BA 474
Keith Bergh
Megan Carolin
Chris Ramento
04.24.08
Market Assessment
Country Overview
 1.2 billion people
 Growth rate of 1.3%
 15% of world’s population
 Mumbai – Largest city – 18M people
 Service Industry – 55% of GDP
 Large migration to city – 70% rural now
Economic Overview
 Growth rate – 8.5%
 Household income expected to double over the next two
decades
 Significant growth in middle class
 583M by 2025
 Disposable Income rising
 Aggregate consumption 13x by 2025
 Discretionary Spending
 Education & Recreation to grow 11% annually
 From US$19M today to US$152 in 2025
Cultural Overview
 Religion, Language – Hindu
 Food Choices: No Beef or Pork
 Family Values: Stressed
 Joint Families (Aunts, Uncles,
Grandparents, etc. … live together
 More Independent Youth Today
Legal & Political Overview
India has quasi-federal form and bicameral
parliament system
Less government control
Environmental Regulations (Companies Act of 1956)
Positive: The government would want Disney to
come because of its popularity and benefits the
company provides to the public and country
Product/Service Factors
Company
Strengths/Weaknesses
 11 Theme Parks on 3 Continents – Over 50 Years
of Experience
 Multi-Industry, International Company, Leader in
many fields – Lots of resources
 Adapting to the Local Culture while still
delivering an authentic Disney experience
Industry Factors
 Emerging theme park industry experiencing
explosive growth
 Expected to grow by 6% each year until 2010
 Indian Association of Amusement Park &
Industries (IAAPI)
 No existing parks comparable to a Disney Resort
Distribution Issues
 Location is outside the city (Trombay)
 Advertisements in markets and transportation
systems
 Transportation system adequate but crowded
 Ideas:
 Trains from the city to the park
 Trains from the airport directly to the park
 Bus system specifically from the city to the park
Consumer Issues
 Purchasing of Tickets
 Might be difficult
 Souvenirs
 Items must be somewhat inexpensive so
families could purchase them
 Not much discretionary income
Marketing Plan
Target Market
 Indian Middle Class (Strivers)
 Earn .5-1 Million Rupees ($12.5K - $25K)
 Families (Joint Families)
 With young kids
 Family size close to 4.81
 Youth (Consumer markets will shift because of mobile phones)
 Are starting to be more Independent in India
 Vacationers in the region
 Get middle to upper class families from neighboring countries
and outside the region to come on family vacation
Relevant Company Info.
 Began with a cartoon studio and full-length films
 Disneyland Anaheim opened in 1955
 International Expansion began with Tokyo Disneyland in
1983
 Mission: “Dreams Come True”
 Jay Rasulo
 Chairman of Walt Disney Parks & Resorts
Strategic Goals
1. Create a park that is consistent with the Disney brand but also adapts to
the local culture
2. Meet park attendance, ticket, and merchandise sales goals in order to
make a profit on the incoming funds to the park over the daily operating
costs.
3. Use the area’s resources in order to create an efficient supply chain and
lower distribution costs, as well as boost the local economy.
4. Promote the Disney brand through characters and licensing, especially
making use of mobile phone and Internet advertising, in order to
increase favorability of the brand and the desire to attend Disneyland
India.
5. Maximize leverage of the target market through continuous feedback
from this demographic.
Product Strategy
Create an authentic Disney experience
while adapting to the local culture
 Adaptation through food, costumes,
attractions, & entertainment
 Follow up with focus groups and surveys
to get feedback on success
Pricing Strategy
 A ticket to a Disney park is a premium (price
skimming), one-of-a-kind experience
 Consistent with other Disney Parks
Pricing Strategy (Cont.)
Children (3-11) = 2000INR / $50
Adults (12-65) = 2400INR / $60
Seniors (65+) = 2200INR / $55
 Analyze park attendance figures & projections
– adjust accordingly
 Use food & merchandise pricing as a way to
increase profit without changing ticket prices
Promotional Strategy
 GOALS
 Raise awareness of Disney India
 Not be viewed as westernized brand but international
 STRATEGY
 Slow implementation (service company)
 Plan events to present the Disneyland experience
 Adapt Advertisement to satisfy cultural needs
Promotional Action Steps
Action:

Advertisements through
phones and visuals

Advertisements
specifically for festivals

Festivals take place

Advertisements for Park

Promotions to Park
When
By Who
Budget
KPI’s
Pre-Opening
Marketing Dept.
$15 Million
(USD)
Interests in festivals
increasing
Pre-Opening
Marketing and Special Events
$10 Million
(USD)
Reservations for admission
to festivals
Pre-Opening
Special Events
$20 Million
(USD)
High Attendance for
festivals/popularity
Pre-Opening
Marketing Department/Park
Management
$15 Million
(USD)
Indians inquire more
interests in park
Opening
Disney Mumbai Customer
Service and Park Growth
$10 Million
(USD)
Discounts given and
received through
attendance.
Supply Chain Strategy
 GOALS
 A cost efficient strategy to provide merchandise, food, and
materials for the attendees
 Produce own merchandise and materials
 Outsource for food product (local products and favorites)
 OVERALL
 Decrease holding costs, increase inventory turnover, decrease
cost in operations, decrease handling costs, and make Disney
more competitive as an amusement park
Supply Chain Action Steps
Action:
•
•
InsourcingMerchandise and
Raw Materials
Outsourcing-Food
When
By Who
Budget
KPI’s
Pre-Opening
Strategic Sourcing
and Procurement
Organization
$50 Million
Decrease in
logistical costs
Opening
and Daily
Operations of
Park
Department of
Food and Drink
$10 million
Increase in sales
for restaurants
in parks
Distribution Issues
 GOALS
 Maximize coverage & outlets to keep ticket sales high
 Creative ways to draw customers to the park
 Expand coverage to neighboring countries
 Quick & easy database to maintain sales
 STRATEGIES
 Use Online ticket sales & other online sites
 Open up Disney retail stores in India and promote the park
 Open sales centers in large cities in region outside of India
 Effective management and updating of Database prevent
overselling and keep customer satisfaction high
Expected Results
 Profits will take a while
 Park might have to make some adjustments/adaptations to
the park because of cultural, language and legal differences
Figure 2.1: Disneyland Estimated Costs of Development
Expenditures
Purchase of Property
Research & Development
Planning of Park
Construction Costs of Park & Resorts
Legal Costs
Utilities
Salaries & Wages Payable
Transit Systems to Park
Adjustments to Development
Other Expenses
Estimated Total Expenses
Cost (in millions of USD)
850
12
10
880
14
11
42
23
8
150
2,000
Expected Results
30,000 occupancy rate average x 360 days per year = 10.8 million attendees per year
$58 avg. ticket sale price x 10.8 million attendees = $626 million per year in ticket Revenue
Figure 2.3: Disneyland India Financial Forecast (in Millions USD)
Year
2012
2013
2014
2015
2016
2017
2018
2019
Debt
$ 2,000
$ (1,474)
$ (929)
$ (363)
Operating Costs
$
100
$
103
$ 105
$ 108
$ 110
$ 113
$ 116
$ 119
Revenue
$
626
$
648
$ 671
$ 694
$ 718
$ 743
$ 769
$ 796
Net Profit
$ (1,474)
$ (363)
$ 224
$ 608
$ 630
$ 653
$ 677
$ (929)
Questions & Comments