WONDER LA : A Brand in the Service of Fun

Presented By,Group-03

VEEGALAND to WONDER LA : The Brand Transition

Kochouseph Chittilappilly , V-Guard

industries promoter established an

amusement park in April 2000 in Kochi

under the name Veega Holidays and Parks Pvt.

Ltd

The name Veega land came from V-guard and

the mascot was an elephant

In September 2005, KC set up a second

amusement park, called Wonder la, in Bangalore

under the name Wonderla Holidays Pvt Ltd and the mascot was baby monkey, signifying

fun

Merging of Bangalore and Kochi companies

into one, Wonderla Holidays Pvt Ltd in 2008

Highlights of Kochi & Bangalore Park

Located at a height of 77 meters above sea level and 18 kms away from the city, Educational institutions were an important target segment

It has more than 55 land rides and water games for all age groups. It had an OHSAS 18001 international certificate for safety and ISO 14001 for environmental protection

Other facilities like parking space, restaurants, locker facility and changing rooms were available

The entry fee varied by the day of the week and by group size and category of visitors; special discounts for educational institutions

For the Kochi park the initial investment required was INR 220 million and it achieved operating breakeven at the end of 1st year.

It was set up in September 2005 at a distance of 28 kms from the city

Initially the target market was young people working in the IT industry. The target segment was then redefined , and the park was promoted as a place of fun for the family & for all age groups

Among its more than 53 rides were land, sky and water rides for all age groups

The Bangalore Park required an investment of INR 900 million and operationally it broke even in the third year

From ‘Ammu’ to ‘Chikku’ | Promoting Fun Element

From ‘Ammu’ to ‘Chikku’ | Promoting Fun Element

Similar Rides but better than Local Fairs

Target: mainly Children (Malayalam TV Channel)

‘Have a heart check before you come’ Redefining target

segment

Difficulty using Print Media for

advertisements, Greater efforts to create

awareness

Marketing Personnel Interactive to constantly

monitor Customer Feedback

Promotions through Road-Shows, School

Competitions, Magazine Ads, Discounts for

Schools

Increased Advertisement spend

lead to increase in Sales

Appointed Sales Agents & Tour Operators

Service Process| Delivering the Service

Service Process| Delivering the Service

Decisions on the day to day running was decentralized.

Long term issues were taken up in the managers meeting held once every two months.

Everything was computerized and tickets were printed as a way to count the no of visitors in a group.

Every morning there was a briefing session by supervisors for ground staff. This session was used to examine the previous day’s performance.

Feedback from visitors was collected through feedback forms and a complaints and suggestion box.

As personnel were given numbers, complaints could sometimes specify individuals.

The influence of employees on service quality was recognised and employee performance was given considerable attention at Wonder La.

The park was open every day all year, so to provide weekly day offs and to accommodate leaves, there was one additional person for every six persons.

Training for employees was done in house. A one day induction training was followed by six months on the job training and six months probation.

Operators were recruited from trade schools and supervisors were diploma holders.

Organisation affiliation was cultivated through in –house magazines, annual sports events, get together during festivals, cultural activities and family insurance and medical camps.

Demand for Entertainment & Industry Growth

Demand for Entertainment & Industry Growth

AppuGhar, Delhi- First amusement park

IAAPI- industry growing with over 50 medium to large amusement parks, 10-15% YoY growth

Increase in India’s middle class reason for growth in demand

Disposable income increased from 13.51% to 43.53%

Demographic trends offering 600mn potential visitors to amusement parks

Industry demanded high investment for land and equipment

One way to increase revenue was through retail

IAAPI states a park could be profitable if revenues from the gate collection and other sources reach a 50:50 ratio

Competing to Entertain

International Amusement Limited(IAL) in north & Nicco Parks and Resort Limited(NPRL) in east were the competitors

AppuGhar, Adventure Island & Metro Walk giving good competition

Similarly, Kolkata Park, and smaller parks in Bhubaneswar & Jamshedpur in east setup by NPRL

FDI in India’s amusement park inhibited by low gate fees, Entered into alliances with kid’s channels

Disney not a competition as it represents foreign culture, & requires five years to operationalize if decided to move into India

Other forms of entertainment – Shopping malls, food courts, multiplex movie theatre, video games

Kingdom of Dreams(KOD), opened in 2010- live entertainment, theatre and leisure destination in Gurgaon, NCR of Delhi. It offered Indian culture through its cuisines, crafts, musicals, dramas, carnivals, street dances & mythological shows

Targeted at high-end segment of Indian population & international tourists

Future Challenges | Journey Ahead

Future Challenges | Journey Ahead

High investment required for Hospitality Sector

Increased Marketing approach to sustain demand, low literacy level outside Bangalore

Tackling rising cost of real estate, acquiring right lands for expansion

Tackling Cities with High discretionary spending

Growing threat from potential competitors, constant value differentiation

Will it continue to be a ‘Walk in the Park’ for Wonder La ?

Low Ratio of Amusement

Park-to-People (165 India, 400+ USA)

7.6 % lower footfall due to unseasonality of

Rains

Revenue growth slowed down, grew by 5%

to 67 Cr (June’15 -QoQ)

High Debt & Interest costs hurting share

value

Adlabs – revenue increased by 200% due

to Imagica & Aquamagica being

operational together

Net Profit increased by 13% as compared to 27% QoQ, previous

fiscal year

Wonder La’s operating profit margin is 60%

(june’15) as compared to Adlabs’ 29%

Launch of Hyderabad & Tamilnadu Wonder La is

crucial in terms of future growth

Net profit is at 28.4 Cr (June’15), 22 lac visitors

last year

Do visit us !

Thank You