UNIVERSITY OF HERTFORDSHIRE

BUSINESS SCHOOL
Department of Marketing and Enterprise

Marketing Across Cultures

Module Code: 7BSP1085

Assignment 2: Individual Assignment

Assignment Title: The Marketing Plan of Disneyland Malaysia

Student:

CHEN Xinyu

10249236

Word Count: 2,187

Table Contents
1. Introduction2

2. Executive Summary...3

3. Current Marketing Situation....4 3.1 Internal Situational Analysis... 4 3.2 External Situational Analysis..5 3.3 SWOT Analysis...6

4. Objectives..9 4.1 Intended Strategic Position.9 4.2 Sales and Market Share Objectives.9 4.3 Marketing Mix Objectives.10 4.4 Financial Objectives..10

5. Activity Plan...10 5.1 Marketing Mix.. 10 5.2 Monitoring.12

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6. Budgets.12 6.1 Estimated Expenditures.12 6.2 Forecasting sales14

7. References.......15

8. Bibliographies.........16

1. Introduction

A marketing plan is vital for every business operations and allows it to markets its products and services more efficiently and effectively. As Cohen (2005) states seeking success for any product or service without utilizing a marketing plan is like trying to navigate a ship in stormy weather, which is dangerous and brings high risks.

Walt Disney world founded in 1923, it is one of the worlds best in family entertainment which include comics, theme parks, vacation resorts, and retail shops. Disneyland can be considered as one of its products. Disneyland Park, which opened in 1955, now has five parks in four different countries and the sixth Disneyland is being established in Shanghai, China in 2014. This report is attempting to offer a proper place for the seventh Disneyland and draw up a marketing plan for entry into the new market.

Johor Bahru is one of three major cities of Malaysia. Johor Bahru is the capital city of Johor in Malaysia and it located in Singapore and Malaysia's border. Every year it receives half of countrys foreign tourists from Singapore. It is the second largest urban area in Malaysia. Agriculture, manufacturing and tourism are the
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most important source of income in the city. It could be suggested that Johor Bahru, Malaysia will be recommended to Disneyland for its new market.

2. Executive Summary
This marketing plan provides guidance for Disneyland to successfully launch its product in Malaysia. The report provides an analysis of Disneylands current situation and seeks to explore marketing situation, objectives, market segments, marketing strategies, budgets and any issues may affect Disneyland when it attempts to entry into Malaysian market. The report then goes on to mention how Disneyland may adapt their marketing mix to successfully recognize the cultural characteristics within Malaysia. A budget and estimated sales forecast is also provided.

3. Current Marketing Situation

3.1 Internal Situational Analysis
Resources and Capabilities Disney, as the worlds most powerful brand, and one of the multimedia giants in the world, gains a monopoly position in the industry. It creates a series of animated images which are deep into public mind. And it is almost impossible to shake Disneylands leading position of the theme park industry. Providing quality, careful and efficient service to customers is the core of Disneylands business culture. It insists to carry SCSE principle (Safe, Civility, Show and Efficiency) in order to build and strengthen the values and corporate culture of the business. It has sufficient human resources and lots of experienced executives to deal with different issues. Furthermore, Disneyland has strong innovation capability to create diversified entertainment programs.

Existing marketing mix There are five existing Disneyland worldwide inducing California and Florida, Paris, Tokyo and Hong Kong. The sixth Disneyland in Shanghai China is under construction. Disney has flexible pricing measures therefore every Disneyland has different price policies. Disneyland will spend a lot of money to promote its theme parks and different functions via internet, magazines, newspaper, radio,
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television and so on. Diversification of entertainment programs is one big characteristic of its product. In addition it also provides restaurants and hotels to customers as well.

Previous experiences Disneyland failed in initial period when it launched in Paris because of cultural conflicts (Grant, 2002). On one hand, it hasnt realized that France has strong ethnocentrism and sometimes it may resist to foreign culture. On the other hand, it made marketing strategies based on American culture, which is the main reason for its failure. For example, European regard drink while eating as enjoyment but Paris Disneyland claims no alcohol within park. Knowing how to deal with cultural integration and avoid cultural conflicts is very important. In regards to this, Disneyland Malaysia can learn a lot from Tokyo, Hong Kong and Shanghai Disneyland, especially two in Chinese market. Because Malaysia and China has similar cultural background.

Key issues Disneyland requires large costs to maintain its operations. Because it needs large operating costs thus it set high price for tickets and some visitors think that was overpriced. This will be a weakness for Disneyland when it enters the Malaysian market.

