has come to
grips with the series of problems it has faced.
“Similarly, the resolution of the interior environmental and merchandise
problems must be equal to the Tower itself in the way it represents its
communities and in its futuristic but functional resolve of the normal high
traffic problems.”
CN Tower Decision Criteria
The criteria in establishing the environmental and merchandise/attraction thrust of
the environment must reflect the philosophy of the Tower. Each decision should be
considered in light of the following:
• Does it enhance the consumer’s perception of:
Toronto?
Ontario?
Canada?
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Does it correctly reflect the image of the CN?
Is it futuristic in how it solves the problem?
Is it realistic in how it solves the problem?
Is it functional in how it solves the problem?
Is it innovative in how it solves the problem?
Is it simple and capable of handling high traffic in an uncomplicated manner?
Is it profitable and does it maximize the dollar volume and dollar profit potential of the
area?
Series of Alternative Themes/Marketing
Positionings
A series of 20 alternative Tower “entire experience” or “theme”
alternatives was developed. In turn, four alternatives were
developed in greater detail.
1.
2.
3.
4.
Tourist and Travel
Toronto
Canada
The Entertainment Centre
The Entertainment Centre Positioning
• To create a total year-round entertainment environment that is an
attraction itself apart from the Tower, that caters to tourists and
locals alike; that is alive and shifts its profile to meet the public’s
entertainment needs by time of day. The essential nature of this
approach is commercial versus non-commercial. It will have its
high points, but basically, it must have a human, middle-class
and/or common touch.
• It has a personality – a daytime personality and a night time
personality. During the daytime the focus is on the Tower and
family fun. As we approach 10 o’clock in the evening the focus
swings to an adult night life centre.
Clarity of Offer Process: Step Three
Specific Marketing/Merchandise/Attraction Recommendations
The recommendations covered every aspect of the
Tower’s interface with the public including:
A.
C.
E.
G.
I.
K.
M.
O.
Q.
Parking Lot
Reception Area
Upper Mall
Below Pool Space
Main Observation level
Commercial Advertising Space
Ticket Marketing
Sound/Audio
Flooring
B.
D.
F.
H.
J.
L.
N.
P.
The Front Street Bridge
Lower Mall
Retail Space
Tower Pool Bar
Upper restaurant
Staff
Major Entertainment Areas
Lighting
Step Three - Examples of Decision Criteria
to execute programme recommendations
The Retail Shop
The pace is set in retail by the merchandise offered. Souvenirs are difficult given that
typically they trade on traffic and tend to be parasitical, and predominantly made off shore.
The decision criteria were used in the decision-making process. Results:
Management
• Cara, a Canadian company was selected as the contractor.
Merchandise
• In line with the philosophy and decision criteria disciplines were established and
formed a part of the contract:
• All merchandise carried had to be manufactured in Canada and identify with and/or
represent the principle constituents: Tower, Canada, Province of Ontario , Toronto.
Profitability
• CN Tower received 25% of gross sales… very profitable arrangement for both parties.
Step Three - Second example: Decision Criteria
to execute programme recommendations
The Front Street Bridge
A task was given to the architect to design a bridge glass structure that would take on a neon effect at
night – an umbilical connecting Toronto with the Tower. HTMI was asked to work out a way of paying for
the bridge – it was not in the original budget. Working with the architect an integrated advertising
signage system of 50 individual back to front fully lit advertising panels that served to light the bridge
provide a solid revenue stream. The decision criteria were used in the decision making process with the
following results:
Management
• A Canadian advertising sales company was contracted.
• Advertising Panels
• In line with the philosophy and decision criteria disciplines were established and participating
advertisers had to meet the criteria.
• Profitability
• The CN Tower received a 40 – 50% commission on gross sales which proved to be a very profitable
arrangement for both parties. In the case of the Tower over a three to five year period the revenues
received more than paid for the cost of the bridge.
Clarity of Offer Process: Step Four
Management
HTMI’s involvement in management had two dimensions:
1. On-going coordination of marketing decision-making process
2. Assisting in hiring and contracting of program management.
CN Tower Gift Shop
Front Street bridge to CN Tower
Summary
• Significant portions of the recommendations were
executed and expanded upon.
• Implementation of the programme commenced in the
Fall of 1974 and was completed in June 1976.
• The process was ongoing.
• Subsequent to the opening and well into the 1980s, the
marketing and merchandising decision-making process
was managed within the decision criteria. HTMI
participated fully in this process for approximately 10
years.
Contact Us
High Traffic Marketing Institute
Attention: Richard Mathieu or Leonard Knott
12 Sullivan Street
Toronto Ontario M5T 1B9
Tel (416) 807 8354
E-mail rmathieu1@bell.net or leonard.knott@gmail.com
www.htmi.ca