Disney Resort Hotels Vietnam Venture


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Vietnam Resort Hotels
And Eco Tours - Marketing Plan

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  • Disney Resort Hotels Vietnam Venture

    1. 1. The Walt Disney Company Vietnam Resort Hotels and Eco Tours Marketing Plan IB 585 Culture and Business in Vietnam Vietnam Resort Hotels And Eco Tours Vietnam
    2. 2. <ul><li>PLANNING </li></ul><ul><li>Identification of Business Opportunity </li></ul><ul><li>Analysis of International Competition </li></ul><ul><li>Assessment of Economic – Geographic Environment </li></ul><ul><li>Assessment of Social – Cultural Environment </li></ul><ul><li>Assessment of Political – Legal Environment </li></ul><ul><li>ORGANIZING </li></ul><ul><li>Selection of Company Structure </li></ul><ul><li>Identification of Financial Sources for Business Operations </li></ul><ul><li>Identification of Global Information Management </li></ul><ul><li>Identification of Human Resources Required </li></ul><ul><li>Management of Financial and Business Risks </li></ul><ul><li>IMPLEMENTATION </li></ul><ul><li>Identification of Product and Target Market </li></ul><ul><li>Design of Global Distribution Strategy </li></ul><ul><li>Design Global Promotion Strategy </li></ul><ul><li>Selection of Pricing Strategy </li></ul><ul><li>Identification of Financial Results </li></ul>
    3. 3. <ul><li>World Tourism Organization (UNWTO) </li></ul><ul><li>Agency of The United Nations </li></ul><ul><li>Promotes development of responsible, ‎sustainable </li></ul><ul><li>and universally accessible tourism‎ </li></ul><ul><li>Membership </li></ul><ul><ul><li>156 Countries / 7 Territories </li></ul></ul><ul><ul><li>350 Affiliate Members </li></ul></ul><ul><ul><ul><li>Private Sector </li></ul></ul></ul><ul><ul><ul><li>Educational Institutions </li></ul></ul></ul><ul><ul><ul><li>Tourism Associations </li></ul></ul></ul><ul><ul><ul><li>Local Tourism Authorities </li></ul></ul></ul><ul><li>Regional Support Offices </li></ul><ul><ul><li>Africa </li></ul></ul><ul><ul><li>The Americas </li></ul></ul><ul><ul><li>Europe </li></ul></ul><ul><ul><li>The Middle East </li></ul></ul><ul><ul><li>Europe </li></ul></ul><ul><ul><li>Asia and the Pacific </li></ul></ul>  Osaka, Japan Headquarters Madrid, Spain
    4. 4. <ul><li>Tourist </li></ul><ul><li>According to the World Tourism Organization </li></ul><ul><ul><li>“ People who travel to and stay in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited” </li></ul></ul>
    5. 5. <ul><li>International Ecotourism Society (TIES) </li></ul><ul><li>Founded in 1990 </li></ul><ul><li>Non Profit, Organization </li></ul><ul><li>Non Governmental Organization </li></ul><ul><li>Multi-Stakeholder Association </li></ul><ul><li>Largest and Oldest Eco Tourism Organization </li></ul><ul><li>Provides guidelines, standards, training, technical assistance, research and publications to foster </li></ul><ul><li>Eco Tourism development </li></ul>The International Ecotourism Society 1333 H St., NW Suite 300, East Tower Washington, DC 20005 Telephone: 202-347-9203 Fax: 202-789-7279 Email: info &quot;at&quot; ecotourism.org
    6. 6. <ul><li>Eco Tourism </li></ul><ul><li>According to the International Ecotourism Society </li></ul><ul><li>“ Responsible travel to natural areas that conserves the environment and improves the well-being of local people.” </li></ul><ul><li>Humanitarianism </li></ul>
    7. 7. <ul><li>Current President and CEO – Robert Iger </li></ul><ul><li>Founded by Walt & Roy Disney – Animators </li></ul><ul><li>October 16, 1923 </li></ul><ul><li>Animated “Shorts” </li></ul><ul><li>Feature Length Animated Films </li></ul><ul><li>Anthology of Animated Characters </li></ul><ul><li>Walt Disney – Workaholic and Family Man </li></ul><ul><li>Disneyland Debut – Anaheim, California (1955) </li></ul><ul><li>Walt Disney Dies (1966) </li></ul><ul><li>Disney World (Magic Kingdom) Debut – Orlando Florida (1971) </li></ul><ul><li>EPCOT (Disneyworld) Debut – Orlando, Florida (1982) </li></ul>
    8. 8. <ul><li>Core Competencies </li></ul><ul><li> </li></ul><ul><li>“ Portmanteau”…Blend of two or more words…. </li></ul><ul><li>“ Imagination” and “Engineering” </li></ul>Source: www.wikipedia.com Entertainment Attractions Resort Hotels Recreation Merchandising Restaurants People Moving Education
    9. 9. 1983 1995 Global Footprint 1955 1992 2005 1971 Source: www. vietnamtourism .com Kapolei Resort Hotel Oahu, Hawaii (2011) Vietnam Resort Hotels And Eco Tours (2012) 1996
