Marketing Strategies of the Shanghai Disney Resort Shanghai Disney Resort

Brief History and Facts

Investments

Target Market for the Shanghai Disney Resort

Demographic Segmentation

Psychographic Segmentation

The Marketing Strategies of the Shanghai Disney Resort

Product Strategies

Integration with the Chinese Culture

Product Mix

The Major Resort Segments

Entertainment and Recreational Facilities

Pricing Strategies

The Most Potential Customer Segment

Why Chinese Market?

Promotional Strategies

Segmentation for Promotional Campaigns

Selection of Promotional Mediums

Place Strategies

Overall Plan of Shanghai Disney Resort

SWOT Analysis

a.

Internal Environment (Strengths & Weaknesses)

b.

External Environment (Opportunities & Threats)

Failed Market Strategy

Successful Market Strategy

Selection of the Chinese Market

Differentiation

Growth Strategy

Critical Analysis and Concluding Thoughts

Appendices

Appendix 1: Introduction

References

Executive Summary

The Shanghai Disney Resort is an upcoming theme park in China. The resort is being built by the world's largest entertainment corporation -- the Walt Disney Company. Consisting of theme parks, hotels, lake, entertainment district, and recreational facilities, the Shanghai Disney Resort is expected to be opened in December 2015. The major target market for this resort is children with age 4-15 years. However, the company will offer numerous entertainment and recreational facilities for the youngsters and adults as well. The Shanghai Disney Resort is going to be the most expensive theme park and entertainment place in the Chinese market. Therefore, it will only be affordable for the upper middle and higher income groups of the society (The Shanghai Disney Resort, 2013)[footnoteRef:2]. [2: The Shanghai Disney Resort, (2013). About the Resort.]

The Walt Disney Company has effectively designed the marketing mix strategies for its Shanghai Disney Resort. In addition to the major resort segments like Shanghai Disneyland Park, Magic Kingdom-style Park, two themed hotels, and an entertainment district including Storybook Castle and gaming and ride systems, the company will also offer secondary offerings that include restaurants, lake, retail shopping, nightly fireworks, etc. The pricing strategies will be designed by keeping in view the demand for getting this huge investment back in the shortest period of time. The Company will use all the major marketing mediums to promote its products in the local and international markets. These mediums include electronic, print, social media networking sites, official and project-based websites of the company, and outdoor advertising mediums like bill boards, posters, and transit advertising. The company is also enjoying full support from the local government, suppliers, and distribution partners (The Shanghai Disney Resort, 2013)[footnoteRef:3]. [3: The Shanghai Disney Resort, (2013). Fact Sheet.]

On the basis of its core strengths like financial stability, brand image, governmental support, and R&D, the Walt Disney Company will be able to avail the attractive opportunities which are present in the Chinese market (Jenny & Scammon, 2010)[footnoteRef:4]. At the same time, it will be able to encounter the threats and overcome its own weaknesses which can put hurdles in its way of success. The high pricing strategy of the company will bring negative impacts on its business operations whereas differentiation and growth strategies will help it grow in the industry in the most profitable and competitive fashion. [4: Jenny, M. & Scammon, D.L. (2010). Principle-Based Stakeholder Marketing: Insights from Private Triple-Bottom-Line Firms,]

1. Introduction and Background: Shanghai Disney Resort

i. Brief History and Facts:

The Shanghai Disney Resort is an upcoming theme park resort which is targeted to be opened at the end of 2015. The construction of the resort was started on April 8, 2011. The Shanghai Disney Resort is being built by Walt Disney Parks and Resorts -- the fifth major business segment of The Walt Disney Company. It would be the second Disneyland project of the company after Hong Kong Disneyland which was opened to public in 2005. The Shanghai Disney Resort was approved by the Chinese Government in November, 2009 (The Walt Disney Company, 2009)[footnoteRef:5]. The resort is being built in two phases: the Phase 1 consists of Shanghai Disneyland Park, Magic Kingdom-style Park, two themed hotels, an entertainment district, a lake, numerous recreational facilities, parking, and transportation hubs. In the second phase, Walt Disney Parks and Resorts will develop two additional theme parks at the resort (The Shanghai Disney Resort, 2013)[footnoteRef:6]. [5: The Walt Disney Company, (2009, 11, 03). The Walt Disney Company Reaches another Major Milestone on Shanghai Theme Park Project.] [6: The Shanghai Disney Resort, (2013). Fact Sheet.]

ii. Project Overview and Statistics:

The Shanghai Disney Resort will be a place where people would come with their children, families, and friends to enjoy a wide range of recreational and entertainment...

