Marketing Strategies and Challenges: Disney Hong Kong Case Study

This case study examines the marketing strategies and challenges faced by Disney in launching its theme park in Hong Kong. The analysis covers the initial overview of the case, highlighting key marketing lessons such as the underestimation of the local market and the importance of understanding market dynamics. The study delves into Disney's services, assessing their appropriateness and areas for improvement, especially regarding cultural integration and environmental concerns. It then explores the relationship of these services to the market, contrasting them with competitors like Ocean Park. Furthermore, the assignment proposes a reinvention of Disney's product offering, including a SWOT analysis that identifies strengths, weaknesses, opportunities, and threats. The conclusion emphasizes the need for improved management, promotion, and communication strategies to ensure the long-term success of Disney's Hong Kong theme park, providing a comprehensive marketing perspective on the venture.

MARKETING AND MANAGEMENT

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Table of content
1. Overview 2
1.1 Describing the case study 2
1.2 Key lessons from the marketing point of view 2
2. Analysis 2
2.1 Main services 2
2.2 Appropriateness of services and ability to improve 3
2.3 Relation of service to the market 3
3. Reinventing product offering 3
3.1 SWOT analysis 4
4. Conclusion 5
Bibliography 6

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1. Overview
1.1 Describing the case study
As it is already known, Disney is the umbrella organisation which has given brands like the
Disneyland theme parks having outlets all around the world. In order to directly interact with the
fastest growing country, Disney had decided to open its theme park in Hong Kong. By
conducting overall analysis, it was concluded that Disneyland Hong Kong was sure to attract a
large crowd1. The Disneyland company had begun its operations in order to promote the
domestic tourism industry of Hong Kong as well as the economy After it was severely hit by the
Asian financial crisis. During its operations, Disney company faced challenges in terms of
integration of culture, environmental concerns and failure to appropriately analyse the Hong
Kong market.
1.2 Key lessons from the marketing point of view
By reviewing the case study it is easy to identify the critical issues that were associated with the
launching of the Hong Kong park. The first lessons were that Disney underestimated the
market. The local market of Hong Kong is very small in comparison to the wang dong province.
The foreigners are also present in Hong Kong without any visa issue. Another lesson that
surmised on the basis of the case study is the Disney was unable to understand the additional
market dynamics in addition to identifying the target demography. The most vital lesson that can
be considered by reviewing the case study is that the organisation required a large volume of
workers and continuously train them to make the park operational.
2. Analysis
2.1 Main services
The Hong Kong Disneyland offers entertainment and Hospitality Services the consumers. They
are also responsible for conducting in town check-ins, transportation as well as luggage
services and booking dining reservations. In order to promote customer satisfaction,
Disneyland also provides access to attractions for guests with disabilities2The company also
operates daily bus services so that interested consumers can easily access the theme park as
well as the resort. In order to improve guest relations, the customers can easily obtain the
important information related to park and resort by providing times guide and guide maps. In
order to provide excellent services to foreign customers, Disneyland company also operates of
foreign currency exchange.
1 Ahn, M.J. and McKercher, B., 2015. The effect of cultural distance on tourism: A study of international
visitors to Hong Kong. Asia Pacific Journal of Tourism Research, 20(1), pp.94-113.
2 (Agyeiwaah, Adongo, Dimache and Wondirad, 2016).

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2.2 Appropriateness of services and ability to improve
After its cultural debacle in France, the Hong Kong Disneyland understood the importance of
appreciating the local culture and in order to attract the local crowd, the Disney company
Incorporated certain elements of the Chinese culture into their theme parks. The arrangement of
the park has been done by keeping in mind the ancient Chinese views and complimenting the
visitors with the menu comprising of Western Commission as well as Chinese cuisines3. In order
to respect the local community and their beliefs, the Disney company also listed the help of
Feng Shui experts. The theme park also conducts nightly fireworks that emanate smoke which
is trapped in the most densely populated city in the world does raising concerns regarding
ventilation and clean air. The indifferent attitude of the government, as well as the Disneyland
company, has failed to take into consideration the environmental impacts in lieu of profit.
2.3 Relation of service to the market
Apart from Disneyland the only other theme park available in Hong Kong is Ocean Park. The
unique selling point of Ocean Park is providing adventure as well as exciting games to engage
teenagers. The Hong Kong Disneyland has a tendency to serve the customers with fantasy and
delivering impeccable service in regards to the fantasy4Disneyland is much more family oriented
and targets children. Also, the new policy condition allows several Chinese individuals to visit
the city of Hong Kong which can become a potential target for the company in the near future.
3. Reinventing product offering
The product offering of Disneyland Hong Kong includes advertisements, personal selling,
promotional sales, public relations as well as direct marketing. Disney has launched services
like holding marriage ceremonies and birthdays as personal selling. Disney always made use of
parrots, Fireworks as elastica collections for advertisement purposes5. In order to promote
sales, the Hong Kong Disneyland can make use of special events for attracting customers in
every season by donning the theme park with unique entertainment as well as special
decorations for celebrating the festival
3 Shoval, N. and McKercher, B., 2017. Implementation of tracking technologies for temporal and spatial
management of cultural destinations: Hong Kong as an example. In Enhancing Participation in the Arts in
the EU (pp. 281-294). Springer, Cham.
4 Yao, J. (2017, October). Research on marketing strategy: case study of Disneyland. In Second
International Conference On Economic and Business Management (FEBM 2017). Atlantis Press.
5 (Gigliotti, Russell and Gentry, 2016).

