Keith Bergh Megan Carolin Chris Ramento

2. Disneyland India Keith Bergh Megan Carolin Chris Ramento BA 474 04.24.08

3. Market Assessment

4. Country Overview • 1.2 billion people • Growth rate of 1.3% • 15% of world’s population • Mumbai – Largest city – 18M people • Service Industry – 55% of GDP • Large migration to city – 70% rural now

5. Economic Overview • Growth rate – 8.5% • Household income expected to double over the next two decades • Significant growth in middle class • 583M by 2025 • Disposable Income rising • Aggregate consumption 13x by 2025 • Discretionary Spending • Education & Recreation to grow 11% annually • From US$19M today to US$152 in 2025

6. Cultural Overview Important Factors: • Religion, Language – Hindu • Food Choices: No Beef or Pork • Family Values: Stressed • Joint Families (Aunts, Uncles, Grandparents, etc. … live together • More Independent Youth Today

7. Legal & Political Overview • India has quasi-federal form and bicameral parliament system • Less government control • Environmental Regulations (Companies Act of 1956) • Positive: The government would want Disney to come because of its popularity and benefits the company provides to the public and country

8. Product/Service Factors

9. Company Strengths/Weaknesses • 11 Theme Parks on 3 Continents – Over 50 Years of Experience • Multi-Industry, International Company, Leader in many fields – Lots of resources • Adapting to the Local Culture while still delivering an authentic Disney experience

10. Industry Factors • Emerging theme park industry experiencing explosive growth • Expected to grow by 6% each year until 2010 • Indian Association of Amusement Park & Industries (IAAPI) • No existing parks comparable to a Disney Resort

11. Distribution Issues • Location is outside the city (Trombay) • Advertisements in markets and transportation systems • Transportation system adequate but crowded • Ideas: • Trains from the city to the park • Trains from the airport directly to the park • Bus system specifically from the city to the park

12. Consumer Issues • Purchasing of Tickets • Might be difficult • Souvenirs • Items must be somewhat inexpensive so families could purchase them • Not much discretionary income

13. Marketing Plan

14. Target Market • Indian Middle Class (Strivers) • Earn .5-1 Million Rupees ($12.5K - $25K) • Families (Joint Families) • With young kids • Family size close to 4.81 • Youth (Consumer markets will shift because of mobile phones) • Are starting to be more Independent in India • Vacationers in the region • Get middle to upper class families from neighboring countries and outside the region to come on family vacation

15. Relevant Company Info. • Began with a cartoon studio and full-length films • Disneyland Anaheim opened in 1955 • International Expansion began with Tokyo Disneyland in 1983 • Mission: “Dreams Come True” • Jay Rasulo • Chairman of Walt Disney Parks & Resorts

16. Strategic Goals • Create a park that is consistent with the Disney brand but also adapts to the local culture • Meet park attendance, ticket, and merchandise sales goals in order to make a profit on the incoming funds to the park over the daily operating costs. • Use the area’s resources in order to create an efficient supply chain and lower distribution costs, as well as boost the local economy. • Promote the Disney brand through characters and licensing, especially making use of mobile phone and Internet advertising, in order to increase favorability of the brand and the desire to attend Disneyland India. • Maximize leverage of the target market through continuous feedback from this demographic.

17. Product Strategy • Adaptation through food, costumes, attractions, & entertainment • Follow up with focus groups and surveys to get feedback on success Goal: Create an authentic Disney experience while adapting to the local culture

18. Pricing Strategy • A ticket to a Disney park is a premium (price skimming), one-of-a-kind experience • Consistent with other Disney Parks

19. Pricing Strategy (Cont.) Disneyland India Prices • Analyze park attendance figures & projections – adjust accordingly • Use food & merchandise pricing as a way to increase profit without changing ticket prices • Children (3-11) = 2000INR / $50 • Adults (12-65) = 2400INR / $60 • Seniors (65+) = 2200INR / $55

20. Promotional Strategy • GOALS • Raise awareness of Disney India • Not be viewed as westernized brand but international • STRATEGY • Slow implementation (service company) • Plan events to present the Disneyland experience • Adapt Advertisement to satisfy cultural needs

21. Promotional Action Steps

22. Supply Chain Strategy • GOALS • A cost efficient strategy to provide merchandise, food, and materials for the attendees • Produce own merchandise and materials • Outsource for food product (local products and favorites) • OVERALL • Decrease holding costs, increase inventory turnover, decrease cost in operations, decrease handling costs, and make Disney more competitive as an amusement park

23. Supply Chain Action Steps

24. Distribution Issues • GOALS • Maximize coverage & outlets to keep ticket sales high • Creative ways to draw customers to the park • Expand coverage to neighboring countries • Quick & easy database to maintain sales • STRATEGIES • Use Online ticket sales & other online sites • Open up Disney retail stores in India and promote the park • Open sales centers in large cities in region outside of India • Effective management and updating of Database prevent overselling and keep customer satisfaction high

25. Expected Results • Profits will take a while • Park might have to make some adjustments/adaptations to the park because of cultural, language and legal differences Figure 2.1: Disneyland Estimated Costs of Development

26. Expected Results 30,000 occupancy rate average x 360 days per year = 10.8 million attendees per year $58 avg. ticket sale price x 10.8 million attendees = $626 million per year in ticket Revenue Figure 2.3: Disneyland India Financial Forecast (in Millions USD)

27. Questions & Comments