Post on 18-Nov-2014
description
Disneyland Australia"Disney DownUnder"
Group 1Erin Althoff
Samantha ArndtCasey Blakely
Khushboo ChaturvediJonathan Wong
Project Description
• The Walt Disney Co. was founded in 1923• Leading diversified international family
entertainment and media enterprise• Have four business segments: media
networks, parks and resorts, studio entertainment, and consumer products
• Disneyland under parks and resorts segment• Started in 1952 by Walt Disney • Now grown world-wide: 5 resorts with 11
theme parks on 3 continents
• Disney wanted to give customers an extraordinary experience where ever they goo “making dreams come true everyday”
• International expansions central to Disney’s global growth strategy
• Want to continue this growth into Australia
Australia
• Australia is a booming economy which is trying to expand its tourist industry
• Disneyland in Australia would increase tourism and revenue into Australia
• Younger generation in Australia spends substantial amount of time on leisure and recreational activities
Goal
• Aim to make Australia a more attractive tourist spoto Make Australia more alluring to tourists by
introducing Walt Disney theme Park• Image of Disneyland easily transferable to
Australian culture• Target market includes school-aged children and
families
According to our research, kids in Australia will be just as excited to go to
Disneyland...
Cultural Analysis
Australia
• Climateo 2nd driest continent
rainfall evenly distributed throughout year o Warmest in January, coldest in July
Summers average 65.5-78.4° F Winters average 46.4-61.2° F
• Official Language
o English
Cultural Analysis
• Familyo nuclear family is ideal
Two parents - wife takes cares of husband and children
• Educationo required from ages 6-15 years oldo 99% literate
• Legal Systemo Democratic, federal-state system
Executive, legislative, judicial
Cultural Analysis
• Social setting o Group behavior:
Use first names "Mate" is often used more than "Sir"
Evening meal is tea from 6 to 8 PM Respect different opinions - love to argue Use caution when using Aussie-English expressions
o Social classes Mostly egalitarianism
Schools resemble England Some racism still occurs
Cultural Analysis
• Business customso Modest and casual
Titles are unimportanto Do not mix work with pleasure, but take both seriously
• Clothing
o Casual: Bush wear and swimwearo Business: suits, jackets, trousers, waistcoats and breeches -
women wear more skirts than in US • Recreation, sports and leisure activities
o Outdoor activities Archery, Australian football, beach volleyball, canoeing,
cycling, etc.
Economic Analysis
• Population Demographicso Who are our local customerso Where are they located
• Economic Demographicso Can the local government withhold such a projecto Can the average family afford the vacation
• Media Outletso Which modes of communication are besto Barriers in the media
Economic Analysis
Population Demographics• 0-14 years 18.6% (male 2,026,975/female
1,923,828)• 15-64 years 67.9% (male 7,318,743/female
7,121,613) (2009 est.)Geographic Locations• Urban population 89% of total population (2008)
Implications for Disney DownUnder?
Economic Analysis
Economic Demographics
• Total GDP = $800.2 billion (2008 est.) • Average Family Income = $48,649 (2008 est.)
Implications for DisneyDownUnder?
Economic Analysis
Media Outlets• Television: 99% Australian homes• Radio: 100% Australian homes• Print: 98% Australian homes
Main Television Broadcasting Companies• Australian Broadcasting Corporation (ABC), Special Broadcasting
Service (SBS), the Nine Network, the Seven Network, and Network Ten
Main Radio Stations• There are 264 operational commercial stations• More than 300 community radio stations.
Main Print Mediums • The Daily Telegraph, The Herald Sun, and the Sydney Morning
Herald.
