Enchanted Kingdom:
The Magic is Here

I. POINT OF VIEW
The point of view of the marketing manager is the one taken since he is the one responsible on situations concerning demands.

II. MARKET SITUATION ANALYSIS

SWOT ANALYSIS
Strengths
• It is the pioneer theme park in the country boasting seven fantastic theme zones and imported rides and attractions.
• Aside from its 21 rides and attractions, all of which are imported from the United States, Germany, and Japan, there was a wide variety of food outlets, specialty shops, and video game centers in Enchanted Kingdom.
• Enchanted Kingdom has some musical entertainment too. Visitors could also swing to the beat of live-wire musical entertainment from popular guest bands and in-house bands, performing regularly at the bandstand.
• To cap the magical experience, there was also a spectacular fireworks display every weekend which gives them an edge among competitors.
• It is accredited by the International Theme Park Inc.
• All its crew members received “service” training from Disney, USA.
• Its 16.6 hectare land was not only spacious but also accessible.

Weaknesses
• EK cannot add new rides and attractions to maintain the charm and to sustain the viability of the theme park because of tight financing and weak demand.
• Theme parks are easily affected by economic conditions.
• Enchanted Kingdom and other theme parks experience seasonal demands.

Opportunities
• Despite the high admission price and with barely two years from its public launching, Enchanted Kingdom enjoyed healthy attendance. Therefore, they have an opportunity to further improve their theme park since it is shown that people are willing to pay.

Threats
• Due to the ensuing economic downturn, people faced with uncertainties and difficulties let go of unnecessary expenses such as leisure spending.

TARGET MARKETS Enchanted Kingdom was created to give the Filipino public a taste of a world-class theme park especially those in the AB social class.
Enchanted Kingdom was projecting an imported image; targeting those who belong to the AB Social Class. With that being said, it is expected to carry out high class services to fulfill the expectations of their target market.

POSITIONING
EK positions its theme park services as one with a world-class experience. Having been accredited with the International Theme Park Inc., it boasts an imported image and quality safety to its customers.

CURRENT MARKETING MIX
Product
Enchanted Kingdom offers a variety of rides and attractions that is different to other theme parks, recreational parks, and other local carnival operators. It has 7 theme zones with 21 different rides and attractions, food outlets, specialty stores and videogame centers.

Price
Prices may vary depending on the type of package visitors are going to purchase. There are two kinds of School package, first is the Edutainment. It is a guided tour of the park, where the students travel around the place while acquiring knowledge from various topics in Math, Science and History. The cost rate of this package depends on the type of school; for Public Schools (Pre-school to High School), tickets are priced at P150 (student) and P180 (parent) from Wednesdays to Thursdays, P200 (student) and P220 (parent) from Fridays to Sundays, with a maximum of 50 students good for a whole day trip – for every 25 paying students, one who Free of Charge (FOC). Private School Rate (Pre-school to College Level) are as follows: P180 (student) and P180 (parent) from Wednesdays to Thursdays, P250 (student) and P270 (parent) from Fridays to Sundays, with a maximum of 30 students good for a whole day trip – for every 10 paying students, one who Free of Charge (FOC).
The second package is the Discover EK Pass, where EK experience is the main part of the trip. There are 3 choices to choose from for a minimum of 50 students; EK2, EK4 and Special EK4. The price rate of EK2 is P140 (student) and P160 (parent) from 3-5 pm, P160 (student) and P180 (parent) from 1-5 pm for EK4, both can be enjoyed every Wednesdays and Thursdays. For Special EK 4 price rates are P180 (student) and P200 (parent) for 5 hours during Fridays and Saturdays. For every 50 paying students, one is FOC (Pre-school to High School).
Another package is the Travel Agent’s Package. For 1-299 Pax there are 2 complimentary tickets per 15 paying guests, 3 complimentary tickets for a Pax of 300-499, 4 for 500-799 Pax and 5 for 800 Pax and above, each with a 10% discount rate.
Place
EK is located in Sta. Rosa Laguna, which are 30-kilometers away from Makati City.

