Problems and Challenges - Hong Kong Disneyland - Case Study Example

Project Analysis Report _ Hong Kong Disneyland By: Professor: Class: University: City: State: Date of submission: Project Analysis Report _ Hong Kong Disneyland Situation Analysis The common features evident in America’s Walt Disney Company are Mickey Mouse and international famous theme parks. Hong Kong Disneyland became the company’s third international park outside the state after Tokyo and Paris. Hong Kong Disneyland was incorporate jointly owned by the Hong Kong Government and Walt Disney Company. The government offered the Ocean Park, which had cheaper prices, and the main adaptation struggle that Disney Walt Company faced. Ocean Park was a local theme park that the government needed to boost after opening the Walt Disney Company. However, in September 2005, the Hong Kong theme park failed to meet its target of registering 5.6 million people (Lo, 2016). The theme park is considered the smallest Disneyland globally though it made it very difficult for the America’s company to enter into China Mainland. There were other challenges experienced including the financial woes, poor relations with the travel agencies in China, unfair treatment to employees abroad, and cultural differences. If the management had used the park as entry prototype for another Disneyland in China, then there was need to develop a recovery plan and realign the strategy for image improvement, boosting attendance, and delivering the revenue target. In short, the Hong Kong Disneyland experienced failures since it failed to meet the pressures from the local demands, which taught Walt Disney to analyze carefully its strategic marketing activities while making decisions in the future. Problems and challenges experienced Walt Disneyland Company experienced several challenges in its market entry strategy in Hong Kong. Besides, Hong Kong Disneyland tried to understand the culture of the target market though it failed. There was unfamiliarity of the Disney features in the Chinese market as they lacked exposure as the Americans. There were cartoon features Chinese preferred that Hong Kong Disney failed to recognize. Hong Kong Disneyland tried to introduce various characters before opening the park but still failed. The unfamiliarity of the characters posed the greatest challenge. Most of the western tourists enjoyed the experiences though Chinese tourists enjoy the products they are able to buy, eat, and take home (Jackson & West, 2011). Moreover, the Chinese preferred the pictures they took instead of experiences. The Hong Kong Disneyland failed to offer these products and opportunities to take pictures. Most Chinese go shopping in Hong Kong and prefer visiting cheaper amusement park, the Ocean Park while Hong Kong since it is cheaper which makes them able to spend more of their money shopping while on vacation. Moreover, Hong Kong Disneyland was very expensive and failed to provide adequate shopping opportunities for the tourists. According to the Chinese, their education is of high importance. Hence, they preferred educational aspects provided by Ocean Park to Hong Kong Disneyland since the park had many animals, which the children could learn about though the Hong Kong Disneyland, focused on the cartoon characters. In the Disney Park, there was no educational value. In China, most travelers use the agents who exert strong influence on many decisions made by the tourists. However, Hong Kong Disneyland failed to recognize the significance of the agents and failed to make efforts in building the relationship with the agents (Montali, 2017). Since the park was opened in 2005, in April 2016 it fired about 100 employees citing the reason as operational adjustments. With increased development in China, the numbers of investors have been on the rise leading to increased competition. Such competitions make businesses such as Hong Kong Disneyland facing cultural and economic problems to develop competitive advantage that would ensure the achievement of the required results. Figure 1: Hong Kong Disneyland Product Strategy The greatest challenge for Walt Disney Company was deciding on how to market the products on the foreign lands. While developing the plans, it was easy for the company to visualize its success in which the Chinese tourists would be ready to enter Hong Kong Disneyland. Nonetheless, the company experienced challenges to pick initially the right product strategy to assist in reaching the required objective. In its first year of operation, Hong Kong Disneyland experienced many obstacles, which barred it from achieving the business’ goal of being the major player within the Chinese market. These barriers emerged due to failure to understand park’s desired market. Hence, the business failed to develop effectively the product strategy with ability to make the entry of Disney into Hong Kong as a smooth ride to result achievement (Lo, 2016). With appropriate product strategy, it is easy to achieve the required success as it plays significant role. The strategies open door to create a good relationship between the consumers and companies. Such relationship defines how the consumers relate to the products they love and purchase. To maintain the relationship, the product strategy needs to stand in the market to ensure that the consumer life cycle lasts long. Hence, the recommended strategy Hong Kong Disneyland should have considered revolves around understanding the nature of the Mainland China visitors and adequate implementation of important cultural factors into its product strategy. Some of the major factors that drove