Economic Analysis
Barriers in the Media
Television• No commercials on programs geared towards young children• Limited number of commercials during 24-hour period
Radio• The Australian Communications and Media Authority (ACMA)
licensing guidelines and regulations, censor content depending on average consumer and listener
Print• ACMA has regulations over what printed to the public
Product AnalysisThe product: Disneyland Theme Parks
• Relative Advantage: o Disney's brand name (Pioneer brand advantage) o Quick brand recognition and market entry
• Compatibility:o No language barrier (as in Paris, Tokyo and HK)o Winter drawbacks (outdoor rides will be shut)o Existing industry of leisure parks in Australia
• Complexityo Four theme parks, ideally longer than a dayo Australian customers prefer 1-day parks
• Trialabilityo Over-priced for Australian consumerso Need to offer special discounts and promotions
Product and Market Analysis
• Observability o DMIG (Disney's interactive media)o WDIG (web developer, new media experiences)
Major Problems and resistances:• Trialability and complexity: Attracting a loyal customer
base• High promotions and sales discounts• Mapping of itineraries for different age groups
Geographical Regions• From South Wales, Melbourne and Sydney - • SYDNEY: oldest, most visited and largest city
Market AnalysisTransportation• Sydney - highest public transportation use (26%)• Communications: Phones, mail, internet (wi-fi)• Theme parks: Bus, coach, rail, car and helicopter transfers
Buying Habits: Australian customer base• 15 years and over - 22% on leisure activities• 30 Amusement parks - 8.9 million visitors • Higher use during school holidays, summer, tourist peak
seasons (January and October)• Local parks have amusement centers, indoor play centers
Market Analysis
Distribution in Australia• Walt Disney sells through Disney shops, Disney channel• Typical theme parks: Passes sold on websites• Involvement in environment and local community
Middlemen: None. Disney sells directly to its customers
Advertising and Promotions• Websites, TV ads, fliers, billboards• Largest local marketing group: Adcorp• Discounts and promotions offered on websites: Example:
Dreamworld in Gold Coast• Public Relations group: Press releases and photographs• Promotions: Gift cards, Discounts: Local offers
Market AnalysisPricing Strategies• Price varies according to age, groups (20-500), holidays,
summer season, new openings. (Special discounts)• Annual passes for frequent users• Discount for pensioners (resident of Australia)
Competitors• Luna Park in Sydney• Major Competitor (focus): Dreamworld in Gold Coast
o Feature: To Create an Escape to Fun and Excitement’ and ‘Share the Best Times Ever’
o Thrill-seekers paradise, educational interactive wildlife sanctuary and zoo, a multi-media production and broadcast centre
o Package: Nick central, Wiggles world, Tigger island, etc
Competitive Market AnalysisCompetitor's Prices Day Adult $ 69.00 1 Day Child (4-13 years) $ 45.001 Day Pensioner (AUS & NZ residents only) $ 45.00 Competitors Promotions; Dreamworld offers:
o Group discounts (more than 20)o Annual and 2-year Premium World passo Early arrival discount (by 9am)o Q4U: For customers that don't want to wait in queueso Local offers: Residents pay lower priceso Pensioners: Have to be residents of Australia for
discount • No use of distribution channels
Competitive Market AnalysisMarket Size• Estimated Average Annual Revenue for theme parks in
Australia -$1.2 billion.• Estimated Sales - $5.5 billion. (similar to Euro Disney)
Government Participation• Travel Agencies in Australia.• Gold Coast City to develop positive business relations and
acclimation to a new region.• Government Subsidies
Regulations• Queensland Environment Act, protect environment during
new development.• Building/Resource limitations in Gold Coast City• Sustainable Water Management
Preliminary Marketing PlanMarketing Objectives• Primary Target Market: Nuclear Families that have children
between ages 4-13.• Secondary Target Market: 13 years old and older that can ride
thrill rides in the park.
Product Component• Expected Sales: $500 million according to ticket prices.• 0-14 years: 18.6% * $50 * 8.9 million = $ 82.77 million• 15-64 years: 67.9% * $60 * 8.9 million = $ 362.586
million• 65+ years: 13.4% * $45 * 8.9 million = $ 53.66 million
Price (AUD) Quantity 11 Day Adult $ 60.00 1 Day Child (4-13 years) $ 50.001 Day Pensioner $ 45.00
Preliminary Marketing PlanProfit expectations for first year• Requires 8 million customers to visit in order to be
profitable.• No guarantee of 8.9 million projected visits would be met.