    10. 10. <ul><li>Most Visited Global Attractions </li></ul>Source: UNWTO Attraction Global Location 2007 Domestic and International Visitors (Millions) Rank Walt Disney World Orlando, Florida 16.6 3 Disneyland Anaheim, California 14.7 5 Tokyo Disneyland Tokyo Disney Seas Tokyo, Japan 12.9 8 Disneyland Paris Paris, France 10.6 10
    11. 11. VNAT campaign to declare the World Heritage site of Ha Long Bay as one of the world's seven natural wonders. August 8, 2008 Connect all members of ASEAN Tourism Enable tourism partners and stakeholders in the region and the world to seek business opportunities, market expansion (January 5-12, 2009) Manages activities relating to the development of tourism nationwide representing the State Government of Vietnam VNAT Sponsored upgrade of the standard and quality of human resources in the tourism sector Enable the Government and the enterprises to sustain high quality and quantity of Tourism Vietnam Governmental Support for Tourism MPI - government ministry which in charge of state management over planning and investments. Fund improvements in infrastructure relating to tourism development Source: www. vietnamtourism .com
    12. 12. Source: www. vietnamtourism .com
    13. 13. Sapa Northeast Northern Region Central Region Southern Region Looks good Boss!! Source: www. vietnamtourism .com
    14. 14. Pan’s Scouting Report – UNESCO World Heritage Sites Source: www. vietnamtourism .com World Heritage Site Nearest Major City Description UNESCO Region Ha Long Bay Ha Noi 180 km 1969 uninhabited (humans) islands of different shapes, karst geomorphic limestone rock formations, caves, grottoes 1994 2000 North HUE Court Music Hue Typical Vietnamese Royal Court music produced by many different musical instruments. 2003 Central HUE Monuments Hue Vietnam Feudal Capital City established 1802. Perfume river, collection of ancient monuments. 1993 Central Phong Nha Ke Bang National Park Da Nang Large natural museum of biodiversity, many endangered species, caves, karst limestone rock formations, world’s largest underground river, forests 2003 Central Hoi An Ancient Town Da Nang 30 km Fusion of Vietnamese, Japanese, Chinese cultures with many pagodas, assembly halls, wells, and worshipping houses. 1999 Central My Son Sanctuary Da Nang 70 km Temple towers dedicated to Shiva (Hindu God of Shaiva tradition of Hinduism)built by Champa Kings. 1999 Central
    15. 15. Pan’s Scouting Report – Beaches Source: www. vietnamtourism .com Beach Region Nearest City Do Song Beach North Haiphong Ha Long Sam Son Beach North Thanh Hoa Cua Lo Beach Central Nghean Thien Carn Beach Central Ha Tinh Nhat Le Beach Central Quangbinh Thuan Lan Beach Central Hue Bai Bien Lang Co Beach Central Da Nang Non Nuoc Beach Central Da Nang My Khe Beach Central Quang Nai Sa Huynh Beach Central Quang Nai Binh Dinh Nha Trang Beach South Khanh Hoa Mui Ne Beach South Binh Thuan Vung Tau Beach South Vung Tau Ba Dong Beach South Tra Vinh
    16. 16. Pan’s Scouting Report – Other Attractions Source: www. vietnamtourism .com Vietnam Attractions Pagodas, Temples, Towers, Churches, Tombs Ancient Citadels, Palaces Museums, Memorial Sites Rivers, Lakes, Waterfalls, Mountains, Forests, Islands, Grottoes, Deltas Festivals, Handicraft Villages, Ancient Villages, Towns Archaeological Sites Markets Garden Houses, Bird Sanctuaries Theaters, Cultural Houses Golf Courses, Resorts, Spas, Parks
    17. 17. <ul><li>POTENTIAL COMPETITORS </li></ul><ul><li>(Northern Region) </li></ul><ul><li>Catba Water Park Resort </li></ul><ul><li>Haiphong City along Ha Long Bay </li></ul><ul><ul><li>Only water park resort in Vietnam with </li></ul></ul><ul><ul><li>full facilities - waterfalls and water slides. </li></ul></ul><ul><ul><li>One of the best resorts in Vietnam </li></ul></ul><ul><ul><li>Located on the World Biosphere Reserve </li></ul></ul><ul><ul><li>Most picturesque paradise in Vietnam. </li></ul></ul><ul><ul><li>One of the best 4 Star Hotels in Haiphong </li></ul></ul><ul><ul><li>Attracts visitors from across the globe </li></ul></ul>
    18. 18. <ul><li>Catba Water Park Resort </li></ul><ul><li>World Natural Heritage Site </li></ul><ul><li>Only water park resort in </li></ul><ul><li>Vietnam </li></ul><ul><li>Well known name </li></ul><ul><li>Partnered with other successful companies in Vietnam- Zen Spa, SSI, Cabisco and Hanoi1000 Nam. </li></ul><ul><li>106 kilometers from Hanoi. (66 miles) </li></ul><ul><li>Western and Asian Restaurants </li></ul><ul><li>Two bottles of Purified Water every day </li></ul><ul><li>Offers a variety of sports and activities for tourists </li></ul>
