DISNEYLAND IN QATAR - Case Study Example

?Running Head: DISNEYLAND IN QATAR Topic: Lecturer: Presentation: This paper presents the marketing plan for the opportunity identified in the emerging market of Qatar for the establishment of a Disneyland theme park. It highlights the strategic objectives as well as the mission statement of the company with regards to the proposed theme park. Market segmentation and target market have been analyzed as part of market analysis. These will form the basis for the development of positioning strategies that are necessary for the appropriate marketing mix to be achieved. The 4ps, which represents Product, Place, Price and Promotion, have been discussed as part of the marketing mix that will be significant for the theme park to establish a unique position in the Qatari market. The strategic fit between the company’s capabilities, resources and the opportunity has been discussed. These are indicators of competitiveness that justify the need for expansion in to the Qatari market. The implementation plan highlights the chronology of events that will lead to the establishment of a fully functional theme park in Qatar. It has been included in the marketing plan as a significant lead to the implementation of proposed activities to accomplish particular objectives over a particular period of time. Each activity corresponds to an objective and output. The implementation plan indicates that establishment and functioning of the theme park will take a period of 14 months. The control strategies that will be employed have been highlighted. These are the actions that the management will be involved in to ensure that the objectives are accomplished according to the implementation plan. Introduction The strategic objectives of this marketing plan are focused on exploiting the emerging opportunity in the dining and entertainment industry in Qatar, and are favored by the willingness of the Qataris to spend their income on leisure and amusement. Earlier market research established that there is no possible competitor equivalent to the company in the Qatari dining and entertainment industry. The overall goal of Disneyland’s global marketing plan is to generate improved public awareness through a broad marketing drive that will lead to a high preference for Disneyland’s dining and entertainment services among the Qatari community. Disneyland will establish a 500 hectare park with 10 divisions offering different entertainment activities including horse rides, music, live plays, video and wildlife viewing as well as nature trails. This marketing plan aims at maintaining annual revenue of $3 billion. This will be equivalent to 30% of all revenue generated by all five existing Disney’s theme parks in 2011 (White, 2004). Objectives 1. Maintaining 24 hour services during peak season to maintain high sales 2. Increasing the time customers spend in the park through offering half day free for every two days spent at Disneyland during off-peak 3. Promoting institutional visitation by offering special cost reduction during off-peak 4. Encouraging visitation by locals through discounts 5. Establish customer relation management (CRM) to enable the management to keep in touch with clients 6. To increase income by taking advantage of increased number of customers and tourists as a result of Qatar being the host for FIFA Word Cup in 2022 Mission The overall mission of the organization is to maintain leadership among the global providers of entertainment, and more specifically to establish an ultra modern theme park that will outshine any other theme park in the Qatari entertainment industry. The new theme park in Qatar will offer customer focused services to ensure that people get the best value for their money. Market Analysis Market Segmentation Market segmentation has been an important tool for the success of Disneyland theme parks. It involves division of the market in to various segments that consist of groups of consumers with common characteristics. This practice allows the management to know the customers, identify their preferences and understand the approach of other competitors so that they can determine the most appropriate segment that is likely to bring success to the business (Baker, 2000). Disney theme park in Qatar will be focused on emerging market segments that are based on lifestyle, social class and gender. The theme park needs to target three segments in terms of age. Consumers between the age of 15 and 25 may need humorous services while consumers between the ages of 25 to 40 years may desire adventurous entertainment. Consumers above 40 years of age may fit in a segment of socialization and relaxation. The three segments can further be divided in to high and low economy depending on social class. Since Qataris are known to be highly gender sensitive, issues of male and female consumer preferences on the basis of the accepted cultural code should be put in to consideration (Al-Rumaihi & Hindi, 2004). Each segment should be targeted in a unique way depending on its desire. In targeting, the marketers need to take in to considerations the organization’s capabilities and the available resources to sacrifice for the targeted segments. This also involves identifying the segments that competitors have capitalized in (Wilson & Gilligan, 2005). The existing theme parks in Qatar are mainly focused on the segment comprising consumers of 40 years and above. This presents an opportunity for Disneyland to capitalize on the first two segments and also to enhance consumer satisfaction by taking in to consideration gender and cultural diversity (Doyle, 2006). Target Market Qatar is among the best performing economies in the Middle East with a constant growth rate of 6.5% over the last five years, with a gross domestic product per capita of more than $80,000 (Rao et al. 2010). Studies indicate that Qatari people spend about 11% of their earnings on dining and entertainment (Supreme Council for Family Affairs, 2004). This is a significant opening for Disneyland to venture in the Qatari market. According to Al-Rumaihi & Hindi (2004), the Qatari population is to a great extent urbanized, with 96% of the people living in urban areas. Among these, 77% are between the ages of 15 to 64 years. This forms the bulk of consumers in the entertainment industry. The free movement of capital globally has resulted in the commoditization of many aspects of the society such as culture, which is among the significant