Amusement Parks and Success Factors

Amusement Parksand Success Factors
Prepared by Hossein Bkhshaeifor Pars PouyanPardisCompany

Purpose
To help you formulate Pars Pouyan, and to be knowledgeable in the ways used to be successful Amusement Park.
Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

U.S theme park industry
Brand Positioning(promotion and advertising)
Service Marketing Ps
Customers
Financials
Success and Flop Factors

U.S theme park Industry

It’s large and growing:
489 businesses
Revenue:$11.0 billion
Profit:596.1 million
Growth rate:2.1%
(2011) Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

9.0%9.4% 8.6%11.8% 51.0%

Brand Positioning
(promotion and advertising)

Advertisement VS Promotion

Selling the promise of entertainment
at one unique place???

Family
Where Dreams Come True
Promotion/Advertising

Six Flagsdestination of high speed and big drop rollercoaster thrill rides

Promotion/AdvertisingThe premier destination of thrill rides by continually promoting the presence of new attractions

UniversalEntire universe of action and thrills

Promotion/AdvertisingThe premier destination of thrill rides by continually promoting the presence of new attractions
•$3 million television commercial
•Because

Brand Positioning/Comparative Table Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Service Marketing

What is a Service Marketing ?
4P’s + Process, Physical environment and People

Six Flags:
freeway signage
identify the location of their parked car
frequent parking trams
trains and cable cars to take visitors up or down hills
defined waiting areas and estimated wait times
Flash Pass system
numerous televisions that display cartoons, popular shows

Universal:
pre-purchase stage
virtual queuing system, Universal Express
trains and cable cars to take visitors up or down hills
Mobile apps
Waiting areas
sit-out-then-swap

People
HR challenges:
predominantly seasonal low-wage jobs
predominantly less-educated workforce
monotonous nature of work
high turnover
need for adequate training Prepared by Hossein Bakhshaei for Pars Pouyan Pardis Company

Disney:
we don‘t put people in Disney, we put Disney in people
An average visitor will interact with Disney‘s cast approximately 60 times during their stay
“performance cultures”
Employees that exceed guest expectations are rewarded

Six Flags:
Exceptional memory
Friendly
outgoing
self-motivated‖
able to function in a fast paced environment

Universal:
energetic‖, enthusiastic‖, outgoing‖.
hourly positions (mostly front-facing)
salaried positions (mostly back end)
entertainment roles
Motivations:
-quarterly free park access passes
-discounted movie tickets
-onsite convenience stores

Environment

Disney:
“Everything Speaks”
Examples:
-Disney hotels doors having two peepholes, one for adults and one at a child‘s eye level
-all trashcans being within 27-foot intervals of each other to improve the overall appearance of the parks, every trashcan‘s design reflects each area‘s theme

Six Flags:
“cleanest park in the world”
Examples:
-Park cleanliness
-sounds of machinery
-highest priority on safety by partnering with trusted manufacturers of rides
-extensive training of employees on safety topics, technical monitoring, inspection and maintenance.

Universal:
“senses of Sight, Hearing, and Touch”
Examples:
-continual upbeat music
-characters perform their iconic sayings or actions
-park employees wear bright colors and smile to patrons
-the surroundings are colorful

Theme Park Customers

“A market segment is composed of a group of buyers who share commoncharacteristics, needs, purchasing behavior, or consumption patterns.”
Theme Park Customers?

Disney:
Disney primarily targets families with young children
First-timers
heavy users
International Visitors
Florida Residents

a typical household has a lifetime value of more than $50,000
and consists of 3.6 people
What is life time value?

International Visitors
Creating personalized web pages
hiring international employees.

Hourly rate ($175-$315) with a 6 hour minimum

Guest Expectations
Guestology

Six Flags:
Primary Customer Segment:
Young Adults and Teens
Secondary Customer Segment:
Families

$199 to $249 per person

Season Pass
online survey panel
business to business sales STRATEGY
•licensing sponsorship and accommodations
•24 million people visit Six Flag each year more than any sports league, and typically spend 10 or more hours per visit, 7 hours longer than the average sporting event.

Universal:
geographical segmentation
In-state market
Out of area visitors
Light users
Heavy users

$150 per person, up to 12 guests get a tour of all grounds as well as priority entrance into at least 8 rides

gaining feedback from customers while they are in the park
e-mail
direct mail
mobile marketing communications.

Exhibit 6 Theme Park Ticket Prices
Ticket Type Disney Six Flags Universal
Daily $85.00 $36.99 $85.00
VIP Tours $1,685.00 $299.00 $150.00
Season $649.00 $61.99 $189.00
ThemeParkTicketPrices

Financials

The U.S amusement park industry
Mature
high barriers to entry
high revenue volatility

high market share concentration
high levels of capital intensity
medium levels of regulation

high competition
high level of technology change
no industry assistance by the government

Disney:
In 2009 sales fell 7.3% to $10.7 billion and operating income decreasing by 25.3% to $1.4 billion
Recovery:
1) quantity:intense focus on
promotions to increase attendance
2) quality: increasing the per capita and per room guest spending opposed to increasing attendance.

Six Flags:
Six Flags filed for Chapter 11 bankruptcy protection in March of 2009
Recovery:
1)New management
2) Focus on attracting regional visitors

Universal:
In 2009 Universal Studios Orlando, Universal‘s Island of Adventures, and Universal Studios each experienced declines in attendance of 12%,
13.8% and 6%, respectively
Recovery:
1)forced to take cost cutting measures and increase the price of its adult tickets
2) opening of the new WizardingWorld of Harry Potter attraction

Success and Flop Factors

While commodities are fungible, goods tangible
and services
intangible, experiences are memorable

RANKINGOFSUCCESSFACTORS

SELECTED FLOP FACTORS OF THEME PARKS

Conclusion!

Every Interaction
=
Overall perception and satisfaction

Final Questions

References:
Daniel Adler-Golden, Lia Bertoni, Solomon Iyasere, Wayne Woo. AMUSEMENT PARKS, 2011.
Samadi, Nina. Amusement Parks in the US. IBISWorldIndustry Report 71311, IBISWorld, June 2011.
Birgit Pikkemaat and Markus Schuckert. Success factors of theme parks -An exploratory study

Amusement Parks and Success Factors

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