Promotion
Enchanted Kingdom is infrequently advertised on televisions and there are hardly any posters or fliers being spread around for the theme park’s promotion.

People
EK’s crews, its current and potential customers, and its sponsors. The people who visit the theme park are part of the park’s atmosphere. Usually, EK targets students on field trip or foreigners from different countries to enjoy their wide variety of offering and have a magical experience.

Process Management
EK’s customers purchase a magical experience. Some may able to reserve tickets and pay later or some may purchase tickets on the spot (walk-ins) by directly going to their ticket booth and go straight inside the theme park.
Visitors will be given sticker bracelets indicating the package that they availed. They will show this to EK crews to be able to experience the rides.
Inside EK are specialty stores where visitors can purchase souvenirs. They can choose from a variety of choices and pay them at the counters.
For their food outlets, the customer’s orders will be taken by food outlet crews, prepare their orders, give the food and take their payments. Other food outlets will let the customer to sit and wait for their order and serve them when ready.

Physical Evidences
The essential evidence includes the rides, souvenir shops, video games, food outlets, and crew services. Peripheral evidences are the staff uniform, music,

Strength
1. Wide Variety of rides and attractions.
2. Accessible location.
3. Relatively low price and good discounts.
4. Broad target market.
5. Theme parks are not a seasonal demand, customers may visit anytime of the year.
Weakness
1. Long lines of visitors due to low price, causing customer dissatisfaction.
2. Lack of promotional strategies to make people be aware of the business.
3. Rides cannot accommodate all visitors.
III. CASE PROBLEM

How would Enchanted Kingdom (EK) boost its park attendance while effectively leveling out its demand throughout the year?

IV. CASE OBJECTIVES

1. To formulate a marketing mix that can increase EK’s park attendance;
2. To help EK management come-up with ideas on how to manage seasonality of its demand;
3. To provide suggestions on how to fully satisfy EK’s customers.

V. ALTERNATIVE SOLUTIONS TO THE PROBLEM

A. For a certain consecutive off peak months, tie-up with well known product brands (i.e. Coca-Cola) for promotion. This particular promo with Coca-Cola would be available only within NCR and CALABARZON areas. Increase the price during peak seasons.

PRO(S) CON(S)
• Due to Coke being a well-known brand with a wide consumer market, the people will be aware of E.K. and will most likely avail the rare opportunity of going to E.K. for free. • There is no assurance if Coca-Cola will accept the business deal.
• Short-term only

B. Reduce the entrance rates while conducting extensive timely advertisements during off-peak seasons (i.e. numerous flyers and posters in schools) about their monthly theme promotions. On the other hand, increase the price rates and remove promotions during peak seasons. Apply significant principles of Queuing Psychology in order to satisfy customers in waiting lines (i.e. make the waiting a part of the fun and of the service).

PROS CONS
• Customers will not be bored while waiting, thus; customer satisfaction will increase.
• Can bring good long-term effects to the EK’s image
• Extensive advertisements in colleges and universities will help capture potential customers. • Will entail added cost

C. Invest in another activity that is most likely to generate profits. Subsequently, the profits gained in that investment would be used as capital for the addition of new rides and attractions that would bring back the appeal of the park. Flexible pricing will still be pursued: high price rates during peak seasons and lower price rates during off-peak seasons.

PROS CONS
• The need for additional rides and attractions will be resolved.
• People will be enticed to visit EK because of the added rides and attractions. • Risky because, given the existing economic crisis, returns on investment is not assured.

In evaluating the alternatives, the following criteria with its respective rating equivalents were used: Acceptability to Management:
1-least acceptable
2-less acceptable
3-moderately acceptable
4-acceptable
5-most acceptable.
Ease of Implementation:
1-very difficult
2-difficult
3-moderately easy
4-easy
5-easiest

Cost of Implementation:
1-very costly
2-costly
3-moderately costly
4-less costly
5-least costly Benefits: 1-not beneficial 2-less beneficial 3-moderately beneficial 4-beneficial 5-most beneficial

Acceptability to Management Ease of Implementation Cost of Implementation Benefits TOTAL
A 4 4 4 3 15
B 5 4 4 5 18
C 3 3 2 4 12

VI. RECOMMENDATION
After evaluating the alternatives, alternative number one (B) is chosen.

B. Reduce the entrance rates while conducting extensive timely advertisements during off-peak seasons (i.e. numerous flyers and posters in schools) about their monthly theme promotions. On the other hand, increase the price rates and reduce promotions during peak seasons. Apply significant principles of Queuing Psychology in order to satisfy customers in waiting lines (i.e. make the waiting a part of the fun and of the service).

