9/3/06
“The New Industry Business Model” (#462)
Main REPORT
The reality that amusement in the modern era will have to change to survive is no better represented by the de-centralization of amusement manufacturers and distributors. Not only changing the way these companies work, but the number of people they need to make them work!
The Stinger Report has looked at the changing shape of the actual video amusement machines that are sold in the market, but in this REPORT, the Stinger looks at the people that are selling to the new market. In this coverage the Stinger is focused on the burgeoning ranks of the consultants - an unspoken group of operations that fulfill many of the roles that use to be the preserve of the corporations these consultants now represent.
The reality is that in the 2006 amusement sector the days of a vast workforce of executives handling all the minutia of the day-to-day placement sales, marketing of amusement and mid-size attractions is uneconomic. For the satellite divisions of the once all powerful arcade factories they have had to decimate their workforce to address new ownership - In achieving the drastic restructuring to appease new executives in Japan, a number of valuable members left to pastures new employing their ‘black book’ of contacts to helping other developers.
Not all of this new army of consultants are ex-manufacturers, many come from a background in operating or venue development, and hope to apply valuable knowledge to new entrants and immerging newcomers wanting to survive in a market that can look more like a ‘closed shop’ than an open market place.
One of the well-known names in the consultancy field that brings a strong market awareness to the operator scene, Amusement Entertainment Management offers a benchmark in the support of immerging clients. Founded in 1994 the combined partnership of the operation comprises over 80 years of experience. Specializing in design, layout, installation and operation of Family Entertainment Centers, and Leisure Based Entertainment venues in a global market; AEM’s background allows staffing, application and even money control issues to be handled with professionalism. Clients are FEC, LBE, hotel, water parks and casinos from around the market. An example of what is needed to consult is what AEM puts in as well as what they take out, with two of the operations partners teaching at the Foundation Entertainment University in their spare time, as well as executive support of the International Association of the Leisure Entertainment Industry (IALEI) and Amusement & Music Operations Association (AMOA).
The ability to utilize industry experience and valuable market research is another example of the operations involved in the market. KWP Limited; the Out-of-Home leisure entertainment consultancy, specializes in interactive amusement and attractions founded in 2003. Representing amassed experience from leading entertainment corporations including the industries largest entertainment corporation. KWP has signed an extensive group of clients since foundation, currently representing a cross section of the market - entertainment simulation, amusement manufacturer, European conference organization, entertainment electronic furniture manufacturers, and a slew of retained research clients. Hoping to share knowledge, KWP supports guest editorial writing for RePlay, Tourist Attractions and Parks, Euroslot, ParkWorld and Vending Times, along with an extensive international conference presentation calendar, and an extensive e-news service, (the owners of ‘The Stinger Report’).
The ability for consultancy operations with differing expertise to share and combine resources is a factor common in other industries, and is just beginning in the amusement and attraction sector. Coming from the European theme park and attractions sector ParkConsult sprl., offers strategy & marketing, information services and market intelligence to major European theme park venue clients. The operations makes available the vital market information and experience that brings the venues closer to their guests, able to design profitable operations in a market limited in reliable information. ParkConsult has turned to industry resource and consultancy KWP to offer additional information support in their service, and has agreed a joint partnership to provide their experience and expertise - it is this type of relationship that allows clients to maximize their investment.
The need to build upon the amassed experience of industries veterans is a fundamental component in the penetration of consultative talent. The ability to apply over 23 years of amusement experience, including a stint with Midway (before they exited amusement), Struhs Interactive Solutions, LLC was founded five-years ago. The operation has been created to exploit opportunities for unique products and dynamic services within the Out-of-Home entertainment business. During these five years the company has supported Betson Enterprises, Raw Thrills, Merit and Kidzpace Interactive - establishing new and upcoming products in the evolving global amusement scene. The ability for smaller developers to call upon a varied experience in the market has proven invaluable to allow newcomers to penetrate the sector with some success.
The need for media representation has grown in a sector that was once renowned for poor communicational skills. UK industry stalwart Scott & Jones Communications Limited represents a public relations and creative marketing solution to the international coin-op, gaming and electronic leisure business. Having amassed over twenty years experience the operation supports such clients as the pivotal ATEI / ICE show, Brent Sales / Namco Europe, Cyberslotz and Quicksilver, along with others - representing gaming and pay-for-play interests, while still having fingers in the sports equipment sector. Scott & Jones broaden their involvement with contract publishing work that is publicly and internally circulated by clients. Extensive links to the European trade media building their market recognition.
