HUMBER INSTITUTE OF TECHNOLOGY AND

ADVANCED LEARNING

(HUMBER COLLEGE)

ASSIGNMENT: LEGOLAND in Mumbai

GROUP: OLA

Submitted by:
Last Name First Student
Name Number
Ghose Arundhati N01270266
Jeetun Ojuswini N01273326
Puri Rohaan N01277760
Saha Shourov N01255314
Sharma Nikita N01280339
Sharma Shubhra N01275924
Doshi Varun N01279358

Submitted to:
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Professor Simi Grosman

Submission Date: 7/16/2019

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 Table of Contents
EXECUTIVE SUMMARY ........................................................................................................................ 5

SERVICE DESCRIPTION ......................................................................................................................... 7

COMPANY BACKGROUND ................................................................................................................... 7

COMPETITIVE STRATEGY ................................................................................................................ 8

GROWTH STRATEGY ......................................................................................................................... 9

Market Penetration: ............................................................................................................................. 9

Market development ............................................................................................................................ 9

Product development ........................................................................................................................... 9

Integration.......................................................................................................................................... 10

Diversification ................................................................................................................................... 10

Cooperation ....................................................................................................................................... 10

Target Destination -Mumbai ..................................................................................................................... 11

Why India? ............................................................................................................................................ 11

Target Market Size .................................................................................................................................... 11

Available/ Potential Market .................................................................................................................. 11

External Environment ............................................................................................................................... 12

Industry overview.................................................................................................................................. 12

Competitive environment ...................................................................................................................... 13

Famous Ten Amusement parks in India (in alphabetical order) : ..................................................... 13

Some Best Parks In Mumbai To Visit ............................................................................................... 13

Demographic environment .................................................................................................................... 14

India ................................................................................................................................................... 14

Mumbai.............................................................................................................................................. 15

Social and cultural environment ............................................................................................................ 15

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 Political and legal environment ............................................................................................................. 15

Current Trends ................................................................................................................................... 16

Technological environment ................................................................................................................... 16

INTERNAL ENVIRONMENT ................................................................................................................ 17

Background ........................................................................................................................................... 17

Attractions ..............................................................................................Error! Bookmark not defined.

Educational elements..............................................................................Error! Bookmark not defined.

BUSINESS & MARKETING STRATEGIES ......................................................................................... 20

Target market mode of entry ................................................................................................................. 20

Physical Resources & Personnel competencies .................................................................................... 21

Pricing Strategies................................................................................................................................... 21

Promotion Strategies ............................................................................................................................. 22

Distribution Strategies ........................................................................................................................... 23

FINANCIALS (HIGH LEVEL & WITH ASSUMPTIONS) ................................................................... 23

Funding and investors ........................................................................................................................... 23

Summary Use of proceeds..................................................................................................................... 23

Projected 3-year revenues ..................................................................................................................... 24

Assumptions and Timelines for LEGO LAND ........................................................................................ 24

Project Scheduling –.............................................................................................................................. 25

Achieving Milestones............................................................................................................................ 25

Timelines for project LEGOLAND ..................................................................................................... 25

Work Breakdown Structure (WBS): ..................................................................................................... 26

Bibliography: ............................................................................................................................................ 28

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EXECUTIVE SUMMARY

The idea of a theme park is over hundreds of years old and LEGOLAND is an amazing and successful
example of theme and amusement park in the world. LEGOLAND has been entertaining and helping to
develop young children’s level of intelligence through its amazing LEGO solving challenges. The colorful
and attracting LEGO bricks are the children’s favorite and it helps them to learn in a form of playing.
Since its first opening in Billund, Denmark in 1968, there are eight Legoland parks all over the world.
Unique Lego toys, cost-price leadership, focused to target market and market penetration are the most
important strategies of Merlin Entertainment Group (the parent company of LEGOLAND since 2005).

For a new LEGOLAND theme park in Mumbai, India is an ideal choice. Suitable infrastructure,
continuous money flow from the business, high per capita income, low labor and administrative cost,

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lucrative demographic factors make Mumbai a proficient choice for a New LEGOLAND. In addition, the
climate and geographic location of Mumbai are also very supportive for a new amusement park-like
LEGOLAND.

In our detailed report we have discussed business and marketing strategies, the financial assumption
regarding the cost of initial investment, expected revenue in first three years, implementation plan along
with GANT charts for the probable starting and completion dates of the project, etc. We also prepared a
Work Breakdown Structure (WBS) for simplification of work and specification of duties.

As the amusement park industry in India is over two decades old and Legoland has high reputation and
acceptance in theme and amusement park business for over 50 years, it is highly expected that it will be a
successful business project in India too.