    19. 19. <ul><li>POTENTIAL COMPETITORS </li></ul><ul><li>(Central Region) </li></ul><ul><li>Furama Resort – Da Nang </li></ul><ul><ul><li>5 Star Luxury Beach Resort </li></ul></ul><ul><ul><li>World's Best Resort Award </li></ul></ul><ul><ul><li>Most Luxurious and Famous Resort of Asia and the World </li></ul></ul><ul><ul><li>True icon of Vietnam tourism and rated the #1 resort in Vietnam </li></ul></ul>
    20. 20. <ul><li>Furama Resort </li></ul><ul><li>Most up-to-date communication technologies for international </li></ul><ul><li>conferences and meetings, such as high-speed internet access, </li></ul><ul><li>audio-visual systems and modern translation equipment. </li></ul><ul><li>Well known name </li></ul><ul><li>Location- China Beach </li></ul><ul><li>Hosts significant events at both the national and international level </li></ul><ul><li>Foreign dignitaries are welcome and usually stay there –such as Zemin – People's Republic of China's former Secretary General, Thailand's former Prime Minister Thaksin, Queen Sophia of Spain, and Prince Henrik of Denmark. </li></ul><ul><li>International standards in scuba diving </li></ul><ul><li>15 minutes drive from Da Nang International Airport. Direct flights from Bangkok and Singapore are offered and they are working on flights from Macau, Tokyo and Korea. </li></ul>
    21. 21. <ul><li>POTENTIAL COMPETITORS </li></ul><ul><li>(Southern Region) </li></ul><ul><li>Blue Ocean Resort - Phan Tiet </li></ul><ul><ul><li>Along the stretch of Vietnam's </li></ul></ul><ul><ul><li>famous Mui Ne beaches </li></ul></ul><ul><ul><li>Mui Ne - considered Hawaii of Vietnam </li></ul></ul><ul><ul><li>One of the best resorts in Phan Tiet </li></ul></ul><ul><ul><li>Affordable pricing </li></ul></ul><ul><ul><li>Not far from Ho Chi Minh City </li></ul></ul>
    22. 22. <ul><li>Blue Ocean Resort </li></ul><ul><li>Location is very close to Phan Tiet city </li></ul><ul><li> and Ho Chi Minh City </li></ul><ul><li>Famous for seafood- close to Ocean- fishing </li></ul><ul><li>industry </li></ul><ul><li>Has an Irish pub which attracts many tourists. (only Irish pub near Ho Chi Minh city) </li></ul><ul><li>Expert chefs that prepare traditional and international cuisines </li></ul><ul><li>Offers tours and activities for guests- hiking, golf, swimming, elephant rides, scuba diving, boxing, boating, bungee jumping, etc. </li></ul>
    23. 23. <ul><li>Vietnam’s Geographic Influences </li></ul><ul><li>Borders Gulf of Thailand, Gulf of Tonkin, South China Sea, China, Laos, and Cambodia </li></ul><ul><li>Located in tropical and temperate zones </li></ul><ul><li>Climates tend to vary, but generally temperatures are high all year round. Weather is hot and humid </li></ul><ul><li>Tropical lowlands, hills, and densely forested highlands </li></ul><ul><li>How this influences our plan </li></ul><ul><li>Major bodies of water border the country; stunning ocean views and swimming areas </li></ul><ul><li>Tourists can explore deep valleys and breathtaking mountains. </li></ul><ul><li>Warm temperatures ideal for a resort atmosphere. </li></ul><ul><li>Close proximity to Laos, Thailand, China and Cambodia will attract many tourists throughout Asia. </li></ul>
    24. 24. <ul><li>Major Products and Industries </li></ul><ul><li>Main natural resources: Coal, crude oil, zinc, copper, silver, gold, manganese and iron. </li></ul><ul><li>Agricultural products: Rice, maize, sweet potato, peanut, soya bean, cotton, coffee and cashews. </li></ul><ul><li>Major Industries: Mining, manufacturing, electricity, gas, water supply, cement, phosphate, steel and fishing. </li></ul><ul><li>Major Exports: Crude oil, garments/textiles, footwear, fishery products, wood products, rice, sea products, coffee, rubber, and handicrafts. </li></ul><ul><li>Major Imports: Machinery, oil and gas, garment materials, iron and steel, and transport-related equipment. </li></ul>
    25. 25. <ul><li>Current Economic Conditions </li></ul><ul><li>GDP (2007): $71.4 billion </li></ul><ul><li>Real growth rate (2007): 8.5% </li></ul><ul><li>Per capita income (2007): $832 </li></ul><ul><li>Inflation rate (May 2008): 25% </li></ul><ul><li>External debt (2007): 27% of GDP, $19.3 billion </li></ul><ul><li>Literacy rate 94% </li></ul><ul><li>Low unemployment rate 5.1% (2007) </li></ul><ul><li>Tourism in Vietnam is a significant component of the country’s economy </li></ul><ul><li>Skilled and hardworking people </li></ul><ul><li>English is a common language in larger cities and is taught in schools </li></ul><ul><li>Member of the WTO </li></ul>
