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I.

Point of View

In this case, the group would take the point of view of the top
management/marketing manager. This is because the group thinks the top
management/marketing manager has the capacity to strategize and initiate the
necessary actions in this situation.

II. Market Situation Analysis

A. SWOT

a. Opportunities
- Visitors coming in groups could be corporate (handling company anniversaries,
parties, product launches, company and family outings, sport fests, wedding
receptions, birthday parties, concerts and fund-raising activities), travel (handling
tour groups), and school (handling educational field trips, graduation balls, and
prom nights)
- Majority of those who visited the park were young people between 13 to 29 years
of age.
- A big chunk of the park’s revenues came from its admission fees and retail
operations.
- Continuous demand for recreational activities
- People celebrate different occasions all throughout the year
- Increasing demand on semestral breaks and vacation of students
- People are attracted on buying group or corporate packages

b. Threats
- Precarious economic conditions (currency crisis) in late 1997
- Competition from other recreational establishments
- Fluctuating demand
- The Financial Crisis in Asia
- People began cutting “unnecessary expenses” including leisure expenses
- Fluctuating demands all throughout the year
- Negative responses of the disappointed customers
- Competition from other recreational establishments such as malls.

c. Strengths
- Pioneer theme park
- world-class themed leisure, recreation and entertainment
- Seven ‘fantastic’ theme zones
- Spacious land
- Accessible to public (close to Metro Manila)
- Rides imported from United States, Germany, and Japan.
- With musical entertainment (popular guest bands and in-house bands)
- With fireworks display every weekend
- Accredited with the International Theme Park Inc. (complied to international
safety standards)
- Highest standards in safety, services, products, facilities, and attractions
- Crew members trained in Disney, USA
- Allowed to speak only fluent English at all times for their target market-AB class
- Conducts regular survey among customers making prior ticket purchases
- Park was open year-round from Mondays to Sundays except Maundy Thursday
and Good Friday during Holy Week.
- Unlimited use of rides and attractions within the park
- Park owned food stalls and souvenir stores

d. Weaknesses
- Almost four years since it last introduced a new major ride or attraction (novelty
of the place started to wear off)
- Plunged attendance by 1997
- Maintenance made up the bulk of its expenses
- Usually took 30-40 minutes for the visitor to wait (waiting lines) for a major ride
during peak seasons because of overcrowding
- The park had to continue incurring fixed overhead costs to serve a very thin
crowd during lean months
- Late and/or absence of any sales blitz in the form of posters and flyers to
universities and colleges

B. Product Life Cycle

Introduction Upon opening, the EK started at high price yet the demand is
high
Growth There is an increasing trend for the demand since EK has been
well-publicized
Maturity There was a stable demand for some time then went down due
to critical events that took place
Decline The demand decreases after financial crisis and ineffective
publicity/promotion offers.

C. Target Market

The target market of Enchanted Kingdom mainly belongs to the AB class. After having
two critical events in 1997, the management decided to change their marketing
strategies, and targeted the general public like students, government workers, and
those who are planning to have parties/celebrations/tours.
D. Product Positioning

Enchanted Kingdom has positioned itself as a Philippine leader in world-class themed


leisure, recreation, and entertainment committed to provide guests of all ages a total and
unique experience of fun and enjoyment.

E. Current Marketing Mix or Marketing Strategies

a. Product
Enchanted Kingdom offers their customers a world-class magical experience of
entertainment and leisure through wide variety of good outlets, new rides and attractions
imported abroad, wide variety of food outlets, specialty shops, and video games center.
Visitors could also swing to the beat of live wire of musical entertainment from popular
guest bands and in-house bands. And fireworks display was available for public viewing
every weekend.

b. Physical Evidence
Enchanted Kingdom has distributed publication materials (i,e, print ads, poster, flyers)
for their services and discounts.

c. Place
The location is a 16.6 ha land quite accessible to the public because it was just 30km
away from Makati.

d. Promotion
1997 second half Price-decrease First time EK visitors were given lesser
of the year entrance fee on certain days and months
1997 April-May Twicket with Pepsi
1997 August CALABARZON promo
1997 August Government Promo An exclusive day was set aside for
employees of government institutions,
SSS, and GSIS. (100 entrance fee)
1997 September Magic Treat Promo
1998 April-May Barkada Treat Promo Summer vacation treat for students,
walk-in guests with big entrance fee
discount
1998 June- Government Promo and
September Calabarzon Promo
1998 Semestral Sembreak treat Promo For four tickets, two were given for free
break

e. Price
At first, the price was at high end (high price) then decreased subsequently following
several financial/economic crises.
f. Process management
How- To avail the service, EK has two customer segments. These include walk-ins and
those who pre-book their visits through the sales office as a group.
When- all throughout the year within specific days including peak and non-peak seasons
Where- EK entrance location and online pre-booking

g. People
Internal-employees (crew members and staff received service training from Disney USA
and are advised to speak in fluent English at all times.
External-customers (i.e. adults, children, senior citizens, students, government
employees)

III. The Case Problem

How does the top management/marketing manager of the Enchanted Kingdom even out
its demand throughout the year?

