...Hong Kong Disneyland – Case Discussion MSBC650 – Integrated Marketing Communication Hong Kong Disneyland Outline of Discussion Plan I. Overview a. Hong Kong 1997 – 1999 b. Disneyland i. America ii. France iii. Japan c. Disneyland in Hong Kong II. SWOT Analysis a. Strengths i. Appeal to Chinese culture ii. Communications conducted in three different languages b. Weaknesses i. Crowd control problem ii. Replaced chief in less than five months after opening iii. Poor working conditions c. Opportunities i. Growing population of youth and growth of middle class ii. Hong Kong economy had a notable rebound in 2004 d. Threats i. Ocean Park competition ii. 2,000 theme parks built in China between 1994 and 1999 III. Questions a. HKD had mechanisms in place to adapt to local Hong Kong culture, yet these means appeared to be ineffective. Why? What areas, in terms of Cultural adaptation, still need further improvement? b. What can HKD do to alleviate the problem of Chinese guests often not knowing the norms of international behavior when traveling abroad? c. Identify two issues challenging HKD’s current operations, and propose corresponding solutions. d. What would be some foreseeable challenges if Disney...
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...HONG KONG DISNEYLAND ! According to Ali Farhoomand1, Hong Kong Disneyland has been struggling with lower-than-expected profits for almost three years since its opening; factors such as park’s small size, inconvenient location, lack of unique features and Chinese elements, and insufficient appeal to adults have been claimed as possible major causes2. Forhoomand points out that there has been negative press coverage pouring in regards to overcrowding; for instance, “You have to line up for everything. It is a pain, it’s too crowded”, said Chai Zaiyong, who came on a package tour from northern China3 . Then, according to Chester Yung 4 , due to the perceived lack of Chinese elements, Disneyland had not attracted the flocks of mainland Chinese tourists that Disney and the Hong Kong government had anticipated. “This place is very foreign to me,” said 50 year-old Yuan Xiaozhi, an interior decorator from the southern city of Foshan, who was visiting the park for the first time with his wife 5. Consequently, being aware of the importance of adopting local customs, Hong Kong Disneyland launched its first integrated marketing campaign with Chinese cultural elements. In details, for the Chinese New Year of 2008, a new collection of red Chinese costumes was designed for Mickey and Minnie, visitors were also greeted by the Chinese gods of wealth, blessing, health and longevity, who handed out Chinese traditional chocolate gold coins. the fading magic of Disney in Hong kong, the company...
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...1. Learning from its mistakes with Disneyland Resort Paris, Disney paid special attention to cultural issues pertaining to Hong Kong Disneyland (HKD). Feng shui was consulted for advice on the park layout and design. The Chinese people were also very superstitious so that the 4th floor (4 sounding like death in the Chinese language) was skipped in hotels and one of the main ballrooms measured 888 square meters (8 being an auspicious number). Employees spoke English, Cantonese, and Mandarin so that communication would be easier. Also, signs were in English and Chinese. Restaurants served a variety of Asian and Western food, catering to the different preferences of its customers. However, with all these mechanisms in place, HKD did not do so well because it still had a lot to learn about the Chinese culture, as shown in the example with the Chinese New Year fiasco (see below). There was just too much negative publicity about the park that they overshadowed the promised magical experience at HKD. 2. (a) Managing guest attendance: The daily capacity limit of 30,000 visitors for the park was too high. With approximately 29,000 visitors, the average queuing time was 45 minutes at the restaurants and more than two hours for the rides. Instead of lowering the daily capacity, Disney extended opening time by an hour and encouraged visits during the weekdays by offering discounts. Obviously, Disney wanted to generate the maximum revenue from ticket sales, food and beverages, and merchandise...
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...SWOT analysis of Disneyland Hong Kong Theme Park Strengths: Hong Kong Disney Theme Park has its incredibly strong brand awareness is its powerful strength. As a child I had willingly been instructed with the brand and can even recognize the distinct calligraphy associated with the brand. It has no surprise because BusinessWeek has ranked Disney as the 8th most recognizable global brand. A recognizable brand such as Disney increases consumer trust and indicates the company’s advanced and successful marketing. Another reason for Hong Kong Disney Theme Park strength is that they offer customers high quality products,services,and secure and safe recreation facilities.For instance,in theme park, Baby centres provide clean facilities where you can prepare formulas,warm bottles,nurse,or even change diapers. For a small fee, you can also buy some baby products at these location. You will also find changing tables in almost all of the public restrooms in the theme park. Weaknesses: One of Disney’s weaknesses is their limited target audience. Disney primarily targets to families with younger children. This is especially true with regards to their theme parks. The use of animated characters and a family friendly atmosphere in their global theme park does not exactly appeal to a mature audience. It can be a huge and strong weakness for disney theme park because mature audience actually accounts for a lot of percentage. The other one reason of weakness of disney is that their innovative...
