Strategy of Walt Disney Studios in Asia - Term Paper Example

Disneyland In Indonesia Marketing Plan July 15 2009 Harry Timbul Sirait (G0754868R) & Jackson Barita Siringoringo (G0714007Q) International Marketing Table of Contents Table of Contents 1 1.0Introduction 2 2.0. The Product 2 3.0. The Market 5 4. Conclusions 9 Bibliography 10 1.0 Introduction Walt Disney is a well known company, named after its owner, Walt Disney. It was founded in 1923, as an animation studio. The company has established itself to be the world leader producers of family entertainment. Walt Disney deals with a number of different products and services (Selden, 1989). They are mainly into the animations, consumer products, and interactive studios, various stores which sell the Walt Disney products like soft toys and many other products and merchandise for children. The company has also expanded into the Parks and Resorts sector as well. The current Chairman of the company is John E. Pepper Jr. The main target market of the company is now being expanded and the company aims at introducing the joy it spreads to countries in Southeast Asia and Australia as well. This report aims at a marketing plan for the company to expand its business into Indonesia. The report will deal with minute details of the product, and also the possible market for the product as well. This will include the competitor details and a complete description of the market as well. 2.0. The Product Walt Disney as has been discussed contributes to a number of fields which mainly are a part of the entertainment industry. The main area of focus for the company is on Parks and resorts. Although apart from the parks and resorts, the company does deal with other products like consumer goods, media networks and also the Walt Disney Studios. The following subsections will deal with a brief on the population of the country and will also provide a better view of the acceptance of these parks and resorts in the country. The main product that is aimed to be targeted in Bali is the theme parks and the resorts. The merchandise will definitely also be available and the overall setting of the parks will be similar to the other Disneyworld across the world. The products will be sold over the counter within the theme parks and will be focused on the various target markets as has been discussed further. 2.1. Perception held by intended market Indonesia is a country that is highly populated and has a majority of Muslims, thus making Islam a very prominent religion here. Internally, the country is very religiously diverse, being made up of “Muslim 86.1%, Protestant 5.7%, Roman Catholic 3%, Hindu 1.8%, other or unspecified 3.4%” (Indonesia, 2009), in the most recent census. The population of the country are seen to be conserved and hence, penetrating into the market is relatively difficult. The outlook of the people is quite conservative and hence making it difficult for businesses like Walt Disney to be able to easily penetrate into the markets. Theme parks are a relatively very new concept in the Bali. Bali has a number of temples and number of architectures as well. The country is an excellent holiday destination of the world. Although the intended markets are relatively very different and the country does not have strong interest in the theme parks and resorts. This is mainly due to the fact that the country has very strong religious believes and the country is filled with temples. There has not been the availability of any theme park in Bali which has lead people to be quite new to the entire concept. The further sections will deal with the market and the size of the markets and also with a detailed discussion of the major problems and resistances to the product acceptance in Bali. 2.2. Major Problems and Resistances to Product Acceptance The major issues and problems that could be faced by the company is the lack of interest and resistance that could be received from the general public as well as the government. The marketing laws of the company are limited to censorship although the markets are modified free markets. Apart from the issue of the religious outlook of the people, there is also another very larger issue that could cause the company with a number of problems. The country is open to having a number of foreign investors and foreign companies coming into the markets however there is still a high problem of the lack of proper governance and the prevalence of prolix country’s bureaucracy which is time consuming. The country also has a issue of ‘under – table money’ which companies require to pay to the bureaucratic people to get entry into the markets and to be able to work and complete the projects and business. There are also other issues which are present in the country. For a new business to penetrate into the country requires the need of strong relationships and networking with popular and government people. These form the issues for the company to enter into the markets. However considering the issues that the company will face for the acceptance of the product in the country, it is seen that the country has an old cultures and beliefs. This forms a very strong obstacle for the modern business. Considering the current business that the company is into, i.e. the parks and resorts, it is seen that the company might have a number of issues to deal with the entrance into the market. Aspects like the high levels of land costs and the lack of people willing to sell the lands due to the ancestral value, along with the governments difficult to be persuaded as well will prove to be one of the biggest resistance that the company will face. 3.0. The Market The Indonesian market is one which has very low levels of immigrations and a total of fifty percent of the market is urbanized. This section aims at getting a better understanding of the market to enable the company make stronger and more focused marketing plans for the country. Also gaining a strong understanding of the country will enable the companies to analyze the kind of products that will be apt for the country and that will be well received by the majority within the country. 