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SERVICE DESCRIPTION
LEGOLAND is a theme park which aims at providing entertainment service to children. It provides a
mixture of fun adventure and education for children, mostly of age between 2 to 12 years old and
youngsters. LEGOLAND provides a range of services such rides as outdoor activities, hotels to spend
your holidays, sea life, water activities and attractions. Another service that it provides to children and
young parents is education service based on LEGO. The services of LEGOLAND meet the expectation of
clients by not only providing distraction but also help children to grow and develop their IQ by building,
creating and solving LEGO. The whole LEGOLAND is built with strong colourful LEGO bricks into
different structures such as LEGO castle accompanied with new technology and advances, it comprises
of robotics LEGO characters. It carries its unique selling point whereby the theme park allows the parents
to get involved in all the activities with their kids. This will eventually strengthen their bond as they will
spend most of their time with their children and also it will help in the development of the children as the
parents will engage more physically and mentally with them compared to sending them to usual parks.

The unique services of LEGOLAND differentiate itself in the Indian amusement and theme park industry.
It carries its uniqueness and it provides additional services which makes it more attractive to clients.

COMPANY BACKGROUND
The LEGO group was founded by Ole Kris Kristiansen in 1932 in Billund, Denmark. The first
LEGOLAND Billund was opened in 1968, named after the nearest airport, Billund. In order to expand its
business, different LEGOLAND parks were built in different countries such as LEGOLAND California,
LEGOLAND Deutschland, LEGOLAND Florida, LEGOLAND Windsor Resort and LEGOLAND
Malaysia. It went worldwide and sold its LEGOLAND parks to the well-known entertainment industry,
Merlin entertainments in 2005. The main focus of the company was the toy Lego. The new British theme
park company, Merlin entertainment group was then created which now owns and operates all the
LEGOLAND parks, attractions, discovery centers, Sea Life, London eye, Gardaland and Heide Park.

The purpose of building a LEGOLAND park in India will be beneficial for both the company and the
population including tourists. It will be able to give the children a new exposure of a theme park, to help
parents to discover new ways of educating their child, to be able to introduce the Lego world and the new
creation of Lego to the population. It’s all about taking the creativity and putting it in a new room, new

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environment and have it grow and grow. In the other hands, the company will be making profit as it will
be expanding globally and targeting new market and industry. The company will emerge into the Indian
Amusement industry.

Mission of LEGOLAND park: It carries its own mission that is “to inspire and develop the builders of
tomorrow” as it focuses on children of age between 3 to 12 and new upcoming generations. Letting the
children to know themselves and to be more creative, thus to have a better future. Helping the children to
create an imaginary world for themselves and building anything they have in their mind.

The vision of LEGOLAND park is “Inventing the future of play” which refers to the new ways of playing,
the different creative play materials which are now available for children of certain age. “It is not just
about products, it is about the human possibility” (Jensen, 2012)

https://www.lego.com/en-us/aboutus/lego-group/mission-and-vision

The ultimate goal of LEGOLAND is to give their guests an extraordinary experience and bring these
values to life through its unique and Heroic service with the aim of increasing their clients and hence
increasing its market share. The goal is to be the first company to open a theme park along with its hotel
in India with lots of facilities given to children and parents.

COMPETITIVE STRATEGY
In order to know whether LEGOLAND Park will still be able to maintain a relative position in the industry
and whether the estimated profitability will be above or below the industry average, competitive strategies
must be considered. This includes cost-price leadership, differentiation and focus. According to the cost
leadership strategy, being new in the industry and market, LEGOLAND should adopt the role of low cost
producer by exploiting the sources of cost advantage. In other terms, LEGOLAND should provide its
services at lower cost than its competitors. In this case, the company should locate for technology, raw
materials and other resources at lower cost. By adopting the differentiation strategy, this will differentiate
LEGOLAND from other park which provide most or less the same services. It seeks to be unique in the
industry as it will bring its own creativity in the new industry, for example; each rides will signify a Lego
story. This is assumed to be valued by most of the clients as most of them will be children and children
grow up by watching all the animated movie stories. Other services that will be provided should be unique
as well in order to meet the expectations of the clients.

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Moreover LEGOLAND holds a generic competitive strategy that is it makes its products (Lego toys)
different from other competitors. Also, Merlin Entertainment Company as the main body should ensure
uniqueness and best quality of entertainment experiences are provided in the new LEGOLAND theme
park. The focus strategy refers to the focus of a specific target market group and makes most out of it by
providing an exclusive service to that specific group so that it can be differentiated from the other
competitors.

