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Business Plan of Kathmandu Disneyland

Preprint · July 2016

DOI: 10.13140/RG.2.2.31993.90723

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 Business Plan
of
Kathmandu Disneyland

Thankot -5, Kathmandu , Nepal

01-4333666

01-4333667

01-4333668

Disney.kathmandu@gmail.com

www.disneykathmandu.com

www.facebook.com/disneykathmandu.com

www.twitter.com/disneykathmandu.com

Submitted By: Submitted To:

SushmaMaharjan Lal Prasad Aryal

Date: 18/07/2016

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 Acknowledgement
I would like to express my deepest appreciation to all those who provided me
the possibility to complete this report.

I would like to express my sincere gratitude towards entrepreneurial facilitator

Mr. Lal Prasad Aryal, whose contribution in stimulating suggestions and
encouragement helped me to coordinate my project especially in writing this
report.

Furthermore, I would like to acknowledge with much appreciation the crucial

role of BBA Director at Shankar Dev Campus, Mr. Achyut Bhandari and
Assitant Director, Mr. Dhurba Subedi for providing me with the opportunities
where I can enhance my knowledge regarding practical field of study. A special
thanks goes to my classmates, who gave me suggestion and their precious
feedbacks on the questionnaires.

Last but not the least, I would like to thank my family: my parents Bishow
Maharjan and Sushila Maharjan, for bringing me into this world and supporting
me spiritually throughout my life.

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 1. Executive Summary
Kathmandu Disney Land, franchised by Walt Disney Parks and Resorts will be the
first franchised based, internationally recognized Disneyland in Nepal. It is projected
to attract more than 1 million visitors with more than $300,000,000 revenue
generated every year. From a traditional kids ride as carousel, teacups and
caterpillar to extreme rides as extreme rollercoaster, Frisbee, ferries wheels, reverse
bungee, flow rider, screaming swing, water rides and sky coaster, it will have it all
running inside its boundary of 98 hectares. Having maximum number of population
falling under 15-59 age group, the primary target customers for projected
Kathmandu Disney Amusement park are the youths and tourists seeking for
adventure and adrenaline rush.

The capital structure of the company will be 65% equity and 35% debt. 60% of
equity shares will be held by the Walt Disney Corporation and 40% of equity shares
will be held citizens of Nepal. Kathmandu Disneyland will be collecting revenues
from various fields as entry fees, rides at amusement park, theater at theme park,
rides at water park, resort, weekend parties, stall rent, birthday parties, sale of fancy
dresses at theme park, etc.

Since market analysis and plans are the crucial part for the success of this company,
it will conduct in-depth price planning, distribution planning, marketing strategies,
marketing positioning, marketing mix, point of differentiation, sales processes and
brand strategy. It will operate using “pay-as-you-go” and “pay-one-price” pricing
policies. It will adopt advertisement, sales promotion, word of mouth, birthday
package, and sponsorships as its marketing strategy. Kathmandu Disneyland will
also position itself in market as “the place where dreams come true” and “the
happiest place on earth”. The brand identification of Disneyland is enough to
differentiate it with its competitors. Furthermore, Kathmandu Disneyland will also use
4 major strategies that creates very loyal customers: All Theming, All the Time,
Immersion, Everyone’s a Princess and Mining the Mythos.

In order to become number 1 in market, Kathmandu Disneyland adopts a unique

product and service strategy, location plan, layout plan, capacity plan, aggregate
planning, supply chain management and maintenance plan. It follows the concept of
TQM for overall development. There will be altogether 373 employees working
inside the Disneyland. Yearly payroll expenses of Kathmandu Disneyland are
assumed to be $124,000,000. It is projected that Kathmandu Disneyland will have a
profit of $124,737,455 each year for the first five years of operation and
shareholders will have earnings of $531.92 every year. Therefore, through overall
analysis, it can be conclude that Kathmandu Disneyland has a good future in Nepal.

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 2. Industry Analysis
Recent study shows that entertainment business is one of the most profitable
industry with accelerating growth and future market potentials. Statistics shows
that more than 315 million people visited approximately 400 amusement parks
in U.S in 2014.

In 2014, Disney Parks and Resorts was by far the largest amusement and
theme park company in terms of revenue worldwide. With revenues exceeding
15 billion U.S. dollars, Disney generated almost six times that of its closest
competitor, Universal Studios Theme Park.

The theme park industry in Asia is also in a growth mode. It is estimated that a
total of approximately 35 large parks attract about 71 million visitors, generating
a total of nearly $1.5 billion in revenue. An additional 49 moderate-sized parks
generate $350 million in annual revenue.

Nepal’s next door neighbor India and China are turning out to be a viable
location for amusement and theme parks. There are altogether 90 small and
large fun parks in India and 80 amusement parks in China

According to Global Attractions Attendance Report of 2011, Asia represents

about one-third of global theme park attendance (103.3 million).Once Shanghai
Disney opens at the end of 2015, it is also expected that the Shanghai
Disneyland will have 10 million visitors in its first year. Furthermore other 5-10
parks are under construction or are planned to be added to Asia’s already
existing list. With this development the Asian theme park attendance will catch
up to their counterpart.

Revenue in billion U.S. dollars

15.1 Revenue in billion U.S. dollars
16
Revenue in Billion

14
12
10
8
6 2.62
4 1.9 1.66 1.38 1.2
2
0
Disney parks and

Universal Studios

Entertainment

OCT Parks China

Entertainment

Entertainment
Corporation
Theme Parks

Seaworld

Six Flags
Group
Merlin
Resorts

Amusement Parks

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 3. Company Description
Kathmandu Disney Land, franchised by Walt Disney Parks and Resorts will be
the first franchised based, internationally recognized Disneyland in Nepal.60%
ownership will be held by Walt Disney Corporation while 40% ownership will be
held by civilians of Nepal. With an international standard resort, an amusement
park, a water park and a theme park within it, Kathmandu Disneyland is
projected to attract more than 1 million visitors every year with more than
$300,000,000 revenue generated every year. From a traditional kids ride as
carousel, teacups and caterpillar to extreme rides as extreme rollercoaster,
Frisbee, ferries wheels, reverse bungee, flow rider, screaming swing, water
rides and sky coaster, it will have it all running inside its boundary of 98
hectares.

Traits of Kathmandu Disneyland that would differentiate it from its local

competitor as Kathmandu Fun Park and Kathmandu Fun Valley would be its’
spectacular scenery, advance safety technologies, international standard
quality, wide range of attractions, extreme adventurous rides, goodwill of
Disney so on and so forth.

The main sources of revenue for Kathmandu Disneyland would be income from
rides, movies, food court, resort, D j parties on weekends, ticket fees, parking
fees and gift stalls. It will employ about 373 employees.

Mission: Kathmandu Disneyland’s mission is to be one of South Asia’s leading

producers and providers of entertainment and information, using its portfolio of
brands to differentiate its content, services and consumer products. The
company’s primary financial goals are to maximize earning and cash flow, and
to allocate capital toward growth initiatives that will drive long-term shareholder
value.

Vision: Kathmandu Disneyland’s vision statement meets the criteria of an

effective vision statement: “To make people happy”. This statement is broad,
but not too broad, and represents the overall goal and global direction of the
business. Kathmandu Disneyland aims to be the number 1 entertainment
providers of Nepal. Its vision is to provide best quality services and optimum
security to its customers. It also aims to lift the living standard of people by
providing employment to the locals.

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 4. Market Analysis
Kathmandu, the capital of Nepal, has a population of 985,000 in 2015, a
population density of 20,288 people per square kilometer and accounts for
1/12 of Nepal’s total population. Having maximum number of population
falling under 15-59 age group, the primary target customers for projected
Kathmandu Disney Amusement park are the youths seeking for adventure
and adrenaline rush.

Though the country is poor, people in the cities of Nepal and the tourists are
certainly not poor and would be willing to spend a fortune for good times with
their friends and family, making them our main target market.

Moreover, Kathmandu is also the main gate way to country’s tourism

industry. Since there are no other international franchised amusement parks
in Nepal, providing high quality services with adequate security so this
projected amusement park will be one of the main destination for the tourists
for recreation and relaxation.

Kathmandu Disney Land will target the following types of persons and
market segments as customers:

• Adults ages 19-50

• Older youth ages 11-18 years coming to the park
• Kids of all age dreaming of a fantasy Disney theme park
• Families seeking for exotic holidays
• Tourist
• City dwellers with middle and high class life styles
• People with the attitude of earn, spend and enjoy life.

A brief study on Kathmandu Fun Park, Pardashanimarg, Nepal, shows that

at least 200 customers visit the fun park daily. It is found crowded on
occasions like New year, Dashain, Tihar and Saturdays. On the day of New
Year 2016, it reported 8,000 customers to visit the fun park and 5000
customers to ride Columbus and 4000+ customers to ride Ferris wheel,
which is the maximum till date.