income generating social commodities in the tourism industry. Local theme parks in Qatar capitalize on cultural music for entertainment. Expatriate workers are allowed to maintain their dressing, while Qataris are expected to adhere to the country’s dressing code which is mainly guided by the Suni Islam religion (Al-Rumaihi & Hindi, 2004). Disney theme park’s workers have to adhere to the accepted cultural norms to ensure that they are appealing to local visitors. Some important aspects of Qatari culture such as public demonstration of affection between opposite sexes or holding hands should be discouraged among all visitors through awareness creation bill boards to give the theme park a positive outlook among other theme parks (Matusitz, 2009). Consumer behaviour involves making decisions on purchasing the theme park services through informed choices based on information search before buying. Thompson (2002) highlights three phases of consumer decision making process which includes; need recognition, information search and alternative evaluation and selection. Need recognition involves the realization that a need exists based on desire for entertainment or may be prompted by a stimulus in the environment such as advertisements which creates awareness. The Disney theme park marketers play a great role in influencing consumer behaviour depending on their convincing capabilities (Capodagli & Jackson, 1999). Consumers may not be aware of the services offered but through marketing, they are made aware of the park’s existence leading to the development of a desire to experience the entertainment. Awareness creation with regards to Disney’s theme parks has been accomplished through internet marketing (Wasko, 2004). E-marketing is a form of advertising which has experienced growth due to the fact that the world is becoming a global village whereby people from all over the world are able to communicate and do business in real time without necessarily having to meet the marketers in person. Micro-marketing is the most recent strategy applied by Disneyland to create demand to particular targeted consumers through a marketing program that is highly individualized. This strategy is also referred to as customized marketing strategy (Bateman & Snell, 2007). There is usually a high level of interaction between the company marketers and consumers. Consumers are allowed to specify the quality of the services they desire. Micro-marketing is currently being used by the management of the Disney theme parks whereby customers are reached through the internet. The Information Communication Technology sector in Qatar has rapidly grown and citizens have acquired IT skills especially due to the fact that employment in virtually all sectors of the economy requires knowledge in the application of computers. Qatari government ICT policy has facilitated the acquisition of IT skills by Qatari citizens, men and women being offered equal chances (Supreme Council for Family Affairs, 2004). The citizens have been empowered to apply the emergent technology that is significant for socio-economic development. The new strategy of e-government is significant in providing essential government information to the citizens. Due to the wide distribution of internet services even from home Disney theme parks have an opportunity for e-marketing. According to Al-Rumaihi & Hindi (2004), each computer literate person in Qatar spends 4 hours per day, which is equivalent to 28 hours per week searching for information on the internet. This is an activity that has provided marketers with the chance to capture people’s attention through the use of tools such as pop-up and pop-under windows, which appear on the browser window without the request of the user thereby making them curious to know more about the information being displayed (Blythe, 2006). E-marketing can be facilitated by the accessibility of personal computers in Qatar, with internet connection which interfaces Disney theme park marketers with customers through interactive websites, which can enable them to conceptualize the kind of entertainment they would expect in the park (White, 2004). Through the company website, the theme park marketers are able to generate attention by means of graphics that represent the true experience, for example by including photographs of the various sections of the theme parks together with the market mix such that customers are able to make informed decisions with regards to their entertainment desires. The opportunity to view important aspects of the theme parks is helpful in building confidence among the customers with regards to the services offered (Wilson & Gilligan, 2005). This strategy helps to create a picture in the customer’s mind on the credibility of the advertisement, reason being that photographs and animation communicate better concerning the offerings. Marketing Mix Strategy Positioning is an important aspect of marketing that Disney theme park marketers may use to improve the competitiveness of the business. Positioning strategies include establishing the best marketing mix that attracts customers. It helps in developing a unique perception of among customers for a particular product. Positioning involves identifying the preferences of customers in a particular targeted segment and selecting strategic positions that fit the product in that segment. Marketing mix helps in ensuring that products developed are suitable for all the targeted segments (McDaniel & Gates, 2007). Disney needs to offer differentiated products for each of its target segments to be satisfied depending on the available resources, the intended use of the services offered and consumer preferences among other factors. The 4ps, which represents Product, Place, Price and Promotion, are significant in marketing since they create the desired uniqueness that an organization requires in order to maintain competitiveness (Bateman & Snell, 2007). Product Product decisions include branding, whereby the theme parks have been successful in establishing competitiveness through the strong brand name that is recognized globally. Functionality is also an aspect of the organization’s products in the sense that people come to the theme park for entertainment and if they are not happy, there is no value achieved for the amount of money spent. The theme parks should offer high quality entertainment that is satisfactory to consumers (White, 2004). Product launch has a high potential to promote theme