Amusement Parks PDF

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AMUSEMENT PARKS Amusement parks are a $1.4 billion-dollar industry which has a 2.4% growth rate (IBISWorld, 2019).

Mikayla Clayton

INDUSTRY OPPORTUNITY ANALYSIS AMB207 Entertainment Marketing

N9921397 Tutor: Wayne Chalmers Tutorial: Tuesday 3 – 4pm Word Count: 1996

I. Executive Summary In a detail analysis of the Amusement Park industry a comprehensive understanding was reached. With a market so easily changed and developed there is always will be somewhere to improve and develop. Knowing the market and the consumer base that will help gage if the company is headed in the right direction. MovieWorld has several key opportunities for growth which is great because a company should never be complacent in todays society. Following the implementation strategies will ensure optimal success.

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II. Table of Contents I. EXECUTIVE SUMMARY ......................................................................................... 1 II. TABLE OF CONTENTS .......................................................................................... 2 1.1 PESTLE Analysis ........................................................................................................................................... 3 1.2 The 4 C’s ......................................................................................................................................................... 5 1.3 Content ............................................................................................................................................................ 6 1.4 Conduit ............................................................................................................................................................ 6 1.5 Consumption................................................................................................................................................... 7 1.6 Convergence .................................................................................................................................................. 7

2. TARGET AUDIENCE .............................................................................................. 8 2.1 Primary Target ................................................................................................................................................ 8 2.2 Secondary Target .......................................................................................................................................... 9

3. KEY OPPORTUNITIES IN THE INDUSTRY ........................................................10 3.1 Trends ............................................................................................................................................................ 10 3.3 Key Opportunities ........................................................................................................................................ 11

4. BRANDING AND POSITIONING STRATEGY ...................................................... 12 4.1 Branding ........................................................................................................................................................ 12 4.2 Competitor Analysis..................................................................................................................................... 12 4.3 Product Details ............................................................................................................................................. 13

5. IDEAS FOR THE FUTURE IMPLEMENTATION AND DEVELOPMENT ............. 14 5.1 Future Development (Broadening the Appeal) ....................................................................................... 14 5.2 Future Development (Advancing Website Interactions) ........................................................................ 15

6. REFERENCES ...................................................................................................... 16 7. APPENDIX ............................................................................................................ 18

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1. Industry Analysis 1.1 PESTLE Analysis Figure 1.1 Curated by Naomi Feeney (N9887890) & Mikayla Clayton (n9921397)

Trends/Issues Queensland’s major theme parks that invite the most revenue are owned by private parent companies. Dreamworld is owned by Ardent Leisure, now known as Main Event Entertainment (Mason,2018)

Political

The 2016 Dreamworld incident has kept workplace health and safety issues relevant in parliament with talks of regulations and audits to tighten over the next 5 years (Australia Associated Press, 2018).

The Australian Amusement Park Industry has generated total revenue of 1.4 billion and total profit $166.8 million dollars between 2014-2019 (IBISWorld, 2019, pg. 2) The declining at 0.4% but is set to grow in the next 5 years at 2.4% (IBISWorld, 2019, pg. 5)

Economical

Village Roadshow Limited is the leading Australian Amusement Park business conglomerate, accounting for 18% of the revenue in the last financial year (IBISWorld, 2019, pg. 23).

Implications Theme Parks in Queensland are required to undertake audits in a specific time frame, which has generated financial issues within the parent companies. This decision has not affected the tourism economy. This has positively affected the industry as it one of its success factors. Following the Dreamworld tragedy in October 2016, an inquest was carried out in 2018. With the results of this inquest due to be delivered in 2019, the final results will likely include recommendations for greater safety measures for amusement park operators in relation to rides and equipment. These recommendations may include additional staff training, more frequent ride maintenance, improved safety procedures and greater regulations related to daily amusement park operations. The Australian Amusement Park Industry, but more specifically MovieWorld, have been able to achieve these results by tailoring their marketing and experience to consumer needs (Clave, 2007). By adapting to the developing societal constructs of leisure and entertainment, theme parks have stayed relevant to Australian’s and the entertainment industry. (IBISWorld, 2019, pg. 23) Discretionary income is lowering as more consumers are inclined to save and will do so over the next 5 years (Letts, 2018).

Theme Parks have offered more discounted ticket prices and special deals to consumers which have increased their overall attraction and attendance.

Social

In 2016, Dreamworld’s Thunder River Rapid ride experienced a malfunction that killed 4

The Dreamworld incident negatively affected attendance from 2016 to present.

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adults and injured 2 children (Sibson, 2018) MovieWorld has had rollercoaster technical difficulties in the past 4 years, at times leaving patrons stuck for hours on a ride (Robertson, 2018).

According to the IBISWorld report (2019), technology has had a medium effect on the nationwide industry.

Technological

Disney Theme Parks are integrating technology to create seamless automotive processes for guests (Trefis Team & Great Speculations, 2017).

