Disney is breaking ground on its largest international theme park in Shanghai, China. The $3.6 billion resort will span 988 acres and aims to attract 15 million visitors annually by catering to Chinese culture rather than strictly importing Disney's American themes. This represents a major opportunity for Disney to establish its brand in China and tap into the country's growing middle class. However, Disney will need to learn from the smaller Hong Kong Disneyland's struggles to ensure its Shanghai park feels more "magical" and well-managed for Chinese guests.

1. A Whole New World
Disney Breaks Ground in Shanghai for Its Latest
Addition to the Disney Resorts

2. China
oLargest population
in the world.
o1.3 Billion People
o3rd Largest Country
o3.7 Million Sq.
Miles
oAmazing Terrain
• Forests
• Mountains
• Deserts
• Coastline

3. History/Culture
oYellow River is
said to be the
Cradle of Chinese
Civilization
oHistory of
Dynasties
oPeople’s Republic
of China est. in
1949
oHofstede’s Values

4. Business in China
Business and Economic
Political Risk
Climate
 Increasing Gov.  Fastest Growing
Restraints Economy
 Rising Labor Costs
 Indigenous Innovation
 Trade Barriers
 Change in Government
Officials
 Inability to Gain Access

5. Company Description
The Walt Disney Company
 Founded in 1921
 Produces and “unparalleled entertainment experiences based on the
rich legacy of quality creative content and exceptional storytelling”
Company Financials
• Gross profits in the year 2010 of $6.73 billion and
• Total assets of $70.95 billion

6. Disney Inc.
Walt Disney Studios
 Walt Disney Pictures, Touchstone Pictures, and Hollywood
Pictures
Consumer Products
 apparel, toys, home décor, books and magazines, interactive
games, foods and beverages, stationery, electronics, fine art
Media Networks
 Disney Channel, Radio Disney
Disneyland Theme parks and Resorts
 Imagineering

7. Disneyland Theme Parks and Resorts
The first Disneyland opened in 1955 in Anaheim,
California
5 Disneyland theme parks/resorts:
 Disneyland Resort, in Anaheim, California
 Walt Disney World Resort in Lake Buena Vista, Florida
 Tokyo Disney Resort
 Disneyland Resort Paris
 Hong Kong Disneyland
Disney Cruise Line, Vacation Club resorts,
Adventures by Disney

8. Demographics
Secondary Market
Primary Market (Youth) (parents/family)
 Age: 4-13  Age: 25- 65
 Gender: Male & Female
 Gender: Male &  Ethnicity: Chinese
Female
 Nationality: Chinese
 Social Class: Middle &
 Ethnicity: Chinese
Upper Class
 Local and Foreign
 Nationality: Chinese
Tourists

9. Psychographic Segmentation
Lifestyles Personalities
 Adventure Seekers  Imaginative
 Family Oriented  Youthful

10. Promotional Segmentation
Benefits Sought Product Usage
Segmentation Segmentation
 “Happiest Place on  Brand Loyalty
Earth”
 Entertainment
 Leisure  Rewards for “Heavy
 Thrill Users”:
 Disneyland Annual
 Outlet for imagination
Passholder Program
and Creativity
 Disney Rewards® Visa
 An escape from “Real
Card from Chase Bank
World”

11. International Marketing Strategy: Disney in
China
 Product Strategy: How to market Disney in a country
where the Disney brand is not deeply ingrained in the
culture
 Building Brand Image
 China has no Disney Channel
 Cheap knockoffs
 How Will They Do It?
 Creating a marketing strategy
that establishes the Disney brand
into Chinese culture

12. Why China?
 “China is one of the most dynamic, exciting and
important countries in the world”.
-Robert Iger, Walt Disney CEO
In Shanghai:
 “The Disney park would make this area into a whole
new world”.
-Cai, Local Resident of Chuansha

13. International Marketing Strategy: Disney
in China
 Pricing Strategy: How is Disney going to match their
costs with their revenue?
 Cost: Estimated to be $3.6 Billion
 Disney: 43% of the cost
 Shanghai Shendi Group: 57% of the cost
 Revenue: Estimated 15 Million guests per year
 China’s rising middle class
 Shanghai as China’s main financial and commercial center
 First year guest estimate is 7.3 Million

14. Hong Kong Disneyland
“The park is too small and there are no rides. Why on
earth would I want to go there? It is not fun.” Hong Kong Resident.
 Does not Cater to Chinese Culture
 Does not Own the Land
 No Emotional Connection to Visitors
 It is not “Magical”
 Poor Crowd Management

15. Ocean Park
 Established in 1977
 15th Largest Park Worldwide
 Excellent mix of education and fun
 Fantastic Sealife section
 Great rides
 Relatively short lines
 Competitive prices

16. Improvements
 Keeping Park Ideas Secret
 Larger Eating Areas
 Owns the Land
 Catering to Chinese Culture Rather than Disney’s
 Huge! 988 Acres
 Disneyland CA, 510 Acres
"Our Shanghai resort will be a
world-class family vacation
destination that combines classic
Disney characters and storytelling
with the uniqueness and beauty of China"
-Robert Iger, Walt Disney CEO

17. Thank You!