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...3.) How should Hong Kong Disneyland address competition? The efforts of Hong Kong Disneyland in gauging the Mainland Chinese market had a level of success and failure. In their competition with local competitor Ocean Park, Hong Kong Disneyland failed to acknowledge the cultural diversity of the Mainland Chinese to their more familiar target market customers in Western societies. Through the lack of experience in the new environment, Hong Kong Disneyland naively overlooked four main factors that led to the success of Ocean Park. Firstly, Hong Kong Disneyland failed to connect with their market through their unfamiliarity with classic, American, Disney characters. Secondly, they overlooked the fact that the experience wasn’t initially what the Chinese were looking for; it was the memories they could take back and show to others. Thirdly, there was no educational benefit towards children or adults, only illusions of fantasy. Finally, the lack of relationships with travel agencies hindered their promotion. With all of the factors above considered, it is evident that Hong Kong Disneyland wasn’t a thrilling success as anticipated. However, much was learned from these lessons in failure and will be corrected in future projects. Disneyland should take its experiences from its project in Hong Kong and become more culturally aware. They need to realize that not all markets around the world act the same way. There is a need for respect towards the many different nations cultures and time...
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...Case Study: Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (A) Q1. How should Chase have bid in the first round competition to lead the HK$3.3 billion Disneyland financing? 1.Three ways to approach this deal 1) bid to win, 2) bid to lose and3) no bid. Chase chose to bid to lose on the first round, but just enough to make it to the short list. Also, since Chase is one of Disney's relationship banks, Chase would not want to ruin this relationship by not bidding on their project. If Chase wanted to lead the competition from the first round, they should have made a bid that was more aggressive and aimed to win. This bid would have been closer to the desires of Disney, making them more appealing and increasing their probabilities of leading the financing. However, they chose to bid to lose, with just enough terms to get into the second round to "protect their reputation", but not to lead. The deal started to become more attractive with the possibility of Disney awarding a sole lead arranger mandate and with the increased potential for a successful syndication. At this point, after Chase made it through the first round, they decided on a more aggressive final proposal where they would be very close to meeting most of Disney’s demands in order to win the deal. 2. Standard Commitment Letter The standard commitment letter established by Chase for the Disneyland project would have the following terms: 1. HK$300 million loan. 2. 15-year maturity...
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...1. Background In this study, we aim to study and evaluate the implementation of customer relationship management strategy in Hong Kong Disneyland. Hong Kong Disneyland is a famous international company over the world. It vision is to provide the quality service on the ceremony to customers and to provide them special unique experiences. We have conducted an interview with a supervisor of customer relationship management department of Hong Kong Disneyland concerning their special customer management strategy. For example, how it provides the best services to its guests and why it would succeed. At the final section of this report, we have also made some recommendations to them. 2. Customer segmentation and customer knowledge to refine marketing process It is generally that the Disneyland uses the behavioral patterns to segment its customers. According to the result of the segmentation, there are two types of customers can be defined. Customers who visit one time only and will not visit again. They refers to the foreigner and Mainland visitors. Customers who visit the park repeatedly, such as once or twice a year. It is not difficult to deduce that they are mainly local residents and annual passage users. Concerning the customer knowledge is used by the firm to refine its marketing process, the fact that is the firm collects and analyzes the feedback which from the customers who visited the park so as to adjust the price of the tickets as well as to offer the...
