A strategic analysis of Italian theme parks, trends, future perspectives and challenges.

1. BusinessBusinessBusinessBusiness StrategyStrategyStrategyStrategy –––– MasterMasterMasterMaster TourismTourismTourismTourism Management XManagement XManagement XManagement X
Costanza Castellani
Lisa Gruber
Carol Kantor
Pierangela Mancuso

2. Approximately 240
◦ Mostly in the North
Theme
Parks
Family
Natural
Aquarium
Thematic
DidacticLuna
Aqua
Zoo
Adventure

3. Number of Parks per
Category
Concentration of Parks
per Region
8%8%8%8%
31%31%31%31%
9%9%9%9%
34%34%34%34%
1%1%1%1%
5%5%5%5%
3%3%3%3%
6%6%6%6%
2%2%2%2%
1%1%1%1%
family park
aqua park
zoo park
adventure park
natural park
aquarium
thematic park
didactic park
Luna park
botanic park
11%
11%
11%
9%
9%9%
40%
EMILIA ROMAGNA
LOMBARDIA
PIEMONTE
TOSCANA
VENETO
LAZIO
OTHER REGIONS

4. Demographic : -Mainly families with kids
-Teenagers
Geographic : -Italian market
-Foreigners (especially in
hahahahahahahahaGardaland and Mirabilandia)
Length: -Day trips / weekend

5. •Analysis Characteristics
• From these 240 parks,
most are very small
permanent parks
• Theme Parks and Aqua
Parks are the largest and
account for around 90
structures
• The industry analysis was
made based on figures of
these 90 parks, especially
the Top 10
Capital Intensive
Seasonal
Competes with several
other types of
entertainment or
leisure activities

6. Top 10 Parks based on Sales
Last available year / in € thousands Year Sales
GARDALAND S.R.L. 2012 101,006
PARCO DELLA STANDIANA S.R.L. 2013 35,401
RAINBOW MAGICLAND SRL 2012 29,702
ZOOMARINE ITALIA S.P.A. 2012 12,998
CANEVAWORLD RESORT S.R.L. 2012 10,904
IDRORAMA S.R.L. 2013 9,704
LEOLANDIA S.P.A. 2012 8,894
BLUWATER S.P.A. 2012 7,329
L ANCORA SRL 2012 7,257
SOCIETA' EMILIANA PARCHI ATTRAZIONI RAVENNA - S.E.P.A.R. - S.P.A. 2012 6,366

7. GardalanGardalanGardalanGardalan
dddd
35%35%35%35%
MirabilanMirabilanMirabilanMirabilan
diadiadiadia
12%12%12%12%
RainbowRainbowRainbowRainbow
MagiclandMagiclandMagiclandMagicland
10%10%10%10%
Other 7Other 7Other 7Other 7
22%22%22%22%
OthersOthersOthersOthers
20%20%20%20%
Market ShareMarket ShareMarket ShareMarket Share
2012201220122012
GardalandGardalandGardalandGardaland
34%34%34%34%
MirabilandiMirabilandiMirabilandiMirabilandi
aaaa
8%8%8%8%RainbowRainbowRainbowRainbow
MagiclandMagiclandMagiclandMagicland
19%19%19%19%
Other 7Other 7Other 7Other 7
18%18%18%18%
OthersOthersOthersOthers
22%22%22%22%
Total AssetsTotal AssetsTotal AssetsTotal Assets
2012201220122012

9. -160.000-160.000-160.000-160.000
-140.000-140.000-140.000-140.000
-120.000-120.000-120.000-120.000
-100.000-100.000-100.000-100.000
-80.000-80.000-80.000-80.000
-60.000-60.000-60.000-60.000
-40.000-40.000-40.000-40.000
-20.000-20.000-20.000-20.000
----
20.00020.00020.00020.000
2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012
€€€€thsthsthsths
Net Income TOP10Net Income TOP10Net Income TOP10Net Income TOP10
2008200820082008 ---- 2012201220122012
Gardaland
Mirabilandia
Rainbow Magicland
Zoomarine
Canevaworld
Idrorama
Leolandia
Bluwater
L'Ancora
Ravenna

10. -15.000-15.000-15.000-15.000
-10.000-10.000-10.000-10.000
-5.000-5.000-5.000-5.000
----
5.0005.0005.0005.000
10.00010.00010.00010.000
15.00015.00015.00015.000
2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012
€€€€thsthsthsths
Net Income TOP10Net Income TOP10Net Income TOP10Net Income TOP10
excluding Gardalandexcluding Gardalandexcluding Gardalandexcluding Gardaland
2008200820082008 ---- 2012201220122012
Mirabilandia
Rainbow Magicland
Zoomarine
Canevaworld
Idrorama
Leolandia
Bluwater
L'Ancora
Ravenna