    26. 26. <ul><li>Infrastructure </li></ul><ul><li>Weak, but steadily improving. (international assistance is being used to upgrade the roads) </li></ul><ul><li>93,300 kilometers (57,977 miles) of highways </li></ul><ul><li>Highway from Hanoi to the International Airport and one that links Hanoi and Ho Chi Minh City </li></ul><ul><li>Major ports are Haiphong (in the north), Da Nang (central region) and Ho Chi Minh City (in the south) </li></ul><ul><li>3 international airports (Hanoi, Da Nang, Ho Chi Minh City) and 32 local airports </li></ul><ul><li>Telecommunications are improving . 20.6 % use the internet </li></ul><ul><li>The government has committed itself to the continued growth of mobile networks, especially encouraging the extension of coverage to the provinces </li></ul>
    27. 27. <ul><li>Positive Demographic Factors </li></ul><ul><li>Age Structure </li></ul><ul><ul><li>Half the population is under 25 yrs of age </li></ul></ul><ul><ul><li>Easy to recruit a youthful, vibrant and energetic staff </li></ul></ul><ul><li>English </li></ul><ul><ul><li>Young people learn English as second language </li></ul></ul><ul><ul><li>International tourists typically speak English </li></ul></ul><ul><li>Vietnamese Standard Of Living </li></ul><ul><ul><li>14.8% live in poverty </li></ul></ul><ul><ul><li>Disney project will provide new jobs </li></ul></ul><ul><ul><li>Improve standard of living </li></ul></ul><ul><ul><li>Increase appeal to international tourists </li></ul></ul>
    28. 28. <ul><li>Government Basics </li></ul><ul><li>Vietnam is a single-party state </li></ul><ul><li>President is Nguyen Minh Triet and The Prime Minister is Nguyen Tan Dung </li></ul><ul><li>In April 1992, a new constitution was established; it overviewed government reformation and amplified economic freedom </li></ul>
    29. 29. <ul><li>Methods for Promoting Global Business </li></ul><ul><li>Reformation of Government </li></ul><ul><li>Economic & political stability, also ambitious plans outlined by Vietnamese government to attract foreign investors </li></ul><ul><li>US has the status of Most Favored Nation (MFN) </li></ul><ul><li>US & Vietnam have good economic relations mainly due to U.S-Vietnam Bilateral Trade Agreement </li></ul>
    30. 30. <ul><li>Intellectual Property Rights </li></ul><ul><li>Vietnam is member of the World Intellectual Property Organization (WIPO) </li></ul><ul><li>Significant progress in the legal system for protecting IPR, however, still need more enforcement on the streets; in regards to music, motion pictures and software. </li></ul>
    31. 31. Business Units Kapolei Resort Hotel Oahu, Hawaii (2011) Vietnam Resort Hotels And Eco Tours
    32. 32. http://www.kingdomtravel.com/epcotmap.htm <ul><li>EPCOT Center </li></ul><ul><li>Orlando, Florida </li></ul><ul><li>WORLD SHOWCASE </li></ul><ul><li>Centrally Located Attractions </li></ul><ul><li>Country Experiences </li></ul><ul><li>Mexico </li></ul><ul><li>Norway </li></ul><ul><li>China </li></ul><ul><li>Germany </li></ul><ul><li>Italy </li></ul><ul><li>United States </li></ul><ul><li>Japan </li></ul><ul><li>Morocco </li></ul><ul><li>France </li></ul><ul><li>United Kingdom </li></ul><ul><li>Canada </li></ul>Vietnam Product Strategy <ul><li>Attraction – Vietnam </li></ul><ul><li>Three Primary Resort Hotels </li></ul><ul><ul><li>Beachfront Locations </li></ul></ul><ul><ul><li>Close Proximity to International Airports </li></ul></ul><ul><ul><ul><li>Northern Region </li></ul></ul></ul><ul><ul><ul><li>Central Region </li></ul></ul></ul><ul><ul><ul><li>Southern Region </li></ul></ul></ul><ul><li>Eco Tour Network </li></ul><ul><ul><li>Countrywide </li></ul></ul><ul><ul><li>Buses, Bicycling, Hiking </li></ul></ul><ul><ul><li>Lodges, Farms, Homes, Boats </li></ul></ul>Vietnam Resort Hotels And Eco Tours
    33. 33. The Walt Disney Company Travel With Conscience Vanda Mokara Dendrobium Vietnam Resort Hotels and Eco Tours Business Entities Resort Hotels Eco Tours and Lodges 30% 70% Disney Vietnam Eco Tours (Partnership) Indochina Land Holdings Disney Indochina (Joint Venture) Travel With Conscience John and Lydia Dean [email_address] 54 Seminole Way, Rochester NY 14618 www.travelwithconscience.com www.francevacationvilla.com (800)-655-3403 (585) 319-3890 New York +44 203 051 3238 London phone rings to New York Vietnam Resort Hotels And Eco Tours Indochina Land Holdings 9th, 10th Floor - Capital Place 6 Thai Van Lung Str. - Distr.1 - HCMC Telephone: 84.8.3910 4855– Fax: 84.8.3910 4860. E-mail: info@indochinacapital.com Website: www.indochinacapital.com
