Hong Kong Disneyland

Team Members
• Sudhir Singh Rajput
• Yatish Mittal
• Amit Yadav
• Arun Joshi
• Anurag Shukla
• Vikrant Arora
 ABOUT DISNEY

• The Walt Disney Company (NYSE: DIS)

Founded on October 16, 1923 as Disney Bros.
Studios

• By brothers Walter Elias Disney (1901-1966)

and Roy O Disney (1893-1971)

• Incorporated in 1938 as Walt Disney Productions

 Disney Mission

Mission Statement

“the Walt Disney company is committed to

balancing environmental stewardship

with its

corporate goals and operations throughout the worlds”

 Disney Vision

Vision Statement

“to make people happy”

 Business Diversity
 TV Networks

 Motion Pictures

 Theatres

 Animation

 Park & resorts

 Media Networks

 Consumer Products
 Hong Kong Disneyland
• Opening :- September 12, 2005
• Cast Member :- 5000
• A joint venture between The Walt Disney
Company and the Government of the Hong Kong
Special Administrative Region (HKSAR
Government).
• In 2006, Hong Kong Disneyland ranked among
the top five most popular places to visit in Hong
Kong.
 Attractions
- Main Street, U.S.A.
- Pirateland
- Fantasyland
- Tomorrowland
Tokyo Disney Resort
 Disney opened its first non- U.S. park in Tokyo, Japan
in 15 April1983.

 Cost US$1.4 billion

 Joint venture between Mitsui and Keisei

 Financed by Oriental Land Co. to minimize the risk

 Disney was as licenser and designer

 Received US$100 million royalty

 Support and attendance

Disney Resort Paris
 France was the largest consumer
 It also named Euro Disney
 Came in operation in 1992 after a long
negotiation
 Avoid mistake
 Problems
-cost overrun
-No profit
 Added new theme park-Walt Disney Studio
 Loss-US$190million
 Reason
 Primary language is French

 Recruitment and training process are not well

 Dress code

 Disney policy of banning alcoholic beverages

 Different Outcomes
 Disney so successful in Tokyo and largely failure
in Paris

 Americana represented by Disney was an asset

in Japan but liability in France

 Revers cultural imperialism

 HRM requires happiest place on earth

 US JAPAN FRANCE
PRODUCT

MICKEY MOUSE Sqeaky-clean ,all Safe and reliable Cunning , street

american boy smart detective

COWBOY Rugged , self - Quintessential Carefree , anti

reliant team player establish
individual

SOURENIRS Fun part of Use as a Tacky , waste of

experience mementos and money
gift giving ,
sembetsu
 Hong Kong Tourism Industry

 Tourism is the fastest growing of the Four Pillar

Industries in Hong Kong.

 The industry is relatively labor intensive and thus is an

important driver for generating jobs. Between 2000
and 2009, 28.4% of the new jobs created were in the
tourism sector.
 Tourism performance
 Economic significance of tourism in Hong Kong
– HK$52.3 billion value added, 3.4% of GDP
– Employs a workforce of over 190 000
 Total visitor arrivals in 2009: 29.6 million (+0.3%)

35
Visitor Arrivals (in millions)
30 Other markets Mainland

25

20

15

10

0
98 99 00 01 02 03 04 05 06 07 08 09
International Tourist Arrivals
 Local Attractions

Victoria Repulse Open-air

Peak Bay Markets

Ocean Government Statue

Park House
Square
Victoria Peak
Victoria Peak
Repulse Bay
Statue Square
Open-air Markets
Government House
 Ocean Park

 Occupied a quasi-monopoly position

 Founded in 1977

 Located near Hong Kong Central District

 Had an annual attendance of more than 4

million visitors

 Ranked one of the top amusement park in the

world by Forbes Magazine in 2006
Ocean Park
Ocean Park
 Hong Kong’s Disneyland
 Disney initiated a conversation with the HKSAR
government in Aug 1998

 Initially planned to simply run the park on a

management fee and Licensing contract basis

 Created 18,400 jobs and was expected to increase

35,800 in 20 yrs

 3.4 million visitors attracted to the park

 Over a period of 40 years, it was forecast that HKD

would generate an economic benefit equivalent to KH
$ 148 billion
 The Concluded Deal
 After a year of negotiation the final contract was
signed in December of 1999

 Hong Kong International Theme Park Limited(HKITP) ,

The joint venture formed between Disney and the
Hong Kong government in Dec 1999

 While Government developed the infrastructure,

Disney provided master planning, real estate
development, production development….

