I.
EXECUTIVE SUMMARY
This should be written AFTER you have completed the following
sections. It should be no longer than a page in length. It should
summarize the entire marketing plan, focusing on the forest rather than the
trees!
Walt Disney World is a front-runner in the theme park industry, and has been for
decades. One of the major reasons why Walt Disney World’s has such great success is
because of their superior marketing plan. Walt Disney World is unique in the fact that it
has an extremely broad target market and is capable of catering to people of all ages, all
class, all ethnicities, and also all family life cycles. Walt Disney World has an advantage
over any other theme park due to the size of its corporation. Walt Disney World is able to
offer un-beatable many promotional packages as well as pricing packages that can fit
many budgets. One of Walt Disney’s biggest weaknesses is that because there is such a
high number of guests in the park that it might be hard for a guest to be able to see and do
everything that they wanted to. This is a good problem to have since it can tempt families
to come back again and again. The current marketing plan currently consists of greater
advertising, revising and improving promotions, and expanding the park itself. With this
improved plan, Walt Disney World is expected to be a leader in the theme park industry
for many years to come.
I.
SITUATION ANALYSIS
A. Target market identification
Walt Disney World’s target market identification is kind of hard to
specifically pin point to just one group of people because we cater to every one of
all ages, all class, all ethnicities, and also all family life cycles. Here at Walt
Disney World we literally have something for everyone to enjoy from small
children, older children, teens, adults, and even senior citizens. Although Walt
Disney World mainly targets to parents and families from the middle class and up.
B. Company name, brief history
Walt Disney World Resort is informally known as “Disney World”. In the
1950s, Walter Elias Disney created and developed a second park to supplement
Disneyland and expand the target market to families on the east coast. On
December 15, 1966 Walt Disney died of lung cancer before his dream ever came
to life. After Walt passed away his brother and business partner Roy O. Disney
took over and made his brother’s vision come to life. On October 1, 1971 the park
finally opened with one park (the Magic Kingdom) and three resorts (Disney’s
Contemporary Resort, Disney’s Polynesian Resort, and Disney’s For Wilderness
Resort & Campground). Since then Walt Disney has added on three other theme
parks (Epcot 1982, Disney’s Hollywood Studios 1989, and Disney’s Animal
Kingdom 1998), two water parks (Disney’s Typhoon Lagoon 1989 and Disney’s
Blizzard Beach), twenty-one themed resorts, two spas and fitness centers, five
golf courses, and also other recreational and entertainment venues (such as
Downtown Disney and Disney’s Wide World of Sports Complex). Today Walt
Disney World is the most visited entertainment resort in the whole world.
C. 4 P’s – exactly what your firm offers. Be specific.
Product Strategies: Although merchandising is a big part of Walt Disney
World with souvenirs being sold all over the park, it is also a one of a kind
experience. Not only can tangible goods be purchased but it also provides a
service. Once you walk through those magical doors your journey has begun. You
will see things that you will never see anywhere else and be able to ride rides like
no other.
Place Strategies: Walt Disney World is located in Lake Buena Vista,
Florida for a few reasons. In the 1950’s, with the popularity of Disneyland,
located in Anaheim, California, Disney realized they would benefit from a park
on the east coast because 75% of the United States population lived east of the
Mississippi River at this time. Walt Disney also wanted a place for his new
dream, somewhere where it would be easy to get to and where there would be
plenty of land for the new project. By placing Disney World here it would be
centrally located within Interstate 4, Florida’s Turnpike, and also the Orlando
International Airport. All four parks and other attractions/entertainment are all
located together on Disney property, which are all accessible by bus, boat, or
monorail.
Promotion Strategies: Right now we are offering different kinds of
promotions. One of our most popular promotions is our vacation packages that we
offer that lets you choose which resort hotel you will be staying in, how many
park tickets you need, a dining plan, and you also get to choose what activities
you will be participating in while during your stay. One other popular promotion
we have is with Chase credit card. You earn points on every purchase you make
and you can turn those points into Disney dollars that you will spend inside the
parks. One of our most current promotions that you will see on your television is a
commercial advertising our newest expansion to the Magic Kingdom called
Fantasyland. Also during the slower parts of the year we will offer special room
packages and dining plans during those slow times at a lower place.
Pricing Strategies: All year round we have it to where the more days a
customer purchases in tickets the cheaper the ticket gets for each day for up to ten
days. These tickets range from $83.00 to $30.00 for ages 3 to 9 and $89.00 to
$31.80 for ages 10+. We also have three different options that customers can add
on to their ticket which consist of the Park Hopper Option for +$35.00 a ticket
(lets customers hop around to the different parks in one day), the Water Park Fun
& More Option for +$57.00 a ticket (lets customers go to the park of their choice
and choose from the water parks, golf course, ESPN’s Wide World of Sports
Complex, or the DisneyQuest Indoor Interactive Theme Park), or they can also
buy them both together for +$79.00 a ticket. We also have tickets available just
for the water park for $44.00 for ages 3 to 9 and $52.00 for ages 10+. One more
thing that we have is an annual pass for $574 and a premium annual pass for
$699.
