Download - Disney World Hong Kong V 1 3
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