International Marketing Plan for Disney\’s Expansion into Shanghai
17
A Whole New World Disney Breaks Ground in Shanghai for Its Latest Addition to the Disney Resorts
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Outline of our suggestion for the international marketing strategy Disney should implement to increase its brand awareness and presence in Shanghai with the addition of their latest theme park.
Transcript of International Marketing Plan for Disney\’s Expansion into Shanghai
A Whole New World
Disney Breaks Ground in Shanghai for Its Latest Addition to the Disney Resorts
ChinaoLargest population in the world.
o1.3 Billion People
o3rd Largest Country
o3.7 Million Sq. Miles
oAmazing Terrain
• Forests
• Mountains
• Deserts
• Coastline
History/Culture
oYellow River is said to be the Cradle of Chinese Civilization
oHistory of Dynasties
oPeople’s Republic of China est. in 1949
oHofstede’s Values
Political RiskBusiness and Economic Climate
Increasing Gov. Restraints
Indigenous Innovation
Change in Government Officials
Fastest Growing Economy
Rising Labor Costs
Trade Barriers
Inability to Gain Access
Business in China
Company Description
The Walt Disney Company Founded in 1921 Produces and “unparalleled entertainment experiences based
on the rich legacy of quality creative content and exceptional storytelling”
Company Financials• Gross profits in the year 2010 of $6.73 billion and • Total assets of $70.95 billion
Disney Inc.
Walt Disney Studios Walt Disney Pictures, Touchstone Pictures, and
Hollywood Pictures
Consumer Products apparel, toys, home décor, books and magazines,
interactive games, foods and beverages, stationery, electronics, fine art
Media Networks Disney Channel, Radio Disney
Disneyland Theme parks and Resorts Imagineering
Disneyland Theme Parks and Resorts
The first Disneyland opened in 1955 in Anaheim, California 5 Disneyland theme parks/resorts:
Disneyland Resort, in Anaheim, California Walt Disney World Resort in Lake Buena Vista, Florida Tokyo Disney Resort Disneyland Resort Paris Hong Kong Disneyland
Disney Cruise Line, Vacation Club resorts, Adventures by Disney
Demographics
Primary Market (Youth)
Age: 4-13
Gender: Male & Female
Ethnicity: Chinese
Nationality: Chinese
Secondary Market (parents/family)
Age: 25- 65Gender: Male &
FemaleEthnicity: ChineseNationality: ChineseSocial Class: Middle
& Upper ClassLocal and Foreign
Tourists
Psychographic Segmentation
Lifestyles
Adventure SeekersFamily Oriented
Personalities
ImaginativeYouthful
Promotional Segmentation
Benefits Sought Segmentation
“Happiest Place on Earth”
EntertainmentLeisureThrillOutlet for imagination
and CreativityAn escape from “Real
World”
Product Usage Segmentation
Brand Loyalty
Rewards for “Heavy Users”: Disneyland Annual
Passholder Program Disney Rewards® Visa
Card from Chase Bank
Product Strategy: How to market Disney in a country where the Disney brand is not deeply ingrained in the culture Building Brand Image
China has no Disney Channel Cheap knockoffs
How Will They Do It? Creating a marketing strategy that establishes the Disney brand
into Chinese culture
International Marketing Strategy: Disney in China
Why China?
“China is one of the most dynamic, exciting and important countries in the world”.
-Robert Iger, Walt Disney CEO
In Shanghai:“The Disney park would make this area into a whole
new world”.-Cai, Local Resident of Chuansha
International Marketing Strategy: Disney in China
Pricing Strategy: How is Disney going to match their costs with their revenue? Cost: Estimated to be $3.6 Billion
Disney: 43% of the cost Shanghai Shendi Group: 57% of the cost
Revenue: Estimated 15 Million guests per yearChina’s rising middle classShanghai as China’s main financial and commercial centerFirst year guest estimate is 7.3 Million
Hong Kong Disneyland
“The park is too small and there are no rides. Why on earth would I want to go there? It is not fun.” Hong Kong Resident.
Does not Cater to Chinese Culture Does not Own the Land No Emotional Connection to Visitors It is not “Magical” Poor Crowd Management
Ocean Park
Established in 197715th Largest Park Worldwide
Excellent mix of education and fun Fantastic Sealife section Great rides Relatively short lines Competitive prices
Improvements
Keeping Park Ideas SecretLarger Eating AreasOwns the LandCatering to Chinese Culture Rather than Disney’sHuge! 988 Acres
Disneyland CA, 510 Acres
"Our Shanghai resort will be a world-class family vacation destination that combines classic Disney characters and storytelling with the uniqueness and beauty of China"
-Robert Iger, Walt Disney CEO
Thank You!