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...report analysis of Hong Kong Disneyland. This analysis will examine the effect of the national culture of the Hong Kong in relation to the business operation and other several various factors of that affects the business conduct of chosen industry. The industry chosen by the writer is Hong Kong Disneyland (Disney, for brevity). Hong Kong Disneyland was a theme park built and operated by a new-joint venture company, the Hong Kong International Theme Parks Ltd. (HKITP), as formed by the Hong Kong Special Administrative Region Government and the Walt Disney Company. The author uses Disney as the subject of the paper as it is a new in the business industry. It has been conducting business since the year 2005, hence, assessment and analysis about the company is still few. This report will give a brief background about Disney. The analysis portion applying the different methods for strategic analysis in order to examine the remote and close environments of the subject company will follow the background. The paper will use some cultural theories in order to provide a comprehensive background as to the cross cultural awareness of the company with the culture of a state. BACKGROUND Hong Kong Disneyland is built and operated by a new-joint venture company, the Hong Kong International Theme Parks Ltd (HKITP), as formed by the Hong Kong Special Administrative Region Government and the Walt Disney Company. It is the fifth (5th) Disneyland style Park, which located...
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...Submission #______ BUAD 357 Fall 2010 Hong Kong Disneyland I. Synopsis of the Case This case is about cultural differences among Disney theme parks located in different countries. It begins by discussing the difficulties encountered when associating American Disney theme park norms to HKD. It explores Disney’s efforts to rectify dilemmas highlighted in the media involving differences among the culture, park guests, and disgruntled employees. It examines the initial attractiveness of Hong Kong to Disney and the current factors limiting its success in the country. This case study is an excellent demonstration of how Disney failed to translate its strategic assets to the Chinese culture and the challenges present to turn things around. (99 words) II. Identification of key issues HKD opened with the expectations of 5.6 million visitors the first year and visions of the success of another Tokyo Disney Resort. However, HKD was unable to present its products, practices, and ideologies with the success of Tokyo Disney. This was due to managerial policies as well as many ethical dilemmas among the Chinese culture brought upon by park practices. Among the dilemmas due to managerial policies were capacity issues. Capacity limit issues of 30,000 visitors...
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...In this case analysis I will first show the requirements the company had for its financing. Then I will provide an analysis of the main pros and cons for Chase in connection with the deal. Lastly I will show how both affected the pricing as well as the execution of the deal. In order to build the new Disneyland in Hong Kong a new non-recourse entity, Hong Kong International Theme Parks Ltd (HKITP) was formed. While the owners supported the project with substantial amounts of equity (Disney and Government) as well as with subordinated debt (Government), Disney had significant requirements for the financing portion of the remaining needed amount. Disney was looking to receive bank financing for this new entity of HKD 2.3bn as a Delay Draw Term Loan (“DDTL”) plus HKD 1.0bn working capital line (“Revolving Credit Facility” or “RCL”). While they had learned from their most recent experience with Disneyland in Paris not to have a too aggressive capital structure in place, they nevertheless demanded significant flexibility with regard to the following terms and conditions: - 15 year tenor - delayed amortization structure which would start as late as 3 years after the opening of the park, i.e. 8 years after closing of the loan and 6 years after funding of the loan - allowed CAPEX for further expansion (instead of using FCF for amortization) - full underwriting of the deal by up to 3 Lead Arrangers - no subordination of management and royalties - main collateral for the...
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...W Hong Kong compare with Hong Kong Disneyland Hotel Table of content Introduction3 Hotel backgrounds4 Facilities and services 6 Room types and room rates8 Amenities9 Target markets11 Conclusion14 Referencing15 Introduction Hotel always labeled into different level to identify the level of service hotel is provided. In this report, we are going to compare same level hotel but different type in Hong Kong. One is W Hong Kong which is the winner of Traveler Choice and Certificate of Excellence in 2013, another one is Hong Kong Disneyland Hotel which has established as a premium world class vacation destination. Although they are in the same level, the type of the hotel is totally different. Therefore, we want to follow this direction to compare the difference of two hotels, such as the feature of hotel what are the selling point of hotel, what product and service they have conducted. First of all, we will base on the basic information and ownership of two hotels. Secondly, to compare the service and product they have. For example, for the facilities do they have swimming pool, laundry etc. For the service do they have same special offer like reward program. For the product, what about the room type, room rates and amenities inside guest rooms. Finally, one is theme park hotel another one is business hotel that their target markets will be huge difference, so we want to though the market segments and characteristics of them to contrast the different of target market...