    34. 34. Ha Long City – Vanda Country Wide Eco Tours and Lodges Primary Resort Hotels Da Nang – Mokara Phan Tiet – Dendrobium
    35. 35. <ul><li>Walt Disney Productions: USD 350 Million </li></ul><ul><li>Vinaphone: USD 25 Million </li></ul><ul><li>Vietindebank: (Future source) </li></ul><ul><li>Vietnam government investment: </li></ul><ul><li>USD 1 Billion </li></ul><ul><li>Purchase of Disney stock: USD 5 Million </li></ul>
    36. 36. <ul><li>Imagineering </li></ul><ul><ul><li>Mouse House Think Tank </li></ul></ul><ul><ul><li>Design & Development </li></ul></ul><ul><li>Product Technology </li></ul><ul><ul><li>Mobile Phones and content </li></ul></ul>
    37. 37. <ul><li>Staffing </li></ul><ul><li>Approaches </li></ul><ul><ul><li>Polycentric </li></ul></ul><ul><ul><li>Intercultural competence </li></ul></ul><ul><li>Advantages </li></ul><ul><ul><li>Successful communication with other cultures </li></ul></ul><ul><ul><li>Critical in dealing with our international guests </li></ul></ul>
    38. 38. <ul><li>Staff Skill Requirements </li></ul><ul><li>Human Resources, Engineering, </li></ul><ul><li>IT, Finance, etc. </li></ul><ul><ul><li>Degree from accredited University </li></ul></ul><ul><ul><li>Experience preferred </li></ul></ul><ul><li>Management and Staffing </li></ul><ul><ul><li>Training, fluency in English, plus cultural awareness and interpersonal skills </li></ul></ul>
    39. 39. <ul><li>Positions Available </li></ul><ul><li>Airport representative </li></ul><ul><li>Bell services </li></ul><ul><li>Bibbidi Bobbidi boutique hostess </li></ul><ul><li>Costuming </li></ul><ul><li>Custodial </li></ul><ul><li>Front desk </li></ul><ul><li>Entertainment </li></ul><ul><li>Security </li></ul><ul><li>Vacation Planner </li></ul><ul><li>Others </li></ul>
    40. 40. <ul><li>Training and Development </li></ul><ul><li>Learning and Working </li></ul><ul><ul><li>On-site learning centers and programs </li></ul></ul><ul><ul><li>Educational opportunities </li></ul></ul><ul><ul><li>Educational reimbursement program </li></ul></ul><ul><ul><li>for full-time positions </li></ul></ul><ul><li>Company and Community </li></ul><ul><ul><li>Disney Volunteers program </li></ul></ul><ul><ul><li>Diversity Resources </li></ul></ul>
    41. 41. <ul><li>Guidelines </li></ul><ul><li>Appearance </li></ul><ul><ul><li>Hourly positions </li></ul></ul><ul><ul><ul><li>Must be well-groomed </li></ul></ul></ul><ul><ul><ul><li>Clean clothes, neat appearance </li></ul></ul></ul><ul><ul><li>Professional positions </li></ul></ul><ul><ul><ul><li>Proper office attire at all times </li></ul></ul></ul><ul><ul><li>Cast Members </li></ul></ul><ul><ul><ul><li>Required to wear a costume issued by the wardrobe department </li></ul></ul></ul><ul><li>Scheduling </li></ul><ul><ul><li>Full time positions: Full time availability </li></ul></ul><ul><ul><li>Part time positions: Minimum 2-3 days of full time availability per week </li></ul></ul><ul><li>Transportation </li></ul><ul><ul><li>To and from work, reliable transportation required </li></ul></ul>
    42. 42. <ul><li>Compensation </li></ul><ul><li>Wages & Salary </li></ul><ul><ul><li>Weekly </li></ul></ul><ul><ul><ul><li>Entry Level Positions </li></ul></ul></ul><ul><ul><ul><ul><li>Minimum wage </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Full-time, part-time and seasonal roles. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Above Minimum Wage </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Security, Food & Beverage, Bus Drivers, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Resort Guest Services and Culinary </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Professional positions: Determined individually </li></ul></ul></ul><ul><ul><ul><li>based on schooling & experience </li></ul></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Employee stock purchase program </li></ul></ul><ul><ul><li>Annual pay increases </li></ul></ul><ul><ul><li>Paid vacation </li></ul></ul><ul><ul><li>Sick Days </li></ul></ul><ul><ul><li>Retirement Plan </li></ul></ul><ul><ul><li>Affordable Health Care </li></ul></ul><ul><ul><li>Discounts on Disney dining, merchandise, recreation locations, resort hotels, cruise lines, theme parks </li></ul></ul><ul><ul><li>On-site childcare </li></ul></ul><ul><ul><li>Wellness programs </li></ul></ul>