 Disney also set up a wholly owned subsidiary, Hong

Kong Disneyland Management Limited, to manage
HKD on behalf of HKITP
“This is a happy marriage between a world-class
tourism attraction and a world class tourist
destination. We hope that Hong Kong Disneyland
will not just bring us more tourists, but also
wholesome quality entertainment for local
families as well”. – Stephen IP, Hong Kong
Secretary for Economic services
 A Rocky Start
 4 weeks prior to the official opening, HKD invited
30,000 selected individuals per day to visit the
park to test the rides and other attractions.

 The firs problem noticed was that capacity limit

of 30,000 visitors may have been to high.

 The park faced another problem when inspectors

from the Hygiene department were asked to
remove their badges and caps .
 OPERATIONS
1) Product Offerings :

• Ticket Price – HK$ 295 for weekdays & HK$ 350

for weekends & peak days.
• Special passes – HK$ 250 for child & HK$ 200
for seniors aged above 60.
• Ticket Booking – Via website & travel agencies.
 Classic Attractions

Dumbo
Mad hatter Tea Space
Cups Mountain
 Mainstreet USA

Steam train at
Main Street for
tour of the
park
 Fantasy Land

• Sleeping beauty
castle

• Also include
Dumbo &
Winnie the
pooh

• Mickey, Minnie
& other popular
Disney
characters
 Adventure land
• Includes Tarzan’s tree
house
• Festival of the Lion’s King
Show

Jungle river cruise

 Tomorrow Land

• Includes
science fiction
& space
adventures.
 HKD’S Hotel
Disney’s Hollywood Hotel

Hong kong Disneyland Hotel

2) Marketing :

• HKD collaborated with Hong Kong govt. to

promote the park.

• A TV program „Magical world of Disneyland‟ was

broadcast in Hong Kong.

• HKD also launched a special TV channel on local

cable TV.

• HKD launched Disney theme on the apparel of

Giordano.
2) Marketing :

• HKD outsourced a part of marketing to Color Life

magazine to feature the grand opening of HKD.

• Comp. donated 200 HKD umbrellas to

newsstands in Guangzhou to gain more publicity.

• HKD partnered with Communist Youth League of

China to run special events for children (Mickey
Mouse drawing competition).
3) Human Resource Management :

 In April 2005 HKD launched one of the city‟s

largest recruitment event.

 Employees were referred as cast members.

 In Jan. 2005 HKD sent 500 cultural

representatives to Walt Disney World in Orlando
for a 6 month training.

 Hong Kong crew was trained as per the standards

set by Walt Disney.
3) Human Resource Management :

Employees have opportunity to work in

various divisions like merchandising, food
& beverage operations, park operations,
custodial services, hotel operations.

Employees were provided with Handbooks

by HKD which included all the rules &
regulations.
4) Local Cultural Responsiveness :

 Feng Shut masters were consulted for advice on

park layout & design.

 New construction always began with good luck

ceremony.

 A ballroom was constructed to be 888 sq. mt. as

8 was considered lucky no. & signifies good
fortune.

 The Hotels skipped 4th Floor as 4 was considered

unlucky by Chinese.
4) Local Cultural Responsiveness :

Signs in the park were written in both

Chinese & English.

Adaptation was even in the toilets.

Restaurants offer a wide variety ranging

from American Burgers & French fries to
Chinese dim sum & sweet & sour pork.
Flaws in Ticket System

Offered Discount
Tickets

Which Can Be used

any day in given
Period of 6 months
except Special Days.

Which Leads to
Disaster for HKD.
 Failed to learn the Chinese
culture and consumption habit

More than
300 claims
by travel
agencies.
 Customers Complaints

Few Hong
Kong Themed
Attraction

Mistreated by
HKD’s
Employees

Lack of Safety
 Statistics

Visitor
numbers
First year fell 20% in
- Park the second
attracted In 2007-
year to
5.2 millio 4.5 million
4 million
n

below Increased by In the

its 8% in the 2009/20
target third year- 10 - 5.23
of attracting a million
5.6 mill total of
ion 4.5 million
 HKD’s RESPONSE
To tackle following problem :-
 Low park attendance
Limited attraction
Long queues
Disgruntled employees &
guests’ accounts of rude
treatment
 New Promotions

 Ticket discounts for local customers (HK$ 50 / US$ 6.41)

 Ticket express package
 50,000 taxi drivers were invited to HKD free of charge in
given time
 50% discount to 3 family members or friends of taxi drivers
 “ One day trip Guide ’’ in Mandarin
 Launching free to air channel and endorsing the brand by
local celebs
 Local TVC, Testimonials, Enticing scene from inside HKD
Setting The Course For Eventual
Success
THANK YOU