GROWTH STRATEGY
Market Penetration:
The Merlin Entertainment group Company attains its growth partially through market penetration. It is
considered as Merlin entertainment group secondary intensive growth strategy. By penetrating into a new
market, this will eventually increase the sales of the other theme parks. It shows innovation and the
concern for clients. LEGOLAND has attain growth in other countries and also carries potential in its
brand. The strong brand of LEGOLAND will eventually differentiate itself in the market and will attract
more customers and also manage customers’ expectations. It has its own competitive advantage which it
carries in different countries and different markets.

Market development
Market development is considered as the growth strategy that is not really used by Merlin Entertainment
group because it involves penetration in new markets and introducing LEGOLAND products and services
to the new markets. Market development strategy helps to identifies new market segments for the actual
products and services. As LEGOLAND targets specific target market that is children and young families,
the market development strategy is not frequently adopted as it does not need new market segments to
increase its sales.

Product development
Product development is considered as Merlin Entertainment group’s primary growth strategy. It involves
introducing new products in its existing markets. This is way to know whether it will make good profit
and grow in other markets too. For example; indoor LEGOLAND discovery centers were introduce
corresponding to activities in the theme park and to know the preferences of customers. This eventually
generated profits from its target customers worldwide. The product development should emphasize on its

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uniqueness of the products or services which ca differentiate itself from competitors and also attract most
of the customers.

Integration
Integration strategies are divided into main sub growth strategies. These are:

Horizontal integration which refers to the acquisition of a competitor in the same industry, providing the
same services to the customers. In so doing, LEGOLAND will benefit in terms of less competition in the
market.

Backward integration refers to the acquisition of a business and integrates parts of its supply chain in order
to make sure of accurate and continuous supply of raw material. This guarantees high profits and growth.

Diversification
This refers to the acquisition of new businesses. This is an intensive strategy which can be adopted by
LEGOLAND theme park which establishing in India. It supports in business growth. A competitive
advantage will be developed in the entire market as the new business operations will acquire the brand of
LEGOLAND. This allows LEGOLAND to manage competitive challenges and help to grow globally. In
this case, LEGOLAND can acquire with the current business Kingdom of dreams whose main operation
is leisure, theatre activities. India is well known for theatre and movies industries. Hence, this will be of
interest of most of the population.

Cooperation
It involves two firms which get involve together to achieve a shared objective. In the case of LEGOLAND
theme park, having its own brand and huge success in different countries with many successful well known
theme parks, working together with another firm with the same objective can create a risk for the company.
There might be a downfall and might not carry its signature Lego, mission and vision.

Furthermore, in order to adopt any strategies, Merlin Entertainment group must consider all the factors in
the India Amusement industry such as economies of sales. Adopting a strategy is considered to be very
risky. The company must consider the preferences and demands of the targeted consumers. It must analyze
all the amusement parks available in the industry and what is lacking and unable to meet consumer’s
expectations.

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Target Destination -Mumbai
Located in northern suburbs of the region. Easy accessible to other parts of the world in terms of
reachability. It is easier for the tourists to travel from airports to the point of destination.

Why India?
Lego is a brand already established itself in Western countries and trying to expand in other parts of the
world. Mainly focusing on developing countries for now. We have considered other options like Africa
and China. But China has already got the proposal for the upcoming legoland. So that’s why we chose
India as its location.

Also Mumbai is a financial Capital of India and as per the latest reports It has got higher per capita
Income compared to other cities Like Bangalore, Chennai and Pune. Advanced technology, superb
infrastructure and continuous money flow from businesses make it a great choice.

Target Market Size

Available/ Potential Market
If we have to decide on the market aimed by the company, then it mainly focuses on the families having
kids of 5-12 years of age which is more related to demographic factor. We can also say that it takes into
consideration other factors like geographic and psychographic factors and decide its market on that
basis. Currently it has its major presence in developed nations such as Western Europe and North
America but trying to expand its base in emerging countries like India which is huge in terms of
population.

Psychology plays an important role for the success and failure of the business and Legoland is aware of
such dimension. Therefore, it targets its customers which have values like fun, creativity, imagination,
learning and quality. This not only covers the kids but as well as teenagers and adults who want to have
fun and boost their creativity level.

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External Environment
Industry overview
The amusement and theme park industry in India is about two decades old and it is relatively new when
compared to its origin in USA & Europe. This industry found its roots in India during mid and late
1980s when a few innovative entrepreneurs took challenge of pioneering few amusement parks in Delhi,
Kolkata, Mumbai and Chennai. The growth in this industry started only in the last decade and that
happened possibly during the advent of globalization when economic potential of the social capital
began to be perceived.