park visitation. Press releases as well as advertisements are important in informing the consumers about the launch of a new theme in Disneyland. Launching can also be done through inviting consumers in a common place especially within the theme park. This may involve discounted prices during the launching In such a day, the marketing team should be keen to demonstrate, describe the value that the new entertainment product will add to their lives as well as answering questions raised by the consumers (Brassington & Pettitt, 1999). Price Pricing decisions are important in marketing since consumers evaluate their purchasing decision depending on the cost of services. One of the pricing strategies that can be applied by the theme parks is using penetration pricing. Through this strategy, it is possible to maintain high sales by lowering the prices of services during off-peak, as a reaction to the reduction in the number of visitor. On the other hand, visiting the theme parks during the peak season is costly due to the high demand for entertainment services. Generally, customers get the entertainment they need regardless of the period which they visit the theme park. Those who are unable to pay high prices have the opportunity of visiting the park at affordable prices at a different time from those who can afford higher prices (Brassington & Pettitt, 1999). Place The place where Disneyland will be located in Qatar needs to be strategically positioned to ensure convenience with regards to accessibility as well as availability of complementary products. For example, customers may need banking services, soft drinks as well as internet services. If the place where the theme park will be located does not have these important amenities, it is necessary that the management provides them within the park to ensure that customers have access to a one stop shop once they enter Disneyland theme park (Matusitz, 2009). This is an important strategy that can help to extend the time spent within the park. Promotion Promotion is an important component of marketing that involves creating awareness with regards to the theme park. Creating awareness is the main importance of promotion. It results in curiosity among potential consumers such that they feel the urge to know more about the theme park as well as to convince them to pay a visit for entertainment purposes. While conducting promotions, there needs to be a motivation for potential buyers to listen and provide audience to the content of the advertisement (Housden, 2006). The traditional methods of promotion that include road shows and posters e-advertising have been augmented by online promotion which is cheaper and faster. A recent development in promotion strategies is the application of internet advertising that makes use of e-mails whereby the management generates a database of emails for all the potential customers who may request frequent updates regarding the theme park. Customers are able to get information regularly concerning new developments in the theme parks which are of interest to them and be able to communicate promptly with the management by replying to the emails. This marketing strategy is also beneficial to the marketers as they are able to evaluate customers’ response by tracking the sent emails and their replies so as to know whether the promotion campaign is successful (Blythe, 2006). By doing so, the management of the theme park can decide to change the marketing strategy based on the responses or to continue with the system. Strategic Fit Between the Company’s Capabilities, Resources and Opportunity in Qatar The theme park in Qatar has a strong portfolio that is augmented by Disneyland brand name. Product differentiation is among the unique strategies that will promote success of the theme park in Qatar through preserving customer loyalty. These will be offered through a combination of entertainment products including horse rides, nature trails among other entertainment activities. Disneyland in Qatar will pursue a major strategic goal of capitalizing on earnings and maintaining a stable cash flow as well as allocating resources in favor of growth programs focused on enhancement of shareholder value. This signifies the relevance of the opportunity for the establishment of a theme park in Qatar which will add up to the overall business portfolio as well as contribute to the attainment of the organization’s mission in the emerging Qatari market (White, 2004). Engagement of competent workers as well as maintenance of a satisfied workforce will be significant in maintaining competitiveness of the theme park in Qatar. Sufficient resources have increased the likelihood of success in the long-run especially due to the fact that the Disneyland theme park is able to utilize emerging opportunities in the Qatari market especially increased human traffic as the country plans to host the FIFA World Cup in 2022 (Matusitz, 2009). The theme park will promote a competent organizational culture such as organizational learning, engagement in corporate social responsibility, performance and reward management among other organizational practices that will help in maintaining a positive image in the Qatari market. For example, the theme park will be promoting vocational learning amongst employees, which is significant in creativity management that is necessary for competitiveness and improved customer service. Performance management and employee motivation through an effective reward system will be accomplished through concerted resource mobilization (Hannagan, 2007). The theme park will use primary support activities to maintain a large profit margin. An organizational culture that promotes inbound logistics involving the allocation of resources to the various sections within the theme park will enhance effective operations (Capodagli & Jackson, 1999). A well established framework that allows harmonious working is also important. The theme park will have modern working places that will facilitate interactions between employees and consumers. The recruitment of employees is a crucial activity for the theme park. Only competent employees will be assigned particular tasks in the organization. This will be significant in ensuring high quality services to consumers that meet their expectations (Wasko, 2004). Technology is also a major factor that needs to be considered in the operations of the theme park. It will be useful in various stages of service delivery and