    43. 43. <ul><li>Positive Economic Development , Infrastructure & Economic Conditions </li></ul><ul><li>From 2004 to 2007, GDP grew over 8% annually. </li></ul><ul><li>Foreign trade, foreign direct investment and annual foreign investment have improved significantly. </li></ul><ul><li>From 1990 to 2005, agricultural production nearly doubled </li></ul><ul><li>Exports in 2007 were a historic $48.39 billion </li></ul><ul><li>Market oriented economy improved quality of life and income levels. </li></ul><ul><li>Bilateral trade between the United States and Vietnam has expanded dramatically </li></ul><ul><li>Member of the WTO since 2007 </li></ul><ul><li>Infrastructure is improving due to the high level of investment - transport, telecommunications, energy, water, and sanitation. </li></ul><ul><li>Poverty decreased </li></ul>
    44. 44. <ul><li>Negative Economic Development, Infrastructure & Economic Conditions </li></ul><ul><li>Infrastructure may be improving, but it is still </li></ul><ul><li>considered weak </li></ul><ul><li>Many highways are not paved. Improvements </li></ul><ul><li>plan to be made between 2007-2010 </li></ul><ul><li>Port congestion causes shipment delays </li></ul><ul><li>Vietnam is less competitive than Thailand, Singapore and Malaysia in terms of logistics </li></ul><ul><li>Percentage living in poverty 14.7% in 2007 (mostly minorities that live in the mountainous regions) </li></ul><ul><li>50% of the population still live on less than US$2 a day </li></ul><ul><li>Vietnam remains a low-income country. A significant proportion of people live just above the poverty line </li></ul>
    45. 45. <ul><li>Social & Cultural Risks </li></ul><ul><li>Variety of religions - Buddhism, Confucianism, Taoism, Christianity, etc </li></ul><ul><li>Belief in ancestor-worship </li></ul><ul><li>Desire to achieve harmony between the self and the non-self </li></ul><ul><li>Value system is based on four basic tenets: allegiance to the family, yearning for a good name, love of learning, and respect for other people </li></ul><ul><li>Family comes first </li></ul><ul><li>Collective society </li></ul>
    46. 46. <ul><li>Political and Legal Risks </li></ul><ul><li>Poorly defined laws </li></ul><ul><li>No independent judiciary </li></ul><ul><li>Few qualified lawyers </li></ul><ul><li>Lack of experience in international business. </li></ul><ul><li>Few protections for copyrights and intellectual properties </li></ul><ul><li>Government regulations imposed on foreign investors </li></ul><ul><li>Inadequate infrastructure- Insufficient transportation systems and Power outages are frequent. </li></ul><ul><li>Some American companies are fearful of public reaction to ties with Vietnam. </li></ul><ul><li>Companies need to focus on the benefits of investing in Vietnam-highly educated people, who are hungry for work, and eager for American brand names. </li></ul>
    47. 47. <ul><li>Risk Management Techniques </li></ul><ul><li>Build Strategic alliances with local partners </li></ul><ul><li>Employ local managers </li></ul><ul><li>Choose 100% Foreign-Owned Enterprise, Business Cooperation Contract, Build-Operate-Transfer Project, or a Joint Venture to make the transition smooth. </li></ul><ul><li>Educate staff on cultural sensitivity first. </li></ul><ul><li>Get professional assistance- Use a consulting firm. </li></ul>
    48. 48. Illuminations Asia Disney Vietnam Resorts Basic Attractions Full Service Spas 5 Star Dining Water Parks GOLF!!!!!!!
    49. 49. Disney Vietnam Resorts Premier Attractions Theater Disney’s Ho Chi Minh Aquarium
    50. 50. Resort Features Vanda (North) Mokara (Central) Dendrobium (South) Resort Hotel Rooms 500 500 500 18 Hole Tiger Woods Championship Golf Course Cirque du Soleil Vietnam – The Hidden Charm The Walt Disney Company Theater - Vietnam SOARIN’ Vietnam INNOVENTIONS Ho Chi Minh Aquarium 5 Star Dining Restaurants Full Service Spa Services Downtown Disney Pleasure Island Typhoon Lagoon Blizzard Beach Illuminations – Fireworks & Laser Light Show Reservations Capability with Disney Eco Tours