Facts on Indian Amusement Park Industry:

• The amusement industry in India is at a growing stage currently

• The size of the Indian Amusement Park business is estimated to be around $700 million and is
estimated to grow by 10% per cent per annum in next couple of years.
• The amusement and theme park industry is deemed to be worth $1,600 million in India by 2020.
• Currently for a population of 1.15 billion in the country, there are only 120 amusement parks and
45 Family Entertainment Centers. This indicates that the growth potential of Indian amusement
and theme park industry is substantial.
• Global leaders in entertainment parks and attractions like Universal Studios, Disney, Sony and
Ripley Entertainment are mulling over investments of billions of dollars in India considering the
vast potential in this region. Private equity funds are also aggressively dedicating resources
towards this sector.
• The Indian small and big players in the Amusement Industry are looking at the tremendous
growth potential of this industry in the next 5 years.
• Growth of India's retail sector had been the main driving force for the amusement industry in
India.
• Globally, domestic and international tourists comprise more than 50% of the total footfall at
popular amusement parks.

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 • Transport corridors like expressways and the Metro line are bringing an increasing number of
people closer to entertainment hubs.
• The high growth potential of the industry in highly populated India will boost tourism, social
infrastructural development as well as employment generation. The success and growth potential
of this industry is resulting into the advent of new manufacturers of amusement parks' rides in
India.

Competitive environment
Famous Ten Amusement parks in India (in alphabetical order) :

• Adventure Island (Delhi)

• Essel World (Mumbai)
• Fun n food Village(Delhi)
• Nicco Park (Kolkata)
• Ocean Park (Hyderabad)
• Veegaland (Kochi)c
• VGP Universal Kingdom (Chennai)
• Vismaya (Kannur, Kerela)
• Wonderla (Bangalore)
• Worlds of Wonder (Entertainment City, Noida)

Some Best Parks In Mumbai To Visit

1. Kidzannia

• The place shows the workings of a real city, but built on a miniature scale, just perfect for kids.
• Kids get the chance to role-play and ‘work’ as their preferred professional.
• They even get paid for their ‘job’!
• Your kid can be a pilot, stylist, construction engineer, RJ, surgeon, or a firefighter – for a day.

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 2. Adlabs Imagica

• If you have a younger child, try out Imagica’s fun merry go round, Tubby Takes Off. Or you can
also try The Magical Carousel.
• If your child is old enough to understand the joy that is driving, let him try Happy Wheels,
Imagica’s very own driving school for kids.
• Imagica has many more fun rides and thrills on offer, just give it a try.

3. Essel World

• Essel World is the perfect place for the entire family and offers rides for families, adults only,
and children.
• Some of the family rides include The Fuji Aqua Dive, rollercoaster ride that will leave you
breathless and wanting more.
• Other family rides include Crazy Cups, Road Train, Riki’s Rocking Alley, Tilt-a-Whirl, Zipper
Dipper, Highway Cars, Hedge Maze, Fun Net, Haunted Hotel, and Prabal the Killer.

4. Snow World
The harsh truth is that Mumbai doesn’t get to experience winters!

• Not much to look at, Snow World can be off-putting at first glance, but hang on, the fun is just
about to begin!
• The snow slide is, hands down, the best thing about the Mumbai Snow World, especially for
younger kids.
• The place also offers a unique place where people (both young and old) can play with balls.

Demographic environment
India
During the last decade domestic tourism had grown @ 14% on an average and currently it is estimated
at 527 million. Out of this, the amusement park industry generated only 15 million footfall during last
year. Globally, domestic and international tourists comprise more than 50% of the total footfall at

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popular amusement parks. We can, therefore, expect that there would be manifold increase in footfall in
amusement parks in India as the large parks in India are gradually converting themselves to larger
destination parks with additional investments following the footsteps of large global parks. This
indicates that the growth potential of Indian amusement and theme park industry is substantial. The high
growth potential of the industry in highly populated India will boost tourism, social infrastructural
development as well as employment generation.

Mumbai
Mumbai is a metropolitan city with urban population of 20,748,395 as in 2012. It is India’s eighth
largest city and eleventh largest metropolitan area. It has been an urban center and important trade node
center. The GDP per capita income is $11,924. The incredibly high output of Bombay's film studios
earned it the title "Bollywood", as it became the second most prolific movie-making city in the world.
Mumbai is India's largest city (by population) and is the financial and commercial capital of the country.
Further, it Mumbai has a tropical climate, specifically a tropical wet and dry climate.

Social and cultural environment

The incredibly high output of Bombay's film studios earned it the title "Bollywood", as it became the
second most prolific movie-making city in the world. Mumbaikars have their own dialect despite diverse
ethnic and cultural backgrounds. Wherever you look there will be music, art, dance and food
overflowing with colors and smells to welcome you into the party that is life here.