Thus, visitors to amusement/ theme parks are increasing year after year.
They are popular tourist attractions globally attracting people from all age
brackets, cultures and incomes.

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PESTEL Analysis of Kathmandu Disneyland
A PESTEL analysis is a framework or tool used by marketers to analyze and
monitor the macro-environmental factors that have an impact on an organization,
the results of which is used in a SWOT analysis.

• Political
Political situation of Nepal is highly inclined to leaders of India and thus is
very unstable. Country faces strikes, bandas, chakkajam, and conflict
among the leaders time and again which will certainly be a hindrance for
smooth operation of Disneyland in Nepal. Embargo faced by country on
jestha 2072 led to massive economic loss and sufferings. So, Disneyland
must have some strategies to overcome such problems and maintain good
cooperation relationship with the government.
• Economic
Nepalese economic policies and liberalization policies are attracting more
and more foreign investment, like Disneyland. However, it is still a
developing country. The average incoming per capita is much lower than
other Asian countries and other Disney franchised countries, so,
Kathmandu Disneyland must set lower entrance fee to catch more
Nepalese consumers.
• Social
Nepal is the land of social diversity, so Disneyland should appoint
employees from various social backgrounds and maintain harmony among
them. Kathmandu Disneyland will also have to consider the labor union
factors as most of the business organizations in Nepal have been facing
labor problems. Moreover, most of the Nepalese consumers are of middle
class and cannot afford three days trip to Disneyland so obviously, the US
Disneyland’s three day trip is not suitable for Nepalese consumers.
• Technological
In a theme park, high quality entertainment equipment is the most
important thing. As one of the least developed country, Nepal will face
difficulties to offer technologies as good as US. However, local resources
and suppliers can save more time and money for the company.
• Environmental
From Tokyo Disneyland and Shanghai Disneyland’s success, we realize
the importance of adapting to the climate. Since the climate of Kathmandu
is moderate with good sunshine in summer and warm climate in winter, so
Kathmandu Disneyland will have visitors throughout the year.

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 • Legal
The regulations and rules are varied from countries to countries. Since,
Nepal is a liberal country and promotes foreign direct investments and
franchises, so the legal environment is lenient and won’t affect the
marketing strategies.

SWOT ANALYSIS

STRENGTHS WEAKNESSES
• Strong diversification • High costs- sunk cost, research and
• Responsiveness to market development costs, cost of
• Brand recognition/ loyalty entertainment production
• Size of operation • Frequent change in top management
• Largest worldwide licensor of positions
character based merchandise. • Parks and resorts are not easily
• Global standardization accessible leading to a costly trip for
• Well established divisions visitors
• Increasing trends in overall • Parks and resorts success
revenues and profits. unpredictable
• Company’s name still highly associated
with specific target audience- children

OPPORTUNITIES THREATS
• Growth through further • Competition on finding and affording
diversification the most creative human resources
• International growth and new • Increasing salaries and labor costs
markets. • Changing consumption behavior.
• Increased media networks/ online Switch from physical to digital and
presence online.
• Changes in technology and • More concern with content over quality
consumer consumption • Piracy/ protection of intellectual
• Increase Disney Music Channel property
• International cable • Decrease of DVD sales
• Disney school of management and • Maintaining product differentiation
training

5. Economic Plan/ Economics of the Business

This section of business plan addresses the basic logic of how profits are
earned in the business and how many units of a business’s product or service
must be sold for the business to “break even” and then start earning a profit.
The purpose of this is to let the investors be aware of the financial details

8|P ag e
relating to operations, product and services. The better the economic study of
the business, the better the chances to lure the investors.

Kathmandu Disneyland gets its financing from the partners’ capital i.e. Walt
Disney Corporation and shareholders of Nepal and from loan. The capital
structure of the company will be 65% equity and 35% debt. 60% of equity
shares will be held by the Walt Disney Corporation and 40% of equity shares
will be held citizens of Nepal. Kathmandu Disneyland will get its loan from NIBL
bank of Nepal at the interest of 10%. It plans to pay back the loan within the
period of 5 years.

After analyzing the market trends, it can be forecasted that Kathmandu

Disneyland will get 50,000 children, 80,000 adults, and 30,000 senior citizens
as visitors every year for the period of first 5 years. On the following years after
that, Kathmandu Disneyland predicts the inflow of 100,000 children, 190,000
adults and 100,000 senior citizens as visitors every year.

Kathmandu Disneyland will charge entry fees of Rs. 40, Rs.100 and Rs.60 for
children, adults and senior citizen respectively. It will also charge Rs. 20 for
parking of two wheelers and Rs. 50 for parking of four wheelers.

Kathmandu Disneyland will be collecting revenues from various fields as entry

fees, rides at amusement park, theater at theme park, rides at water park,
resort, weekend parties, stall rent, birthday parties, sale of fancy dresses at
theme park, etc. Primary sources of revenue and their annual estimated
amount for the first 5years and years after that can be shown as follows:

Revenue Sources
S.N Particulars Yearly Estimated Yearly Estimated
Revenue in First 5 Years Revenue After 5 Years (
( in Dollars) in Dollars)
1 Entry fees 8,000,000 18,000,000
2 Amusement park 115,600,000 190,000,000
3 Theme park 15,755,000 90,000,000
4 Water park 35,800,000 115,000,000
5 Resort 90,000,000 150,000,000
6 Stall rent 15,000,000 30,000,000
7 Weekend parties 10,000,000 20,000,000
and movies
Total 290,155,000 613,000,000

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Besides, the total start-up cost of the project can be estimated to be
$53,860,645 which is divided among the initial fixed cost as land, furniture and
equipment, construction and manufacturing, preliminary expenses, utility
deposits, generator, and contingency.

Annual operating expenses of Kathmandu Disneyland is expected to be

$257,547,545 which includes $124,000,000 spent as payroll expenses,
$1900,000 spent as repairs and maintenance, $48,000 spent as utility charges,
$3,609,545 spent as preliminary expenses, $100,000 spent as audit fees,
$1,000,000 spent as interest on loan, $2,820,000 spent on advertisement,
$12,000,000 spent on insurance, $10,000 spent on fuel, $60,000 spent on
electricity, $100,000,000 spent as tax and $12,000,000 spent on dividend.

Even though from the layman’s perspective, we can see millions of difference
between total cost and total revenue on the first year of business, it will be
recovered in no time if the business grows the way market trend indicates. On
this pace, the business will be able to clear its debt and start distributing
dividends after few years of operation.

It can be forecasted that Kathmandu Disneyland will be able to breakeven

within 16 months of smooth operation.

Furthermore, it can be projected that Kathmandu Disneyland will be able to

gain annual profit of $ 236,354,355 and earnings per share of $531.92 after 5
years of business.

6. Marketing Plan
A marketing plan focuses on how the entrepreneurs plan to use various
marketing tools, strategy, positioning, points of differentiation, promotional mix
etc to convert potential customers into actual customers. Marketing plan
basically involves the following:

6.1 Price Planning

The pricing of Kathmandu Disneyland will be less than other Disneyland all
around the world. Entry fee and cost of rides are almost thrice as much
cheaper than other franchise of Disneyland. Kathmandu Disneyland will
charge entry fees of Rs. 40, Rs.100 and Rs.60 for children, adults and senior
citizen respectively. It will also charge Rs. 20 for parking of two wheelers and
Rs. 50 for parking of four wheelers.

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 Price of innovative and thrilling rides at amusement park will range from
Rs.150 to 500 where as the price of traditional rides which are similar to or
cheaper than the ones found at competitors’ as Kathmandu fun park and
Kathmandu fun valley. As per the plan, the entry fee to Kathmandu Disneyland
will be collected at the main entrance gate of the park and customers will have
to pay separately for the rides at amusement park and for the tickets to theme
park, theater and Water Park.

Kathmandu Disneyland will collect much of their revenue from admission fees
paid by guests attending the park. Other revenue sources include parking
fees, food and beverage sales and souvenirs. Practically all parks operate
using one of two pricing policies:

Pay-as-you-go: In this format, a guest enters the park at little or no charge.