With each technical difficulty that each amusement park undergoes, more public scrutiny is applied, and interest dwindles. Amusement Parks have begun targeting their existing audience, offering discounted ticket prices and creating the dynamic relationship between events and entertainment as MovieWorld has increased their special event nights (fright night etc). Village Roadshow has partnered with Access Technology to provide queuing solutions to theme parks on the Gold Coast. This decision will provide an easy, holistic experience for guests to enter, queue and provide feedback while enjoying their experience.

In 2012, MovieWorld updated their cinema exhibitions to a higher standard of technological equipment (Village Road Show, 2017).

Legal

Environmental

Since the accident, the State Government has passed industrial manslaughter laws, which mean corporations can be held accountable for deaths on site (Stevenson & Burke, 2017).

This has specifically affected Dreamworld as the civil case continues.

QLD government begins taking action towards being more sustainable and environmentally friendly. Brisbane City Council enforces stricter cleanup rules and recycling plans, with the Gold Coast city council following.

The spatial relationships between the Queensland Theme Parks are designed to provide benefits to various sectors such as Queensland tourism, Australia's film and tv sector and boost consumer revenue. (Dodge, 2001) Village Roadshow theme parks on the gold coast have taken action on adhering to a regime that is sustainable and environmentally friendly (Village Roadshow, 2019)

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1.2 The 4 C’s Figure 1.2

Content

MovieWorld has a variety of different rides that cater for all age groups - Kids o Speedy Gonzales’ Tijuana Taxis o Sylvester’s Pounce’n’bound o Looney Tunes Carousel o Sylvester & Tweety Cages - Teens o Intencity Dodgems o Justice League 3d – The Ride o Scooby-Doo Spooky Coaster Next Generation o Batwing Spaceshot - Adult o Arkham Asylum Coaster o Dc Rivals Hypercoaster o Superman Escape o Doomsday Destroyer MovieWorld has live shows and entertainment for everyone in the family. - Film o Aquaman - The Exhibition o The Lego Movie 4d Experience - Live o Hollywood Stunt Driver 2 o Streets Star Parade o Jl 52 Batmobile o Looney Tunes Dance Party MovieWorld also has their specilatiy event nights e.g. Fright Night and White Christmas MovieWorld, 2019

Conduit

- MovieWorld constantly upgrades and does constant maintenance on all their attractions and entertainment. - An example would be the constant movie change they do for the 4D films, 4D films are an all-around experience and really take time to perfect and set up. The fact that they can change the experience smoothly means patrons and come back constantly and still see something different MovieWorld, 2019

Consumption

- MovieWorld sends surveys after various stages in the experience to gage how their consumers feel about the experience. o They send one after purchase of tickets and another after the experience - There Social media also interacts with their day-to-day consumers to answer all queries and also to give their

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consumers another form of entertainment MovieWorld, 2019

Convergence

- MovieWorld does recognise growing trends when it comes to technology changes and upgrades their two most notable examples are 1. Justice League 3d – The Ride o This ride adapts 3D technology and laser skirmish to make a fun and family friendly ride. 2. Arkham Asylum Coaster o This ride uses VR technology to create the aura of a spooky asylum that is the perfect thrill ride for teens and above. MovieWorld, 2019 & Burt, 2018

1.3 Content According to Lieberman and Esgate (2014) content is described as the end product, from its first idea conception to the ready end product to be delivered to the target consumers. For amusement parks there are many developed and refined pieces of content, the most obvious be the amusement park itself. Other forms of content include rides, shows and speciality events. Using Movie World as an example, they depict their rides, shows etc. after famous films and television series. Their most famous rides and attractions include Superman Escape, Hollywood Stunt Driver 2 show, Batman Spaceshot etc. (MovieWorld, 2019). They also have their special events – Fright Night and White Christmas - which are very popular amongst the consumers (Yates, 2013).

1.4 Conduit Documented by Lieberman and Esgate (2014), a conduit is the delivery of the content. Companies all over the world are redefining how content is delivered to the mass consumers, with ever-changing trends and technology companies need to ensure they are still engaging their consumers. MovieWorld has recognised this growing trend and started redefining the common ‘thrill ride’, a great example is when they introduced their ride ‘Justice League 3D – The Ride’. This ride is unique in the Australian Amusement Park Industry, this is not only a family fun ride it has also integrated laser tag into the ride to make a fun take on laser tag, this is changing the

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deliverance of traditional laser tag and also changing the constraints on what a typical ride should look like (MovieWorld, 2019).

1.5 Consumption Lieberman and Esgate (2014) then describes consumption as to how the consumers actually utilise the product. This means companies can analyse how their consumers engage with the content and how they feel about the content in the chosen conduit. Analysing consumption behaviour has always been important to companies, as it delivers valuable insight into what their consumers believe they are doing well as well as what the consumers believe they can improve (Rose, 2012). MovieWorld analyses their consumer's behaviour from their social media accounts, their consumers are always engaging with the accounts and making their needs and wants to be known to the company. As shown in Appendix A, MovieWorld has a reach of over 380 K of supporters across two platforms - Facebook and Instagram - this reach allows them to engage constantly with their target market. Through using these avenues, they created they can effectively gage how their consumers respond to elements of the amusement park and can plan changes to suit changes in consumer trends.

