Hong Kong Disneyland

Joshua Bloom, Kate Epstein, Maureen HanrahanCameron Lewis, David Miller, Julie Schechter

Group 2, Section 003December 12, 2005

Company

• Company Strengths:– Diverse portfolio– Global presence– Strong brand equity

• Company Weaknesses:– Studio entertainment

sector– Hong Kong Disneyland

Hong Kong Disneyland

• Strengths:– Attention to culture– Brand recognition– Accommodations

• Weaknesses– Expensive entrance fee– Limited attractions

Current Problems

• Low attendance• Strong competitor• Small park size•Negative publicity

Customers•Mainland Chinese (tourists)

– Increasing disposable income– Increasing number of outbound travelers– Desire for Western products

• Hong Kongers (locals)– Price sensitive– Small household size– Close proximity to park

Competitors• Direct:

– Ocean Park• Better attractions • Strong brand recognition• Lower entrance fee• Old, under-maintained

• Indirect:– Victoria’s Peak– Bars, clubs, restaurants, cinema, arcades, karaoke– Family attractions: zoos, museums, gardens

SegmentsFamily Life Cycle Geographic Region

FamiliesParents with children ages 0-19

Local

Tourist

Teenagers Ages 13-19Local

Tourist

Young Professionals Ages 20-30, no childrenLocal

Tourist

Empty NestersNo children living at home

Local

Tourist

Positioning MapFamily Oriented

Individualistic

All Inclusive Vacation

One-Day Visit

DisneyOcean Park

Movie Theatres

512

5. Chinese Families6. Chinese Teenagers7. Chinese Young Adults8. Chinese Empty Nesters

6

Zoo

2

37

84

1. HK Families2. HK Teenagers3. HK Young Adults4. HK Empty Nesters

Target Market

•Mainland Chinese families

• Large segment (40%)•Need

accommodations• Growing disposable

income

Positioning Statement

For Chinese families, Hong Kong Disneyland is the most convenient tourist destination because it offers theme park attractions, hotels, transportation, dining, and night-life entertainment.

Alternative Options

• Park expansion– Smallest Disney park– Large costs

•Market to local Hong Kongers– Easy-to-access segment– Don’t need our accommodations

•Market to mainland Chinese families

PricePark Disneyland Hong Kong Ocean

Park

Type Week Weekend/Peak Days

GeneralAdmission

Adults US$38 US$45 US$24

Children (3-11 yrs)

US$27 US$32 US$12

Senior Citizens (65 yrs +)

US$22 US$26 Free (w/ HK ID)

Children (under 3yrs)

Free Free Free

* Peak days will include Hong Kong public holidays, summer school holidays (i.e. July and August) and the Golden Weeks (1st week in May and October every year). (7)

Product

• Animal Kingdom– Petting Zoo– Dinosaur Exhibit– African Safari

• More photo shops• Childcare facilities• Expand park

• Utilize Chinese travel agencies– Dealer incentives

•Non-Disney hotel concierges – Offer free passes – Distribute information

and tickets

Place

• Advertisements– Institutional

advertisements– Advertisements in

railway system– Feature hotel

accommodations• Holiday promotions

– Peak travel time– 15% discount

Promotion

Questions?