The guest must then purchase rides individually, either at the attraction’s
entrance or by purchasing ride tickets (or a similar exchange method, like a
token). The cost of the attraction is often based on its complexity or popularity.
For example, a guest might pay one ticket to ride a carousel, but would pay
four tickets to ride a roller coaster. The park may allow guests to purchase
unlimited admissions to all attractions within the park.
The advantages of pay-as-you-go include:
• guests pay for only what they choose to experience
• attraction costs can be changed easily to encourage use or capitalize on
popularity

The disadvantages of pay-as-you-go include:

• guests may get tired of spending money almost continuously
• guests may not spend as much on food or souvenirs

Pay-one-price: Water park and theme park will use pay-one-price format and
will charge guests a single, large admission fee. The guest is then entitled to
use almost all of the attractions in the park as often as they wish during their
visit. The park might have some attractions that are not included in the
admission charge; these are called "up-charge attractions" and can include
movies in theme park. However, the majority of the park's attractions are
included in the admission cost.
The advantages of pay-one-price include:
• guests can more easily budget their visit
• guests may be more likely to experience an attraction they’ve already
paid for
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 • lower costs for the park operators, since ticket-takers are not needed at
each attractions
The disadvantages of pay-one-price include:
▪ guests will often be paying for attractions that they do not ride or visit
▪ guests who are simply coming just to be with their families will have to
pay anyway

Customers who visit the park in large groups as school students and families
will be given 10% discount facility. Similarly, customers with membership cards
will be given 25% discount on rides and their stay at resort. Likewise, the
winner customers of lucky draws held on weekend get to stay at resort for 2
days and a night for free.

Managers need price planning to attract price conscious customers and to put
the customers in hallucination that they will be getting more services at
reasonable price. For this Kathmandu Disneyland will be using following
approaches of price setting:
• Price skimming approach for innovative and unique rides at amusement
park, entrance at theme park and Disney Theater.
• Meet competition approach for traditional rides that are also found at
Kathmandu fun valley and Kathmandu Fun Park.
• Customer value pricing for birthday and other sorts of parties.

6.2. Distribution Planning

It is concerned with making the products and services available to the
customers at the time and place they desire. It includes plans relating to
availing customers with food, beverages, clothes and other goods desired by
them at resort; continuous flow of products at gift shops and stalls; timely
supply of water at Water Park; timely payment of money to the suppliers and
concerns about time utility and place utility.

6.3. Marketing Strategy

Marketing strategies focus on ways in which the corporation can differentiate
itself effectively from its competitors, capitalizing on its distinctive strengths to
deliver better value to its customers. Marketing strategies will be designed to
create maximum penetration to reach the market as previously described.
These strategies will ensure that Kathmandu Disneyland will be economically

12 | P a g e
successful and will be the first destination of fun lovers. Some of the strategies
can be highlighted as follows:
Advertisement: Doing business without advertisement is like winking at a girl
in the dark. Advertisement is the best way to inform, persuade, remind and
reassure the customers and build image of the organization.
For advertisement purpose, Kathmandu Disneyland can hire best Ad producers
and publish its advertisements on local TV channels, international channels,
daily newspapers, magazines, hoarding boards and even on social networking
sites. Though cost of advertisement is very high, it helps to transfer message to
a large number of customers and eventually contribute to high sales in no time.

Sales Promotion

Sales promotion makes the customers aware about Kathmandu Disneyland

and persuades them to visit time and again. It includes the activities the
company undertakes to communicate its products to the target market. Sales
promotions are the short term incentives that stimulate demand and create
stronger and quicker purchase response. Kathmandu Disneyland can
implement following techniques of sales promotion:
• Discount to children below the age of 10, school students, employees,
family package, Nepalese.
• Lucky draw on every weekend, where winners will get free 2 days and 1
night stay at the resort.
• Birthday parade, where favorite cartoon characters of boy / girl will throw
them a parade on their birthday parties held inside the park.
• Birthday blast, where birthday boy or girl get a special themed gift
basket. Customers can even select a Disneyland Resort Room
Celebration so that their room is decorated in true Disney style.
• Celebrity concerts will be held on occasions like New Year, Christmas,
festivals etc.
• Bags, pens, caps, t-shirt etc for the member customers.

Word of Mouth: It is one of the most effective ways of marketing one’s product
and service. Kathmandu Disneyland can assure good and consistence quality
of its service to the customers. Friendly environment, availability of every sort of
facilities that a customer would possibly need within the park, discounts,
memberships, good customer care services etc will persuade customers to
relay impressive feedbacks about Kathmandu Disneyland to their friends and
families.

Birthday Package: Kathmandu Disneyland has designed a birthday package

that will be priced to a specific age group target market. The birthday groups

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will have a full agenda of games, prizes, rides, and theme park parade and
water park activities. The birthday packages will be targeted for children in a 15
mile radius of the water park with ages of 5 to 15.

Toll Free Information Hotline: Kathmandu Disneyland plans to open a toll

free information hotline where customers could easily get information about
opening and closing time, entry fees and ticket fees, facilities available,
bookings, etc without having to pay a penny for it.

Charity and Sponsorships in Local Area Development Activities:

Kathmandu Disneyland will be participating in local development activities and
keep reminding the locals that the park is also a part of their community. Such
type of public relation helps to maintain good relationship with customers,
government, media, public, pressure groups, suppliers, distributors, employees
etc.

6.4. Marketing Positioning

Positioning is the process of nailing the product and service concept in the mind
of customers. Kathmandu Disneyland will position itself in market as “the place
where dreams come true” and “the happiest place on earth”. Kathmandu
Disneyland will frequently change its’ advertisements and even involve its
customers on it, just to stand out different from its competitors.
Positioning of Kathmandu Disneyland will be done in following steps:
• Identification of target customers
• Identification of competitors
• Identification of point of difference and point of parity
• Identification of category to compete. It might be in terms of attributes of
physical facilities or benefits of services.
• Choosing and establishing the position on the basis of desirability,
distinctiveness, deliverability, and sustainable.
• Updating positioning overtime as per the change in technology, societal
belief, customers’ preferences etc.

6.5. Point of Differentiation

Competition within an industry is not only affected by the number of competing
companies, but also by how similar their offered products and services are. The
more similar their products and services are, the more competition exists
between companies. In order to differentiate from its competitors Kathmandu
Disneyland has incorporated amusement park, water park, theme park and
resort at one place. The brand identification of Disneyland is enough to establish
a barrier between Kathmandu Disneyland and its competitors, making it the

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number one choice of customers. Some other ways of differentiating product
and services are as follows:
• Unique product performance
• Unique product features
• Unique services
• Detailed information

6.6. Marketing Mix

To promote any product or any service, it is essential to develop in 7Ps of
marketing mix, at which every Disneyland excels. Marketing mix that will be
done by Kathmandu Disneyland are as follows:
• Product: First product of Kathmandu Disneyland is its theme park where
customers are sure to be bedazzled. Customers get to meet all the
characters of Walt Disney and experience the magical world of Disney.
Second product of Kathmandu Disneyland is amusement park and water
park where customers can enjoy the most thrilling rides. Third product of
Kathmandu Disneyland is its Disney store which is involved in the sale of all
products connected to Disney- clothing, accessories, watches , bags etc.
• Price: As Kathmandu Disneyland is focused on getting the mass
population involved, the pricing is done keeping the middle class in mind.
• Place: Kathmandu Disneyland is established at the gateway to
Kathmandu with greenery, peace and nature surrounding it and hence,
making it an attractive destination for tourists.
• Promotions: Promotion of Kathmandu Disneyland is mainly holistic.
Disney’s products like movies are promoted through various media.
Likewise, Kathmandu Disneyland itself will be promoted through
advertisements, offers etc.
• People: People of Kathmandu Disneyland will be trained to be most
polite and most inclined towards their customers.
• Physical Evidence: The taglines of Disneyland as “the happiest place
on Earth” and “where dreams come true” are actually proved to be correct.
Kathmandu Disneyland will have small to small things which will make the
whole effect magical.

6.7. Sales Processes

Customers can also get tickets online along with booking facilities,
information and updates. Customers can also buy tickets at Disneyland
booths opened all over Kathmandu. Kathmandu Disneyland can also
research the records of customers to create a database of potential water
park users, theme park visitors, and riders at amusement park.

15 | P a g e
 6.8. Brand Strategy
Brand is a name, logo, symbol or design intended to identify the product or
services and to differentiate it from competitors. It is goodwill of the company.
Building a strong Company brand will require a coordination of many factors.
Initially, the Company will focus on several core elements that will help build
and strengthen the Backbone of the Disneyland brand:
Wholesome Family Entertainment: The name Disneylandwill be synonymous
with wholesome familyfun and entertainment.
Cleanliness: Disneyland will live up to the highest standards of
cleanlinessthroughout its facilities.
Gold Rush Theme: The Company will become known for providing Disneyland
Gold Rusheducational themed events and activities for parents and children.
Quality Attractions:Disneylandwill be known for the latest in water attractions,
rides at amusement park and new Disney themes at theme park.

7. Product and Service Design and Development Plan

This section shows the uniqueness of the products and services and convinces
the investors that the products and services will be successful in competitive
market. It includes the following:

7.1. Product Design

Product design refers to the design or appearance of product, its performance
standards, which materials to be used for its production and dimensions and
tolerances of it. Kathmandu Disneyland is a service providing business that
focuses on entertainment, however it also manufactures and maintains its’ rides
so, it can also be termed as a hybrid business. Products and service of
Kathmandu Disneyland can be studied under the headings of Theme Park,
Water Park, Resort and Amusement Park separately as follows:

Theme Park: Like most other Disney Lands around the world, Kathmandu
Disneyland will be built in a style similar to Disney’s other Magic Kingdom-style
parks. It will contain numerous themed lands as tomorrow land, fantasy land,
frontier land, new Orleans square etc. One of the aims of this project is to
combine Disney stories and their characters with attractions. An interactive
castle called Enchanted Storybook Castle will be constructed at the center of
the park that will offer performances. It also consists of a Disney theater that
costs $40,000 for construction.

