MARKETING PLAN

Presented by Group 5: Amy Cabanas, Jeremiah Sampo, Mike Peek, Tony Murphy, Mike Ammari, Kelly Watson and Paige Christopher

COMPANY DESCRIPTION

Emeryville, California

1979—Division of LucasFilms

1986—Steve Jobs

1991—Toy Story

2006—Purchased for $7.4B

STRATEGIC FOCUS: MISSION STATEMENT

“To combine proprietary technological and world-class creative talent to develop computer animated feature films with memorable characters and heart-warming stories that appeal to audiences of all ages.”

STRATEGIC FOCUS: NONFINANCIAL GOALS

Strengthen high-quality reputation

Expand line of service Increase presence in Latin America

Projected Attendance Record: 2nd in Latin America

STRATEGIC FOCUS: FINANCIAL GOALS

Increase capital assets

Obtain 100% ROI year 8

Total Revenue 1.97% ↑

International Revenue 22.2% ↑

SITUATION ANALYSIS: INTERNAL STRENGTHS

Monetary funding

Disney brand

RenderMan

Quality vs. Quantity

Disney Anywhere App

SITUATION ANALYSIS: INTERNAL WEAKNESSES

High production cost

Length of development

Limited releases

Disney Anywhere AppUp, 2009

SITUATION ANALYSIS: EXTERNAL OPPORTUNITY

Brazil ~ Abandoned Theme Park ~ Shifting Demographics ~ 2016 Summer Olympics

↑ Theme Park Attendance ~ 5.88% Global Average

SITUATION ANALYSIS: EXTERNAL THREATS

Digital Piracy

Global Economy

Competition

Int’l Regulation

Brand Loyalty

SITUATION ANALYSIS: INDUSTRY AND COMPETITORS

DreamWorks

Warner Brothers

Sony Pictures

Blue Sky Studio

Illumination Entertainment

Oct 1998Nov 1998

SITUATION ANALYSIS: COMPANY ANALYSIS

1st computer animated film

Best Animated Short Film

For the BirdsMonsters, Inc. Short film2000

SITUATION ANALYSIS: COMPANY ANALYSIS

RenderMan Software

Cutting-edge Technology

RenderMan Brave, 2012

MARKET-PRODUCT FOCUS: OBJECTIVES

Parque Pixar ~ Gap in the Market Follow in Disney’s Footsteps

2nd Most Visited Theme Park ~ Six Flags Mexico is #1, appx. 250,000,000 annual visitors , #2 is Hopi Hari in Sao Paulo, Brazil, 1,628,000

Soft Opening in January, 2016Grand-opening and Finding Dory, June 2016

MARKET-PRODUCT FOCUS: TARGET MARKET

Families with Children

Shifting demographics in Latin America ~ Fertility Rate ↓

POINTS OF DIFFERENCE

Cutting-Edge Technology

Disney is a Household Name

Flawless Track Record

POSITIONING

Reposition Strategy

~ Studio Animators

~ All Encompassing Entertainment Company

MARKETING PROGRAM: PRODUCT STRATEGY

Core Product ~Service (Intangible)

Formal Product ~ Retail (Tangible)

MARKET PROGRAM: PRICE STRATEGY

Regional Industry Standard ~ $62- $76 per ticket

Global Industry Standard ~ $82 - $96 per ticket

Our Price ~ $70 - $80 per ticket

MARKET PROGRAM: PROMOTION STRATEGY

Grand Opening, Finding Dory, 2016 Summer Olympics

Parque Pixar

MARKET PROGRAM: PROMOTION STRATEGY

Celebrity Endorsement

Cesar Cielo

Gatorade, Adidas, Audi

MARKET PROGRAM: DISTRIBUTION STRATEGY

Tickets ~Box Office ~ Online

Exclusive Retail

IMPLEMENTATION AND BUDGET

Viable plan ~Disney Business Segments

Total Revenue= $45 Billion

31%=$13,950,000,000

IMPLEMENTATION AND BUDGET

Use Industry Standards: Regional & International

Original Development Price, 1995 → R $235 million

Exchange Rate: US$.45: R$1 → US $105,732,025

Average Global Inflation Rate: 4.1%

Today’s Development Price, 2014 → $227 million

IMPLEMENTATION AND BUDGET

Expected Sources of Revenue

Average Ticket Price → $75.00 Average additional expenditure → + $44.10 ________ Combined Avg. Total Expenditure → $119.10

IMPLEMENTATION AND BUDGET

Projected Attendance Model

1st Year Attendance → 2,039,400 visitors Average Expenditure → x $119.10 ____________ Total 1st year revenue → $242,892,540

IMPLEMENTATION AND BUDGET

Expected Expenses: 80% Operating CostPersonnel, Maintenance, Supplies, Special Events, Standard Promotion, Public

Services, Insurance, General Administration, Taxes, Interest, and Other

Total Revenue → $ 242,892,540 Operating Cost → x 80% _____________ Total Operating Cost → $ 194,314,032

IMPLEMENTATION AND BUDGET

Additional Annual Expense: 5% Reinvestment ~ Based on initial investment ~ Expansion, New Attractions

80%-90% of Guests are Repeat Customers

Annual Reinvestment: $ 11,350,000

1st year Operating Income: $ 37,228,508

IMPLEMENTATION AND BUDGET: 6 YEAR OPERATING PROJECTIONS

Year

Expected Attendanc

e

Revenues Expenses Year EndOperating

Income

Initial $227M

InvestmentPayoff

12016

2,039,400 $242,892,540

$205,664,032

$37,228,508

($189,771,492)

22017

2,159,317 $257,174,655

$217,089,724

$40,084,931

($149,686,561)

32018

2,286,285 $272,296,544

$229,187,235

$43,109,309

($106,577,252)

42019

2,420,719 $288,307,633

$241,996,106

$46,311,527

($60,265,725)

52020

2,563,057 $305,260,089

$255,558,071

$49,702,018

($10,563,707)

6 2021

2,713,765 $323,209,412

$269,917,530

$53,291,882

$42,728,175

IMPLEMENTATION AND BUDGET

Parque Pixar 1st Year Revenue → $ 242,892,540 _______________ = 1.97% Pixar’s Total Revenue, 2013 → $12,354,000,000

Parque Pixar 1st Year Revenue → $ 242,892,540 ___________ = 22.2% Pixar’s Int’l Revenue, 2013 → $ 1,094,000,000

TO INFINITY AND BEYOND…