The resort promises to provide a completely new world of imagination, fantasy, adventure, entertainment, and creativity through its astonishing theme parks and deluxe hotels. The major area of the Shanghai Disney Resort will be covered by the theme park which is approximately 910,963 square meters (225 acres). The Walt Disney Parks and Resorts will build one deluxe and one value hotel in the Shanghai Disney Resort. The hotels will have more than 1,200 rooms. Moreover, the resort will also provide retail shopping, dining, and entertainment facilities (The Shanghai Disney Resort, 2013)[footnoteRef:7]. [7: The Shanghai Disney Resort, (2013). Fact Sheet.]
iii. Investments:

The land allocated for Shanghai Disney Resort is about 963 acres (3.9 square kilometers) in Pudong, Shanghai. It is more than 3 times the land covered by Hong Kong Disneyland. The estimated cost for the whole project is approximately 24.5 billion Yuan (U.S.$3.7 Billion). The company will further expend 4.5 billion Yuan (U.S.$0.7 Billion) on other facilities. The major ownership of the resort (70%) will be held by the Walt Disney Company whereas the Shanghai Shendi Group will own the remaining 30%. The Shanghai Disney Resort is being constructed through financing made by various large scale public sector enterprises under contracts with the joint venture management company consisting of the Shanghai Disney Resort and the Walt Disney Company (The Walt Disney Company, 2013)[footnoteRef:8]. [8: The Walt Disney Company, (2013, 03, 06). Disney unveils First Model Image of Shanghai Disney Resort.]

2. Target Market for the Shanghai Disney Resort

i. Demographic Segmentation:

The target market for Shanghai Disney Resort can be divided into two major segments: primary target market and secondary target market. The primary target market consists of children and teenagers with age 4-15 years. The major facilities and offerings of the resort; like theme park (Shanghai Disneyland Park and Magic Kingdom-style Park), Disney characters, gaming and ride systems, storytelling, Storybook Castle, nightly fireworks, etc. are targeted towards this primary target market. The secondary target market constitutes youngsters, adults, and old age people who would come to enjoy other recreational and entertainment facilities offered by the Shanghai Disney Resort. In addition to targeting both genders and all age groups from the Chinese market, the company also aims to attract all the income groups and social classes. However, the most potential target market will consist of people from upper middle and high income groups only.

ii. Psychographic Segmentation:

The Shanghai Disney Resort promises to entertain children and adults through highly imaginative, fascinating, adventurous, and creative recreational facilities. Therefore, its target market consists of people who are family oriented, vivacious, youthful, and adventure seekers. The company will also target local and foreign tourists who are entertainment lovers and always remain in a quest to visit adventurous and entertaining places.

3. The Marketing Strategies of the Shanghai Disney Resort

i. Product Strategies

a. Integration with the Chinese Culture:

Prior to its arrival as the Hong Kong Disneyland in the Chinese market, the biggest challenge for the Walt Disney Company was to design its product strategies that could best meet the social and cultural values of the Chinese people. However, this second project is comparatively less complex in terms of building brand image of Disneyland in a totally different environment. Hong Kong Disneyland has paved the path for Shanghai Disney Resort to better target Chinese people with its innovative and state to the art facilities. Since the Chinese market has very limited integration of the Disney culture, the Walt Disney Parks and Resorts had to redesign its product strategies so as to achieve success in this market in the shortest period of time.

b. Product Mix:

The product mix for the Shanghai Disney Resort can be described in terms of its major segments and other entertainment and recreational facilities.

(i) The Major Resort Segments:

The Shanghai Disney Resort is being built in two phases. The major segments of the resort will be completed in the first phase in which the Walt Disney Parks and Resorts will build fully functional Shanghai Disneyland Park, Magic Kingdom-style Park, two themed hotels, and an entertainment district including Storybook Castle and gaming and ride systems. The second phase will further add two theme parks in the resort (The Shanghai Disney Resort, 2013)[footnoteRef:9]. [9: The Shanghai Disney Resort, (2013). Fact Sheet.]

(ii) Entertainment and Recreational Facilities:

In addition to the major segments, the Shanghai Disney Resort will also offer numerous entertainment and recreational facilities for children, youngsters, and adults. These entertainment facilities include restaurants, retail shopping, nightly fireworks, lake, fun with live Disney cartoon characters, and many more.

ii. Pricing Strategies

a. The Most Potential Customer Segment:

The Shanghai Disney Resort will offer a number of recreational and entertainment facilities -- most of which are expensive enough to be affordable by the upper middle and higher income group only. Therefore, the most potential target market for the Shanghai Disney Resort will only consist…