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Resort: The resort will have 70 rooms and two swimming pools, a covered hall
for basketball, tennis, pool, and a spa room. The construction cost of adult
swimming pool is $35,000; kid’s swimming pool is $ 12,000; basketball court is
$10,000; tennis court is $10,000; snooker house is $1,000; spa room is
$15,000 and resort building is $200,000.

Water Park: The water park will have 6 slides in 2 big pools. Behind the slides
The Lazy River and The Wave Pool flows. Water Park also consists of children
pool having 3 small slides. It also consists of a lounging area, shower area and
changing rooms.

Amusement Park: The rides that will be available in Kathmandu Disneyland

are as follows:

No. Name Picture

1 Log Flumes- a log flume is a horizontal structure that has a
cavity for flowing water to carry lumber and logs and
generally spans a long distance.
Its manufacturing cost is estimated to be $20,000. Its covers
the area of 30*80 meters. It has the capacity of 6 people at a
time.
2 Ferris Wheels- an upright wheel with passenger gondolas
suspended from the rim. Its manufacturing cost is estimated
to be $25,000. It has the size of 80 feet diameter. It has the
capacity of 48 people at a time.

3 Drop Tower- it consist of a carriage attached to a tower.

The carriage is lifted, allowed to fall some distance and then
stopped with a brake. Its manufacturing cost is estimated to
be $25,000. It has the height of 30 feet. It has the capacity
of 12 people at a time.

4 Frisbee- it is based on the pendulum or pirate ship concept..

Its manufacturing cost is estimated to be $15,000. It has the
capacity of 20 people at a time.

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5 Gravitation- it involves fast rotations around an axis causing
riders within the rotating frame to feel centrifugal force. 4 Gs
are created which stick people to the walls of a saucer. The
walls are fitted with individual cushions for each rider, set on
sliders which move up and down at varying intervals,
depending on the weight of rider and the speed of the
gravitron.. Its manufacturing cost is estimated to be $12,000.
It covers the area of 60 feet diameter. It has the capacity of
25 people at a time.
6 Roller Coaster- it consist of railroad track that rises and
falls in specially designed patterns, sometimes with one or
more inversions that turn the rider briefly upside down. Its
manufacturing cost is estimated to be $55,000. The length
of roller coaster is 800 meters. It has the capacity of 40
people at a time.

7 The Zipper- it is a huge oval frame that spins like a ferries

wheel, with free- flipping cars attached to it that move
around the frame via pulleys.. Its manufacturing cost is
estimated to be $32,000. It has the capacity of 22 people at
a time.

8 Train Rides- it is a ground level, large scale model railway

that haul passengers. Its manufacturing cost is estimated to
be $55,000. Train tracks starts from amusement park and
moves around the boundary of theme park. Its track is 1200
meters long. It has the capacity of 50 people at a time.

9 Dark Rides- it is an indoor amusement ride consisting of a

vehicle travelling past animated scenes. Its manufacturing
cost is estimated to be $55,000. It covers the area of 60*10
meters. It has the capacity of 12 people.
10 Shoot The Chutes- it is a flat bottomed board that slides
down a flume into a lagoon. Its manufacturing cost is
estimated to be $35,000. It has the capacity of 15 people at
a time.
11 Break Dance- It rotates clockwise and anticlockwise with up
and down thrust as per the beats of music.. Its
manufacturing cost is estimated to be $25,000. It covers the
diameter of 60 feet. It has the capacity of 32 people at a
time.

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12 Bumper Boats - motor boats that can be manually
controlled by riders.. Its manufacturing cost is estimated to
be $30,000. There are 7 bumper boats, each of which has
capacity of two riders.

13 Bumper Cars- electrically driven cars that can be steered

by the riders in order to bump into each other. Its
manufacturing cost is estimated to be $30,000. It covers the
area of 2,000 sq ft. there are 9 bumper cars, each of which
capacity of 1 person has. 2 people can also ride in a single
car.

14 Carousel- it is a traditional ride with animals and cars on it,

which rotates in a clockwise direction. Its manufacturing cost
is estimated to be $15,000. It has the diameter of 70 feet. It
has the capacity of 20 riders.

15 Disk’ O- it consist of a disk shaped vehicle with around 15

seats which move up , down and in circular motion on the
track. Its manufacturing cost is estimated to be $20,000. It
has the capacity of 20 people.

16 Flow Rider- it is a water ski based ride. Its manufacturing

cost is estimated to be $35,000. It covers the area of 50*10
feet. It has the capacity of 4 to 6 riders.

17 Fire Ball- it consist of a coaster that moves fast around the

circular track. Its manufacturing cost is estimated to be
$20,000. It has the diameter of 100 feet. It has capacity of 5
person at a time.

18 Reverse Bungee- person, tied on elastic rope is thrown up

in the air with extreme force. Its manufacturing cost is
estimated to be $12,000. It has the capacity of 1 person at a
time.

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19 Mechanical Bull- person riding it is thrust hard in every
possible direction. Its manufacturing cost is estimated to be
$10,000. It has the capacity of 1 person at a time.

20 Screaming Swing- it is a swing based ride where the

swings literally comes to horizontal line. Its manufacturing
cost is estimated to be $30,000. It has the capacity of 10
people at a time.

21 Chairlift- it is a ropeway based ride connected with towers

all around the amusement park, where riders can enjoy the
scenery of the park. Its manufacturing cost is estimated to
be $60,000. It starts from the resort (which lies in the steep
hill) and all the way through theme park to the amusement
park. There are 20 chair lifts each of which has capacity of 2
people.
22 Lazy River- the river flows from resort all the way to water
park. Its manufacturing cost is estimated to be $40,000.

23 Evolution- the passenger boxes rotate where as the entire

ride revolves around the center. Its manufacturing cost is
estimated to be $35,000. It has the capacity of 40 people at
a time.

24 Star Flyer- it is a pendulum based ride where individual

seats rotates fast one direction. Its manufacturing cost is
estimated to be $25,000. It is 20 feet tall. It has the capacity
of 15 people at a time.

25 Wipe Out- it a traditional ride where the disk moves in all

direction giving the riders the thrill of roller coaster. Its
manufacturing cost is estimated to be $20,000. It has the
size of 30 feet in diameter. It has the capacity of 36 people
at a time.

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26 Tornado- it is a water based ride, where riders slide through
tunnel into a big cone which rotates like tornado. Its
manufacturing cost is estimated to be $20,000.

27 Teacups-it a traditional ride for kids which slowly rotates. Its

manufacturing cost is estimated to be $15,000. It covers the
area of 30 feet in diameter. It has capacity of 30 children.

28 Top Spin- the ride spins in one direction and the seats
adjusts as per the gravitational force. Its manufacturing cost
is estimated to be $25,000. It has the capacity of 20 people
at a time.

29 Sky Coaster- it is a roller coaster with track that rise high

and then falls. Its manufacturing cost is estimated to be
$35,000. It stands 60 feet tall. It has the capacity of 10
people at a time.

30 Hurricane- it rotates in extreme speed giving the riders the

feeling of hurricane. Its manufacturing cost is estimated to
be $35,000. It has the capacity of 12 people at a time.

31 Caterpillar- it is a ride for kids. Its manufacturing cost is

estimated to be $9,000. It has the size of 25 feet diameter. It
has the capacity of 15 children at a time.

32 Pirate Ship- the ship structured ride moves like a pendulum.

Its manufacturing cost is estimated to be $35,000. It has the
capacity of 40 people at a time.

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 33 Jamboree- the ride revolves around the center. Its
manufacturing cost is estimated to be $25,000. It has the
capacity of 32 people at a time.

7.2. Service Design

Service design is a form of conceptual design that involves the activity of
planning and organizing people, infrastructure, communication and material
components of a service in order to improve its quality and the interaction
between the service provider and its customers. A good service design provides
Kathmandu Disneyland a systematic and creative approach to:
• Meeting the rising needs and expectations of customers regarding
choice and quality
• Making use of the technological revolution, which has vastly
expanded the possibility for creating, delivering and consuming
services
• Fostering innovative social models and behaviors
• Addressing the pressing environmental, social and economic
challenges of sustainability

Service Strategy
As other Disneyland, Kathmandu Disneyland will also use 4 major strategies
that creates very loyal customers:

• All Theming, All the Time:It makes sure its Fantasyland cast members
don’t wander through Frontier land dressed in costumes with the wrong
theming. It pumps out scents for each ride—brine for Pirates of the
Caribbean, honey for Winnie-the-Pooh, and a cold, musty smell for the
Haunted Mansion. The car parks aren’t called A, B and C—instead
there’s Pumba Parking, the Mickey and Friends Parking Structure, and
Toy Story Parking.Similarly, the “business” areas of Disneyland like
loading zones are cleverly hidden in “offstage” areas. Cast members are
strictly forbidden to “remove their heads”. And of course, two Mickeys
are ever allowed to be in view at once, because there’s only one Mickey
Mouse.
• Immersion: Disney maintains constant interest by making sure there’s
always something else to notice. So, customers never get tired of visiting
Kathmandu Disneyland again and again.