3.1. Description of the Market The country has a strong difference that is seen between the upper class and the lower classes and the middle class is one which is a blooming market with high chances of adapting to the changing world. Indonesian population is primarily Muslim. Aesthetics therefore, tend to reflect this in mostly architecture, and the relative suppression of other forms of visual art, considered sacrilegious in Islam. The target market for Walt Disney in the country will include people between the age groups of 15 to 60. This age group forms as much as sixty six percent of the entire population, giving Walt Disney a strong upper hand as the target market is quite huge and can be easily targeted. As discussed earlier, the classes of society are very varied and the distribution of money in the country is very uneven and not well distributed (Jobber, 2004). This is a very essential factor that can affect the working of the business as the target markets of the business include to a great extent the families as well. 3.2. The Competitive Market The ‘Disney Land’ is planned to be located in central Bali, the island of Indonesia. As discussed earlier, Bali is a very famous tourist spot with a number of temples, beach resorts and entertainment venues around. Hence the market can be considered to be completely independent of the other theme parks in Indonesia. The theme park in Bali will be one of a kind in the island, as there are no full-fledged theme parks of comparative scale in the area. This will also give a competitive edge of being the first mover in the place. Once the brand is established and the customer base is substantial, the theme park will have established a strong entry barrier to other players trying to enter the market (TUI Travels, 2009). In order to sustain the market, the theme park should focus on continuous improvement and addition of features along with updated rides and parks. The best way for ‘Disney Land’ to establish and sustain a competitive edge is to get into exclusive contracts with travel agencies around the world, so that they present the trip to the theme park in their itineraries. This will enable the theme park to gain wide exposure and ensure return on investment from its promotional activities. There are a number of theme parks of large scale in Indonesia. However, the theme park in Bali will have its own advantages, as it is a tourist spot. It is also a weekend break spot for the local residential of Indonesia and this segment will also be catered by ‘Disney Land’. 3.3. Market Size The market of Indonesia is extremely large with a population as vast as 240,271, 255 (CIA, 2009). A market which is so vast would allow the company to have a larger target market in this case as much as male 79, 549, 569/ female 78,918,321. This is relatively a very large market and thus it can be well targeted and the parks and resorts can be introduced into these markets (Indexmundi, 2009). However, it is a known fact that the theme parks are a general attraction for all. The target market hence can be divided into the following age groups: 3 – 25 – The company can target the people within this age group as children tend to be very inclined towards the theme parks and the will be a major part of all the marketing strategies. 25 – 45 – This set of people would mainly be the parents who bring children to the theme parks and they need to be a part of the target market as the major traffic of children can be focused by targeting the parents. 45 – 65 – This group although mainly include the grand parents and a little older generation also need to be targeted to help increase the traffic. Theme parks are an attraction for almost every age group and the Disneyland parks have something for every age group. Hence the company can target all the segments of the society. Also it is important to also target the tourists as Bali is a very famous honeymoon getaway. The target markets also need to target people who are adventurous, and fun loving. Thus the market size available for the company is quite vast and the target markets are a very varied. 3.4. Government Participation in the Marketplace The government of the country has been noted to be very involved in the markets and the marketplace. Although there is a high level of corruption and bribery that takes place inside the country, the government has tried its best to help improve the economic systems of the country. The government takes a keen interest in the businesses and it has been noted that in the current times, the government has been taking a lot of steps and measures to introduce new investment plans and proposals for companies to help and assist them to invest into the country. Also the government in the current period is also allowing a high number of international investments in the country and thus they take all steps and measures to be more inviting to the international companies. Also since the country is one with a very strong religion and very strict norms that need to be followed, the government plays a strong role in the entertainment sector as well. This includes the control over movies, videos, exhibitions, art and even for parks and resorts. 4. Conclusions Based on an understanding of the markets and the current situation in the country, it has been seen that globalization has hit all countries including Indonesia and the current markets are very inviting and open to newer ideas and entertainment as well. Also the government has been noted to be very cooperative with a high need for more number of international companies entering into the country to help grow and develop the gross domestic profits of the country as well. This gives companies like Disney a strong chance to enter into the market and provide the country with new theme parks and newer entertainment modes. Also the markets are seen to be in a blooming stage which means that the company has a strong chance of introducing itself into the market and also being a part of the market growth as well. Bibliography CIA. (2009). Indonesia Background. Retrieved on July 31, 2009, from: http://www.first-advisory.com/foreign-investment-in-indonesia.ht Indexmundi. (2009). Indonesia Population Growth rate (%). Retrieved on July 14, 2009, from: http://www.indexmundi.com/g/g.aspx?c=id&v=24 Indonesia (2009). Retrieved on 31st July 2009 from: https://www.cia.gov/library/publications/the-world-factbook/maps/maptemplate_ID.html Jobber, D., 2004, Principles and Practice of Marketing, 4th edn, McGraw-Hill International, Berkshire Selden, B., (1989). The story of Walt Disney. 1 October 1989, 1st edition, Yearling. Frist Printing Edition The Walt Disney Company. Retrieved on 31 July 2009 from: http://corporate.disney.go.com/corporate/overview.html TUI Travels. (2009). Amusement Parks in Bali. Retrieved on 31st July 2009 from http://www.asiarooms.com/travel-guide/indonesia/bali/amusement-parks-in-bali/index.html Read More