Mumbai is a city which has lots to offer its visitors, be it food, fun or peace. For those who opt for
unlimited fun, Mumbai offers rakish entertainment in form of amusement parks. This commercial city
has a booming financial and economic sector that promises its citizens a good standard of living. If you
have had a hard working week, take some time off to chill in these amusement parks where you can
relax and, at the same time, go for the dizzying rides these places are famous for. The amusement parks
of the city are designed with utmost creativity and theme to attract, amuse and entertain large crowds.

Political and legal environment

Under the government act for Licensing & controlling places of Public Amusement, 1980. The
government allows to open any adventure or amusement park provided with that the company provides:

1. The proof of ownership of the land

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2. NOC for the construction

3. NOC from forest department

Current Trends

Amusement parks seek uniform entertainment tax

The Indian Association of Amusement Parks and Industries, apex body of the amusement parks, has
sought uniformity in the entertainment tax being imposed by different states. The Association rules that
the exorbitantly charged entertainment tax by some states is a major impediment in the growth of the
industry in these regions. “West Bengal, Punjab and Gujarat charge entertainment tax at 20%, 40% and
25% respectively, whereas the entertainment tax rate hovers around 5-15% in majority of the states.

Real Estate company’s plans to enter into this market

Though the unorganised players hold a majority share in the market, the organised players are also
expanding their base. Groups like Nicco Parks, Zee group, Unitech & Turner and various real estate
companies are developing amusement parks in different regions. The foreign developers are also
stepping into the Indian amusement industry through collaborations with Indian companies.

Technological environment
Thanks to the technology revolution, cutting-edge software and data tracking mechanisms have emerged
as a distinctive feature of the best loyalty program. As with any strategic intervention, the operational
aspects are as crucial to the effectiveness of a loyalty program as the concept and plans. Loyalty
software that combine multiple functions like data tracking and storage, automated transactions,
updating membership details, points and churn etc. can ensure that the loyalty initiative is well co-
coordinated, efficient and hassle-free.

As technology is increasing rapidly as well as internet so the marketing and awareness about the services
would be easily done. Internet and telecom can be a major marketing platform as most of Indians are
internet savvy and like to surf on internet most of the time for some entertaining things. And get
information about the desire service through SMS or Calls.

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Internal Environment
Background
Legoland (trademark in uppercase as LEGOLAND) is a chain of family theme parks, which has its main
focus on the toy Lego. They are not fully owned by The Lego Group itself; rather they are owned and
operated by the British theme park company Merlin Entertainments.

The parks are marketed to families with younger children (11 and under), and although the attractions
include a number of roller coasters, the roller coasters are not as numerous or as extreme as those in
other parks, and there is a greater emphasis on rides suitable for younger children. Legoland parks are
split into various areas, which are consistent among the chain's parks.

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 Site Location Details

-The oldest Legoland and

-was built near the original Lego factory.
Legoland Billund,
-It is divided into ten different worlds: Duplo Land, Imagination Zone,
Billund Resort Denmark
LEGOREDO Town, Adventure Land, Miniland, Pirate Land, Lego City,
Knights Kingdom, Viking Land, and Polar Land.

Legoland -There are seven areas in the park, including: Imagination Center, Miniland,
Günzburg,
Deutschland LEGO X-treme, LEGO City, Knights Kingdom, Adventure Land, and Land of
Germany
Resort the Pirates.

-As of 2015, there are twelve areas in the park, including: The Beginning,
Windsor, Imagination Centre, Miniland, Duplo Land, Heartlake City, LEGO City, Land
Legoland Berkshire, of the Vikings, Kingdom of the Pharaohs, Pirates Shores, Knights Kingdom,
Windsor Resort United Star Wars and Adventure Land. It is the largest Legoland park in the world in
Kingdom terms of area

The park is split into nine sections, which are: The Beginning, Explorer Island,
Heartlake City, Fun Town, Castle Hill, Miniland USA, Imagination Zone,
Legoland Pirate Shores, and Land of Adventure. A Sea Life aquarium is adjacent to
Carlsbad,
California Legoland California.
California
Resort -In 2010, a water park opened on its grounds, as one of the only three of
Legoland parks.

- This park is divided into 13 areas: The Beginning, Fun Town, Duplo Land,
Miniland USA, Kingdoms, Pirates Cove, Imagination Zone, Technic, Land of
Legoland Winter Haven,
Adventure, Lego City, Chima, LEGO Friends, Ninjago, and a restored replica
Florida Resort Florida
of Cypress Gardens. Legoland Florida opened a water park replacing the
former Cypress Gardens "Splash Island" water park on May 26, 2012.

-It is the first Legoland in Asia.

-Initially, there are seven themed areas of attractions for all ages which are;
Legoland
Iskandar Puteri, Miniland, The Beginning, Land of Adventure, Imagination, LEGO Kingdom,
Malaysia
Johor, Malaysia LEGO Technic, and LEGO City. The centerpiece of the park is Miniland,
Resort
where almost all Asian landmarks were built using LEGO bricks.