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 • Everyone’s a Princess: Kathmandu Disneyland’s staffs do their best to
make sure every guest feel special. Cast members give children badges
and balloons at random; princesses stop to greet little girls dressed in
princess gear; guests are allowed to “captain” the Jungle Cruise or
riverboat.
• Mining the Mythos: Disneyland’s greatest product is its own mythology.
Even just having and telling the story of why you do what you do can be
a powerful way of developing customer loyalty. Disneyland does its best
to create a magical world. Even the trees that need cutting down are
switched during the night with fully grown replacements from Disney’s
nursery.

Service Delivery System

Running a successful service company should be synonymous with delivering
excelling service. The four key elements for successful service delivery system
are service culture, service quality; employee engagement and customer
experience which Kathmandu Disneyland will effectively execute.

8. Operations Plan
The Operational Plan is a plan for the implementation of strategies contained
within the Strategic Plan. The purpose of the Operational Plan is to provide
organization personnel with a clear picture of their tasks and responsibilities
in line with the goals and objectives contained within the Strategic Plan.

8.1. Operations Strategy

Companies should use their operations strengths as competitive weapons.
Most successful companies base their strategies on what they can do well;
their strategies are aligned with their operational strengths. Likewise,
Kathmandu Disneyland being a service oriented company focuses on Product
or Service Strategy to be competitive in market. Kathmandu Disneyland has
integrated the facilities of amusement park, Water Park, theme park and
resort at a single destination with more varieties of rides, products and better
services than any competitors in the market. It considers satisfied customers
as its’ main objective and put all its’ efforts on customer service.

8.2.Location Plan
Key to business success also lies in the selection of business location.
Location is very important aspect in economic analysis of any project as it
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 plays a vital role in continuing life of the business as in future. Following
things should be considered while making a location plan:
• Access to raw materials or products that aids in providing services
• Access to cheap and skilled labor market
• Access to customers/ market
• Access to infrastructures

Kathmandu Disneyland will be established in Thankot- 5, within the area of 98

hectares, in the midst of drinking water supplier, community forest, park and a
housing colony. The reasons for selecting this particular location are
highlighted below:
• Thankot is the gateway to Kathmandu. The proposed location has
access to Mahendra highway. So potential customers from inside and
outside the valley can easily travel there.
• Thankot is not very far from Balaju buspark, Kalanki bus station,
Thankot bus station and Gongabu buspark, which are the major bus
stations inside Kathmandu. Passengers who will take connecting bus
can go to Disneyland for few hours.
• Thankot is situated on the base of evergreen hills, so it never faces
water problem. Since water park is a huge part of Kathmandu
Disneyland, a place with easy water access is necessary.
• Thankot is a close destination for Kathmandu dwellers than Sanga
(Kathmandu fun valley).
• No other entertainment business that could be competitor of
Kathmandu Disneyland are found in Thankot.
• Another reason for selecting Thankot as the feasible location is
because of its suitable climate. Not too hot in summer and not too cold
in winter makes this location a better choice to carry out business
throughout the year.

8.3. Layout Plan

Layout of facilities inside the park is very essential for smooth operation of
business, customers comfort and better outlook. For the layout of facilities,
Kathmandu Disneyland hires professionals to plan a better layout. As per the
professional plan the theme park lies straight to the main entrance gate, water
park lies to the west, amusement park lies to the east and resort lies to the
north east of the premise. A brief idea about the layout plan can be reflected
in following figure:

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In the layout plan above, we can see that when customers initially enter through
the main entrance gate, they have option at the junction point to decide where
they want to go first- Amusement Park or Theme Park or Water Park or Resort.

Thus, fixed position layout decision is applied by the Kathmandu Disneyland.

All its plants are installed in a fixed position as indicated by the professional
designers. In order to make this work, required resources must be portable so
that they can be taken to the job for "on the spot" performance. Due to the
nature of the product Kathmandu Disneyland has little choice in the use of a
fixed-position layout. Disadvantages of such layout include:

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 • Space: For many fixed-position layouts, the work area may be crowded
so that little storage space is available. This also can cause material
handling problems.
• Administration: Oftentimes, the administrative burden is higher for
fixed-position layouts. The span of control can be narrow, and
coordination can be difficult, equipment handling cost might be high and
it might need huge amount of investments.

Layout Plan of Theme Park in Brief

Entire Disneyland theme park is surrounded by the railway tracks. The park
opens with Main Street, Adventureland, frontierland, Fantasyland,
Tomorrowland and New Orleans Square.

Main Street: It is the first area guests see when they enter the park ( if not
entering by monorail), and is how guests reach Central Plaza. Main Street is
the reminiscent of the Victorian period of America with the train station, town
square, movie theater, city hall, firehouse complete with a steam powered

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pump engine, emporium, shops, arcades, double-decker bus, other bits of
memorabilia. At the far end of Main Street is Sleeping Beauty Castle, the
Partners statue and the Central Plaza.

Adventureland: It is designed to recreate the feel of an exotic tropical place in

a far-off region of the world. It consist of remote jungles of Asia and Africa,
Temple of Forbidden Eye, Tarzan’s Tree house and Enchanted Tiki Room.

New Orleans Square: It is based on 19th century New Orleans. It is a home to

some of the park’s most popular attractions: Pirates of the Caribbean, Haunted
Mansion and Club 33.

Frontierland: It recreates the setting of pioneer days along the American

frontier. It includes Big Thunder Mountain Railroad, Mark Twain Riverboat,
Sailing Ship Columbia, Pirate’s Lair on Tom Sawyer Island, Golden Horseshoe
Saloon and an Old West style show palace.

Fantasyland: It includes Peter Pan’s Flight, Sleeping Beauty’s Castle, Alice’s

Wonderland and also include several attractions as dark rides, and King Arthur
Carousel.

Tomorrowland: The Tomorrowland attractions have been designed to give you

an opportunity to participate in adventures that are a living blueprint of our
future.Itsattractions include Space Mountain, the Disneyland Monorail
Tomorrowland Station, Astro Orbitor, Buzz Lightyear Astro Blasters and Finding.

Layout Plan of Water Park in Brief:

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 The main attraction of Water Park is its slides. In order to manage the crowd, 6
slides have been divided in 2 big pools. Behind the big slides is The Lazy River
and The Wave Pool. The children’s pool in the south also has 3 small slides.
Adult’s pool and Children pool is separated by The Lounging Area. The
Changing Rooms are situated besides the entrance gate of the Water Park.

Layout Plan of Amusement Park in Brief:

As soon as the guests enter the amusement park, the first thing they will see is
the kids’ rides, gift stalls and food court. The rides as Hurricane, Caterpillar,
Pirate Ship, Fire Ball, Disk’O, Screaming Swing, Gravitation, Mechanical Bull,
Carousel, Bumper Cars, Break-dance, The Zipper, Evolution, Star Flyer,
Teacups and Jamboree are arranged in serpentine layout format. The big
rides as Sky Coaster, Reverse Bungee, Roller Coaster, Frisbee, Drop Tower
and Ferris Wheels lie on the corners of the amusement park.

8.4. Capacity Plan

Capacity planning is the process of determining the production capacity
needed by an organization to meet changing demands for its products.
Kathmandu Disneyland is designed to handle massive crowds. It has been
assumed that Kathmandu Disneyland has the capacity to serve a maximum
of 15,000 customers per day. On busy days of Dashain, Tihar, New Year,
Christmas and Saturdays, when the crowds go crazy, the staffs have to be on
their best state to handle them and also provide the service they had wished.
Kathmandu Disneyland also maintains one weeks’ inventory such that it can
handle high inflow of customers and yet serve them with quality.

