Jaime Rosman&

Karl M Schwartz

Agenda

Disney

HKD Issues

Marketing

Competition

Present & Future

Disney Facts

Four International Theme Parks: USA Disneyland Paris Tokyo Disneyland Hong Kong Disneyland

High standard of quality Unique Disney experience

Disney HKD Issues

MarketingCompetitio

nPresent &

Future

Timeline

Disney HKD Issues

MarketingCompetitio

nPresent &

Future

Hong Kong Disneyland Facts

Took almost 6 years to realize from conception to opening

Opened September 12, 2005$2.9 billion investmentJoint venture between The Walt Disney

Company and the Government of the Hong Kong Special Administrative Region (HKSAR)

57% (HKSAR) to 43% (Disney) Equity Structure

HKSAR covered over 80% of initial investment

Disney HKD Issues

MarketingCompetitio

nPresent &

Future

Hong Kong Disneyland Facts

5000 Cast Members (Staff)“Never a customer, always a guest” Customer Base:

1/3 from Hong Kong 1/3 from Mainland China 1/3 from International Tourists

In 2006, Hong Kong Disneyland ranked among the top five most popular places to visit in Hong Kong

Disney HKD Issues

MarketingCompetitio

nPresent &

Future

Hong Kong Disneyland Facts

Four Themed Lands: Mainstreet USA Adventureland Fantasyland Tomorrowland

Two Hotels: Hong Kong Disneyland Hotel Disneyland’s Hollywood Hotel

Disney HKD Issues

MarketingCompetitio

nPresent &

Future

Question

What sort of involvement does your major stakeholder have in day-to-day operations or long-term strategy?

Cultural Assimilation

Feng shui masters were consultedDeployment of five basic elements of “gold,

wood, water, fire, and earth” were skillfully managed throughout the park Alignment of the energies between the people and the

spaces

Conscious play with the number “8” symbol of prosperity Ballroom of Resort 888 square meters

Disney HKD Issues

MarketingCompetitio

nPresent &

Future

Question

How to you determine what to keep true to Disney and how to you determine what to align with Chinese customs?

Ticketing Fiasco

Ticketing Fiasco

Chinese New Year on January 29,2006Surge of visitors from mainland ChinaFlexible ticket schemeDiscrepancy in holiday calendars between

mainland China and Hong KongPatrons were denied entry for three

consecutive days

HKD IssuesDisney

Present & Future

MarketingCompetitio

n

Other Difficulties

2005 Long Lines at entrance and rides High employee turnover Press complains of being treated poorly

2006 “Ticketing Fiasco” Degrading image due to low “citizenship” Low attendance compared to projections Press complains of being treated poorly

HKD IssuesDisney

Present & Future

MarketingCompetitio

n

Question

What measures have been taken to deal with capacity problems?

2007 Promotional Film

MarketingHKD Issues

Present & Future

DisneyCompetitio

n

Marketing

Targeted links on website for each group

Includes: Activities Entertainment Special Events

MarketingHKD Issues

Present & Future

DisneyCompetitio

n

Question

What are the major differences between marketing messages and mix here versus in the United States?

Ocean Park

Marine Theme Park Positioned as Hong Kong’s local theme park Became much more aggressive in marketing

and product development since the building of Hong Kong Disneyland was announced

Projected 30% loss in visitors once Hong Kong Disney opened, only had a 13% loss

Cheaper admission, consider better value

Competition

HKD Issues

Present & Future

Disney Marketing

Hong Kong Wetland Park

Nature Preserve

Zoo-like

Observational / Learning themed

Competition

HKD Issues

Present & Future

Disney Marketing

Ngong Ping 360

Cable Car Transportation

Less “Closed”

Nature/Culture themed

Competition

HKD Issues

Present & Future

Disney Marketing

Expansion Plans

Currently utilizing half of the available landWant to increase size of the park by 1/3 Approx. $500 million price tag on proposed

expansionHong Kong version of the Magic Kingdom is

the smallest of Disney’s theme parks. Expansion is vital to the parks success

Present & Future

HKD Issues

MarketingDisneyCompetitio

n

Halt Expansion Plans

As of March 16, 2009, Hong Kong Disneyland has put a hold on expansion plans

Failed to reach agreement with HKSAR to fund the expansion

Fired 30 Employees

“The uncertainty of the outcome requires us to suspend all creative and design work on the

project.” – Disney

Present & Future

HKD Issues

MarketingDisneyCompetitio

n

Question

How are you going to be able to adapt/change without expanding?

Future in Danger?

Steadily lost money since opening 9/2005 Some visitors say park too small to entice

them back for a second visit.Disneyland might open a Shanghai park:

Could open in 2014 Much larger Easier for many Chinese families to visit

With Shanghai park, could mean a drop of as much as 60% in visitor numbers for Hong Kong

Present & Future

HKD Issues

MarketingDisneyCompetitio

n

Question

With the proposed Shanghai park how is Hong Disney going to differentiate/compete?

Questions Summary

What sort of involvement does your major stakeholder have in day-to-day operations or long-term strategy?

How to you determine what to keep true to Disney and how to you determine what to align with Chinese customs?

What measures have been taken to deal with capacity problems?

What are the major differences between marketing messages and mix here versus in the United States?

How are you going to be able to compete without expanding?

With the proposed Shanghai park how is Hong Disney going to differentiate/compete?

Questions for us?

Molly, any questions?

Sources

“Hong Kong Disneyland 2007 Promo”, Nonzee Nimibutr, Jan Dara & Nang Nak / HKDL Source – http://www.youtube.com/watch?v=vFIKQXnD754

“Hong Kong Disneyland: Where is the Magic?”, Chi Kin Yim / University of Hong Kong, 2007 – Exhibit 4

“Chaos at Hong Kong Disneyland, Tracy Jonkivy / Associated Press (http://associatedpress.com/), http://www.youtube.com/watch?v=yXaxGB9CBcE

“Hong Kong Disneyland 2008 promo”, Hong Kong Disneyland, http://www.youtube.com/watch?v=jZHZDcgCao8

“Hong Kong Wetland Park”, Trip Advisor, http://www.tripadvisor.com/Attraction_Review-g294217-d548055-Reviews-Hong_Kong_Wetland_Park-Hong_Kong_Hong_Kong_Region.html

“Hong Kong Ngong Ping 360”, Trip Advisor, http://www.tripadvisor.com/Travel-g294217-d624841/Hong-Kong:China:Ngong.Ping.360.html