Svetlana KoganC09974439
SVETLANA KOGAN
C09974439
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Svetlana KoganC09974439
TABLE OF CONTENTSQUESTION 1....................................................................................................................... 3
QUESTION 2....................................................................................................................... 6
QUESTION 3....................................................................................................................... 7
QUESTION 4....................................................................................................................... 9
QUESTION 5..................................................................................................................... 11
QUESTION 6..................................................................................................................... 13
REFERENCES................................................................................................................. 15
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QUESTION 1Universal studios tends to mimic the strategies of Walt Disney World. Please take the time to study some of Walt Disney World’s branding, entrepreneurial, and new product development strategies and demonstrate them in a short paper 2-3 pages in length.
In 1928 Walt Disney gave birth to an iconic and unforgettable character with
Giant black ears, goofy eyes, unforgettable red shorts and giant white-gloved
hands – Mickey Mouse (Robertson, 2008). When strategically placing three
circles together, people can immediately identify the lovable mouse that has
invaded our television screens for the past 80 years. Mickey has become one
of the most recognizable symbols in the world, thanks to Walt Disney’s
ubiquitous branding strategies (Suddath, 2008). Like most companies,
Disney uses a variety of integrated marketing communication strategies,
radio, television, outdoor media, direct mail as well as online advertising and
promotions. In order to maintain the magic and fantasy behind the Disney
brand, the company believes that direct marketing is essential to maintain a
dialogue between themselves and potential customers (Robertson, 2008).
Upon the customer’s request, DVD mail packs are sent to individual
households, the DVD arrives in a jewel-incrusted case, with fun, bright and
bold illustrations enticing individuals to tune into the wonderful world of
Disney. The DVD is directed and designed in such a way that individuals
become hyped up about Disneyworld as well as enticing people to watch the
DVD over and over again. The club house CD included in this package is a
fun and educational game for children. This CD attracts young individuals as
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well as their parents to the Disney experience at Disney World, thus
essentially building on the Disney brand (Negus Viveiros, 2006).
With a competitor such as Universal Studios, it is essential that Disney
maintain a strong and steady entrepreneurial and new product development
strategy. This is imperative in order to ensure that they are the market
leaders. It is believed that leaders in their industries make fifty percent of their
revenue due to products developed within the most recent five years
(Robertson, 2008). A great point of reference for entrepreneurs within the
Disney Corporation is their notorious vault, which holds the company’s video
releases on moratorium (Facenda, 2009). In 2007 the Disney Vault was
accessed, and their innovators drew on inspiration from some of Disney’s
most iconic characters, themes and images to break into the luxury market.
This line began with soaps, which were inspired by Alice In Wonderland.
Following their great success, Disney collaborated with designer Kristie Kelly
who helped them create and design Disney’s Fairy Tale weddings. This
includes a collection of wedding dresses mimicking those of the Disney
princesses, such as Cinderella and Sleeping Beauty (Facenda, 2009). All
girls dream of becoming a princess, and this is partly due to the wonderful
image Disney has helped implant into their minds. Thus, reflecting on the
wonderful Disney fairy tales, it is not an unreasonable to assume that women
would love to walk down the isle and finally become the princess they have
always dreamed of.
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The brilliance behind Disney’s new product developments is that it maintains
some of the Disney fantasy life and experience that comes with reading their
books, and watching the movies or television shows. Disney’s elaboration on
their ideas by creating more than just a show or a movie but an experience;
has allowed for them to create a world where families can become one with
their favorite story lines and for them to be engrossed in the wonderful world
of Disney. However, to maintain a steady following in their movies and
television shows, it is imperative that they constantly innovate experiences for
others. Disney has recently created a sports complex and hotel near the
Orlando Disneyworld, where families can come to enjoy state of the art
sporting facilities as well as a luxury resort. Families are also provided with
transport to and from Disneyworld, allowing them to enjoy all experiences
within the Disney world. It is important that brands find new ways to attract
new audiences. Providing Disney’s innovations are subtle and bring the best
to the market, they will find an audience (Robertson, 2008). The sporting
facility has been a great new product for Disney as it has allowed for them to
expand their horizons and demonstrate that they are no longer only about
their princesses.
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QUESTION 2Analyze how Disney used merchandising and cross-promotion to achieve success in theme parks. (1-2 pages)
The irrefutable strength and recognition of the Disney brand allows the
company to effectively use merchandising and cross-promotion as a way of
promoting success in other areas of its enterprise, such as in its theme parks.
Disney stores and merchandising represent “about 10% of Disney’s sales, but
closer to 15% of [its] operating income” (Business Week, 2002) Even in the
economic downturn of 2009, Disney found that consumers were still turning to
its products because they were “looking for brands they trusted that they knew
their children would be receptive to” (Retail Merchandiser, 2010).
Disney has been able to instill a particular image of its brand and ultimately its
theme parks to children and their families by enabling identification and
familiarization with its products and services to children from an early age.