Market penetration and coverage• Target consumers of major competitor Dreamworld.• Follow segmented adaptation strategy like Dreamworld.
Product Adaptation• Incorporate Australian themes to park
o Kangaroo Mascot next to Mickey Mouseo Emphasize Finding Nemo Movieo Dining menus according to lifestyle and cultureo Consider slangs and profane language difference
between the US and Australia.
Preliminary Marketing PlanPackaging Component• "Disneyland Down Under"• Lower pricing strategy than United States• Dress Mickey Mouse in relation to Australian culture
Preliminary Marketing PlanDistribution• Port selection: Sydney, Port Kembla and Newcastle.• Mode Selection
o Railroads Affordable, Reasonable, service all of Australia
o Air carriers 54 air carriers, efficient, expensive. Bad in bulk.
o Ocean carriers Affordable overseas shipping, long shipping times.
o Motor carriers Perfect for raw materials, may encounter traffic.
Preliminary Marketing PlanPacking• Marking and labeling regulations
o Automated Manifest System, Customs-Trade Partnership Against Terrorism, Free Trade Agreement.
• Containerizationo Ship in bulk, transport from ship to train.
• Costso Ocean Shipping - Least Expendsiveo Air Shipping - Most Expendsive
Preliminary Marketing PlanDocumentation• Bill of lading - establishing legal ownership and facilitating
financial transactions• Dock receipt - proof of delivery of cargo to carrier • Air bills - controls the routing of cargo, contract for carriage• Commercial Invoice - bill of the goods sold • Pro forma Invoice - packing list for shipment of goods• Shipper’s export declaration - names, destination, goods,
declared value.• Statement of Origin - consular invoice from importing
country. • Special Documentation - none.• Insurance Claims - needed for export trading.• Freight Forwarder - manages routing, scheduling, rates,
restrictions, and requirements.
Preliminary Marketing PlanChannels of Distribution• themed shopping areas and market places• methods of payment (AUD, credit (Visa, JCB, Diners Club
Card, Discover, MasterCard, American Express and The Disney Credit Card), and traveler’s checks).
• No middle men• Import/Export agents include Japan, China, United States,
South Korea, United Kingdom, New Zealand, India, Singapore, Taiwan, and Thailand.
• Warehouses: Adelaide, Brisbane, Melbourne, Perth, and Sydney.
Preliminary Marketing Plan
Price Determination• Cost of shipment of goods: $80.00 USD / 1000 kgs• Insurance costs: Excess to $350.00 USD• Import taxes and value-added tax: 10% value added,
fixed $726 per vehicle, 9% insurance premium, fringe benefits tax 46.5%.
http://www.portofmelbourne.com/global/docs/Reference-Tariff-Schedule-July-2009.pdf
http://www.daff.gov.au/aqis/import/general-info/fees-charges/import-clearance
Preliminary Marketing PlanTerms of Sale• EX Works• FOB• FAS• C&F• CIF
Methods of Payment• Cash in Advance• Open Accounts• Consignment Sales• Time Draft• Letters of Credit
Pro Forma Financial Statements(In Millions) *Figures exclude 1.2 billion in start up costs. 2012 2017MarketingAustralia Media Networks 24 25Advertising/Promotion Expense 6 7ExpensesAdministrative/Corporate 75 80Consumer Products 86.01 86Entertainment 25 30
International Parks and Resorts Expenditures 721 450Less Capital Expenditures from Disneyland Hong Kong and Euro Disney 250 240Total Capital Expenditure of Disneyland Australia 471 110Total Expenditures 687.01 338
Earning before Interest and Taxes 638.24 2514.25Taxes 191.472 779.4175Net Income 446.768 1734.833
Resource Requirements
Finance• Government Subsidizes• Foreign Direct Investments (liabilities $104.2 B)
Personnel• Minimum wage $14.31• Provides approximately 10,000 new jobs
Production Capacity• 5,000 acres across multiple parks• Expect 8 million customers first year.
THE END.