Avalon Holdings Corporation (AWX): Marketing Mix Analysis [11-2024 Updated]
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Avalon Holdings Corporation (AWX) Bundle
As we dive into the marketing mix of Avalon Holdings Corporation (AWX) for 2024, we uncover how this multifaceted company effectively combines its offerings to cater to diverse customer needs. From waste management services to premier golf operations and a luxurious resort experience, Avalon is strategically positioned across various markets. Discover how their product range, pricing strategies, promotional efforts, and distribution channels work in harmony to create a compelling value proposition.
Avalon Holdings Corporation (AWX) - Marketing Mix: Product
Waste Management Services: Hazardous and Nonhazardous Waste Brokerage
The waste management services segment generated approximately $36.2 million in net operating revenues for the first nine months of 2024, compared to $34.7 million in the same period of 2023. This segment includes waste disposal brokerage and management services, which accounted for approximately $34.0 million in revenues in the first nine months of 2024, up from $32.4 million in the prior year.
Captive Landfill Management Operations
Net operating revenues from captive landfill management operations were approximately $2.2 million in the first nine months of 2024, a slight decrease from $2.3 million in the same period of 2023. The revenue from these operations is heavily dependent on the volume of waste generated by the owner of the landfill.
Salt Water Injection Well Operations
Currently, the operations of salt water injection wells are suspended. As a result, there were no operating revenues reported from this segment for the three and nine months ended September 30, 2024 and 2023.
Golf and Related Operations
Avalon operates four golf courses and related country clubs, generating approximately $30.0 million in net operating revenues during the first nine months of 2024, compared to $28.5 million in the same period of 2023. This segment includes:
- Food, beverage, and merchandise sales: $10.6 million in both the first nine months of 2024 and 2023.
- Membership dues revenue: $5.6 million in the first nine months of 2024, up from $5.5 million in 2023.
- Room rental revenue: $5.9 million in 2024, compared to $5.1 million in 2023.
- Greens fees and associated cart rentals: $3.0 million in both 2024 and 2023.
- Other revenues from athletic, fitness, salon, and spa activities: $4.9 million in 2024, compared to $4.3 million in 2023.
The Grand Resort
The Grand Resort includes hotel and recreational facilities that contributed to Avalon’s revenues. The resort’s operating performance is reflected in the overall income from the golf and related operations segment, which recorded an income before income taxes of approximately $2.3 million in the first nine months of 2024, compared to $0.3 million in the same period of 2023.
Membership Services for Golf Club and Country Club
Membership services are crucial to the golf and related operations segment. The membership agreements are a one-year non-cancellable commitment, with automatic renewals unless a member opts out.
Food, Beverage, and Merchandise Sales Related to Golf Operations
The cost of food, beverage, and merchandise sales was approximately $4.7 million in the first nine months of 2024, compared to $4.8 million in the same period of 2023. This decrease was attributed to a lower volume of product sales, despite price increases implemented throughout the year.
| Category | 2024 Revenue (9 Months) | 2023 Revenue (9 Months) |
|---|---|---|
| Waste Management Services | $36.2 million | $34.7 million |
| Captive Landfill Management | $2.2 million | $2.3 million |
| Golf and Related Operations | $30.0 million | $28.5 million |
| Food, Beverage, and Merchandise Sales | $10.6 million | $10.6 million |
Avalon Holdings Corporation (AWX) - Marketing Mix: Place
Primarily operates in the United States
Avalon Holdings Corporation operates exclusively within the United States, focusing on providing services in various sectors, including waste management and golf-related operations.
Services provided to industrial, commercial, municipal, and governmental customers
The company provides a range of services to different customer segments. For the waste management services segment, net operating revenues were approximately $36.2 million for the first nine months of 2024, compared to $34.7 million in the same period of 2023. This segment includes waste disposal brokerage, captive landfill management, and salt water injection well operations.
Golf and related operations located in northeast Ohio and western Pennsylvania
Avalon operates four golf courses and associated facilities primarily located in northeast Ohio and western Pennsylvania. The Grand Resort, acquired in 2014, enhances the overall experience for guests, offering integrated lodging and dining options. In the third quarter of 2024, the golf and related operations segment generated net operating revenues of approximately $12.8 million, compared to $12.2 million in the same quarter of 2023.
The Grand Resort enhances the golf experience with integrated lodging and dining
The Grand Resort plays a significant role in Avalon’s strategy by providing a self-contained vacation experience. The combination of golf packages and resort amenities is designed to attract more customers. For the nine months ended September 30, 2024, total net operating revenues from golf and related operations amounted to $30.0 million, compared to $28.5 million in the same period of 2023.
| Segment | Net Operating Revenues (Q3 2024) | Net Operating Revenues (Q3 2023) | Net Operating Revenues (9M 2024) | Net Operating Revenues (9M 2023) |
|---|---|---|---|---|
| Waste Management Services | $11.5 million | $11.7 million | $36.2 million | $34.7 million |
| Golf and Related Operations | $12.8 million | $12.2 million | $30.0 million | $28.5 million |
Overall, Avalon’s distribution strategy focuses on maximizing convenience and accessibility for its customers through a combination of service offerings and operational locations, ensuring that both waste management and golf-related services are readily available to their respective target markets.