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8.5. Aggregate Planning
Aggregate planning is concerned with determining the quantity and timing of
production for the intermediate future, often from 6 to 18 months ahead.
In order to minimize costs, maximize customer services, minimize inventory
investment, minimize changes in production rate and maximize utilization of
plant and equipment Kathmandu Disneyland adopts following capacity
options:
• Hire and Lay off Workers: Hiring cost includes recruitment, screening, and
training to bring new workers “up to speed” and quality may suffer. So
Kathmandu Disneyland would rather hire and lay off workers as per the
need and train them appropriately.
• Overtime/ Slack Time: The normal work time as indicated by the
government is 8hrs, however, in case of more inflow or less in flow of
guests, Kathmandu Disneyland encourages workers for overtime.
• Part-time Workers: It costs less than regular workers in hourly wages and
fringe benefits. Part-time workers can be added or subtracted from the
workforce with greater ease than regular workers, giving companies greater
flexibility in adjusting the size of workforce.
• Inventories: Inventory can be built up during periods when production
capacity exceeds demand and drawn down in period when demand
exceeds capacity. Kathmandu Disneyland maintains right amount of weekly
inventories needed.
• Subcontracting: Subcontracting enables Kathmandu Disneyland to acquire
temporary capacity with great flexibility. It can subcontract or outsource
works to auditors, CA, highly qualified mechanical engineers etc.

8.6. Maintenance Plan

Safety of guests and staffs and protecting the physical assets and environment
is the major concern of Kathmandu Disneyland. In order to maintain safety, the
materials and processes used in building our attractions are specified by
engineering and industry standards. Since expensive and latest machineries
are used, it is important that preventive maintaining system is used to ensure
that the rides are mechanically and structurally sound. That is why our rigorous
maintenance efforts- which include thousands of hours of maintenance and
inspection each year- are an integral part of our daily routine.

Every night once the park closes, maintenance teams inspect each attraction.
Rides are not authorized for operation the next day until scheduled preventive
and corrective maintenance procedures have been performed. In addition to

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 these rightly inspections, ride vehicles are regularly taken out of operation for
scheduled service, where parts are inspected, tested, and replaced as needed.

This entire attraction- maintenance program is managed through a computer

based system (CAMM- Computer-Aided Maintenance Management) that tracks
daily, weekly, monthly and yearly maintenance requirement tools as work
orders and generates such work-management tools as work orders and
checklists. This system is an important resource designed to facilitate the
completion of maintenance activities on a timely basis.

8.7. Process Selection and Development

Process selection is a strategic level decision of selecting what kind of
production and service processes to have in the organization. In order to
provide efficient service, following two service process technology are used by
Kathmandu Disneyland:
• Consumer Contact Process Technology: Customer contact is very
much effective in service creation and consumption in Service Company.
Process of designing the service and consumption of service can be
developed through good consumer contact.
• Labor Intensive Service Process: Kathmandu Disneyland uses custom
shop service technology and professional services technology to identify
individual needs and preferences of customers and satisfy them.
8.8. Quality Management
Quality is the ability of products or services to consistently meet customers’
needs and expectations. Being a service oriented company Kathmandu
Disneyland’s main concern is to provide good and consistent quality in its
service. Consistent and excellent quality of Kathmandu Disneyland will not only
reduce costs, increase customer loyalty, improve productivity, improve
competitive ability, increase market share and net profit but also enhance
reputation and improves employee morale. In order to maintain quality, it
follows the concept of TQM (Total Quality Management).

TQM

Total quality management can be summarized as a management system for a

customer-focused organization that involves all employees in continual
improvement. It uses strategy, data, and effective communications to integrate
the quality discipline into the culture and activities of the organization. 8
principles of TQM that Kathmandu Disneyland follows are highlighted as
follows:

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 • Customer Focused: The customer ultimately determines the level of
quality. Therefore, it involves designing products or services that meet or
exceed the customer’s expectations. This involves the product itself, its
functionality, attributes, convenience and even the means by which the
information about a product is received by a client. Marketers of Kathmandu
Disneyland use a wide variety of media sources, like social networking,
email and even texting, to get the word out about its website.
• Total Employee Involvement: Employees are the ones who come in direct
contact with the guests so, Kathmandu Disneyland ensures total employee
involvement in achieving goals and business objectives. Total employee
commitment can only be obtained after fear has been driven from the
workplace, employee empowerment has occurred, and management has
provided the proper environment.
• Early Detection of Defects: TQM helps to identify the defects and stop and
rectify them before it produces another defective product or makes another
mistake in service delivery. Kathmandu Disneyland defines and measures
the performance and continuously monitors in order to detect unexpected
variation.
• Role of Top Management: Top management of Kathmandu Disneyland is
primarily responsible for ensuring that the company produces products of
superior quality. Top management creates an organizational structure, a
product design process and a process design process that facilitate the
production of products of superior quality.
• Strategic and Systematic Approach: A critical part of the management of
quality is the strategic and systematic approach to achieving an
organization’s vision, mission, and goals. This process, called strategic
planning or strategic management, includes the formulation of a strategic
plan that integrates quality as a core component.
• Continual Improvement: A major thrust of TQM is continual process
improvement. Continual improvement drives Kathmandu Disneyland to be
both analytical and creative in finding ways to become more competitive and
more effective at meeting stakeholder expectations. For this, the human
resource department of Kathmandu Disneyland is interested in making sure
employees are qualified , calls to the front desk are handled effectively, any
interruption to booking process will be quickly fixed, and improvements will
be made.
• Fact-based Decision Making: In order to know how well an organization is
performing, data on performance measures are necessary. TQM requires
that an organization continually collect and analyze data in order to improve

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 decision making accuracy, achieve consensus, and allow prediction based
on past history.
• Communications: During times of organizational change, as well as part of
day-to-day operation, effective communications plays a large part in
maintaining morale and in motivating employees at all levels.
Communications involve strategies, method, and timeliness.

8.9. Supply Chain Management

Supply chain management is one of the most important, strategic aspects of
operations management. A supply chain encompasses all activities associated
with the flow and transformation of goods and services from the raw materials
stages to the end user (customer), as well as the associated information flows.
In order to maintain quality at source, Kathmandu Disneyland must establish a
good long-term relationship with its suppliers. Following are the supply chain
strategies that Kathmandu Disneyland adopts:

• Negotiating with many suppliers and playing one suppliers against

another.
• Develop long term “partnering” relationships with a few suppliers to
satisfy the end customers.
• Form Keiretsu network where suppliers become a part of a company
coalition.
• Payment in cash on the due date to the suppliers.
• Be ready to pay more than the market price just so as to get good quality
products and services and be the first priority of the suppliers.

9. Management Team
Management team also known as senior management is generally a team of
individuals at the highest level of organizational management who have the
day-to-day responsibilities of managing a company or corporation.
Kathmandu Disneyland’s’ management team is well balanced in talents and
experience and is supported by a highly qualified Board of Advisors.
Management will be separated into the following categories:
Category Position Numbers
Senior management Board of directors 5
CEO 1
Operations department General manager 1
Asst. manager- resort 1
Asst. manager- amusement park 1

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 Asst. manager- water park 1
Asst. manager- theme park 1
Asst. manager- food court 1
Asst. manager- souvenir shop 1
Machine attendants ( rides) 33
Machine operators 33
Audio video technicians 6
Lighting and sound technicians 6
Attraction support staff 15
Marketing department General manager 1
Sales manager 4
Customer relation manager 4
Advertising and PR manager 1
Finance department Manager 4
Accountants 8
Cashiers 20
Disbursement officers 15
Security department Guards 25
CC camera operators 5
Repairs and maintenance Sanitary staffs 35
department Gardeners 10
Manager 1
Technicians 5
Human Resource Manager 1
department Asst. Manager- Personnel 1
Asst. Manager- HRD 1
Superintendents 6
Recruiting staffs 10
Production and Manager 2
Procurement Department Inventory controllers 4
Technicians 5
Procurement staffs 5
Food courts Manager 1
Cooks 20
Waiters 20
Sanitary maintainers 10
Cashiers 2
Gift stalls Manager 1
Sales man 30
Total 373

Board of Directors
The board of Kathmandu Disneyland Limited has a membership of 5 directors.
Chairmanship rotates annually among the directors.

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Chairman
Ms. Sushma Maharjan: Maharjan received a BBA degree in Shanker Dev
Campus, under Tribhuwan University. She further received her MBA in
Operations from California State University in Hayward.
Maharjan worked as a managing director for Hamro Bikas Bank in Nepal from
2012 to 2015. She is the pioneer of Kathmandu Disneyland who first introduced
and developed the concept of 4 in 1Entertainment Park in Nepal.

Members

Spencer Neumann: Chief Financial Officer and Executive Vice President,

Global Guest Experience, Walt Disney Parks & Resorts

William T. Ernest :President and Managing Director, Walt Disney Parks and
Resorts Asia

Jill Estorino: Executive Vice President, Global Marketing & Sales, Walt
Disney Parks & Resorts

Deepak Thapa: President and Managing Director, Hyaat Hotel and Resort.