3.2 External Situational Analysis

Macro-Environment level Malaysia has enjoyed a relatively stable political environment for a long time; this provides Disneyland with a stable market environment. The Malaysian government encourages the development of tourism industry. So the booming tourism in Malaysia of recent years is related to the governmental tourism policies. With the development of economy, people's purchasing power has improved. Malaysia is a very big tourist destination for tourists. Malaysia is also a
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populous country; Disneyland provides an ideal place for people to relax daily from their work pressures. Families can visit here together for a family day out and the technology in Malaysia is advanced enough for Disneyland operations and offers opportunities for innovation. Moreover, the comfortable and pleasant weather in Malaysia helps Disneyland to attract more foreign tourists (Malaysia Country Profile, 2011). Malaysian government announced in 2007 plans to transform Johor Bahru into a major metropolis by feeding off Singapore's prosperity. This is a development plan similar to Shenzhen China with Hong Kong( Trofimov, 2007). As a developing city in Malaysia, Johor Bahru has its own competitive advantages than Kuala Lumpur and Panang, the two most prosperous cities in Malaysia. It has enough space to build a new Disneyland with fewer costs.

However, The Disneylands culture is based on American culture, which is significant difference between Malaysian cultures. On one hand, integration helps to form the multi-culture. However, it may also cause cultural conflict. And cultural conflict will be a threat to Disneylands development. Disneyland needs to refer to previous experiences in Paris, Tokyo and Hong Kong.

Industrial level and competitor factors Disneyland will achieve the leading position in amusement park industry in Malaysia. Currently there are no competitors in this industry in Malaysia except a small resort in Genting, which is located far from urban centers. But the first Legoland in Asia will be opened in 2013 in Malaysia. It could be argued that the Legoland in Malaysia and the Universal Studios in Singapore are the biggest competitors of Disneyland and may threaten Disneylands operations.

3.3 SWOT Analysis

Strengths: Weaknesses:
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1. High quality of service 2. Strong innovation capability 3. Experienced executives 4. Organizational culture 5. Global leader position 6. Diversification of entertainment Opportunities: 1. Buyer of disposable income 2. Opportunities for innovation 3. Visitors satisfaction influences the chance of revisit 4. Competitive position in the industry 5. The opportunity to use the brand 6. Consumer groups 7. Government policies 8. Geographical conditions programmes S1-O3: Disney has a high quality of service, so that it can make the most of

1.

Large operating costs

2.

High price for tickets

W1-O2, O3: Disney has large operating costs, which is one of the theme

visitors are satisfied with the park venture inherent service. Thereby greatly increasing the probability of visitors to revisit the park won a lot of repeat customers and increase profits. Strengthening its competitive position in the same industry. S2-O2, O5: Disney has a strong ability to innovate, innovation can attract more tourists. Disney can grasp the main opportunities for innovation, and utilize its existing brand awareness, develop more many new products.
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characteristics. Disneyland should focus on cost control and firmly grasp the opportunities for innovation and customers revisit. Attracting more tourists and profits, in order to offset the cost to maximize profits.

S3,S4-O4: Disney has experienced executives, and a special staff training, has formed a corporate culture, coupled with its global position, and set the leading position in the same industry. S5-O4: Disneyland has a larger market share in the industry, which can further consolidate its competitive position in the same industry. S6-O3: The diversifications of the Disneyland entertainment programmes greatly increase the satisfaction of the tourists to revisit that increases the chances to shape its brand image. While this provide the opportunity to Disneyland to use its brand to attract more tourists, so the formation a virtuous Threats: 1. To enter or exit cost barriers circle. S1, S2, S6-T2: Disney has a higher quality of service, high ability to innovate, and W1-T1: Disneyland requires larger operating costs, which is one big
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2. Buyer willingness to pay 3. Cultural conflict 4. Competition

constantly develop new entertainment projects to attract tourists. The price of Disneyland's entertainment is not cheap, but every year there are still large numbers of tourists are willing to pay high prices. This is a typical strategy of reduce the threat by utilizing competitive advantages. S5-T3: Using brand advantage to strengthen culture integration and make different strategies according to Malaysia culture.

disadvantage. Disneyland should strive to reduce its costs, thereby reducing the entry or exit barriers.

4. Objectives
4.1 Intended Strategic Position
The segment of Disneyland Malaysia is the amusement park industry. Differentiation from competitors is needed to create a Dream World to visitors. When people think about it, they will imagine a happy, magic and fairy tale world. The ideal customer is between the ages of 3 and 65 who enjoy Disney cartoon and their family. Target customers are 6 million Malaysia and Singapore residents who are within three hours drive and 30-35 million foreign visitors from Singapore and Malaysia every year (statistics.gov.my, 2012; singstat.gov.sg, 2012).

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4.2 Sales and Market Share Objectives

The marketing objectives are gaining 850 million visitors in the first year and ten to twelve million tourists each year after 5-15 years. Achieving 70% market share in Malaysian amusement park industry. Enhancing brand, product, business image, acquiring new customers and increasing customer satisfaction by continuous creation.

4.3Marketing Mix Objectives

The marketing mix objectives are to create entertainment programmes which are containing local cultural elements; increasing multi-channel to selling tickets; enhancing brand awareness by a wide range of promotion activities and making reasonable price according to different conditions.

4.4 Financial Objectives

The financial objective is reach to break-even point within six to eight years. And achieve profitability after eight years.