D. Current marketing objectives and performance.
Walt Disney Worlds current marketing objectives are to come up with
better promotions so that people that wouldn’t normally be able to afford to come
visit will have the opportunity to do so. One other current marketing objective is
to put advertisements out there that appeal more out a variety of people other than
just families. Some of our performance strengths right now are bringing the
people back to come visit us. Most of them are coming back to see our newest
expansion to the Magic Kingdom called Fantasyland.
II.
III.
SWOT ANALYSIS
A. Strengths
One of Walt Disney World’s greatest strength is that it is a world famous
brand. People from all over the world come to visit with us year round. Another
strength that Walt Disney World has is that it offers a great variety throughout its
four parks. Magic Kingdom is for the more smaller children and for everyone that
is a kid at heart, Epcot is dedicated to the different countries around the world,
Hollywood Studios is more of a business/movie theme, and the Animal Kingdom
is all about the animals from all over the world.
B. Weaknesses
One of Walt Disney’s biggest weaknesses is that because there is such a
high number of guests in the park that it might be hard for a guest to be able to see
and do everything that they wanted to. One other weakness that Walt Disney
World has is that because it has such a diverse product portfolio it makes it hard
to manage and monitor such different products.
C. Opportunities
The biggest opportunity that Walt Disney World has is its ability to
expand its park and develop new attractions attracting people to come back and
see the newest and greatest thing. By doing this it also gives us the chance to even
bring in new guests.
D. Threats
One of Walt Disney World’s biggest threats is the competition of other
theme park and resorts such as Universal Studios, who is also a competitor in its
geographic area. Universal Studios has the potential to steal away visitors from
coming to Walt Disney World because of the similar things that they also offer.
E. Matching strengths to opportunities/converting weaknesses and threats
One of the ways that Walt Disney World can match its strengths to its
opportunities is that we can expand to a park and add even more of a variety to
the park, such as expanding on to Epcot and adding more countries for a more
diverse park. One way that Walt Disney World can convert its weaknesses and
threats is adding more fast passes to more attractions so that they can see and do
more throughout their day. The way that Walt Disney World can convert its
threats is to always be at least one step ahead of Universal Studios and stay there.
COMPANY RESOURCES
Discuss your firm’s financial, personnel, and experience resources.
There are many theme parks around the world but most can agree that Walt
Disney World is the best in the business. This is due to their superior company resources.
When it comes to financial resources few if any parks can compete with the financial
resources that Walt Disney World has at their disposal. These financial resources are
generated through Disney trademark products such as movie sales, and trademarked
clothing stuffed animals etc. not to mention park ticket and resort sales. Another valuable
company resource that Walt Disney World has its personnel, whether it is buying tickets
to the park or buying merchandise at the park. The personnel is trained to be very friendly
and cater directly to the target market. When buying tickets to the resort there are
packages presented in a way that promotes trading up to better benefits inside the park,
such as dinning packages. Walt Disney World has been open since 1971; with that
amount of time being in business the Corporation has gained invaluable experience in
regards to marketing the strong points of the park.
IV.
MARKETING OBJECTIVES AND STRATEGIES
A. Your firm’s objectives in each of the 4 P’s, also financial objectives. (What your
firm plans to achieve in the next A) 1 year, and the next B) 5 years.
Product Strategy: Walt Disney World’s objective for product strategy is
not just the tangible goods that can be purchased but also the service itself. The
service that is offered is an experience at one of the most famous amusement
parks in the world. Not only will our guests get to experience magical rides and
shows, but they will also be able to meet all the famous Disney characters. One of
the best parts of Walt Disney world is Epcot, which has the World Showcase that
gives guests the experience of different foods and attractions from countries all
around the world. Some of the other parts to the park are the Magic Kingdom,
Animal Kingdom, Hollywood Studios, and the water parks. Besides the service of
Disney World itself, guests can purchase various memorabilia’s that can be
customized upon their request.
Place Strategy: The place strategy objective for Walt Disney World is to
have the best lotion possible. There are many Disney parks throughout the world
but none of them are the same as Walt Disney World, which is located in
Orlando, Florida. Walt Disney World is the biggest out of all the Disney parks
with plenty of land available to use for expansion to our four theme parks, two
water parks, hotels and resorts, and more. It also has a good climate year round to
wear the parks can stay open 365 days of the year.
Promotion Strategy: Walt Disney Worlds promotion strategy objective is
to offer better promotions than we ever have before. We will offer discounts on
tickets and lodging during the low peaks of the season to keep our revues up. We
will also have advertising for our theme park online, newspaper, billboards, and
Disney characters are on a number of different products, which gives some
advertisement as well.