A well known veteran of the amusement venue circuit is Amusement Consultants Limited - an operation that has made a name for itself in its variety of consultancy services with over 50-years of loyal support. The company’s global reach covers the majority of aspects in the amusement business, especially supporting family entertainment center and coin-operated games business. A number of prominent gaming rooms and theme park venues have benefited for the award winning talents of Amusement Consultants, but the operation is not afraid to support the Mom & Pop independent operations. In order to spread the word (and the smiles) of consultative services and better development in the field of public space entertainment, the founders of the operation have an extensive background in presenting conference sessions on their activities and accumulated wisdom, as well as numerable editorial pieces on a variety of subjects cogent to the changing industry.
The ability to call upon skilled marketing resources is a constant requirement in the amusement scene; one European resource established in 2003 is Upgrade PR Limited. The operation has been based on extensive editorial experience from editing some of the leading trade publications such as Euroslot, InterGame, AB Europe and Coin-Slot UK journals. With this wealth of knowledge regarding the needs of the media, Upgrade PR offers press release, advertising and marketing resources, this complimented by exhibition booth and media support and the all important organizational skills needed for press events client dinners and presentations. Clients that use Upgrades services include Cash Handling Systems, DT Productions, Reflex Gaming, Sound Leisure, Harry Levy Amusement and BIBIC amongst other prominent parties - an ability to incorporate big PR support without the need to retain the service in-house.
New comers to the consultancy route include BD Consultation & Sales Solutions, founded in 2004, with a strong experience in the UK, Middle East and the immerging Russian sector - BD is located in America. The company’s owner is a well know figure in the market and has had pivotal roles in a number of leading manufacturers. Most recently the company has signed agreements with 5 Star Redemption, the start-up video games developer, TopJam and the Taiwanese motion simulation company ‘Internet Motion Navigation Corp., (IMON). The ability for a consultancy to establish distribution agreements where a new client is vague of the structure of the market is essential BD having already established placement of the TopJam range with Betson and Brady.
Another newly established group offers the strength of training experience to the retinue of available skill-sets in the market. TrainerTainment L.L.C. offers what is a common practice in the rest of the public space sales industry, which the training and direction of staff in maximizing potential - in this case for the family entertainment centre scene. The ability to grow the venues customer services and resulting sales supported by strong promotional opportunities; amongst those that value these services include FunQuest Family Center, Mr. Gatti’s Pizza, Incredible Pizza Company, and The Fun Factory along with others. The ability to train the front-line staff that represent the venue and so maximize the sales effort is the operations focus; the ability for the management to understand the scope of service and support opportunities ranging from group sales, birthday parties and beyond - TrainerTainment spreading the word of better sales to the industry in general.
One of the most recently founded consultancy groups came into existence only a few months ago. The Fay Group, offers a worldwide consultancy coverage specializing in amusement sales, government relations and intellectual property protection. This market and governmental expertise is a perfect example of the need for consultation services that normally would not be a common component of medium sized corporations - even large operations would find it difficult to pool the experience to deal with intellectual property and calling in the big guns on a commission offers strength to business activities. The need of governmental experience was brought home when the Fay group announced being retained in a special role with Merit Entertainment dealing with this area.
Finally and we have one of the veteran consultancies, with over 18 years in operation White Hutchinson Leisure & Learning Group, is a strong example of success that experienced support can offer both established and emerging companies. White Hutchinson, specializes in the entertainment venue market - ranging from family entertainment centers, family / children leisure venues, including ‘edutainment’, ‘eatertainment’, ‘enrichment’ and ‘agritainment’ (agri-tourism). The operations global specialty at the research, design, development, operation, training and marketing of leisure entertainment venues, a valuable resource in the changing market place - over 300 clients served in the company’s history testament to this fact. White Hutchinson putting back what they get from the industry with an extensive selection of web assessable whitepapers on the market, along with their own well respected newsletter including market presentations.
As can be seen from the list of approached respondents in the consultancy field for the out-of-home leisure entertainment there is a clear divide in talents in either supporting the manufacturers and developers, against those that support and help to build the operators and franchise developers.
What Could this all Mean:
Able to prove dynamic enough to support new and immerging markets such as the former Soviet States, including the immense Russian sector; and the opportunities that the United Arab Emirates and the new Dubai entertainment-dollar have to offer depend not just on local knowledge but connections that consultancy can mature better than enclosed corporations. That some of these consultancies also are respected writers and session presenters help corporations that are less than skilled in media relations.
A number of the once prominent executives have also found a secondary means to continue supporting the industry. A number have taken ‘unspecified’ rolls (paid indirectly) within their previous operations, either making available confidential experience, or directing in a consultancy position replacement management. A lot was made of previous SEGA support from resigned management - the Japanese parent showing concern when this was revealed, especially when the news of credit card bills still active with what they assumed were relieved staff was leaked - a aspect of hidden consultancy that did not paint a good picture.
The need now is for open, and above board realization of the benefits of official consultancy, rather than a secret attitude to having to reveal that individuals in a company do not know everything and may need to call upon assistance. It is a wise individual that admits when they could use help, and a wiser one that takes other information and applies this to their success.
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