International Marketing Plan for Disney\’s Expansion into Shanghai


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Outline of our suggestion for the international marketing strategy Disney should implement to increase its brand awareness and presence in Shanghai with the addition of their latest theme park.

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International Marketing Plan for Disney\’s Expansion into Shanghai

  1. 1. A Whole New WorldDisney Breaks Ground in Shanghai for Its Latest Addition to the Disney Resorts
  2. 2. ChinaoLargest populationin the world.o1.3 Billion Peopleo3rd Largest Countryo3.7 Million Sq.MilesoAmazing Terrain• Forests• Mountains• Deserts• Coastline
  3. 3. History/CultureoYellow River issaid to be theCradle of ChineseCivilizationoHistory ofDynastiesoPeople’s Republicof China est. in1949oHofstede’s Values
  4. 4. Business in China Business and EconomicPolitical Risk Climate Increasing Gov.  Fastest Growing Restraints Economy  Rising Labor Costs Indigenous Innovation  Trade Barriers Change in Government Officials  Inability to Gain Access
  5. 5. Company DescriptionThe Walt Disney Company Founded in 1921 Produces and “unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling”Company Financials• Gross profits in the year 2010 of $6.73 billion and• Total assets of $70.95 billion
  6. 6. Disney Inc.Walt Disney Studios  Walt Disney Pictures, Touchstone Pictures, and Hollywood PicturesConsumer Products  apparel, toys, home décor, books and magazines, interactive games, foods and beverages, stationery, electronics, fine artMedia Networks  Disney Channel, Radio DisneyDisneyland Theme parks and Resorts  Imagineering
  7. 7. Disneyland Theme Parks and ResortsThe first Disneyland opened in 1955 in Anaheim,California5 Disneyland theme parks/resorts:  Disneyland Resort, in Anaheim, California  Walt Disney World Resort in Lake Buena Vista, Florida  Tokyo Disney Resort  Disneyland Resort Paris  Hong Kong DisneylandDisney Cruise Line, Vacation Club resorts,Adventures by Disney
  8. 8. Demographics Secondary MarketPrimary Market (Youth) (parents/family) Age: 4-13  Age: 25- 65  Gender: Male & Female Gender: Male &  Ethnicity: Chinese Female  Nationality: Chinese  Social Class: Middle & Ethnicity: Chinese Upper Class  Local and Foreign Nationality: Chinese Tourists
  9. 9. Psychographic SegmentationLifestyles Personalities Adventure Seekers  Imaginative Family Oriented  Youthful
  10. 10. Promotional SegmentationBenefits Sought Product UsageSegmentation Segmentation “Happiest Place on  Brand Loyalty Earth” Entertainment Leisure  Rewards for “Heavy Thrill Users”:  Disneyland Annual Outlet for imagination Passholder Program and Creativity  Disney Rewards® Visa An escape from “Real Card from Chase Bank World”
  11. 11. International Marketing Strategy: Disney in China Product Strategy: How to market Disney in a country where the Disney brand is not deeply ingrained in the culture  Building Brand Image  China has no Disney Channel  Cheap knockoffs  How Will They Do It?  Creating a marketing strategy that establishes the Disney brand into Chinese culture
  12. 12. Why China? “China is one of the most dynamic, exciting and important countries in the world”. -Robert Iger, Walt Disney CEOIn Shanghai: “The Disney park would make this area into a whole new world”. -Cai, Local Resident of Chuansha
  13. 13. International Marketing Strategy: Disney in China Pricing Strategy: How is Disney going to match their costs with their revenue?  Cost: Estimated to be $3.6 Billion  Disney: 43% of the cost  Shanghai Shendi Group: 57% of the cost  Revenue: Estimated 15 Million guests per year  China’s rising middle class  Shanghai as China’s main financial and commercial center  First year guest estimate is 7.3 Million
  14. 14. Hong Kong Disneyland“The park is too small and there are no rides. Why onearth would I want to go there? It is not fun.” Hong Kong Resident. Does not Cater to Chinese Culture Does not Own the Land No Emotional Connection to Visitors It is not “Magical” Poor Crowd Management
  15. 15. Ocean Park Established in 1977 15th Largest Park Worldwide  Excellent mix of education and fun  Fantastic Sealife section  Great rides  Relatively short lines  Competitive prices
  16. 16. Improvements Keeping Park Ideas Secret Larger Eating Areas Owns the Land Catering to Chinese Culture Rather than Disney’s Huge! 988 Acres  Disneyland CA, 510 Acres"Our Shanghai resort will be aworld-class family vacationdestination that combines classicDisney characters and storytellingwith the uniqueness and beauty of China" -Robert Iger, Walt Disney CEO
  17. 17. Thank You!