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 It has 6 areas: Factory, Lego City, Imagination, Kingdoms, Adventure, and the
Legoland Dubai Dubai, United
first indoor Miniland. The Park contains over 15000 LEGO models by using 15
Resort Arab Emirates
Million Lego Bricks.

SWOT Analysis

Strengths
1. The parks are associated with a very strong brand name of Lego, which is one of the leaders in the
European Toy market. Revenue of The Lego Group were around 4.2 billion USD in the year 2016.
2. The operating company, Merlin Entertainment is a leading name in family entertainment parks and
operates 127 attractions, 19 hotels and 7 holiday villages in 27 countries.
3. Each Legoland attracts as many as 1.5 million visitors per year. The attraction is especially designed
for families, the activities provided challenge imagination, it is considered a great experience and it also
provides special accommodation.
4. The availability of annual tickets and “value passes” for customers who are likely to make multiple
visits ensure competitive pricing
5. Good marketing and advertising makes it a popular theme park. For example, companies such as
“Groupon, Amazon and Lazzada” are actively advertising and promoting LEGOLAND by give discount
and special promotion during festive session.

Weaknesses
1.In spite of Lego being a very popular brand in the European toy market, the parks have not been able
to attract many international tourists in the host country such as Malaysia and Japan.
2. The Legoland Parks in California and Florida are not as popular as their local and international
competitors. With the popularity of other amusement and theme based parks, Legoland has struggled to
maintain its brand image with respect to their competitors such as Disneyland and Hershey Park.

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Opportunities
1. The Lego brand is associated with quality and reliability; this positive brand image can be used by the
parks to attract visitors. Its legacy of around 86 years and brand loyalty has proved to be a winner in
terms of tourist attraction.
2. The 2 locations of Legoland in Florida and Billund are already popular tourist destinations; the parks
can leverage on the location advantage. They offer the largest amount of attractions being the biggest
two amusement parks by far.

3. As the brand Lego is fast penetrating in markets outside Europe and USA, there is a chance to attract
more and more international visitors. Plans of Legoland in China and South Korea are already in the
pipeline.
4. Tapping emerging economies with more advertising and marketing. Countries in South America and
South Asia are the most favourable considering disposable income and youth population.

Threats
1.) The major threat comes from the competitors present in each host country of Legoland theme parks
who have much better offerings and brand presence.

2.) The original Legoland in Windsor, London has a very strong brand presence in Europe and hence
steals away European visitors from the Legolands in USA.

BUSINESS & MARKETING STRATEGIES

Target market mode of entry
Expansion of Legoland into foreign market has been successful till now. There are different ways of mode
of entry that the company can adopt when entering the Indian Amusement industry. By entering the market
alone, it has its own pros and cons. It can be very risky and end up into a failure and lack of market
knowledge. In other hands, it has its own control over the entire business and plan and generate maximum
profit for its own company.

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In the case of constructing Legoland theme park in India, the Merlin Entertainment Group Company
despite being a huge company with much revenue, it is advisable for the company to adopt and follow a
cautious approach by following the direct investment mode of entry approach. This is known as the
greenfield approach. The advantage of this type of mode of entry that Legoland will benefit from is that
it will entry the market by its own risk and cost. There will be no such kind of integration issue and it will
eventually have full control over its operations. It will avoid the risk of acquiring the local partners in the
target market and the risk of overpaying them. However, greenfield mode of entry has its disadvantage
also. The risk of high competition as Legoland will be new in the market.

Physical Resources & Personnel competencies

Physical resources refer to the tangible items that enable the well-functioning of the business. It bring
values to the business and are used in the operations of the company. LEGOLAND is considered as a
service-based business. Therefore, it uses physical resources to help in deliver a unique service such as
having a space to work, tools that the business needs for the service and the resources which are needed
to maintain the service. Physical resources in that case refer to the raw materials, such as is LEGO bricks
needed for building LEGO castle from LEGO Company. Personnel competencies refer to the skills that
are needed to improve the efficiency of the business. For example; measurable knowledge and skills which
are important in decision making process.

Pricing Strategies
Technically, in the context of price strategy for new business in a new market, the price should be
relatively high enough in order to maintain the brand image which has been carried since years. It also
depends on the quality of the service and products that the business will be offering to its target market.
The price eventually represents the image of the business. But however, it cannot be denied that price are
influenced by consumers in the market and by different people in different areas. For legoland, before
keeping the prices for different and specific services, an analysis on the alternatives pricing objectives
should be carried out such as the skimming pricing which refers to the international high price compared
to its local competitors, penetration pricing which refers to as the decision of keeping a low price as a key
marketing weapon. Other alternatives are Everyday Low pricing and Discount pricing which refers to as
the discounting of prices for a certain time of period in order to attract most of the customers and hence
this will help the company to generate maximum profit and Competitive pricing which refers to as the

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reduction of the international price of legoland passes so as to match the prices of services that other
competitors are offering in the industry.

