Day 3 Hw
Emerging Markets Spring 2013 Sarath Nonis CASE 3-2 Hong Kong Disneyland 1. What led to the eventual woes experienced by Hong Kong Disneyland in its first year of operation? How should Hong Kong Disneyland rectify its market situation? Cultural Adaptation: The Chinese did not easily connect with the characters in the park because they were unfamiliar with the product; they enjoy focusing on what they can buy, eat, and bring home, and taking pictures and bringing them back home rather than the experience of being in the place itself.
Chinese Tourist Behavior: Going to Hong Kong means a shopping experience, so they choose the cheaper one, which is Ocean Park; also, the Chinese people put a premium on education, where Ocean Park provides the educational slant. Relationship with Travel Agents: The Hong Kong Disneyland did not heed too much attention to building a relation- ship with the travel agents while Chinese tourists depend a lot on travel agents.
Thus, the best way for Hong Kong Disneyland is to determining differences in the Chinese culture and adopting it; to understand Chinese tourist behavior in depth, then to handle the pressures of local demand in terms of the need of Chinese shoppers and tourists; try to pay more attention to building a relationship with the travel agents. 2. To what extent could Hong Kong Disneyland adapt its product to Chinese consumers without diluting its image? Put more educational materials about its image. Taking photos with Donald Duck at the Hong Kong Disneyland.
Providing goods which are connected its image for tourist to buy as gifts to bring home. 3. How should Hong Kong Disneyland address competition? Expand the theme of the Hong Kong Disneyland; it should consider the culture and behaviors of Chinese. For example, connect the park theme with children’s education. Cut the price to make people think it is worth to pay. It should understand that travel agents are the most important sales channel in the mainland China. It is very popular in mainland China to provide a group discount.