11. -15.000-15.000-15.000-15.000
-10.000-10.000-10.000-10.000
-5.000-5.000-5.000-5.000
----
5.0005.0005.0005.000
10.00010.00010.00010.000
15.00015.00015.00015.000
2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012
€€€€thsthsthsths
Net IncomeNet IncomeNet IncomeNet Income
2004200420042004 ---- 2012201220122012
Mirabilandia
Rainbow Magicland
Zoomarine
Canevaworld
Idrorama
L'Ancora
Ravenna

12. NOT ANOT ANOT ANOT A
PROFITABLEPROFITABLEPROFITABLEPROFITABLE
INDUSTRYINDUSTRYINDUSTRYINDUSTRY

13. IncumbentsIncumbentsIncumbentsIncumbents
SupplierSupplierSupplierSupplier
SubstituteSubstituteSubstituteSubstitute
BuyersBuyersBuyersBuyers
PotentialPotentialPotentialPotential
EntrantsEntrantsEntrantsEntrants
Incumbents:Incumbents:Incumbents:Incumbents:
- High concentration (oligopoly)
- Diversity
- High product differentiation
- Unused capacity issues, Seasonality
- Sunk costs (Exit barriers)
- Economies of scale
- Muted price competition
LOW RIVALRY
SubstituteSubstituteSubstituteSubstitute
- No propensity of buyers to switch
Potential EntrantsPotential EntrantsPotential EntrantsPotential Entrants
- Sunk Costs
- Huge capital requirements:
- Economies of scale for existing companies
-Cost Advantage for existing companies
-brand recognition, customer loyality for existing
companies
- Smaller channel distribution availability
-Governmental barriers
SuppliersSuppliersSuppliersSuppliers
- Bargaining power depends on the supplier
e.g.: Big supplier (Mc Donalds) vs. local supplier
BuyersBuyersBuyersBuyers
- Individuals:
Low bargaining power
- Groups: medium bargaining power

14. Target:Target:Target:Target:
family (children) – others
Geographical ScopGeographical ScopGeographical ScopGeographical Scope:
from regional to international
NB:NB:NB:NB: the analysis took into account aquatic
parks and thematic parks 38% of the total
industry (as showed in the industry analysis)

16. aquatic parks: all over in
Italy, it’s not the same
Geographical Scope:
Regional or interregional in the
South (vice versa in the North)
target: wide (from Family to
others)
thematic parks: 6 + 26 + 26 + 26 + 2;
1 pipeline
1 under construction
mostly internationally oriented
thematic parks 8
Cinecittà World (unders construction) 1
Castel Romano (Roma) 1
Fiabilandia 1
Rivazzurra (Rimini) 1
Gardaland 1
Castelnuovo del Garda (Verona) 1
Mediapolis (in progetto) 1
Albiano d'Ivrea (Torino) 1
Mirabilandia 1
Loc. Mirabilandia (Ravenna) 1
Miragica 1
Molfetta (Bari) 1
Movieland Park - Canevaworld 1
Lazise (Verona) 1
Rainbow MagicLand 1
Valmontone (Roma) 1

18. OperationsOperationsOperationsOperations
Entertainment: roller costers &&&& shows and
exhibitions
One new attraction every year
Sea Life Aquarium (inside the park)
Gardaland Waterpark (in Milan)
F&B offered inside the park: everything insourced
New target: Business events & meetings inside
the park
Maintenance Engineering

19. MarketingMarketingMarketingMarketing
Exclusive cooperations with movie production
companies
Gardaland on Facebook: used to create loyal
guests, realising some «secrets» just online
Cooperation with some OTA (Expedia, Volagratis)
Partnership with Sammontana and Esselunga
ServiceServiceServiceService
Maintenance Engineering

20. HRHRHRHR
High turnaround: 240 full time employees, 1500
seasonals
Constant training: numerous workshops for the
development of the product and the image of the
park
PurchasingPurchasingPurchasingPurchasing
Mainly for the F&B

21. Segmentation
(families with kids; others)
Geographic scope Vertical Integration
local low
2 (Hotel/Meeting)
Related Business

22. X
DIFFERENTIATIONDIFFERENTIATIONDIFFERENTIATIONDIFFERENTIATIONCOSTCOSTCOSTCOST
BROADBROADBROADBROAD
NARROWNARROWNARROWNARROW

23. x
P.P. > E.C.P.P. > E.C.P.P. > E.C.P.P. > E.C.P.P. < E.CP.P. < E.CP.P. < E.CP.P. < E.C
UNIQUEUNIQUEUNIQUEUNIQUE
NOTNOTNOTNOT
UNIQUEUNIQUEUNIQUEUNIQUE