amusement parks and success factors

Amusement Parksand

Success Factors

Prepared by Hossein Bkhshaei for Pars Pouyan Pardis Company

PurposeTo help you formulate Pars

Pouyan, and to be knowledgeable in the ways

used to be successful Amusement Park.

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

U.S theme park industry

Brand Positioning(promotion and advertising)

Service Marketing Ps

Customers

Financials

Success and Flop FactorsPrepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

U.S theme park Industry

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

It’s large and

growing:489 businesses

Revenue: $11.0 billion

Profit: 596.1 million

Growth rate:2.1%

(2011)Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

9.0%9.4%

8.6% 11.8%

51.0%

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Brand Positioning(promotion and advertising)

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Advertisement VS Promotion

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Selling the promise of entertainmentat one unique place???

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

FamilyWhere Dreams Come True

Promotion/Advertising

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Six Flags

destination of high speed and big drop rollercoaster thrill rides

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Promotion/Advertising

The premier destination of thrill rides by continually promoting the presence of new

attractions

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Universal

Entire universe of action and thrills

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Promotion/Advertising

The premier destination of thrill rides by continually promoting the presence of new

attractions

• $3 million television commercial

• Because

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Brand Positioning/Comparative Table

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Service Marketing

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

What is a Service Marketing ?

4P’s + Process, Physical environment and People

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Six Flags:

freeway signage

identify the location of their parked car

frequent parking trams

trains and cable cars to take visitors up or down hills

defined waiting areas and estimated wait times

Flash Pass system

numerous televisions that display cartoons, popular shows

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Universal:

pre-purchase stage

virtual queuing system, Universal Express

trains and cable cars to take visitors up or down hills

Mobile apps

Waiting areas

sit-out-then-swap

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

People

HR challenges:

predominantly seasonal low-wage jobs

predominantly less-educated workforce

monotonous nature of work

high turnover

need for adequate training

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Disney:

we don‘t put people in Disney, we put Disney in people

An average visitor will interact with Disney‘s cast approximately 60 times during their stay

“performance cultures”

Employees that exceed guest expectations are rewarded

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Six Flags:

Exceptional memory

Friendly

outgoing

self-motivated‖

able to function in a fast paced environment

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Universal:

energetic‖, enthusiastic‖, outgoing‖.

hourly positions (mostly front-facing)

salaried positions (mostly back end)

entertainment roles

Motivations:

- quarterly free park access passes

- discounted movie tickets

- onsite convenience stores

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Environment

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Disney:

“Everything Speaks”

Examples:

- Disney hotels doors having two peepholes, one for adults and one at a child‘s eye level

- all trashcans being within 27-foot intervals of each other to improve the overall appearance of the parks, every trashcan‘s design reflects each area‘s theme

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Six Flags:

“cleanest park in the world”

Examples:

- Park cleanliness

- sounds of machinery

- highest priority on safety by partnering with trusted manufacturers of rides

- extensive training of employees on safety topics, technical monitoring, inspection and maintenance.

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Universal:

“senses of Sight, Hearing, and Touch”

Examples:

- continual upbeat music

- characters perform their iconic sayings or actions

- park employees wear bright colors and smile to patrons

- the surroundings are colorful

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Theme Park Customers

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

“A market segment is composed of a group of buyers who share common characteristics, needs,

purchasing behavior, or consumption patterns.”

Theme Park Customers?

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Disney:

Disney primarily targets families with young children

First-timers heavy users

International Visitors

Florida Residents

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

a typical household has a lifetime value of more than $50,000and consists of 3.6 people

What is life time value?

International Visitors

Creating personalized web pages

hiring international employees.

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Hourly rate ($175-$315) with a 6 hour minimum

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Guest Expectations

Guestology

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Six Flags:

Primary Customer Segment:

Young Adults and Teens

Secondary Customer Segment:

Families

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

$199 to $249 per person

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Season Pass

online survey panel

business to business sales STRATEGY•licensing sponsorship and accommodations •24 million people visit Six Flag each year more than any sports league, and typically spend 10 or more hours per visit, 7 hours longer than the average sporting event.

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Universal:

geographical segmentation

In-state market

Out of area

visitors

Light users

Heavy users

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

$150 per person, up to 12 guests get a tour of all

grounds as well as priority entrance into at least 8 rides

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

gaining feedback from customers while they are in

the park

e-maildirect mail

mobile marketing communications.

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Exhibit 6 Theme Park Ticket Prices Ticket Type Disney Six Flags Universal

Daily $85.00 $36.99 $85.00

VIP Tours $1,685.00 $299.00 $150.00

Season $649.00 $61.99 $189.00

ThemeParkTicketPrices

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Financials

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

The U.S amusement park industry

Mature

high barriers to entry

high revenue volatility

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

The U.S amusement park industry

high market share concentration

high levels of capital intensity

medium levels of regulation

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

The U.S amusement park industry

high competition

high level of technology change

no industry assistance by the government

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Disney:In 2009 sales fell 7.3% to $10.7 billion and operating income

decreasing by 25.3% to $1.4 billion

Recovery:1) quantity: intense focus onpromotions to increase attendance

2) quality: increasing the per capita and per room guest spending opposed to increasing attendance.

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Six Flags:

Six Flags filed for Chapter 11 bankruptcy protection in March of 2009

Recovery:

1) New management

2) Focus on attracting regional visitors

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Universal:

In 2009 Universal Studios Orlando, Universal‘s Island of Adventures, and Universal Studios each

experienced declines in attendance of 12%, 13.8% and 6%, respectively

Recovery:1) forced to take cost cutting measures and increase the price of its adult tickets2) opening of the new Wizarding World of Harry Potter attraction

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Success and Flop Factors

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

While commodities are fungible, goods tangible and services

intangible, experiences are memorable

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

RANKING OF SUCCESS FACTORS

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

SELECTED FLOP FACTORS OF THEME PARKS

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Conclusion!

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Every Interaction

=Overall perception

and satisfactionPrepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Final Questions

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

References:

Daniel Adler-Golden, Lia Bertoni, Solomon Iyasere, Wayne Woo. AMUSEMENT PARKS, 2011.

Samadi, Nina. Amusement Parks in the US. IBISWorldIndustry Report 71311, IBISWorld, June 2011.

Birgit Pikkemaat and Markus Schuckert. Success factors of theme parks - An exploratory study