Marketing Plan
Blue Team
Spring 2007
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Table of contents:
1. Market Analysis
o
o
o
o
Know the Market Need
Know the Target Market
Know Our Own Product
Know Our Own Competitors
2. Marketing Strategy
o The Initial Phase
o The Second Phase
o The Third Phase
3. Advertising strategy
o IAAPA website & journal
o Websites
o Direct marketing
4. Break-Even Analysis
o Break-Even
o Per Park Revenue by Year
5. Return on Investment
o Profit Return
o Other Return
6. Conclusion
7. Reference
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Market Analysis
o
o
o
o
know the market need
know the target market
know our own product
know our own competitors
1. Know the market need
First of all, we have to be aware of:
o The desire expected by patrons in parks is the desire of park owner.
o Solving park patrons’ desire means matching park owners’ desire.
So we conducted the following surveys to park patrons
General Survey:
We surveyed 50 people that have been to a major theme park in the past 10
years.
First Survey:
In visiting an amusement park, what has been the one element that has taken
away from the overall experience?
Survey Results1:
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Second Survey:
For a small fee, would you be willing to pay for a customized itinerary whereby
you could shorten your wait for selected attractions?
Survey Results2:
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Survey results Analysis:
1. from the first survey result,
We can see the biggest percentage of degree of patrons’ dissatisfaction is the
“long lines”, which is high to 70% (70 people out of 100.)
o That means “reducing the long lines” can extremely match the patrons’
desire of
amusing in theme parks
2. from the second survey result,
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We can see the percentage of “willing to pay to avoid” the long lines is also high
to 72%, which almost approach the percentage 70% of dissatisfaction
o That means the patrons’ “willing to pay to avoid long lines” hide a big
business opportunity.
Survey Results Analysis Summery:
1. The market need is significant
2. This market need will produce signification reward of investment
At the same time,
Our domain expert support our market need findings, stating as following:
“Avoiding lines is a fundamental desire for people who attend public
venues. Recent news articles would support your presumption as well,
regarding the willingness of patrons to pay for it ”
---Mr. Doug Stagner
(Director of Operation, Busch Gardens Europe, VA)
2. Know our target market
1. Primary target:
o Large scale theme parks
2. Secondary Target:
o Smaller theme parks and other attractions.
Important park industry growing data show as follows:
U. S. A. THEME PARKS/ AMUSEMENT & ATTRACTIONS INDUSTRY:
ATTENDANCE & REVENUES
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YEAR
ATTENDANCE
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
253 million
260 million
267 million
275 million
267 million
280 million
290 million
300 million
300 million
309 million
317 million
319 million
324 million
322 million
328 million
335 million
REVENUES
$5.7 billion
$6.1 billion
$6.5 billion
$6.8 billion
$7.0 billion
$7.4 billion
$7.9 billion
$8.4 billion
$8.7 billion
$9.1 billion
$9.6 billion
$9.6 billion
$9.9 billion
$10.3 billion
$10.8 billion
$11.2 billion
Sources:
Amusement Business; Harrison Price Company; Economics Research Associates; U.S.
Census Bureau; International Association of Amusement Parks and Attractions
As you can see, overall attendance at America’s approximately 600 parks and
attractions has increased every year during recent times, except in 1994 & 2003
due to very cold, very wet summers and in 1998 due, again, to some poor
weather and fewer visitors from Asia.
This is another key factor to our future product sales (Thrill Tracker). The whole
park industry is growing up healthfully, which means theme parks have the ability
to buy our product or invest on our project in the future.
3. Know our own product
What technology will our product use?
We are planning to use RFID technology in our future product, which is used
broadly in many fields, which means this kind of technology is already mature
and steady.
RFID stands for – Radio Frequency Identification
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There are two types of RFID:
o Active
o Passive
The main difference is that active RFID has its own battery power source, where
as passive RFID achieves its charge from radio waves.
Further, why do we select RFID? The following chart will give out a clearer
explain:
We trust the technology of RFID that we are going to apply, and we will make our
investors, our buyer, and our user believe that our product will be functional,
robust, and reliable.
4. Know our own competitors
At the same time, in the whole marketing course, we have to keep a clear mind:
o Who are our competitors?
o What can they do?
o How better are they than us?
Finally the biggest enemy is ourselves:
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o How good are we?
o And how long can we keep our strength?
So far, we have five major competitors as following competition matrix describes.
The following competition matrix will show what we would be able to do and what
our major competitors can do right now.
Figure 4.1: Competition Matrix:
Description of the major Competition:
Our major competitor is Safetzone, which offers many features that have to deal
with Account management on the patrons behalf, our solution really shines in
what it can do for the amusement park.