Pricing Strategy: The objective pricing strategy for Disney World is to
make it a little more flexible. It is a little pricey but when you consider all that you
are getting out of it it’s all worth it. Our pricing can also be flexible depending on
the size of the group. The bigger the group the cheaper the ticket cost per person.
As stated above in the lower peaks of the season the prices for admission and
hotels will be reduced.
A.
In the next year we plan to increase the number of guests
that come to our resort. We also plan to advertise internationally so
that we can have guests from all around the world come to
experience our magical place.
B.
In the next 5 years we plan on expanding to Epcot, by
adding in more countries so that our guests can be able to get a
worldwide experience in just a day. We also hope to reduce the
prices of our tickets by 10%.
B. Your firm’s strategies to achieve the objectives stated in A. above. (How your
firm plans to achieve these objectives). Be sure to include Target Market
identification and the 4 P’s your firm will offer in order to meet objectives.
To achieve our objective of increasing the number of guests that come to
our park, we will advertise more throughout the world in places such as the
airport so that families can start thinking about their next family vacation. We will
also advertise our promotions more aggressively so it seems more appealing if
people know the discounts they can receive. To expand Epcot we will cut down
on costs such as closing down one of the two water parks during the winter season
while maintaining steady revenue. Since Disney World is already profiting a
ridiculous amount and after we are done expanding Epcot, we will keep saving
money on the closed down water park, we will be able to reduce prices and still
maintain a good profit. Our target market is endless because Disney World makes
everyone feel like kids again. However, our main target market is families all
around the world because Disney World is a very family oriented place. In order
to meet these objectives the product will remain the same which is the service of a
trip to Disney World and the hotels and resorts within it. The place will also
remain the same because the one and only Disney World is located only in
Orlando, Florida. In order to achieve our objectives such as increasing the number
of people that come to our park, our promotion strategies will be very important
because we want to make it affordable to everyone. Our pricing strategy will also
be important because over the next few years we want to try and reduce the price
of our tickets so more people can enjoy a trip to Disney World.
V.
FINANCIAL PROJECTIONS AND BUDGETS
Approximate how much your firm will spend on R&D, advertising and
promotion, etc. Also project future sales, net income, etc. These are estimates to show
that you have taken $$$$$$ into consideration, but you are not expected to provide proforma income statements or balance sheets!
Our firm will spend approximately fifteen percent of our total revenues on
research and development. This will include the expansion of Epcot over the course of
five years. This will also include the research being done for the different countries that
will be added to Epcot as well as their culture and food to make our guests’ experience
realistic. We will put twenty-five percent of our revenue into advertising. From that
twenty-five percent for advertising about ten percent will go to marketing domestically
within the United States and the rest of the fifteen percent will be for international
marketing. About ten percent will go to promotions, which will include discounts for
general ticket admission as well as for hotels. This will also include free trips for needy
families and other charity purposes to give people who wouldn’t normally be able to
afford to come visit Walt Disney World to be able to come and make those special
memories with their families. About forty percent of the total revenue will go to costs of
operation. This includes park maintenance, taxes, fixed costs, other variable costs, and
worker’s wages. The rest of ten percent will go into savings incase we have a bad season
and there is not enough revenue. The savings will also be used for future development of
expanding the parks and for remodeling. In the future within the next five years we
expect sales revenue to climb twenty percent. We expect this to come from international
sales as well as the increase in guests coming into the park due to promotions and pricing
reduction. Even though the price per ticket might decrease a little bit it will bring in more
guests and also increase revenues. We expect costs to remain steady so if sales grow then
we expect a higher profit margin as well.
VI.
CONTROLS AND EVALUATION
Discuss how your firm will determine if the implementation of the strategies is
actually leading to achievement of your objectives, i.e. if actual state is desired state; and
how you know (what you will compare to make determination).
The best way to evaluate if the marketing strategies are having the effect that is
intended at Walt Disney World is to monitor the highs and lows of ticket sells and also
merchandises sales continuously. The parks marketing plan must be evaluated to see if
the marketing goals are reasonable, the marketing strategies are appropriate, the
marketing strategies have been implemented in a beneficial way, and also evaluate if the
environment has changed after the objective was specified and the strategy was
implemented. Once these evaluations have been made then adjustments can be made to
the entire marketing strategy that emphasize the strengths of the plan, and strengthens or
gets rid of the weaknesses of the marketing strategy.
Works Cited
"Explore Walt Disney World Resort." Resort Hotels & Accommodations. 26 Apr. 2013
<https://disneyworld.disney.go.com/resorts/>.
"Theme Park Tickets*." Theme Park Tickets. 26 Apr. 2013
<https://disneyworld.disney.go.com/tickets/>.
"Walt Disney World History." En.wikipedia.org. 26 Apr. 2013
<http://en.wikipedia.org/wiki/Walt_Disney_World>.
"Walt Disney World History." Walt Disney World History. 26 Apr. 2013
<http://www.wdwmagic.com/walt-disney-world-history.htm>.