5. Activity Plan
5.1 Marketing Mix
Product management It is important to consider Malaysias culture and adapt this park accordingly. Most of products will integrate with Malaysian culture and maintain the original style. However, there are some adaptations required. First cultural adaptation is to add unique programmes which are only provided in Disneyland Malaysia. Another adaptation is all restaurants will offer delicious domestic dishes and Asian food such as Chinese food and Thai food. In addition, chopsticks will be provided in all restaurants cater to traditional culture. It is also important to all

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employees must know English, Malay, Mandarin and Cantonese in order to provide better services to visitors.

Distribution management Entrance ticket will be sold through a variety of channels. Tourists can purchase tickets from ticket office or book advanced through telephone and online booking. Foreign visitors can also book tickets and hotels from travel agencies globally.

Pricing management Prices for Disneyland Malaysia will divide into two categories: One day tickets and two days tickets. Malaysia is a very family oriented country and people enjoy doing things with family together, so there will be a family package offered. All ticket prices are show on Figure 5.1 below.

Figure 5.1: Ticket prices of Disneyland Malaysia

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 Promotion management There are wide ranges of promotion activities to promote Disneyland Malaysia. It will show this fantastic dream world to the public through radio, magazines, newspapers, internet, public relations and outdoor activities. According to Hofstede dimension the Asian culture is collectivist, with particular emphasis upon familism (Ballah, 1970; Usunier, 2000). Malaysia is a typical familism country. So promotions will attempt to focus on family oriented attractions in this cultural dimension in order to attract more families to enjoy their family day here.

5.2 Monitoring
Disneyland attaches great importance to service and customer satisfaction. So it will have some special control activities such as interviews and questionnaires for after sales services to monitor product quality and customer service
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satisfaction. This will enable Disneyland to react immediately to any problems that may occur. Monthly and quarterly sales and daily costs will be monitored, in order to better control Disneyland Malaysias objectives. Moreover, marketing schedules will be monitored tightly to ensure timely implementation.

6. Budgets
6.1 Estimated Expenditures
The figure 6.1 shows the total costs for the opening of the Disneyland Resort include purchase property, park and hotel construction, research and development, planning, legal costs, wages, marketing communication,

distribution and monitoring expenses. The total costs for the opening is about 3.73 billion USD (about 11.5 billion MYR). This is at an average of other Disneyland Resorts. Disneyland Hongkong total cost was 3.5 billion USD and Disneyland Shanghai is about 3.9 billion USD. One significant factor is Johor Bahru is less costly for land than Hongkong and Shanghai. This is one of the reasons for choosing this city as the new market.

Figure 6.1: Estimated Costs of Disneyland Malaysia

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6.2Forecasting Sales
The revenues below in Figure 6.2 demonstrate the forecast revenues for the Disneyland Malaysia. Forecasting there is 850,000,000 visitors in the first year, and $66 average expense per person. Therefore $66 x 850,000,000= $ 561 million revenue in the first year. And the revenue is expected increase year by year.

Figure 6.2: Forecasting revenues of Disneyland Malaysia

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7. References:
Ballah,R.N. (1970). Tokugawa Religion. Bencon Press: Boston.

Cohen,W.A (2005). THE MARKETING PLAN. 4th ed. Susan Elbe.

Grant,R.M. (2002). Euro Disney: From dream to nightmare, 1987-94. In: Grant,R.M Contemporary strategy analysis : concepts, techniques, applications. 4th ed. Blackwell Publishers.

Malaysia Country Profile. (2011). PESTLE ANALYSIS. P 12-29. [e-journal] Available: b058-4e3f-9f0f417ae28911b4%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d %3d#db=bth&AN=67420601 Last accessed 10th Apr 2012. http://web.ebscohost.com/ehost/detail?vid=4&hid=17&sid=f852730a-

Statistics.gov.my. (2012). Population Quick Info. Available: http://www.statistics.gov.my/portal/index.php? option=com_content&view=article&id=471:populationfinder&catid=68&Itemid=111&lang=en. Last accessed 8th Apr 2012.

Singstat.gov.sg. (2012). Resident Population . Available: http://www.singstat.gov.sg/stats/charts/popn-area.html. Last accessed 8th Apr 2012.

Trofimov, Y. (2007). Johor Bahru Gets Attention. Available: http://online.wsj.com/article/SB118947375766923339.html. Last accessed 12th Apr 2012.

Usunier,J. (2000). Marketing Across Cultures. 3rd ed. Prentice Hall.

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8. Bibliographies:

Maanen, J. (1992) Displaying Disney: some notes on the flow of culture. Qualitative sociology, vol. 15, No. 1, 1992 [e-journal] Available: www.springerlink.com/content/l145721110004424 Last accessed 12th Apr 2012.

Westwood, J (2002). The marketing plan : a step-by-step guide. 3rd ed. Kogan Page

Wood,M.B (2004). Marketing Planning-principles into practice. Pearson Education Limited.

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