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In particular our solution is able to collect real-time logistical data, as well as
spending (consuming behavior) habits data of park patrons for the park
On the patron side of things, our product providing the multiple ride reservation
fast pass make a unique experience that the customer is not soon to forget.
Marketing strategy
Target Market Roll-Out
o Initial Phase: Busch Gardens Europe, VA
o Secondary Phase: nationwide
o Third Phase: worldwide
Our product has very specific customers. This requires that we have to go to the
theme park businesses that we wish to market our product to and meet with the
leaders of these businesses. Our market is specialized because we are looking
for park businesses that lack of real-time data collection. We must directly
communicate with these businesses on a regular basis. We will need to meet
with top management personnel and express our idea to them. Once we have
them interested we must provide a presentation and also a demonstration as to
how this product works. We need to show them the Thrill Tracker system can
deliver on its promise. We will need to show them that these businesses will be
able to greatly provide the most satisfaction for their patrons and make most
profit with our Thrill Tracker system.
1. Initial Phase
In this phase, we will fuse our all marketing strength on Busch Gardens Europe,
VA. This is the first key step, once we success on that, we would make the
break-even within or just after the first year. And the most important thing, we
would gain the probability to go to the second marketing phase---nationwide.
Once we have a business that is willing to use our product, we must set up and
initiate a beta test. We hope to enter the Bush Garden Europe first as they are a
local major theme park, so it was natural that we target them as our marketing
test within the Hampton Roads area. We chose this theme park not only out of
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reason for expressing great interest but also for the fact that these are
businesses that are close to the Blue Team’s base of operations. This will allow
us to monitor the progress of marketing test. This will be essential to making a
name for our product. The marketing test must go with as few problems as
possible. Any major problems during the first marketing test could result failure of
the product.
Once we have proven our product to successful with Bush Garden Europe, we
then can move on to more businesses. We will initially expand along the east
cost targeting theme parks to as many as possible. With more theme parks using
our product we will be able to start becoming a far more recognizable company.
After this is achieved it is only then that our company and its product can spread
through the east coast of the U.S. and then the west.
2. Secondary Phase
In this phase, we already would get a lot of practical experience on operating
real business, and we begin receiving the reward of investment, which insure
us to fulfil to enlarge our business scale into nationwide.
3. Third Phase
In this phase, our business would be going to overseas, Europe, Asia and so
on…
Advertising Strategy
Advertising Mediums:
1. IAAPA website & journal
2. Websites
3. Direct contact adverting
(IAAPA = International Association of Amusement Parks and Attractions)
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1. We will advertise in the website and journal of the IAAPA.
o The International Association of Amusement Parks and Attractions
(IAAPA) is the largest international trade association for permanentlysituated amusement facilities worldwidespend.
o IAAPA represents nearly 4,500 facility, supplier, and individual
members from more than 90 countries, including most amusement
parks and attractions in the United States.
BY MEMBER TYPE
* Approximately 2/3 of IAAPA members are manufacturers and suppliers; 1/3 are facilities.
* Approximately 2/3 of IAAPA members are located in the U.S.; 1/3 are non-U.S.
Amusement facilities 30%
Manufacturers and Suppliers 62%
Individual 8%
FACILITIES BY TYPE OF OPERATION
* Parks and FECs represent 33% of the facility membership each.
* 56% of facilities are located in the U.S.; 44% are non-U.S.
Amusement/Theme Park 37%
FEC 35%
Water park 7%
Zoo/Aquarium 5%
Other attractions 16%
By Geographic Region
USA 66%
Europe 14%
Canada 5%
Latin and South America 5%
Far East 4%
Middle East 4%
Australia and New Zealand 1%
To advertise on IAAPA website and jurnal with a banner ad will cost
approximately $30,000 for 3 months.
2. We will also advertise and distribute information at all other park
Websites.
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According to their website, these parks have an annual attendance of over 1
million. There such as:
 Anheuser-Busch
 Six Flags
 Cedar Fair
 Universal Studios
 Disney
The online medium has an average of 5.4 million distinctive visitors each month.
To advertise for a 12 issues a red and yellow ¼ page add will run $21,540, and
the 4 color will run $26,380.
3. Direct contact adverting
We will also directly contact to park real operators by emailing our project design
and make face-to-face interview wit park CEOs. In fact, we have already been
talking our project idea with Doug Stagner. Mr. Stagner, who is the current Vice
President of Park Operations at Busch Gardens Europe AV and was very
receptive to serving as our Park Domain Expert.
