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Disneyland and six flags diferent target markets

Overall Assessment of Marketing Strategy 8. It was founded by Walt Disney in October 1923 starting with the production of a series of Alice Comedies. Today the company operates in five business segments: Disney Consumer Products is the world largest licensor and delivers toys, apparel and books.

They operate 350 Disney retail stores worldwide. Finally, the segment parks and resorts comprises five vacation destinations with 11 theme parks and 44 resorts in North America, Europe and Asia, with a sixth destination currently under construction in Shanghai.

They also have four Disney Cruise Line ships; 12 Disney Vacation Clubs approaching a total of 200,000 member families; and Adventures by Disney, which provides guided family vacation experiences to global destinations.

At the moment Disney has approximately 166,000 employees around the world Forbes, 2013. The parks and resorts segment was one of the main growth drivers in 2013: Therefore, the parks and resorts play a very important role in the company's brand portfolio.

The paper will therefore focus on this business segment. Major amusement park companies in the U. All of them are among the top 7 largest amusement park corporations in terms of annual attendance but only Disney and Universal Parks have parks around the globe TEA, 2013.

Strategic marketing analysis of Walt Disney’s Parks and Resorts

All of these parks are destinations parks except Six Flags. Smaller, more regional parks supplement the market but often just focus on niche markets by offering special rides Mintel, 2013. Worldwide, amusement parks he U. The average annual growth rate of the industry between 2008 and 2013 was 2.

Currently there are more than 450 amusement parks and attractions in the U.

Six Flags (SIX)

Nevertheless, the industry in the U. Disney alone had a market share in terms of revenues of 51. Marketing Environment Analysis Marketing is an important determinant of profitability in this industry.

However, various factors can present either threats or opportunities which require to adapt the marketing accordingly. The bargaining power of buyers is relatively high mainly due to low switching costs.

Hence, Disney always has to communicate their value proposition very clearly in its marketing communication. The bargaining power of suppliers is relatively low because companies which construct rollercoasters and other rides and those who deliver beverages or food for the parks like Pepsi and Coke are also corporate partners with all the other amusement park providers.

Hence, the threat of a vertical integration is negligibly. Firms which construct rides are rather dependent on huge theme park providers like Disney. The threat of new entrants is also very low as the entry barriers are very high due to immense capital requirements. Huge parks like Disneyland can also profit from economies of scale in operations and advertising.

The threat of substitutes is rather high for the whole industry as there are a lot of other activities a family can do in their free-time like visiting museums, go hiking in National Parks, going to cinemas or making vacations abroad.

Hence, their marketing communication has to create awareness for these activities as well. Finally, the rivalry within the industry is intense as customers have low switching costs. Therefore, it is again critical to emphasize the differentiating factors in the marketing communication. Disney constantly needs to communicate its point-of-differences and its emotional benefits in order to keep up its strong brand image and so to contrast itself from competitors see part III for a detailed competitive analysis.

Especially as Disney operates in China, it is very much dependent on government regulations and is constantly under governmental control China Daily, 2011.

Tax laws and laws affecting competition are also important determinants for the success of the company. Therefore, marketing strategies also have to consider governments in order to keep good cooperation relationships with them. Business cycles can influence the amount of available free-time people have and thus affect the attendance rates.

Inflation rates, savings rates and consumer purchasing power further are critical determinants for amusement park operators. Consumer confidence and spending and unemployment levels finally influence the profitability of the industry IBISWorld, 2013.

Furthermore, the rise of the social media influences the industry. But social media also gives marketing the opportunity to directly interact with customers and to build stronger relationships with them.

Demographic factors are a further important determinant for the industry: The extreme urbanization trend represents another challenge: But technological advances also affect the marketing of theme parks. Through the increasing adoption and use of digital technology marketers can use this as an opportunity to target customers more directly by customizing marketing messages. Furthermore, new marketing techniques result from new technologies such as search engine advertising or social media.

Thus, parks need to adjust their marketing strategies for the new channels and use these opportunities to make them even more efficient. Moreover, SeaWorld was visited by 24. Disneyland and SeaWorld basically focus on kids and tweens, but who are dependent on its parents to take them there.

But both parks target the young audience and their parents, so the rivalry between them with regard to the target audience is very high. So despite having a relatively high awareness in terms of its brand name, SeaWorld is not that strong in creating an emotional relationship with its customers and thus has a lower brand equity than Disney.

Furthermore, they have a very low breadth disneyland and six flags diferent target markets product line compared to Disney as they do not offer anything besides their parks only 3 parks in the whole U.