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3.1 SWOT analysis
Strength Weakness
The Hong Kong Disneyland provides the
customers with an exhaustive product mix
which helps the company to Cater to a wide
customer demography6. The company also
has a very strong brand recognition both
locally as well as internationally and enjoy a
high margin of profit in comparison to the
industry Rivals. The company is also very
good at implementing customer-driven
innovation and has a diverse revenue model.
The local Monopoly, as well as the unique
markets that can be exploited by Disneyland,
are disappearing fast which has resulted in
declining market share. This is complemented
with the high cost involved in replacing the
experts and very low Investments in aspects
of customer-oriented services7. The
operating, as well as the gross margin, is also
not very encouraging.
Opportunities Threats
Hong Kong Disneyland can benefit from
accelerated technological advancement and
innovations. It will be also benefited by the
Rapid expansion of the Chinese economy,
changes in customer preference, increasing
consumer base in the lower segment as well
as online opportunities8.
The most critical threat to Hong Kong
Disneyland is the commoditization of
products, oversaturation in the urban market
space and complete stagnation in the rural
markets. The terse trade relations between
the US and China complemented by distrust
in Institutions can be considered a significant
threat to the operation of Hong Kong
Disneyland.
6 Robert, O.S.E.I. and CHAN, A.P., 2018. COMPARATIVE STUDY OF
GOVERNMENTS’REASONS/MOTIVATIONS FOR ADOPTING PUBLIC-PRIVATE PARTNERSHIP
POLICY IN DEVELOPING AND DEVELOPED ECONOMIES/COUNTRIES.
7 Cheung, M. and McCarthy, W., 2019. “Authentically Disney, distinctly Chinese” and faintly American:
The emotional branding of Disneyland in Shanghai. Semiotica, 2019(226), pp.107-133.
8 Giroux, H.A. and Pollock, G., 2018. Is Disney good for your kids? How corporate media shape youth
identity in the Digital Age. In Kinderculture (pp. 73-92). Routledge.

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4. Conclusion
The Hong Kong Disneyland has been improving at snail's pace due to inefficiency in
management of the Hong Kong government as well as the Disney company. It is necessary to
actively promote the services and activity is offered by the company in the domestic as well as
international market. In order to sustain in the Hong Kong market, the company needs to
upgrade the projects, undertake extensive decisions and implement appropriate communication
strategies.

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Bibliography
1. Ahn, M.J. and McKercher, B., 2015. The effect of cultural distance on tourism: A study of
international visitors to Hong Kong. Asia Pacific Journal of Tourism Research, 20(1), pp.94-113.
2. Agyeiwaah, E., Adongo, R., Dimache, A. and Wondirad, A., 2016. Make a customer, not a sale:
Tourist satisfaction in Hong Kong. Tourism Management, 57, pp.68-79.
3. Shoval, N. and McKercher, B., 2017. Implementation of tracking technologies for temporal and
spatial management of cultural destinations: Hong Kong as an example. In Enhancing
Participation in the Arts in the EU (pp. 281-294). Springer, Cham.
4. Yao, J. (2017, October). Research on marketing strategy: case study of Disneyland. In Second
International Conference On Economic and Business Management (FEBM 2017). Atlantis Press.
5. Gigliotti, R., Russell, A. and Gentry, R.J., 2016. It's a small world: Worldwide declining attendance
and disney theme parks. SAGE Publications: SAGE Business Cases Originals.
6. Robert, O.S.E.I. and CHAN, A.P., 2018. COMPARATIVE STUDY OF
GOVERNMENTS’REASONS/MOTIVATIONS FOR ADOPTING PUBLIC-PRIVATE
PARTNERSHIP POLICY IN DEVELOPING AND DEVELOPED ECONOMIES/COUNTRIES.
7. Cheung, M. and McCarthy, W., 2019. “Authentically Disney, distinctly Chinese” and faintly
American: The emotional branding of Disneyland in Shanghai. Semiotica, 2019(226), pp.107-133.
8. Giroux, H.A. and Pollock, G., 2018. Is Disney good for your kids? How corporate media shape
youth identity in the Digital Age. In Kinderculture (pp. 73-92). Routledge.