1.6 Convergence As explained by Liberman and Esgate (2014), convergence is making the industry more globalized through various forms of technology. Companies are making sure to improve their technology and stay on top of the trends to ensure their longevity. In the amusement park industry technology is upgraded and changed all the time, amusement parks have to ensure that they are developing with the trends to build their profit margins. The goal with developing new technology is that companies can target a wider market and bring more people in the door (Formica & Olsen, 1998). In terms, of MovieWorld they have made several advancements in technology via their rides and entertainment shows, for example they have a 3D thrill ride, which also uses laser technology to play a quick game or laser skirmish, another example is their Roxy Theatre where they show 4D movies which engages the audience and make an unforgettable experience (MovieWorld, 2019).

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2. Target Audience 2.1 Primary Target Figure 2.1

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Located in a drivable distance around MovieWorld Domestic Residents (IBISWorld, 2019, pg. 14) Urban

Demographic Segmentation

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Low to Mid Income Teenagers – Young Adults (17 – 22)

Psychographic Segmentation

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Thrill seekers Outdoors people Warner Bros Entertainment fans

Behavioural Segmentation

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Regular Park goers o Annual pass holders

Geographic Segmentation

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When researching the Australian Amusement park industry, it was found that 37.6% of the market was people aged 19 – 39 years of age who are Australian Domestic Residents, the second largest group was the 18 and under category with 28.7% (IBISWorld, 2019, pg. 15). Knowing this further research was done to see how these age segment viewed the market, using primary research (Shown in Appendix B) it clearly showed mixed opinions on the amusement park industry. This age viewed amusement parks as (a) they felt nostalgic and remember childhood memories attached to amusement parks, (b) they mostly felt uneasy about thrill rides due to safety concerns and (c) they wanted to improvement in more entertainment options e.g. Live shows and interactive characters. Using the primary and secondary research a clear target market was found. The primary target is pinpointing the teenagers and young adults because they (a) have the most amount of expendable time to attend amusement parks and (b) has a more disposable income (Elkins, 2019). Figure 2.1 showcases the characteristics that are the key focus for our primary target market. This age category continues to develop and have ever evolving needs and wants from the amusement park industry hence them being our primary target.

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2.2 Secondary Target Figure 2.2

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Located in a drivable distance around MovieWorld Domestic Residents (IBISWorld, 2019, pg. 14) Suburban

Demographic Segmentation

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Mid to High Income Families 4-person family (typically 2 parents and 2 kids)

Psychographic Segmentation

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Family time Working people

Behavioural Segmentation

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Regular park goers on weekend and school holidays o Family Annual Pass holders

Geographic Segmentation

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The secondary target is families because it is typical for parents to accompany their children/adolescents when visiting an amusement park. According to the Amusement Park Industry Report (2019) the age category of domestic residents aged 40 & over held the third highest score at 18.9%. It is important to note that according to Australian Institute of Family Studies, women aged ranging from 20 – 30 held the highest percentage for an age range (60.5%) for becoming new parents (Australian Institute of Family Studies, 2011). Due to this data adults responsible for a dependent child can also fall into the 19 – 39 age category as well which held 37.6% of the major market (IBISWorld, 2019). Due to this wide range of consumers, it is beneficial to target the family dynamic as well as our primary target because they go hand-in-hand with each other. Figure 2.2 showcases the key attributes in the family dynamic that is the main target.

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3. Key Opportunities in the Industry 3.1 Trends Just like any industry there is always going to be trends, trends are the next up and coming thing, it adapts, and changes based on new needs of the consumers. Companies need to ensure they are evolving their company with the trends to ensure they aren’t being left behind in the market (Formica & Olsen, 1998). A common external driver that evokes change in trends is technology upgrades, due to the high volume of development in technology companies which are creating the latest and greatest products to fit to the new needs of their consumers (Formica & Olsen, 1998). The SWOT below further unpacks MovieWorld’s key strength and weaknesses whilst recognising which areas they need to grow.

3.2 SWOT Analysis Figure 3.2

STRENGTHS: •

• • •

MovieWorld is close in proximity to the Gold Coast and other theme parks, which maximises attendance and revenue. MovieWorld learnt from Dreamworld’s mistakes of staying on top of audits and safety procedures. The speciality events that are hosted seasonally balance out the off-peak season. Movie World’s relationship with franchises makes them unique and is the foundation of a loyal fan base. Loyal consumers provide a steady revenue stream.

WEAKNESSES: • • • •

OPPORTUNITIES: • • •

Advance website interactions i.e day planners and superior ordering systems (Clark, 2017) Broadening the appeal of amusement parks to more consumers (Clark, 2017) Improving parks technology to offer wider experiences (Clark, 2017).

Growth profit margins are in decline, Village Roadshow is still in significant debt (IBISWorld, 2019) Their marketing tactics are old and outdated All theme parks have suffered d...