IV. Case Objective

This study aims to:

 To effectively formulate a strategy that would increase theme park


attendance
 To ensure theme park attendance even-out during peak and non-peak
seasons all through the year
 To increase the number of people going to the park despite financial crisis
and other challenges/threats both for the intended customers and the
management itself

V. Alternative Solutions to the Problem

Alternative Courses of Action

A. Addition of new major rides and attractions in the park.


B. Adjusting of prices depending on the season, month, day, or occasion.
C. Intensive Promotions during non-peak seasons

Alternative Pros Cons


A  Will encourage returning  Very costly
customers.  Impractical for the management
 Will attract more attendances due to financing and weak
and increase the demand for demand
the park  Doesn’t necessarily stabilize the
 Will increase the customer’s demand of the park.
satisfaction
 Will provide more thrilling and
exciting new rides
 Will provide more entertainment
options due to additional
attractions
B  Will increase demand during  Will require annual price planning
peak seasons due to changing circumstances in
 Will make the demand closely every season
the same all through the year  Will require the management to
 Will avoid overcrowding ensure just and fair discounts to
 Will attract celebrants for varying occasions
various occasions on varying
season
C  Will increase the people’s  Costly
awareness of the park  Doesn’t necessarily lead to
 Will attract more attendances customer satisfaction
 Will promote good image for the  Customer’s promotional needs
theme park vary from one type of customer to
 Will open possibilities for another
partnerships and collaborations  May not reach all the target
in exchange of services (i.e. customers
entrance tickets)
 Will stabilize demand during
non-peak seasons

VI. Recommendation

Based on the pros and cons table, alternative B is recommended. Prices will be adjusted
depending on the season, month, day, or occasion.

Implementation

Planning: Surveys and past records could determine the demand on certain
seasons, months, days or occasions and then develop a price index from the
demand records of the park.
· Implementation Proper: Advertise and disseminate information about the
new pricing scheme both online and offline. This will encourage visitors to go
to the park during lean seasons because of the low price and will even out
the number of visitors during its peak seasons.

· Control: The special prices during occasion or season will be advertised.


Price changes depending on the occasion or season will be continuously
advertised or disseminated all throughout the year. Surveys may also be
conducted to monitor the customer satisfaction.

VII. Proposed Strategies or Plans


a. Target Market

There is no need to change the target market since they were already adjusted to
the general public to meet greater demand.

b. Product Positioning

Though positioned as a world-class theme park, we will ensure that the park
would be also appealing to the masses. We would try to remove the notion that
the park is for the elites only.

c. Marketing Mix or Marketing Strategies

Short term Medium term Long term


Product Set-up attractions on strategic places Put up additional
rides and
entertainment
activities
Place Rent vacant lots to Utilize vacant lots
private
groups/establishments
Price Offer special prices on identified Standard pricing
occasions/celebrations and etc. for entrance
Promotion Provide pamphlets, posters, and other publicity Establish tie-ups
materials and souvenir items with other
companies/
individuals
Physical Provide publicity materials that are timely and updated; Provide bill
evidence boards and other big publications on strategic locations
People Train staff for management and service skill
Process Walk-ins Online booking
management
VIII. Future Trends

After intensive campaign on special prices at occasions, there will be an expected


increase in the number of customers. When the number of customers is equally
distributed all through the year, the management has to provide new entertainment rides
and attractions to sustain the demand.

IX. Contingency Plans

In case the first alternative failed, the second best alternative to be considered should be
Alternative C- increase publicity and promotions during non-peak seasons.

X. Marketing Management Lessons

- Incurred losses from the discounts could still be retrieved if the demand would be
made high and stable
- Intensive promotions would not be practical and necessary given the fact that EK
has an established reputation
- Discounts are attractive to customers.
Case 1
Enchanted Kingdom

Group 2 Members:

Abacan, Crispin Mahrion B.


Arcega, Diana Ruth R.
Bae, Chan Young
Balderia, Paolo G.
De Ocampo, Nasreen Joy L.
Espiritu, Rovil A.
Mojar, Alyssa Kaye S.

October 4, 2013

MGT 151-B
Prof. Nanette Aquino

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