marketing. The most appropriate technology for each section of the theme park will be applied to enhance productivity, for example engagement of technical experts in the theme park processes to enhance efficiency in booking of tickets, online payments and advertisements as well as operation of machinery that consumers may directly interact with such as rotating carriers to avoid accidents (Cooper, 2000). There might be constant threats that may emanate from rising competitiveness as the company strives to accomplish a larger market share than the major theme parks in Qatar which include Souq Waqif theme park, Doha theme park, and Aqua park Qatar. These theme parks are already established and may lower their charges, generating the risk of consumers tending to go for the cheaper services. However, Disney’s theme park will be in a position to maintain competitiveness through strategic responses such as adding more value to the offerings as well as offering unique services thereby being in a position to evade the pressure to reduce the cost of services, which may lead to losses (Capodagli & Jackson, 1999). Strategic response will be a continuous process involving decision making and analyzing the organization’s strengths and weaknesses, opportunities and threats in the market and capitalizing on its strengths while utilizing any emerging opportunity to the maximum (Constantinides, 2006). The theme park will employ response strategies to cope with the competitive market by engaging in corporate social responsibility through practices that are beneficial to its consumers, especially those that competing theme parks have never engaged in, such as environmental conservation and contributing to community health initiatives (Cooper, 2000). Response strategies such as patent rights will help in ensuring that the theme park is capable of coping with threats of imitation and counterfeit. Implementation Plan Activity Objective Timeline Expected output Conduct market research To establish the strategies for market penetration in the Qatari hospitality and entertainment industry June 2012 to March 2013 Knowledge regarding the trends in peak and off-peak activities Develop business plan and seek funding To determine how much is needed to establish and operate a theme park as well as how much will be charged to consumers June 2012 Funding necessary to establish and run theme park Develop a theme To determine what the theme park will offer June 2012 Ideas regarding products that will be offered to visitors Acquire land To possess land ownership documents June 2012 to August 2012 Area to establish the theme park Environmental impact assessment To determine the possible impacts of the theme park on the environment and the surrounding communities August 2012 A complete EIA document to guide on future activities and also to ensure adherence to government policy on environment Acquire the necessary permits and operation license To ensure that all activities in the theme park are legalized September 2012 Building permits for constructions and trade license Establish theme park Install components of the theme park September 2012 to September 2013 Complete theme park ready to offer entertainment Procure insurance To secure the theme park against fire and accidents September 2013 Security against unexpected risks Launch the theme park To create market awareness regarding the theme park September 2013 Customers begin seeking services from the theme park Marketing and advertising the theme park To continuously promote the theme park products Throughout the existence of the theme park A large market share with high consumer loyalty Control Strategies The monitoring action for the Qatari theme park will help in ensuring that the internal processes are operational and aligned with the strategic plan. The most important measure in evaluating progress is the recognition of potential risks, especially competition from the theme park in Doha and the political volatility of the neighboring countries in the Middle East. Understanding these risks and putting them in to perspective will form the basis of avoiding and solving any unexpected occurrence that may have a negative impact on Disney’s theme park in Qatar. Identifying the existing gaps within the theme park will also be important in monitoring, since it will provide guidance with regards to expansion, identifying new opportunities in Qatar as well as employee recruitment. The management will to constantly monitor to identify weaknesses and to rectify them especially during the initial stages after launching the theme park (Wilson & Gilligan, 2005). This will be important for the success of the theme park in the Qatari market. It is important for the management of the theme park to adhere to the governments regulations, and also understand the perception of people with regards to any operations in Qatar. All the operations need to be legal, and also in line with the government policies. This will help in ensuring that the theme park does not incur unwarranted expenditures associated with penalties for failure to adhere to the Qatari business regulations (Becker-Olsen et al. 2006). Conclusion The opportunity for a theme park in Qatar presents an opportunity for the organization to enhance its overall mission of maintaining leadership in the global entertainment industry. Maintaining a large number of visitors is among the significant success strategies that the theme park can apply especially due to the fact that its ability to remain competitive depends on the number of customers seeking its entertainment services. The FIFA world cup to be hosted by Qatar in 2022 presents an important opportunity for the theme park to capitalize on, especially due to the increasing number of customers and tourists. It is therefore important that the park is established early enough to take advantage of the increased human traffic in Qatar as the country prepares for the global event. Local people are part of the great market for the theme park’s entertainment products and hence there is need to promote both foreign and local visitation, especially for institutions that provide an important avenue for multiplier effects among consumers. The opportunity in Qatar is worth investment especially due to the capabilities of the company with regards to the resources required for the establishment of a competitive theme park. References Al-Rumaihi, F. & Hindi, N. M. 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