Resume
SUSHMA MAHARJAN
TU Road, Kirtipur, Kathmandu
Ph :(977)9843333007
Sushma.maharjan44@gmail.com

Professional Summary
Responsible managing director proficient in operations analysis and control and
customer handeling. Passionate and motivated, with a drive for excellence. 4
years in managing director and 1 year in assistant customization manager
position.
Skills
• Judgment and Decision Maker • Foreign Language (Chinese)
• Proven Leader • Well Versed with New Technology
• Skilled Researcher • Operation and Control
• Quality Control Analysis • Critical Thinking
Experience
Assistant of Customization Department
Hong Kong Disneyland Mar 2015- Present

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 • Compose, type, and distribute meeting notes, routine correspondence,
or reports, such as presentations or expense, statistical, or monthly
reports.
• Arrange conference, meeting, or travel reservations for office personnel.
• Provide services to customers, such as order placement or account
information.
• Customization of Tomorrowland.

Managing Director

Hamro Bikas Bank- New Baneshor Apr 2012- Mar 2015

• Plan, direct, or coordinate the activities of workers in branches, offices,

or departments of establishments, such as branch banks, brokerage
firms, risk and insurance departments, or credit departments.
• Identify key risks and mitigating factors of potential investments, such as
asset types and values, legal and ownership structures, professional
reputations, customer bases, or industry segments.
• Conduct statistical analyses to quantify risk using statistical analysis
software or econometric models.
• Develop contingency plans to deal with emergencies.
• Approve, reject, or coordinate the approval or rejection of lines of credit
or commercial, real estate or personal loans.

Education

MBA: Finance Mar 2013

California State University, East Bay- Hayward, CA

BBA: Finance Feb 2010

Shanker Dev Campus (SDC) – Kathmandu, Nepal

Directors’ Responsibilities

Kathmandu Disneyland will be evaluated by their Board of Directors. They will

be responsible for recommendations to the operational director, the property
management company and the investors in the Kathmandu Disneyland. The
recommendations of the board will follow the outline below:

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 • Review income expense with the park recommendations to maximize the
net income.
• Review operational procedures that include safety, staffing, training, and
new revenue sources.
• Review the marketing plan recommendations and assist the operational
managers in selecting their target income and an overview of what they
would recommend to increase the number of admissions to the park.
• Ticket pricing.
• Concessions with comments on quality of food, pricing of food sales,
selection of menu and any additions or deletions to the food concession
menu.
• Review the country store operations, gross income, sale items, and make
recommendations to add or delete sale items that are carried by the
general store.
• Review all cash control, computer programs, and reporting procedures.
• Review Kathmandu Disneyland physical plant and make
recommendations for improvements and additional attractions.
• Review insurance and safety issues with the park to include evaluation of
each park component with regard to the number of injuries or incidents
with the park operations

CEO/Managing Director - Samuel Lau

Samuel Lau is responsible for managing the daily operations of Kathmandu

Disneyland to deliver magical memories that last a lifetime to guests from
different parts of the world, while driving business development. Sam brings
with him vast experience in master planning and integrated solutions for
business growth within and outside of Disney. Prior to this, Sam was Vice
President, Operations of Hong Kong Disneyland. His Disney career started in
2010, when he joined Walt Disney Resort in Florida as Vice President,
Transportation. He successfully led the team in safely delivering operational
excellence while increasing the capacity of the transit system and introducing
new technologies from the industry.

Vice President, Public Affairs - Linda Shrestha

Linda rejoined Kathmandu Disneyland as Vice President, Public Affairs, to

oversee government relations, external relations, community relations, media
relations and internal communications. Linda has a wealth of experience in
media, communications and government administration. Her previous
experience included Political Reporter, Kantipur News Editor and News Editor
of Kathmandu Post;

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Vice President, Operations - Peter Michelson

Peter serves as Vice President, Operations and is responsible for hotel

operations, food and beverage operations, merchandise and environmental
affairs. A seasoned hotelier with more than twenty five years of experience in
the industry, Peter has worked in various locations around the world including
England, Indonesia and Hong Kong.

Chief Financial Officer, Financial Management - Mariam IM

As Chief Financial Officer, Mariam is responsible for the overall financial

management of the Kathmandu Disneyland covering Financial Planning,
Treasury, Controllership, and Business Planning & Development. She also
oversees other key functions including Technology, Corporate Alliances and
Operating Participants as well as Sourcing, Procurement and Supply Chain.
She previously spent twelve years working at Hong Kong Disneyland from 2000
to 2012, during which she was instrumental in implementing systems and
processes in support of its Grand Opening.

Vice President, Sales and Distribution Marketing - Tanka Prasad Adhikari

Adhikari leads the sales functions of Kathmandu Disneyland and is responsible

for developing and implementing sales and related marketing strategies that
continue to deliver great business results. This includes oversight of travel trade
sales, digital business, Disney Youth Programs, Fairy Tale Weddings and
social catering, and marketing programs for these business units, and the
Disney Reservation Center. Prior to joining Kathmandu Disneyland, Adhikari
worked for the Nepal Tourism Board for 8 years.

Vice President, Human Resources - Alisha Kuwar

In her role as Vice President of Human Resources, Alisha is responsible for the
overall Human Resources strategy for Kathmandu Disneyland including
Compensation and Benefits, Staffing, Learning and Development, Human
Resources Services and Human Resources Systems. She was one of the first
Cast Member to be hired at Kathmandu Disneyland.

Director, Entertainment & Costuming - David Light

As Director, Entertainment & Costuming, David is responsible for all aspects of

development, production and operations for shows, events and costuming at
Kathmandu Disneyland. David leads the creative development, production,
show operations and entertainment services teams. Before joining Disney,
David was the founder and Executive Producer of his own company which was
established in 2009. His latest project was "Mamma Mia! China" and David was

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 responsible for producing the Chinese language version of "Mamma Mia!" on
behalf of the original producers.

Director, Creative Development and Show Quality, Walt Disney

Imagineering - Kelly Willis

Kelly provides overall creative direction for Kathmandu Disneyland, including all
attractions and guest areas. Collaborating with a whole manner of design
experts, Kelly works closely with the Kathmandu Disneyland operating teams to
create and maintain a magical experience for all the Resort's Guests. Prior to
joining Walt Disney Imagineering, Kelly established significant international
expertise working on a variety of entertainment developments, theme parks and
hotels in the US, Spain, India and Southeast Asia.

10. Financial Projection

Financial projection is a forecast of future revenues and expenses. Typically,
the projection will account for internal or historical data and will include a
prediction of external market factors.

Verification of revenues and income that could be expected is based upon

actual income figures from Kathmandu Fun Park and Kathmandu Fun Valley.
The expected income was derived from both the feasibility study and a
weighted average of Hong Kong Disneyland, which is the closest in size and
demographics to the Kathmandu Disneyland.

10.1. Revenue Projections

After analyzing the business environment and comparing the revenues of
competitors and other Disneyland, we can estimate the annual revenue
collected as follows:
Revenue Sources
S.N Particulars Yearly Estimated Yearly Estimated
Revenue in First 5 Revenue After 5
Years ( in Dollars) Years ( in Dollars)
1 Entry fees 8,000,000 18,000,000
2 Amusement park 115,600,000 190,000,000
3 Theme park 15,755,000 90,000,000
4 Water park 35,800,000 115,000,000
5 Resort 90,000,000 150,000,000
6 Stall rent 15,000,000 30,000,000
7 Weekend parties 10,000,000 20,000,000

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Total 290,155,000 613,000,000

Projected Revenues
200,000,000
180,000,000
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000 Yearly Estimated Revenue in First
60,000,000 5 Years ( in Dollars)
40,000,000
20,000,000 Yearly Estimated Revenue After 5
0 Years ( in Dollars)

We estimate the average annual revenue for first 5 years to be $290,155,000

and that for after 5 years to be $613,000,000.
For the first 5 years, $8,000,000 will be generated from entry fees. It includes
entry fees generated from main entrance gate, amusement park, theme park,
and Water Park. It also includes revenue gained from parking lot. Kathmandu
Disneyland will also be generating $115,600,000 from rides at amusement
park; $15,755,000 from theme park; $35,800,000 from rides at Water Park;
$90,000,000 from guest stay at resort; $15,000,000 as rent from gift and food
stalls and $10,000,000 from selling of tickets on weekend parties and movies.
After 5 years operation, the revenues are assumed to be tripled.

10.2. Projected Expenses

Expenses of Kathmandu Disneyland can be classified into payroll expenses,
operating expenses and capital expenses.
• Payroll Expenses
Payroll expense is the amount of salaries and wages paid to employees in
exchange for services rendered by them to a business.
Payroll Expenses
S.N Particulars Amount (in Dollars)
1 Labor 110,100,000
2 Managers 10,000,000
3 CEO 2,000,000
4 Technical manpower 1,900,000
Total 124,000,000

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 Yearly payroll expenses of Kathmandu Disneyland are assumed to be
$124,000,000. Salary to middle level and lower workers will range from Rs.10,
000 to Rs.50,000 depending on the features of their jobs, their experience on the
field and their skills. Total amount paid to the managers and assistant managers
of different departments sum up to $10,000,000. The CEO is paid $160,000 every
month with other fringe benefits. There are 22 technicians working for Kathmandu
Disneyland. Total of $1,900,000 is spent as payroll expense for them on yearly
basis.