Avalon Holdings Corporation (AWX) - Marketing Mix: Promotion
Local television advertising campaigns to attract new members
Avalon Holdings Corporation employs local television advertising as a strategy to draw in new members to its golf and related operations. This approach aims to increase brand awareness and encourage local community engagement. In 2024, Avalon’s advertising expenses have been reflected within its selling, general and administrative expenses, which were approximately $2.7 million in the third quarter of 2024, down from $2.8 million in the third quarter of 2023.
Membership promotions and discounts to retain existing customers
To maintain its existing customer base, Avalon offers various membership promotions and discounts. For the nine months ending September 30, 2024, membership dues revenue was approximately $5.6 million, slightly up from $5.5 million during the same period in 2023. This indicates a retention strategy that effectively capitalizes on customer loyalty and incentivizes membership renewals.
Engagement in community events to increase visibility
Avalon actively participates in community events to raise its profile and connect with potential customers. These engagements not only enhance visibility but also foster community relationships, which is crucial for its golf and resort services. The company’s golf and related operations segment reported net operating revenues of approximately $30 million for the first nine months of 2024, up from around $28.5 million the previous year.
Use of social media to promote golf and resort services
Avalon utilizes social media platforms to promote its golf and resort services effectively. This strategy is increasingly important in reaching a broader audience and engaging younger demographics. The company has noted an increase in revenues from salon and spa services, contributing approximately $2.8 million in the first nine months of 2024 compared to $2.3 million in the same period of 2023. This growth can be partly attributed to enhanced online visibility and promotional activities on social media channels.
Targeted marketing strategies for waste management services
In addition to its recreational offerings, Avalon employs targeted marketing strategies for its waste management services segment. The net operating revenues for this segment were approximately $36.2 million for the first nine months of 2024, compared to $34.7 million for the same period in 2023. This indicates a successful marketing approach that leverages both traditional and digital channels to attract industrial, commercial, and municipal clients.
| Marketing Strategy | 2024 Revenue/Expense | 2023 Revenue/Expense | Change |
|---|---|---|---|
| Advertising Expenses (Q3) | $2.7 million | $2.8 million | -3.57% |
| Membership Dues Revenue (9 months) | $5.6 million | $5.5 million | +1.82% |
| Golf and Related Operations Revenue (9 months) | $30 million | $28.5 million | +5.26% |
| Salon and Spa Revenue (9 months) | $2.8 million | $2.3 million | +21.74% |
| Waste Management Services Revenue (9 months) | $36.2 million | $34.7 million | +4.32% |
Avalon Holdings Corporation (AWX) - Marketing Mix: Price
Pricing based on market conditions and service type
The pricing strategy of Avalon Holdings Corporation is influenced by various market conditions and the specific services offered. For instance, the net operating revenues of the waste management services segment were approximately $36.2 million in the first nine months of 2024, up from $34.7 million in the same period of 2023. This increase reflects adjustments in pricing to align with service complexity and market demands.
Membership dues for golf club increased to enhance revenue
Avalon Holdings has increased membership dues as part of its strategy to enhance revenue. Membership dues revenue reached approximately $5.6 million in the first nine months of 2024, compared to $5.5 million during the same period in 2023. This slight increase is attributed to the upward adjustment in membership dues rates to reflect perceived value and operational costs.
Competitive pricing for waste management services, adjusted for service complexity
The pricing for waste management services has been strategically adjusted based on the complexity of services provided. In the third quarter of 2024, the net operating revenues from waste management services were approximately $11.5 million, compared to $11.7 million in the third quarter of 2023. The pricing adjustments aim to ensure competitiveness while maintaining profitability.
Room rates at The Grand Resort adjusted based on occupancy and market demand
Room rental revenue at The Grand Resort was approximately $5.9 million in the first nine months of 2024, up from $5.1 million in the same period in 2023. The increase in revenue is attributed to adjustments in room rates based on occupancy levels and overall market demand, reflecting a dynamic pricing strategy.
Cost structure for food and beverage offerings managed to maintain profitability
The cost of food, beverage, and merchandise sales was approximately $4.7 million in the first nine months of 2024, compared to $4.8 million in the same period of 2023. This reflects effective management of the cost structure to maintain profitability, with the cost of food and beverage sales representing about 44% of associated revenue in 2024, down from 46% in 2023.
| Pricing Element | 2024 Value | 2023 Value |
|---|---|---|
| Waste Management Services Revenue | $36.2 million | $34.7 million |
| Membership Dues Revenue | $5.6 million | $5.5 million |
| Room Rental Revenue | $5.9 million | $5.1 million |
| Cost of Food and Beverage Sales | $4.7 million | $4.8 million |
| Percentage of Cost of Sales | 44% | 46% |
In summary, Avalon Holdings Corporation (AWX) strategically leverages its diverse product offerings, including waste management services and recreational facilities, to meet the needs of its varied clientele. Its operations are concentrated in the United States, primarily serving industrial and municipal customers while enhancing customer experiences through its golf and resort services. The company employs targeted promotional strategies to build brand visibility and customer loyalty, while its dynamic pricing strategies ensure competitiveness across its service lines. This integrated approach positions Avalon Holdings for continued success in both waste management and the hospitality sectors.
Updated on 16 Nov 2024
Resources:
- Avalon Holdings Corporation (AWX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Avalon Holdings Corporation (AWX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Avalon Holdings Corporation (AWX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.