The monthly theme promotions they have developed will be continuously implemented but this time, with numerous and well-timed flyers and posters to universities and colleges.

Enchanted Kingdom should utilize the principles under the discipline of Queuing Psychology—make the line itself entertaining, keep people occupied—by doing any or a combination of the following:

• For customers to not complain waiting in lines, all waiting line areas should have a roof with a nearby wall. Attached to the walls are huge mirrors. In Queuing Psychology, it is affirmed that looking at mirrors keep people occupied, thus; there is a feeling of reduced waiting time. According to David Maister, a former professor at Harvard Business School, the natural tendency of people to check their appearances considerably brings reduced complaints, although the actual waiting time was unchanged.
• Use clever technology to make the line entertaining through cameras with large screens that allow customers to see themselves and make fun of their images.
• Place signs that let visitors know the approximate wait times for every ride and attraction. In this way, expectations of visitors can be managed. As quoted by A. Pawlowski of CNN,
“A sign may say the expected wait time is 40 minutes, when in reality it's half an hour, thus making people feel good about the final outcome.”
• Have the visitors waiting in lines be entertained by characters in costumes to ensure positive emotions. Human emotions are said to be contagious and dominate everything else.

VII. PROPOSED STRATEGIES OR PLANS

Product/Service
There will no changes in the rides and attractions offered.

Price
Flexible pricing will be employed, depending on the season.

Place
No expansion will be carried out. Develop the place by focusing on repairs and modifications needed. The place will also be improved because of the added structures designed to reduce complaints in waiting lines.

Promotion
During off-peak seasons, the monthly theme promotions they have formulated will be pursued (i.e. Government Promo, CALABARZON promo, etc.). To strongly support the theme promotions, extensive advertisements will be carried out through distributing numerous flyers and posters to schools.

No promotions will be employed during peak seasons to take control of overfull demands.

People
The employees should always think about the safety and satisfaction of the customers. In addition, they should always bear a smile on their faces in dealing with their customers. Employees should at least possess a pleasing personality so that customers will be encouraged to appreciate the service and come back. A paging facility should also be made available in case children lost their way around the theme park.

Process Management
Service should start immediately when the customers are positioned in waiting lines. The waiting lines should be filled with fun in order to relax and entertain the waiting customers.

Physical Evidence
The food services that EK provides must always be safe and follow good sanitary practices. The employees’ uniforms should connote colors of joy.

VIII. FUTURE TRENDS
It is expected that in the future, there would be a high possibility of a decline in amusement industry since: 1) there would be more intense competition with other theme/amusement parks, zoos, and even other countries that serve as tourist destinations, 2) many people have already been to a theme park so new attractions are really needed to entice the customers to come back 3) the economy of the Philippines is still not expected to grow vastly in the future affecting the purchasing power of the possible customers. A decline is expected in the future but this can be prevented if an excellent strategy is imposed.

IX. CONTINGENCY PLANS
In case Alternative A failed, Alternative C would be considered and implemented. EK will ask Coca-Cola for sponsorship. Coke is chosen as medium of association because many people consume Coke. Coca-Cola will be urged by EK management to conduct promos in its Coke brand with trip to EK as a prize. Demarketing through decreased price rates and promotions will be conducted during peak seasons.

X. MARKETING MANAGEMENT LESSONS
• As much as possible, do not let customers wait too long for the service to be rendered. Long waiting time irritates customers and might give them a general negative impression about the service establishment.
• Information campaign through advertisements is a critical step in promoting services. Dissemination of advertisements should be done on time.
• Engaging in a business activity with a seasonal demand requires a lot of creativity to attract customers in order for the business to survive and last long.