• Operating Expenses

Operating expenses are cost associated with running a business’s core

operations on a daily basis. Some operating expenses of Kathmandu Disneyland
are as follows:

S.N Particulars Amount (in Dollars)

1 License fee 31,545

2 Utility deposit 48,000
3 Advertisement 2,820,000
4 Survey expenses 5,000
5 Load charges 705,000
6 Meter deposit 25,000
7 Telephone deposit 5,000
8 Water connection 18,000
9 Telephones 2,000
10 Contingency 655,000
11 Salary 124,000,000

97% of total operating expenses is the payroll expenses. Since Kathmandu

Disneyland is a service oriented organization, it’s obvious that it would spend
more on its employees, who are also the one to come in direct contact with the
guests. Kathmandu Disneyland overstaffed, overpaid, and over trained its crew to
other amusement parks for a superior experience.

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• Capital Expenses
Capital expenditure is the amount spent to acquire or improve a long term asset
such as equipment or buildings.

Capital Expenses
S.N Particulars Costs ( in Dollars)
1 Log flume ride 20,000
2 Ferris wheel 25,000
3 Drop tower 25,000
4 Frisbee 15,000
5 Gravitation 12,000
6 Roller coaster 55,000
7 The Zipper 32,000
8 Train ride 55,000
9 Dark rides 55,000
10 Shoot the chute 35,000
11 Break-dance 25,000
12 Bumper boats 30,000
13 Bumper cars 30,000
14 Carousel 15,000
15 Disk’ O 20,000
16 Flow rider 35,000
17 Fire ball 20,000
18 Reverse bungee 12,000
19 Mechanical bull 10,000
20 Screaming swing 30,000
21 Chairlift 60,000
22 Lazy river 40,000
23 Evolution 35,000
24 Star flyer 25,000
25 Wipe out 20,000
26 Tornado 20,000
27 Teacups 15,000
28 Top spin 25,000
29 Sky coaster 35,000
30 Hurricane 35,000
31 Caterpillar 9,000
32 Pirate ship 35,000
33 Jamboree 25,000
34 Adult swimming pool 35,000
35 Kids swimming pool 12,000
36 Basketball court 10,000
37 Tennis court 10,000

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 38 Pool 1000
39 Spa room 15,000
40 Resort building 200,000
41 Ticket counters 30,000
42 Rest rooms 12,000
43 Theater 40,000
44 Tunnel 50,000
45 Auditorium hall 80,000
46 Gate 900
47 Medical building 1,200
48 Food stalls 30,000
49 Kid section 50,000
50 Parking lot 40,000
51 Gift stalls 30,000
52 Store room / ware house 10,000
53 Land 45,000,000
54 Furniture and equipment 2,092,000
55 Generator 900,000

Above table shows the costs of manufacturing of rides, cost of land, construction of
buildings, purchase of furniture and equipments. Cost of manufacturing of rides
include cost of raw materials, salary to technicians and workers, lodging and
fooding cost of workers and cost of knots and bolts. Similarly, cost of construction
of buildings includes cost of cement, sand, rods, bricks, wood, glass etc and salary
to mason, carpenters etc. Likewise, Kathmandu Disneyland spends $2,092,000 on
furniture and equipments which includes purchase of computers, fans, water cooler/
heater, seats, tables and chairs, sofas and cupboards. Moreover, the cost of 1
ropani land in Thankot costs Rs.23,36,812, since, there are 19.65 ropani in 1
hectare and Kathmandu Disneyland occupies 98 hectares of land so, total cost of
land become $45,000,000 i.e.( $23,368.12 *19.65*98= $45,000,000).

10.3. Profit and Loss

A profit and loss statement is a financial statement that summarizes the
revenues, costs and expenses incurred during a specific period of time, usually a
fiscal quarter or a year. These records provide information about a company’s
ability – or lack thereof- to generate profit by increasing revenue, reducing costs,
or both.

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Particulars Amount (Dr) Particulars Amount (Cr)
Salaries and wages 124,000,000 Entry fees 8,000,000
Utility charges 48,000 Amusement park 115,600,000
Preliminary expenses 3,609,545 Theme park 15,755,000
Repairs and 1900,000 Water park 35,800,000
maintenance
Depreciation on assets 20,000,000 Resort 90,000,000
Audit fees 100,000 Parking fee 60,000
Interest 1,000,000 Stall rent 15,000,000
Advertisement 2,820,000 Weekend parties and 10,000,000
movies
Insurance 12,000,000
To balance c/d 124,737,455
Total 290,215,000 Total 290,215,000
By balance b/d 124,737,455
Kathmandu Disneyland will have a profit of $124,737,455 each year for the
first five years of operation.

10.4. Income Statement

An income statement is a financial statement that gives a summary of how the
business incurs its revenues and expenses over a specific accounting period.

Particulars Amount
Net sales 290,155,000
Less: Variables expenses
Salary 124,000,000
Bad debt 15,000
Fuel expenses 10,000
Electricity 60,000
Contribution margin 166,070,000
Less: fixed cost 1,556,100
EBIT 164,513,900
Less: Interest 1,000,000
EBT 163,513,900
Less: tax 100,000,000
EAT / NET INCOME 63,513,900
Less: dividend 12,000,000
Addition to Retained Earning 26,747,355
No. of shares 50,285
EPS 531.92
Kathmandu Disneyland will have net income of $63,513,900 every year for the
first five years. Shareholders will have earnings of $531.92 every year.

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 10.5. Balance Sheet
A balance sheet is a financial statement that summarizes a company’s assets,
liabilities and shareholder’s equity at a specific point of time.

Assets Amount Capital and Liabilities Amount

Fixed assets 45,000,000 Partner’s capital 50,285,000
Land 2,092,000 Reserve and surplus 150,000
Furniture and equipment 1,556,100 Term loan @10% 30,285,000
Building and construction 655,000 Accounts payable 60,000
Generator 900,000 Retained earning 26,747,355
Current assets
Cash in hand 60,000
Cash at bank 80,000
Receivables 30,000
Inventories 50,000
Preliminary expenses 3,609,545
Total 54,032,645 Total 54,032,645

10.6. Ratio Analysis

1) Current Ratio: The current ratio is a liquidity ratio that measures a company’s
ability to pay off its short-term liabilities with its current assets.
• Current Ratio = Current Assets / Current Liabilities
Current Assets= 3,829,545
Current Liabilities= 60,000
Current Ratio = 63.82

Therefore, current ratio of 63.82 means that Kathmandu Disneyland has 63.82
times more current asset than current liabilities.

2) Total Asset Turnover Ratio: Total Asset Turnover Ratio is measures the
overall utilization of firm’s total assets. A low ratio indicates that the company is
not generating an adequate volume of business for the size of its asset
investment. So increasing ratio is preferable.
• Total Asset Turnover Ratio = Sales/ Total Assets
Sales= 290,155,000
Total Assets = 54,032,645
Total Asset Turnover Ratio = 5.37

Therefore, total asset turnover ratio of 5.37 times indicates that the firm
generated $5.37 in sales for every $1 invested in total asset.

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 3) Debt Ratio: Debt ratio of a company shows the proportion of assets covered by
debt.
• Debt Ratio = Total debt / Total asset
Total debt = 30,285,000
Total asset = 54,032,645
Debt Ratio = 0.56

Therefore, debt ratio of 0.56 shows that every dollar of asset of Kathmandu
Disneyland is covered by $0.56 debt and $0.44 equity.

4) Return on Assets: Return on Asset is the profitability ratio that measures the
return on all the firm’s assets after interest and taxes.
• Return on Assets = Net Income / Total Assets
Net Income=63,513,900
Total Assets= 54,032,645
ROA= 1.175%

Therefore, ROA of 1.175% indicates that the company earned $0.01175 on

every $1 of assets.

5) Net Profit Margin: Net profit margin is a profitability ratio that measures the
amount of net income earned with each dollar of sales generated by comparing
the net income and net sales of a company.
• Net Profit Margin = Net Profit / Sales
Net Profit = 63,513,900
Sales= 290,155,000
Net Profit Margin= 0.2189

Therefore, profit margin of 0.2189 refers that Kathmandu Disneyland has the
profit of 21.89% of total sales.

6) Profitability Index: Profitability Index is the ratio of total present value and
initial outlay. Under PI technique, the project is accepted if its PI is more than 1.
• Profitability Index= Total Cash Inflow / Total Cash Outflow
Total Cash Inflow= 613,000,000
Total Cash Outflow = 194,305,645
Profitability Index = 3.15

Therefore, PI is greater than 1; hence Kathmandu Disneyland is a profitable

firm.

Therefore, through overall analysis, we can conclude that Kathmandu

Disneyland has a good future in Nepal.

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