Ticket Prices for families

Ticket Type Adult Child 2nd Day Upgrade

LEGOLAND theme park 120 CAD 100 CAD + 15 CAD
Water park 30 CAD 30 CAD NA
(Free for child under 2)
SEA LIFE 25 CAD 25 CAD NA
LEGOLAND and Water Park 140 CAD 115 CAD + 15 CAD
LEGOLAND and SEA LIFE 135 CAD 110 CAD + 15 CAD
Combo 155 CAD 150 CAD + 15 CAD
LEGOLAND + Water Park +
SEA LIFE + Theatre and
Resorts

Promotion Strategies
Without promotion strategies, a business will not prosper in a new market. Without advertising, Legoland
theme park will not be able to survive in the market as most of the target market will not know what is
happening except the Merlin Entertainment group Company. Promotion strategies refers to the concept of
influencing, encouraging, informing people in their purchase decision. The main objective when it
concerned Legoland is to produce a unique customer focused message. Promotion strategy form part of
the integrated communuication strategy. This involves the promotional activities such as media
advertising about the opening of new unique theme park for children and young families, personal selling
of tickets, sales promotion based on the first visitors and also public relations. This will attracts attention
and will create awareness of the theme park. It helps in reaching large audience at low cost. Its creativity
and efficiency will grab the attention of most consumers. By providing coupons and discount prices for

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the very first year will attract new customers. In this way, it is believed that in the first year Legoland
should focus more on the the price than the brand loyalty.

Distribution Strategies
This approach helps the service to reach target customers. There are different ways to let the target
customers know about the new LEGOLAND theme park. The Merlin Entertainment group company chose
both the direct and indirect methods to create awareness of their business. eCommerce platforms are online
platforms help to reach customers in worldwide range. It helps to meet the needs of the customers. It also
acts as a marketing tool such as advertising and promotion. It helps in buying and choosing the right tickets
for the LEGOLAND theme park and other services available. Direct method of distribution strategy refers
to the time and effort you put in reaching out the target customers by yourself. This method is appropriate
for LEGOLAND as it is new in the market and creating low volume of high value service at start and also
it is targeting a specific target market.

Financials (high level & with assumptions)

Funding and investors
The construction of the new Legoland theme park in India is estimated to cost approximately around 350
million CAD. This includes the whole theme park with its entertainment, leisure, indoor and outdoor
activities and additional unique services and its resort which is estimated to cost around 70 million CAD.
The main funds come from Merlin Entertainment Group Company which generates most of its profit from
other theme parks. The Lego group is a stake holder of Merlin Entertainment Group Company and hence
it is assumed a percentage of funds coming from the company.

Summary Use of proceeds: approximately 420 million CAD

Product development 3 million CAD

Outsourcing 50 million CAD

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 Land & Infrastructure 150 million CAD

Advertisement 100000 CAD

Hire and Training Staff 50 million CAD

Total resorts & leisure 70 million CAD

Raw materials 100 million CAD

Projected 3-year revenues

The revenues that the Legoland theme park will be generating is totally based upon the number of visitors
per year. It has been analysed that The Merlin Entertainment group Company has been generating profits
from its all Legoland theme parks based upon the number of visitors throughout the year. The brand has
been attracting many customers with its unique services which it provides. The visitors include both local
people from the country and all the domestic and international tourists. India’s tourism and hospitality
industry has been growing through
Time Revenue
years now and will keep on growing
based on the End of Year 0 100 million CAD statistics made.
This theme park End of Year 1 105 million CAD will attract most of
the customers as it will be cheap in
End of Year 2 150 million CAD
price with additional services
provided and also End of Year 3 200 million CAD based on its
location.

Assumptions and Timelines for LEGO LAND

This project proposal is for building an Amusement Park. The park name is LEGOLAND. An
entertainment filled park which can be enjoyed by children and adults. Thrilling rides, entertainment,

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theme parks, fun games and other exciting activities. LEGOLAND would be attractive park with lots of
recreational activities. Over all the budget for this park would be $15,000,000 and would be required to
be completed within the time frame. The resources would constitute internal and external (as and when
required on request)

There are some assumptions related to the whole project. The following are listed below.