Below is the initial response received when the our communications expert
contacted him:
“I'm the Vice President of Park Operations for the park. I'd be happy to
try and assist you with your project. For proprietary business reasons,
however, I can't provide specific numbers, processes, or systems in place at
Busch
Gardens Williamsburg related to attendance and specific park operations not
already of general public knowledge. I can provide you with a general theme park
industry perspective, based on my 20+ years of experience.
If you still feel I can be of assistance, please reply with your
questions and I'd be happy to answer them to the best of my ability.
Thanks again for contacting us.”
We will employ this directing contact way with all other major theme park
operators. This is another important adverting strategy.
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Here is our planning advertisement expenditure:
Advertising
Placement
IAAPA web & jurnal
other park websites
direct contact adverting
Type of Ad
banner
1/4 page, 4 color
Time
Cost
6 months $180,000
12 months $26,380
Break-Even Analysis
We would make the break-even after the first year operation.
As following chart showing:
$9,000,000
$8,000,000
$7,000,000
Revenue
$6,000,000
Yearly Revenue
$5,000,000
Yearly Implementation Cost
$4,000,000
EBITDA
$3,000,000
$2,000,000
$1,000,000
$0
0
1
2
Year
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3
Before and After Break-Even
Per Park Revenue by Year:
Yearly
Attendanc
e
Season
Days
ThrillPass
Royalties
RFID Pass
Royalties
Revenue By
Park
Year
Park
1
Busch Gardens Europe
2,600,000
162
$405,000
$548,750
$953,750
1
Busch Gardens Africa
4,310,000
364
$1,092,000
$804,500
$1,896,500
2
Cedar Point
3,100,000
162
$405,000
$673,750
$1,078,750
2
Kings Dominion
2,500,000
162
$405,000
$523,750
$928,750
2
Universal Orlando
6,100,000
365
$1,095,000
$1,251,250
$2,346,250
3
Universal Hollywood
4,700,000
365
$1,095,000
$901,250
$1,996,250
3
Six Flags Great America
2,860,000
162
$405,000
$613,750
$1,018,750
3
Kings Island
3,300,000
162
$405,000
$723,750
$1,128,750
Return on Investment
1. Funding return For Thrill Tracker Inc.
o
o
o
o
Pilot customer amortized cost of $148.6K per year over five years
Cost per season day is $900 for a 162 day season
Only 180 passes required to break even at $5 each
If an average of 2000 passes are sold per day, realized profit is $1.5
Million for the customer
o 1000% return on the initial investment
o ThrillTracker Inc. will receive a $1 royalty on each $5 ThrillPass sold
and $.25 on non-ThrillPass RFID tickets
o Estimated first year revenue of $2.85 Million
2. Benefit return for Theme Parks
The less time patrons spend in line….
o More time to visit shops and concessions (and spend money)
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o Better experience at the park
o More likely to return to the park
o Better distribution throughout the park
Conclusion
According to our data analysis and prediction on these analyses:
o Market need is strong and significant
o We believe our future product is based on mature technology, can
function, and can fulfill its goal.
o Our product is low cost.
o Our product is low investments.
o Our product has a wide, big, and healthy market share.
o Our Product will expect a high return on investment.
The Last Things, But Still to Remember:
Analyzing our market and competition is an ongoing process in each Phase and
our Out-Years. We must continually monitor our strengths, weaknesses,
opportunities and threats.
We want to be the first in the market and must know our target market needs to
meet the needs and preferences. Our competitive edge will be differentiation; we
offer a product that is different from all other products. We must know our
customers in order to attain differentiation and thriving sales for Thrill Tracker.
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Reference:
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ttp://www.safetzone.com/
http://en.wikipedia.org/wiki/RFID
http://www.themeparkinsider.com/reviews/
http://en.wikipedia.org/wiki/Busch_Gardens_Europe
http://www.rcdb.com/pd20.htm
http://blog.tmcnet.com/wireless-mobility/rfid-vs-wifi-for-hospital-inventorytracking-systems.asp
hthtp://www.tech-faq.com/rfid.shtml
http://www.envisionware.com/gates
http://www.dell.com/content/products/features.aspx/pedge_2950?c=us&cs
=04&l=en&s=bsd
http://www.smartcardworld.com/mifare1k.asp
http://www.techdefenders.com/productcart/pc/viewPrd.asp?idcategory=8&i
dproduct=2047
http://www.themeparkinsider.com/reviews/
http://www.themeparkcity.com/itps/itpsfaq.htm
http://www.iaapa.org/modules/MediaNews/index.cfm?fuseaction=SearchR
esults&mtid=3
http://www.themeparksonline.org/parklist.asp
http://napha.org/nnn/
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