Every time a child plays with a Disney toy or watches the Disney channel on
television, it is an advertisement for Disney and therefore Disneyworld “The
happiest place on Earth” (Robertson, 2008).
Disney has used cross-promotion and merchandising in an extremely clever
way, once a character within a show becomes extremely popular, such as
Hanna Montana, they develop toys, videos and games and eventually bring
the Hanna Montana craze to Disneyworld, with virtual games and her
character occasionally making an appearance on the centre stage.
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QUESTION 3Discuss the competition between Universal and Disney. (1-2 pages)
Disney’s biggest competitor in the theme park industry is Universal Studios.
When Universal studios announced that they would be building a Harry Potter
theme park around the corner from Disney’s Disneyworld in Orlando, it
created a an instant conflict between the two companies (The Corporation,
1998). Disney and Universal are both utilizing aggressive marketing strategies
to entice families to attend their theme park. Due to the high costs associated
with such entertainment, the companies believe that families vacationing in
the area will most likely only pick one of the theme parks as opposed to both.
Disneyworld is heavily advertising their discounted multiday passes, in order
to attract families that wouldn’t otherwise visit. Disney has decided to place
MGM in the theme parks title, which is close to MCA, the company that owns
Universal studios. Thus, to any uninformed individual, this could mean the
difference from attending Universal Studios or Disneyworld (Miller, 1992).
Universal studios are retaliating through the development and creation of their
rides. The studio is newly developed; therefore they were able to create rides
using the latest technology and advancements, which Disneyworld had not
thought to use. “The happiest place on earth” (Robertson, 2008) quickly
became a construction zone, with Disney taking some advice from Universal
and realizing that now that the anti had been upped they were competing on
the quality of the rides and that their brand name was not enough. It is now
believed that even though Disney may have more rides, it targets a different
audience to that of Universal Studios. Disneyworld is aimed at younger
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children whilst Universal is more appropriate for teenagers. After all the war of
the theme parks may not have been necessary (Miller, 1992).
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QUESTION 4Analyze the huge success of the “Harry Potter” phenomenon. (1-2 pages)
Harry Potter, a simple story of an orphaned young boy who was swept away
to join the wizarding world. The plot seems simple enough, but with over 300
million books sold, Harry Potter takes third place in the all time bestseller list;
the number one being The Bible (Brown, 2006). Originally publishing houses
had rejected the book, believing that it had no future, as children would not be
interested in such a series (Beahm, 2004). Eventually a small London
publishing house picked up the first book, and the phenomenon began.
Children were crazed by the books and as each new book was released,
huge crowds gathered in order to be one of the first to purchase and read the
next chapter in this young boys life. This was surprising as it has been a long
time since children’s books have been so successful and that every child had
to have a copy on their bookshelf (Brown, 2002). Even though these books
were written for children, the storyline was so engrossing and well written that
everyone became addicted to reading the books: the young, the old and the
older. As the books popularity began to grow amongst older generations, the
publisher felt that they would release two different covers of the book, a
colorful, cheeky version for children and a basic cover for adults. This was
extremely clever, as more adults felt comfortable reading the books especially
in public as they were cleverly disguised (Bloomsbury, 2010). Harry,
Hermoine and Ron immediately became a sensation amongst children and
adults, the idea that such a world could possibly exist left everyone wanting to
learn and read more, Harry Potter quickly became an addiction. As people’s
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addiction grew so did the Harry Potter empire; apart from the movies. Harry
Potter paraphernalia was demanded by all, from house scarves of the schools
in Hogwarts, magic wands, and even to schools creating their own versions of
Quiddich. This enticed students to get involved in sporting activities. The
Harry Potter business empire was established.
The creation of the Harry Potter amusement park is an extension on this
business, and an amazing new product development. The enticing aspect of
the Harry Potter amusement park would draw the muggle followers in (Brown,
2006). Hogwarts is a place where good fights evil, where friends come
together for a greater good, and everyone is accepted. Being different is
extraordinary and wonderful. Many people dedicated over seven years of their
lives following the Harry Potter series and this theme park allows them to be
apart of it (Beahm, 2004).
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QUESTION 5Discuss the challenges lying ahead for Universal that takes on the “Harry Potter” brand further. (2-3 pages).
It is reported the Universal Studios spent around $265 million dollars
developing Harry Potter World in Orlando, Florida (Niles, 2009). Universal
clearly believed that they could take advantage of the ‘Potter’ phenomenon
and turn a much-needed profit. However Universal may face intense
challenges when trying to develop the Universal/Potter brand; Harry Potter is
an already developed and mature brand, which leaves very little room for
Universal to expand their product range. As each book was written and more
followers caught the train to Hogwarts, toy manufactures took to their drawing
boards and developed every possible product under the sun associated with
Harry Potter. There are now collectable Barbie like dolls of the main
characters in the series, as well as magic spells, Quiddich sets and different
apparel items which can be chosen, based on which character is your
favorite. Whilst trying to merchandise Universal’s Harry Potter memorabilia,
they may encounter some road blocks, especially as many of the visitors to
the theme park, are already fans of the top selling books and movies,
therefore most likely already own Harry Potter products.