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...based on size and local regulations, hot weather, and high ticket prices. Cultural barriers happened such as the decision to serve shark fin soup, a local favourite, greatly angered environmentalist. For example, the decision to serve shark fin soup, a local favourite, greatly angered environmentalists. It is different in Europe as they have more choices for food because there are more countries in European group. Disney guests in Europe faced problems getting too closed or pressing around those who left too much space between themselves and the person in front. But it’s quite normal in Asian countries due to their population Hong Kong Disneyland only has 16 attractions and one classic Disney thrill ride, Space Mountain, compared to 52 at Disneyland Resort Paris. Weather in Europe tends to be cooler and their currency is higher than Hong Kong currency so people probably find the ticket cheaper. 2) Cultural variables influence the location choice of theme parks around the world because they are important factors to determine whether the parks will become successful or not. To locate a theme park they have to think whether people in the country will like this kind of theme park and will go for them or is it suitable for this county to locate this theme park. People who built the theme park needs to account the factor that whether it is easy for people in that country to adapt new things. 3) I would recommend nowhere in Asia because there might be a lot of theme park...
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...Five Forces Model of Hong Kong Disneyland * Threat of New Entrants * High capital requirements: High capital requirements mean a company must spend a lot of money in order to compete in the market. High capital requirements positively affect Hong Kong Disneyland. … * Strong brand names are important: If strong brands are critical to compete, then new competitors will have to improve their brand value in order to effectively compete. Strong brands positively affect Hong Kong Disneyland. … * Entry barriers are high: When barriers are high, it is more difficult for new competitors to enter the market. High entry barriers positively affect profits for Hong Kong Disneyland. … * Advanced technologies are required: Advanced technologies make it difficult for new competitors to enter the market because they have to develop those technologies before effectively competing. The requirement for advanced technologies positively affects Hong Kong Disneyland. … * Patents limit new competition: Patents that cover vital technologies make it difficult for new competitors, because the best methods are patented. Patents positively affect Hong Kong Disneyland. … * Geographic factors limit competition: If existing competitors have the best geographical locations, new competitors will have a competitive disadvantage. Limiting geographic factors positively affect Hong Kong Disneyland. … * High learning curve: When the learning...
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...parade premiered on 18 January 2011 as part of "Celebration in the Air", celebrating the 5th anniversary of the Hong Kong Disneyland. The parade replaced Disney on Parade, which had been running since the park's opening. Steve Davison, producer of World of Color in Disney California Adventure Park, said that he was working on a parade for the 5th anniversary celebration. Disney in the Stars[edit] Fireworks over Sleeping Beauty Castle Main article: Disney in the Stars Disney in the Stars is a nightly fireworks show based on Fantasy in the Sky at other Disney parks. Fireworks and pyrotechnics are coordinated to orchestrated classic Disney musics such as "A Whole New World". The show premiered on 12 September 2005 at the park's inaugural ceremony. Paint the Night[edit] The Paint the Night parade debuted on September 2014.It is a successor of the Main Street Electrical Parade. It's the very first time ever Walt Disney Parks and Resorts created fully LED parade, also features seven original floats containing over 740,000 individual lights. It is an interactive parade. David Lightbody, Director of Entertainment and Costuming of Hong Kong Disneyland Resort, said that the creative team spent over 2 years and developed over 1,000 scenic and lighting designs to ensure the parade. Park celebrations[edit] The "Thank you for visiting" sign Hong Kong Disneyland has organised entertainment and a number of shows as part of the festive celebrations to attract more visitors,...
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...Culture, Service and Product (Hong Kong Disneyland) Managing Service Operations in the Evolving Business Environment Executive Summary This paper covers the early stages of Disney and its growths in the years that have past. Disney Company is well known for its television series, movies, radio, shops, and theme parks. Disneyland has evolved throughout the years and has opened internationally theme parks in Paris, Tokyo and Hong Kong. It is soon opening its doors to another one in Shanghai in the first half of 2016. Disney branding is global and its value and culture broadens worldwide, but glocalization and grobalization need to be taken into consideration when opening a new concept in different countries. Furthermore, this paper shows the first negative impact of the opening of Hong Kong Disneyland in 2005 and what had to be changed in order to have a successful future and generate productivity for the business. It puts in perspective what needs to be taken into consideration prior to any opening. It describes the problems that have shown the difficulty of the new theme park and the solutions taken in order for them to be victorious. Finally, this paper talks about the recommendations and actions that can be taken into consideration in order to avoid this happening in the future. Disney first opened in 1926 with the name The Disney Brothers Studio. According to Robbins, (2014), “The Disney Company has been a premier entertainment company for over ninety...
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