    51. 51. Eco Tours Options – Through “Travel with Conscience” Source: www.travelwithconscience.com Eco Tour Description Duration Vietnam At A Glance Highlights of Vietnam - Hanoi, Hoi An and Saigon. Mekong delta’s network of canals and rivers. 8 d – 7 n Classic Vietnam Overview of exotic Vietnam - Hanoi, cruise in Halong Bay, ancient cities of Hue, Hoi An and Saigon. Mekong delta’s network of canals and rivers. 11d – 10 n Bike Vietnam Luxury or Basic - Hanoi, kayak in Halong Bay, ride through the ancient cities of Hue and Hoi An. Bike alongside the Meking Delta and its lush network of canals, rivers and villages 11d – 10 n Humanitarian and Culture Tour with Le Ly Hayslip Experience the beauty, authenticity and simplicity of life in a Vietnamese village - from cooking, farming, language classes, in-depth look at history, meditation, and Buddhism. Learn about village life during the Vietnam War, see how the efforts to rebuild the war-torn country through peace and reconciliation 10 d – 9 n
    52. 52. <ul><li>Why Vietnam? </li></ul><ul><li>Travelers will be attracted to Vietnam’s beautiful coastal destinations and historical centers </li></ul><ul><li>Travelers will be attracted to the unique, full-line of luxury amenities offered by the hotel resorts </li></ul><ul><li>Travelers will receive the world-class experience that only the Disney brand name can provide </li></ul><ul><li>Travelers will enjoy the currency exchange advantage </li></ul><ul><li>Travelers will experience eco tours in beautifully preserved natural regions </li></ul>
    53. 53. <ul><li>Applying the Four P’s of Marketing </li></ul><ul><li>Product – Leisure and business resort hotels and eco tour destinations </li></ul><ul><li>Place – Search Engine Marketing with Yahoo, Google, MSN, etc. </li></ul><ul><li>Promotion – Online, TV, radio, newspaper, airlines, credit cards, tourism agencies, chambers of commerce </li></ul><ul><li>Price – Business, leisure, seasonal pricing </li></ul>
    54. 54. <ul><li>Family and foreign leisure travelers </li></ul><ul><ul><li>Adults with children </li></ul></ul><ul><ul><li>Couples </li></ul></ul><ul><ul><li>Golfers </li></ul></ul><ul><li>Foreign business travelers </li></ul><ul><ul><li>Executive-level </li></ul></ul><ul><ul><ul><li>(Managers, Directors, CEOs, etc.) </li></ul></ul></ul><ul><li>Domestic travelers </li></ul><ul><ul><li>Wealthy Vietnamese and Chinese </li></ul></ul>Sources: CIA World Fact Book and U.S. Dept. of State
    55. 55. <ul><li>TV, Cable and Satellite </li></ul><ul><ul><li>86% Vietnamese households with TVs </li></ul></ul><ul><li>Telephones </li></ul><ul><ul><li>61.8 million phone subscribers </li></ul></ul><ul><li>Computers and Internet </li></ul><ul><ul><li>13.8% Vietnamese households with PCs </li></ul></ul><ul><ul><li>18.6% million Internet users </li></ul></ul><ul><li>E-commerce </li></ul><ul><ul><li>Number of people using the internet to book airline tickets, hotels or movie tickets has increased significantly </li></ul></ul>
    56. 56. <ul><li>Domestic tourism </li></ul><ul><ul><li>One-third of Vietnamese population income above poverty level </li></ul></ul><ul><ul><li>Per head expenditure to reach US$ 976.26 by 2011 </li></ul></ul><ul><ul><li>Vietnamese per head disposable income projected to increase by 5.88% between 2007- 2011 </li></ul></ul><ul><ul><li>Percentage of population aged 15-64 years is expected to increase to 68.8% of the total population by 2011 </li></ul></ul><ul><ul><li>Inflation rates in Vietnam are expected to stay over 6.0% between 2007 and 2010 causing a drag on incomes and slowing consumer spending. </li></ul></ul><ul><ul><li>Average Vietnamese prefers home country and nearby countries for leisure </li></ul></ul>
    57. 57. <ul><li>Travelers by purpose </li></ul><ul><ul><li>Tourism (2,194,931) </li></ul></ul><ul><ul><li>Business (723,264) </li></ul></ul><ul><ul><li>Others (976,646) </li></ul></ul><ul><li>Travelers by countries </li></ul><ul><ul><li>China (810,336)* </li></ul></ul><ul><ul><li>S. Korea (392,150) </li></ul></ul><ul><ul><li>USA (357,299) </li></ul></ul><ul><ul><li>Japan (333,226) </li></ul></ul><ul><ul><li>Australia (199,035) </li></ul></ul>
    58. 58. Source: www. vietnamtourism .com
    59. 59. Source: www.symposia.cbc.amnh.org Leading Vietnam Eco Tourist Source Countries 1 United States 2 United Kingdom 3 Germany 4 Australia 5 France 6 Sweden 7 Netherlands 8 Denmark 9 Norway 10 Austria 11 Canada 12 New Zealand
    60. 60. <ul><li>Global Attendance </li></ul><ul><ul><li>2007 World Visitors </li></ul></ul><ul><ul><li>(116.5 Million) </li></ul></ul><ul><li>Asia Region Attendance </li></ul><ul><ul><li>2007 Regional Visitors (30.47 Million) </li></ul></ul><ul><li>Brand Power </li></ul><ul><ul><li>Use existing brand power to bridge distribution between Asia, Europe and U.S. </li></ul></ul><ul><ul><li>25% of operating income comes from outside U.S. </li></ul></ul>Disney Brand Power
