VOL. MMXIII..No. 212

Bold Moves | Strategy in Perspective

This Space for Rent: How Brands like Southwest Profit from a ‘Third Place’

It was in the early 1990’s that urban sociologist Ray Oldenberg identified the growing need for “a third place,” a destination roughly between home and work that offers both a sense of community and a respite from the hubbub of our daily lives.

 

Oldenberg argued that increasingly, bars, coffee shops, and even barber shops have become the new town square – especially in cities where many town squares and public parks are increasingly unappealing places to hang out (and good luck getting a bench.)

 

“The character of a third place is determined most of all by its regular clientele and is marked by a playful mood, which contrasts with people’s more serious involvement in other spheres,” writes Oldenberg. “Though a radically different kind of setting for a home, the third place is remarkably similar to a good home.”

 

Starbucks didn’t waste anytime co-opting this idea of a “third place” which is why their coffee shops seem more about people squatting and using their restroom than savoring a somewhat mediocre cup of coffee.

 

Sponsored spaces with soft seating have begun popping up everywhere, from shopping malls (many of which have removed much of their public seating) to sidewalks and parking lots. With such perks as free Wi-Fi, phone charging stations, and even free drinks, its no wonder the idea has taken hold.

 

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You wouldn’t think a city like New York would take to the idea since they are already well-stocked when it comes to nicely maintained public spaces, but Southwest Airlines saw an opportunity to enhance what was already there. Their “Southwest Porch” in the city’s popular Bryant Park is helping promote the airline’s new service to LaGuardia Airport while rallying their existing Southwest fans.

 

Designed by Civic Entertainment Group, the look is very, well, Americana front porch: quaint Adirondack chairs, yellow cushions, and wooden loggias trimmed with hanging plants. It’s a surprising sight for the urban dweller and one that gives a sense of premium value to the brand while informally beckoning them to “come hang out with us.” Of course free Wi-Fi and a place to eat a sandwich without being bothered by vagrants or pigeons (or both) are an added bonus.

 

“We were looking for a creative way to let people know about our new service and to take the opportunity to refresh the brand in one of the biggest media markets in the country,” says Linda Rutherford, the airline’s VP of communications (in an interview with BizBash, an online magazine about event planning.) “Buying advertising in this town is typically expensive, so with a relatively modest budget, we wanted to make the money work harder for us.”

 

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The F&B portion is supported by a ‘Witchcraft sandwich kiosk that was already in that corner of the park. The “porch” concept’s success includes playing host to private events, doubling its marketing value.

 

In the meantime, with prime retail real estate at a premium, it’s likely we’ll see more of these temporary spaces popping up, offering an alternative to long-term leases with minimal build out, low overhead, and an iconic and unexpected location for a brand to make its mark.

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