1. All issues and concerns would be solved on time.

2. The budget allocated is enough for building up the Amusement Park. The project would be
successfully completed.
3. Weather conditions are assumed to be all sunny and construction friendly.
4. The scope of the budget is limited enough to focus mainly over the project charter.
5. The loan taken would be over the interest of 10% only, even for a period of 20 years.
6. The pricing is almost done on the bases of standard pricing of the local markets.
7. Other services like cable, trash removal etc., is already included within contract.
8. The salary and wages are based on Full time and the standard shift is taken for 8 hours.
9. There will be 100% availability of resources, internal and external.

Project Scheduling –
Whole project would involve various activities which will help in establishing and finishing up the
project. It includes timelines/ deadlines, milestones, resources, equipment planning/ staffing etc.
Everything must be disclosed properly by specifying the duties of everyone. The actual progress must be
compared with the projected schedule or the original time to time. This help us to give a better picture.

Achieving Milestones
The key activities must be synchronized and must be completed at a specific deadline. Like market
research, designing, meeting etc.

Timelines for project LEGOLAND

1. Market Research 1st August, 2019

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 2. Collecting surveys 15th August ,2019

3. Meetings ( Sponsors, stakeholders, owners, designer, managers ) 15th September,2019

4. Pre- Approval meeting with stakeholders, designers, sponsors. 15th October,2019

5. Meeting with Designers for designing the whole project 18th November, 2019

6. Executing the project 30th November,2019

7. Making estimations about the adjustments to be made 27th February,2020

8. Advertisements (Contd.25th June,2019)

9. Controlling and Monitoring (Contd. For almost a year and half )

10. Closing project / Project Closure Latest by 16th August, 2021

Work Breakdown Structure (WBS):

Addition to the timelines we also simplified the work and specification of duties through Work
Breakdown Structure (WBS).

This includes the following –

1. Start off
1.1. Identifying sponsors and shareholders
1.2. Creating Business / Project charter
1.3. Before start off project meeting
2. Planning
2.1. Creation of Teams and their managers following with Team leads.
2.2. Integration of teams with their duties specified.

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 2.3. Developing the action Plan for the project
2.4. Cost Management
2.5. Time Management
2.6. Resource management
2.7. Risk Management
2.8. Logistical / supply chain and tender Management
3. Executing of project
3.1.1. Visiting site for surveys
3.1.2. Working with designing execution plan of site
3.1.3. Landscaping
3.1.4. Excavation and removal of soil
3.1.5. Engineering , Civil needed for checks
3.1.6. Mechanical engineers needed
3.1.7. Electrical engineers needed
3.1.8. Approval from local / regional/ state govt.
3.1.9. Contractors on site for other jobs
3.1.10. Construction of pools
3.1.11. Rides
3.1.12. Recreational stalls
3.1.13. Kiosks
3.1.14. Toilets
3.1.15. Parking
3.1.16. Water rides with roller coasters
3.1.17. Maintenance checked on site
3.1.18. Seeking partners , sponsors
4. Monitoring and Controlling
4.1. Project evaluation
4.2. Control issues to be checked
4.3. Contingency issues
4.4. Planned meeting and progress shared with shareholders and sponsors
5. Project Closure

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Bibliography:

1. LegoLand Parks. Retrieved from https://www.legoland.com/

2. Deena Kamal (2019, May 12). DXB Entertainments. Retrieved from
https://www.thenational.ae/business/travel-and-tourism/dxb-entertainments-visitors-increase-5-
in-second-quarter-1.886497
3. Wikipedia, The Free Encyclopedia. Retrieved from https://en.wikipedia.org/wiki/Legoland
4. Rupesh Suradkar (2014, Apr 25). Business Plan of Entertainment Park. Retrieved from
https://www.slideshare.net/rupeshsuradkar/business-plan-of-entertainment-park
5. Chhandita Chakravarty (2019, July 10). Best Parks in Mumbai to visit with Kids. Retrieved from
https://www.momjunction.com/articles/parks-in-mumbai-for-kids_00387532/#gref
6. Arpita Mukherjee (2014, Feb 2). Park and Fly. Retrieved from
https://www.businesstoday.in/magazine/features/amusement-theme-parks-attracting-visitors-
despite-hurdles/story/202286.html
7. Ms Archana Browne (2019, Apr 5). Indian Amusement Park Industry. Retrieved from
https://insightalpha.com/news_details.php?cid=81&sid=11&nid=402
8. Subhash Channdra (2018, July 15). Esselworld’s Competitors, Revenue, Number of employees,
Funding and Acquisitions. Retrieved from https://www.owler.com/company/esselworld
9. Anil Erayil (2015, Apr 05). More about Mumbai. Retrieved from
https://www.360cities.net/image/essel-world-mumbai
10. Merlin Entertainment. Retrieved from https://toronto.legolanddiscoverycentre.ca/

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