Reference no: EM133052593

Did you take a Samba day today?

What does a Brazilian samba dance have to do with a gift card at Shoppers Drug Mart? Not sure, unless of course Alex Barseghian, CEO and founder of Samba Days, a Canadian experiential gift card company, named after Brazilian Samba dances that exude exuberance and passion. These gift cards capture this excitement and energy through an assortment of experiences that can be purchase as gift cards at retailers such as Shoppers Drug Mart, Sears and Safeway. In fact in just over three short years, 2,500 Canadian retailers now display Samba Days gift cards in store.

Samba Days gift cards are themed by interest into seven areas: Adventure, Body & Soul, Getaway, Gourmet, Golf, Wine and Platinum (for the ultimate unique experience). Unlike other gift cards, these stand out in that the recipient can choose among numerous experiences within each category (75 on average). The targeted demographic is looking for something different and unusual but without a hefty price tag.

Samba Days experiences are well priced at 10 to 30 percent below standard retail prices, providing value to Samba days consumers. Prices start as low as $49, reaching over $300 for Platinum experiences. This is what Samba Days offers:

Adventure gift cards - Such as driving a Ferrari or taking a glass blowing lesson
Body and Soul gift cards - Such as having a facial or taking yoga classes
Getaway gift cards - such as a weekend gourmet getaway package
Gourmet gift cards - such as dining at a local gourmet restaurant or a chef cooking for you at home
Golf gift cards - such as a round of golf at Canada's premium golf courses
Wine gift cards - such as a private wine tasting tour
Platinum gift cards - such as a Porsche driving weekend or playing in a rock band

In three years, Samba Days has successfully sold thousands of experiences, partnering with heavy hitters such as Aeroplan and American Express. However, knowing the high failure rate of new products, and the required commitment and investment in pursuing this idea, Barseghian thoroughly researched the opportunity before he launched. He learned that 60% of people in Canada buy gift cards. He determined that experience gift cards are popular in Europe, and he discovered that people enjoy receiving gift experiences such as weekend getaways. Importantly, he also determined that companies were interested in creating alliances with him to provide their experiences through Samba Days.

Samba Days was launched in 2008, first only online, then rolling out to 6 stores and then 400, now having distribution in 2,500 retail outlets across Canada. Online sales complement the retail offering with gift cards also available at www.sambadays.com

"Samba Days has been a passion for me", states Barseghian remembering the initial thrill of launching this new product in Canada. "It was both exhilarating and terrifying, knowing the risks involved and the uncertainty of launching a new product in a competitive marketplace. When I launched Samba Days, it was just me and my idea and now, 3 years later 12 people work at making Samba Days a success." Barseghian cautions students to always do their homework first, to be inspired by new ideas, to follow their passions, but to also be cautious and realistic. You can see more Samba Days at www.sambadays.com

Q1: Why do you think Samba Days is a success when so many new products fail?

Q2: In what stage of the product life cycle is Samba Days? How can its product life cycle be extended?