    61. 61. <ul><li>Cross-Promotions with: </li></ul><ul><ul><li>Visa, MasterCard, American Express, Discover </li></ul></ul><ul><ul><li>Chamber of Commerce (American & Vietnam) </li></ul></ul><ul><ul><li>Online travel services (Travelocity, Expedia, Orbits, etc.) </li></ul></ul><ul><ul><li>Vietnam Airlines, Korean Airlines, Air France-KLM Group, Aeroflot Russian Airlines and Boeing </li></ul></ul><ul><ul><li>2,791,556 international visitors to Vietnam have traveled there by air in 2008 – estimated through October 2008) </li></ul></ul>Source: VietnamTourism.gov
    62. 62. <ul><li>Pricing strategy used by the Hong Kong Disneyland Hotel </li></ul>Room Type Value US$ price Regular US$ price Peak US$ price Garden View HK$1,600 $206.45 HK$1,900 $245.16 HK$2,200 $283.87 Sea View HK$1,800 $232.26 HK$2,100 $270.97 HK$2,400 $309.68 Sea View with Balcony HK$2,100 $270.97 HK$2,400 $309.68 HK$2,700 $348.39 Fantasia Room HK$2,300 $296.78 HK$2,600 $335.49 HK$2,900 $374.20 Kingdom Club Room HK$2,800 $361.29 HK$3,100 $400.01 HK$3,400 $438.72 Kingdom Suite HK$6,000 $774.20 HK$6,000 $774.20 HK$6,000 $774.20
    63. 63. <ul><li>Proposed pricing strategy for our 3 Vietnam based Disney resorts using the 1 USD = 16,629.50 VND </li></ul>Room Type Value US$ price Regular US$ price Peak US$ price Garden View VND 3,492,195.00 $210.00 VND 4,157,375.00 $250.00 VND 4,988,850.00 $300.00 Sea View VND 3,907,932.50 $235.00 VND 4,573,112.50 $275.00 VND 5,238,292.50 $315.00 Sea View with Balcony VND 4,573,112.50 $275.00 VND 5,238,292.50 $315.00 VND 5,986,620.00 $360.00 Fantasia Room VND 4,988,850.00 $300.00 VND 5,820,325.00 $350.00 VND 6,651,800.00 $400.00 Kingdom Club Room VND 6,236,062.50 $375.00 VND 6,818,095.00 $410.00 VND 7,483,275.00 $450.00 Kingdom Suite VND 12,887,862.50 $775.00 VND 12,887,862.50 $775.00 VND 12,887,862.50 $775.00
    64. 64. Source: www.travelwithconscience.com Eco Tour Duration Price Per Person Based on Double Occupancy Prices determined by season, availability, and special elements added. Vietnam at a Glance 7 d – 8 n $ 2,100 - $ 2,800 Classic Vietnam 11 d – 10 n $ 2,500 - $ 3,500 Bike Vietnam 11 d – 10 n $ 2,800 - $ 3,500 Humanitarian and Culture Tour with Le Ly Hayslip 10 d – 9 n $ 2,800 (Groups of 6 – 10 persons)
    65. 65. Total for all 3 Resorts 2011 USD Millions 2012 USD Millions 2013 USD Millions 2014 USD Millions REVENUE Hotel revenue $ 173 $ 173 Other attractions $ 100 $ 100 Capital raised $ 690 $ 690 NET SALES REVENUE $ 690 $ 690 $ 273 $ 273 COSTS Total Construction Costs $ 828.5 Total Indirect Costs $ 1,007.4 Total Construction Labor Costs $ 37.5 $ 37.5 Marketing Costs $ 2 $ 2 Total Labor $ 4 $ 4 SUBTOTAL COSTS $ 867 $ 37.5 $ 6 $ 6 Total Land Costs $ 178.5 Loan paybacks $ 65.3 $ 20.2 TOTAL COSTS $ 1,045.5 $ 37.5 $ 71.2 $ 26.1 NET PROFIT $ (355.5) $ 652.5 $ 201.8 $ 246.9
    66. 66. <ul><li>Vietnam sees plans to launch Disney-esque amusement park </li></ul><ul><li>Thursday, 3 January 2008 </li></ul><ul><li>A Vietnamese local government just received plans for a new theme park project modeled on Disneyland estimated to cover nearly 200 hectares in the Vung Tau Bau Trung area. </li></ul><ul><li>The project was launched by the Good Choice Imports-Exports & Investments, and is expected to invest VND1.3 billion , reported Vietnam Investment Review . </li></ul><ul><li>The park will have a “Wonders of the World” sector which will include replicas of famous landmarks like the Eiffel Tower, Golden Gate Bridge and the Pyramids. </li></ul><ul><li>A spokesperson for the company had noted that the provincial authorities had been very supportive thus far. </li></ul><ul><li>“ Our ambition is to revitalize the tourism industry in Vung Tau, which has many advantages in terms of location, scenery, beaches, but has been neglected by domestic and foreign tourists in recent years due to a lack of attractive tourist products and recreational facilities” </li></ul><ul><li>If approved promptly, the park could look to become partially operational by 2010, and is estimated to accommodate 100,000 visitors around the clock. </li></ul>Vietnam sees plans to launch Disney-esque amusement park Thursday, 3 January 2008 http://www.etravelblackboard.com/
    67. 67. <ul><li>The Dream Continues </li></ul>