MKTG 649: Marketing Management

Group Project

Group # **

Fall 2009

Student Name 1, Student Name 2, Student Name 3, Student Name 4, Student Name 5,

AgendaAgenda Overview

Situation Analysis

Marketing Problems/Opportunities

Management Recommendations

Financials and Implementation

Conclusion

OverviewOverview Six Flags, Inc. is the largest theme and water parks operator

i h U Sin the U.S.

Owns and operate 21- theme parks on a national-level, and some on international-level in Mexico, Canada, , , ,

and the UAE.

About 3,000 Employees

Headquarter in New York

Offers water attraction, thrill rides, concerts, shows, games, retail l d h d outlets, and themed area.

Situation AnalysisSituation Analysis SWOT

Competitor Analysis

Customer Analysis

Company Analysis

SWOT AnalysisSWOT AnalysisWeaknessesStrengths

“F f lli ” i • Over $2 billion debt• Waiting in line• Decrease in teen retention rate

• “Free falling” prices• Brand name• 20 locations• More family-friendly

• Fatal accidents

Opportunities Th t

More family friendly• Special causes

Opportunities• 21+ nightclub• Sports bar/restaurant• Ride simulators

Threats• Direct competition

• Indirect competition

• Extending hours• Strategic alliances

• Swine flu

• Weather

Competitor AnalysisCompetitor Analysis Walt Disney Company

Universal Studios

More affordable activities

Customer AnalysisCustomer Analysis Family unit

Teens and young adults

Company AnalysisCompany Analysis Founded in 1961 by Angus Wynn Six Flags Over Texas

20 parks – theme, water, and animal18 i U S 18 in U.S.

2 International: Mexico and Canada

Business Model Business Model Revenue generated through: ticket sales, in-park food and

merchandise, sponsorships

Company Analysis (cont )Company Analysis (cont.) One-stop entertainment destination Thrill rides, restaurants, games, themed areas, children’s areas,

parades, concerts, much more! Cartoon and comic themed rides and attractions Cartoon and comic themed rides and attractions

Single and dual park passes Season Passes Flash Passes

Marketing Problems/OpportunitiesMarketing Problems/OpportunitiesProblems Six Flags has debt overload

Losing money since 1998

N t t k t Narrow target market

OpportunitiesOpportunities

Appeal to price-sensitive consumers

Potential to increase target marketg

Nation’s largest thrill ride entertainment theme park Consumers desire roller coasters

RecommendationsRecommendations Marketing Objectives

Target Market

Differentiation/Positioning

Promotion Strategy

Product Strategy

Pricing Strategy

Marketing ObjectivesMarketing Objectives Increase revenue by: Introducing additional revenue streams Diversification

Increased trafficIncreased traffic Pricing promotions

Increase target market to include families, teens, and young d ltadults

Target MarketTarget Market Visitors who are more inclined to spend

Families

Young Adults 21+

Differentiation/PositioningDifferentiation/Positioning Differentiation Roller Coaster Excitement Downtown Atmosphere

2 Positioning Strategies Safe Family Friendly Low Cost Entertainment Safe, Family-Friendly, Low-Cost Entertainment Target: Families and Cost-Conscious Guests

Advertise at target through day-time television and kid shows

Cool, Fun, Energetic Entertainment Target: Young Adults and Party Lifestyles

Advertise and promote through young adult-targeted p g y g gsocial media shows and movies

Promotion StrategyPromotion Strategy “FREEdom Day at the Park” Admission Free on 4th of July

“Six Dollar Sundays”Ad i i l $6 S d Admission only $6 on Sundays

“Too Hot to Resist Days” Admission ½ Price when Temperature is Above Certain Level Admission ½ Price when Temperature is Above Certain Level

“Birthday Club” Free Admission on Your Birthdayy

“Boulevard Bash” – Saturdays After 10pm All Guests Must be 21 and Over Alcohol Served and Free Music and Entertainment

P d t St t g M ti Si l tProduct Strategy - Motion Simulators

Placed in major metropolitan malls

Features selected rides from Six Flags 19 parks

Will di 1/2 ff Will dispense 1/2 off coupon after ride

Product Strategy Boulevard Six Shopping

Product Strategy - Boulevard Six

Six Flags Store

Accessories Fossil

Sunglass Hut

Various Clothing Gap

Ab bi Abercrombie

Billabong

Boulevard Six (cont )Boulevard Six (cont.) Eating

Quick Eats Wetzel’s Pretzel’s

Jamba Juice

D h ’ Daphne’s

Starbuck’s

Sit DownSit Down Johnny Rockets

CPK

PF Changs

Boulevard Six (cont )Boulevard Six (cont.) Entertainment Comcast Sports Bar Nightclub Li C t St Live Concert Stage Theaters Lucky Strikey

Pricing StrategyPricing Strategy Bundle online daily tickets with 20% discount on parking

S l d Ex. Six Flags Discovery Kingdom $29.99 (online daily admission) + $12 ($15 one-day parking at

20%) = $41.99

Season pass holders Automatic 10% discount on food and merchandise $15 h f 21+ t B l d Si i ht l b $15 cover charge for 21+ to Boulevard Six nightclub 20% online discount on seasonal parking

V.I.P. tour 20% percent online discount on select days

Pricing Strategy (cont )Pricing Strategy (cont.)• Extra added-value to special events

– Extend hours until 12 midnight– 21+ only

25% increase on daily admission– 25% increase on daily admission– Premium on hard liquor and beer

• Ride simulatorse s u ato s– $9 for 4-minute ride– 50% discount coupon for admission redeemable within one

month

Financial SituationFinancial Situation In 1999 debt started at $30.5 million

I 2008 d b h 2 b ll In 2008 debt more than $2 billion 2007 net loss

$113 million 2008 net loss

$253 million Violation of Violation of

NYSE standards

Financial ProjectionsFinancial Projections Possible chapter-eleven filling

D b d dli b A 15th 2009 $287 5 $318 Debt deadline by August 15th 2009 to pay $287.5 - $318 million in Preferred Income Equity Redeemable Shares to shareholders to shareholders.

Acquisition or merger with Busch Entertainment Corporation operates nine-theme parks across the nation Corporation operates nine theme parks across the nation including the Sea World, and the Busch Garden Parks. Has $1.3 Billion in revenue, and positive net income.

Access to capital to resume revenue generation.

Financial ControlFinancial Control Modifying the revenue model

Six Flags CEO’s firm Red Zone Capital bought Johnny Rockets, Dick Clark Productions, the Academy of

d d h l h f hCountry Music Awards, and the television home of the Golden Globe Awards.

Att t t i ti d j Attempts to increase revenue generation, and major turnaround for Six Flags

Conclusion and RecommendationConclusion and RecommendationYear 2005 2006 2007

Increase revenue, and raise capital

Park Attendance 28,688 24,840 24,902

Increase revenue, and raise capital

Increase the attendance rate from return on the capital investment of the Boulevard

Attempts to increase revenue generation, and major turnaround for Six Flags

Generate most revenue through theme park admission, which accounts g p ,for 52.4% of revenue in 2007.

The remaining percentage is accounted for by food, merchandise and other salesmerchandise, and other sales.

Thank You!Thank You!

Q i ?Questions?