Chinese tourists to visit Hong Kong Disneyland was the need to see Disney characters they did not know. Hong Kong Disneyland should have considered creation of interactive storybook museum at the park entrance, which would make tourists familiar with every character and be in a position of connecting with the experience provided by each character-based attraction while within the park. Through the interactive storybook, the business would section off every character. Regardless of location of these characters, there would be screen creatively placed in the section to enable people enjoy their views. The Chinese highly regard their education and culture as sensitive areas. Moreover, the Chinese are also sensitive to the prices and do not enjoy being in the sun as they desire their skin. Therefore, Hong Kong Disney needs to create an overall shadier environment that allows the Chinese tourists to plant the trees, ensure adequate provision of the pavilions, having the roofs on the train rides, and availing the umbrellas and sunscreens for purchase. In such manner, the Chinese tourists would enjoy the attractions provided by the park without having to worry about their skin. It is important that tourists have a good time within the park. The products and services offered by the company need to be culturally adapt to guarantee proper performance. The main competitor of Hong Kong Disneyland is the Ocean Park, which is aware of the Chinese culture as it was homegrown there. Through the years of operation, Disney managed to learn from the park the significance of travel agents who the Mainland Chinese visitors receive much information from. Therefore, it is important that Hong Kong Disneyland observes its competition through visiting the Ocean Park and notifying important adjustments, which would enable it to create ways of adapting to the needs of the Chinese locals. Moreover, the business needs to provide souvenirs in package deals in a bid to fulfill the needs of the locals and getting the characters to teach target markets on the tourist games. Furthermore, the business needs to consider giving out random free pictures for participation and recognize the participating children to make the parents feel proud of what their children learnt. Marketing Communication Hong Kong Disneyland experienced challenges adapting to the Chinese local culture and attracting the customers revisiting the amusement park considering that the park’s theme failed to create some recognition and connection with the locals. To reach the potential market segments, Hong Kong Disneyland needs to adapt to some local marketing communication activities while ensuring adequate promotion of the required competitive advantage and unique features that the park offers such as cultural and entertainment diversity in the stories, backgrounds, and characters. The greatest mistake that the company made was failing to build relationship with the Chinese local travel agents (Thomas, 2009). Most Asian countries including Chinese tourism are guided by the agents, which make people seeking such institutions while planning their trips. Therefore, it is important that the company contact reliable and trustworthy travel agents to acquire booking from potential clients and establish a good relationship. Language barrier is a huge problem since Hong Kong Disneyland is designed in a manner that it attracts both domestic and international visitors. Hence, the whole operations need to access both English and Chinese. To ensure that customers get the best experience, the theme park should adopt bilingual practices. The language spoken in Disney needs to reflect the locals to establish close relationship with people (Choi, K. W., & Lingnan University, 2010). Considering that Chinese focus on what they can bring, eat, and bring home, the business can focus on personal selling aspect through the restaurant, photo booths, and souvenir shops. Such method not only satisfies the needs of the locals but also ensure adequate provision of useful information and motivation to the customers to purchase the products. Public relation is another aspect of marketing communication strategy that Hong Kong Disneyland needs to develop. Approaches that integrate educational benefits may catch the attention of the customers. Considering that the Chinese puts a premium on education, any communication mechanism that improves on the significance of education would be a good impression on the Chinese locals. References Choi, K. W., & Lingnan University. (2010). Remade in Hong Kong: How Hong Kong people use Hong Kong Disneyland. Saarbrücken, Germany: LAP Lambert Academic Publishing. Jackson, K. M., & West, M. I. (2011). Disneyland and culture: Essays on the parks and their influence. Jefferson, NC: McFarland & Co. Lo, J. (2016). Economic gloom settles over Hong Kong's theme parks- Nikkei Asian Review. Retrieved April 7, 2017, from http://asia.nikkei.com/magazine/THE-HUNT-FOR-HIDDEN-ASSETS/Business/Economic-gloom-settles-over-Hong-Kong-s-theme-parks Lo, J. (2016). Hong Kong Disney ponders its future amid a slump. Retrieved April 7, 2017, from asia.nikkei.com/magazine/20160512-WEALTHIER-UNHEALTHIER/Business/Hong-Kong-Disney-ponders-its-future-amid-a-slump Montali, D. (2017). Disney Deep Dive: The Economics of Hong Kong Disneyland Resort – Skift. Retrieved April 7, 2017, from https://skift.com/2017/01/18/disney-deep-dive-the-economics-of-hong-kong-disneyland-resort/ Thomas, L. (2009). Can Hong Kong Disneyland Get the Magic Back? - TIME. Retrieved April 7, 2017, from http://content.time.com/time/world/article/0,8599,1907860,00.html Read More