London Resort
Company Holdings has publicized that they are going to open a theme park, inspired
by Disneyland. They claim that it will be the “first of its kind” in the United
Kingdom. It will have many entertaining and attractive sections, like daytime
and nighttime parades, hotels for tourists to stay in, indoor entertainment, like
Disneyland, it will include character themed food items available for sale. As
for transportation methods the park will establish public footpaths, cycle
routes, to make it easier for the public. As well as having a massive car park space,
and providing a parking lot for coaches, motorcycles, and bicycles. As
wonderful as it may sound, the theme park business still needs to consider some
factors such as, pricing strategies will be used for the price of tickets, the
advantages to the economy of building such a large sight, how market
segmentation will be used, and how promoting the theme park is going to look
like.

 

The points
that were mentioned above are all valid, however, factors of demand should be
undertaken first. To continue with this, it should be noted down that the
upcoming theme park will require more jobs, increase local spending in the
country, and make the economy more productive. By using primary research, the
following points have been conducted regarding the soon to open park.

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Factors
that might influence demand for the new theme park

Demand is the
amount of a good or service that customers are willing to purchase at any given
price. The lower the prices, the higher the demand and vice versa. An increase
of jobs and more jobs created will act as a large portion of the demand levels.
Unemployed locals will have the chance to get jobs and contribute to the
production of the economy. This factor will accord to the increase of income to
the society. Functional needs will influence demand in a sense that, locals and
travellers would want to improve their daily activities, and they have the
power to, once the theme park opens. People will get to experience joy, relief,
and security in the theme park, and this is what emotional needs are. Consumers
may not head home with any tangible goods, but they are able to experience the
joy of the theme park. Once that message gets spread demand will increase,
especially to the consumers who want to feel good. Using penetration pricing,
and having low priced tickets at the start will increase demand for the theme
park. More on pricing tickets will be discussed.

 

How
LRCH will use market segmentation

Market
segmentation is a technique used in firms to enable them to target the right
products to its right customers. It involves identifying different wants and
needs of the different segments available in the market. London Resort Company
Holdings could divide their segments in four different ways which are,
geographic, demographic, psychographics, and usage rate. Geographic
segmentation is used when a business wants to target consumers worldwide and
encourage them to travel and visit their theme park. This can be done by online
advertising, radio advertising, and newspapers. Since the theme park is in the
UK, there are many cities that are hours away and so geographic segmentation is
used to bring those people to the theme park. Age, gender, and family status is
an important factor to commence. This is called demographic segmentation. LRCH
would target children aged 5-12 by having kiddy games and mascots of the
trendiest cartoon hanging around the site. The theme park said that they would
have a large theatre with 2000+ seats thus having an entertaining site for the
child if they get tired. Teenagers would be targeted by having games that would
give them an adrenaline rush and advertising it as a remarkable ride that is
impossible to forget. Parents would be targeted by having coffee shops, scarier
rides to go on, and spreading the message that it is a place of memories and a
way to make their kids happy. The advantages of having a segmented market would
be that the right factors being targeted at the right people will result in
customer satisfaction and often make them want to return to the theme park. It
also allows the business to create more rides and more products because they
know who to target and how, therefore would help them grow and create more
profit.

 

A coordinated marketing mix:

1-    
Pricing strategies
for tickets to the theme park.

There are quite
a few pricing strategies that can be used in the theme park, most commonly are
seasonal pricing, day-of-the-week pricing, and demand based pricing. However,
there are also other strategies that can be used for example, penetration
pricing which is when prices are set at a low base at the start of a newly
opened company and price skimming is the opposite and it is when prices are
high at the start of a newly launched firm or product and lowers the prices
over time. Seasonal pricing is charging different prices for tickets depending
on the seasons. For example, most tourists travel to the UK during the summer
time and so during the time, prices for entrance would be higher than usual
because more people would be there. Day-of-the-week pricing is like seasonal
pricing, although rather than setting different prices during different
seasons, it would be during the week. Monday-Thursday are weekdays therefore
prices would be a bit lower than if it were a weekend. Lastly, demand based
pricing is the most commonly used strategy. Reason being, consumers would pay
any price at such a high level of demand. LCRH should consider using demand
based pricing and seasonal pricing. Starting off by using demand based pricing
would result in the theme park making a large profit, because demand is high
for something that is brand new.

2-    
How above the line and under the
line methods could be used to promote the theme park in six months prior to its
opening.

Above the line promotion is used to target a mass
audience, mostly used to spread awareness and let people know about the new
upcoming business or in this case a theme park. LRCH can use above the line
promotion by hiring an advertising agency and have it on the behalf of the
company. Television, radios and the internet such as Instagram, Facebook, and
Snapchat could be used to promote the theme park six months prior. Am advantage
of using social media applications in these situations is that word online
spreads around fast resulting in people being aware of the theme park in a
faster time than usual and increasing the demand for it. Below the line
advertising is using mediums other than a radio. By using this type of
advertising, people who don’t use their televisions or phones much can be
informed about what is happening. This includes advertising on newspapers,
going from door to door and handing out flyers about the theme park, starting
campaigns, mails and emails. Below the line advertising is a cheaper way of
advertising compared to above the line. Using these methods, people locally and
globally will be made aware of the upcoming theme park.

 

Identification and analysis of the two most
important factors you think might affect the success of the theme park

It is important for LRCH to understand that as they
are a newly opening business they need to consider some factors so that they
can be successful. Firstly, the theme park should be built on a flat site
because they are easier to build on compared to lands that are on a mountain
and such, and less land will be lost if it were build on a flat site. Recognizing
the correct market and market segments is important for the theme park to
succeed because a successful park knows how to target their customers and make
them feel satisfied at their visit there. This can be done by the help of
market research. Most theme parks try to attract people that are away from 2
hours or so but with the help of above the line promotion they can also attract
people globally. Lastly, setting a good price is the key to having a successful
theme park. Customers want to be able to afford entering without a hassle and
so setting a fair and reasonable price. To conclude, price and market
segmentation are the two most important factors that I think will influence the
success of the theme park.