Another challenge that may lie ahead for Universal is that the Harry Potter
story line is now complete. There are no more books being written and the
final movie will be released this year, which could mean the end of the Harry
Potter phenomenon (Facenda, 2009). As the end comes, Harry Potter fans
may move onto a new ‘trend’ or not feel as connected to the story line and the
characters, which are portrayed at the theme park.
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Furthermore, as the story line has stopped developing, Universal may
encounter that their rides and attractions will quickly become out dated, as the
entire world is based on the seven famous novels, and the rides have already
been developed. Seeing as consumers wish to have the Harry Potter
experience and follow in the footsteps of the characters, the attractions may
become out dated and very repetitive, therefore causing a decline in repeat
clientele.
The biggest challenge that Universal will have to face, is that the Harry Potter
generation is growing up very quickly, and there is concern that the next
generation of young adults will not take to the Harry Potter phenomenon
(reference). Therefore they will not be as entice to entire Harry’s World at
Universal Studios and participate in the magic of Hogwarts.
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QUESTION 6Debate the potential strategies to be used by Universal as against Disney’s. (2-3 pages)
There is very little that differentiates Universal Studios from Disneyworld in
relation to their marketing strategies, they both use the same integrated
marketing communications, both offer multiday passes to their different parks,
as well as offering resort accommodation near their theme parks. However,
Universal Studios has to offer a noticeable point of difference in order to
overtake Disneyworld and become the number one theme park in Florida.
Universal Studios may want to try and make the Harry Potter world into a real
adventure, where tour groups/guides are offered and the
children/teenagers/families are divided into the four houses, which are
depicted in the Harry Potter books, and each house gets to go on their own
adventure within the theme park. However, once Universal implements such
an activity, Disney can compete, by dividing individuals into their favorite
shows or characters and producing the same effect.
The Studio can also offer, something along the lines of a ‘Golden Ticket’
where winners get free entry into the theme park, as well express queue entry
for the day. Once again, as Disney has the rights to WillyWonka so they can
actually implement the already developed ‘Golden Ticket’ idea that could take
off, because it already has a steady following due to the movies.
Universal’s Harry Potter World has an advantage, as the Movies have put an
actually face to the characters. Over the next few years, whilst Harry Potter is
still a phenomenon the amusement park, can contract the actual stars of the
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show to appear in the park for photo shoots and reenactments of different
scenes. This way Universal could attract both the characters followers as well
as the stars followers. However, the issue with this is that the characters may
not be willing to appear at the park, but also the stars will eventually get older
and will become less appealing to followers as well as other crowd goers.
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REFERENCESBeahm, G. (2004). Muggles and Magic: J.K. Rowling and the Harry Potter Phenomenon. Charlottesville: Hampton Roads Publishing.
Bloomsbury. (2010). Bloomsbury. Retrieved January 31, 2011 from Harry Potter Books: http://harrypotter.bloomsbury.com/books/harrypotter-book1
Brown, S. (2006). "You're A Wizard, Harry!" Consumer Response to the Harry Potter Phenomenon.". Advances In Consumer Research , 33 (1), 155.
Brown, S. (2002). Marketing for Muggles: The Harry Potter Way to Higher Profits. Business Horizons , 41 (1), 6-14.
Business Week. (2002, June 24). Disney's CFO Measures the Mouse. BusinessWeek Online .
Facenda, V. L. (2009, September 9). Harry Potter, Darth Vader and Disney Princesses. Retrieved January 31, 2011, from Daily Herald: http://blogs.dailyherald.com/node/2601
Miller, C. (1992). Duel in the Florida sun: Disney/Universal competition compared to 'Cola wars'. 26 (1).
Negus Viveiros, B. (2006, June 15). I Am Your Monkey,Walt Disney. Direnct . www.directmag.com.
Niles, R. (2009, Septeber 15). Universal's Wizarding World of Harry Potter to open in Spring 2010, webcast confirms. Retrieved January 30, 2011, from http://www.themeparkinsider.com/flume/200909/1397/
Retail Merchandiser. (2010). The Magical World of Disney. 50 (1), 132-137.
Robertson, A. (2008, January 11). Bear-necessities of marketing. Precision Marketing .
Suddath, C. (2008, November 18). Brief History of Mickey Mouse. (TIME) Retrieved January 31, 2011 from http://www.time.com/time/arts/article/0,8599,1859935,00.html#ixzz1CjvgZGB7
The Corporation. (1998, April 6). Theme-Park Shoot Out. A host of new competitors has Disney building like crazy , 66. Business Week.
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