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

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


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%


Brand Positioning(promotion and advertising)


Advertisement VS Promotion


Selling the promise of entertainmentat one unique place???


FamilyWhere Dreams Come True

Promotion/Advertising


Six Flags

destination of high speed and big drop rollercoaster thrill rides



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

attractions


Universal

Entire universe of action and thrills



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

attractions

• $3 million television commercial

• Because


Brand Positioning/Comparative Table


Service Marketing


What is a Service Marketing ?

4P’s + Process, Physical environment and People


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


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


People

HR challenges:

predominantly seasonal low-wage jobs

predominantly less-educated workforce

monotonous nature of work

high turnover

need for adequate training


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


Six Flags:

Exceptional memory

Friendly

outgoing

self-motivated‖

able to function in a fast paced environment


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


Environment


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


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.


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


Theme Park Customers


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

purchasing behavior, or consumption patterns.”

Theme Park Customers?


Disney:

Disney primarily targets families with young children

First-timers heavy users

International Visitors

Florida Residents


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.


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


Guest Expectations

Guestology


Six Flags:

Primary Customer Segment:

Young Adults and Teens

Secondary Customer Segment:

Families


$199 to $249 per person


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.


Universal:

geographical segmentation

In-state market

Out of area

visitors

Light users

Heavy users


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

grounds as well as priority entrance into at least 8 rides


gaining feedback from customers while they are in

the park

e-maildirect mail

mobile marketing communications.


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


Financials


The U.S amusement park industry

Mature

high barriers to entry

high revenue volatility



high market share concentration

high levels of capital intensity

medium levels of regulation



high competition

high level of technology change

no industry assistance by the government


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.


Six Flags:

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

Recovery:

1) New management

2) Focus on attracting regional visitors


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


Success and Flop Factors


While commodities are fungible, goods tangible and services

intangible, experiences are memorable


RANKING OF SUCCESS FACTORS


SELECTED FLOP FACTORS OF THEME PARKS


Conclusion!


Every Interaction

=Overall perception

and satisfactionPrepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Final Questions



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

amusement parks and success factors

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