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					Madame Tussauds
    Orlando

  Presented by:
     Kozeta Tashuli
     Edy Pietraszko
     Amit Kakkar
               Layout
•   Objective
•   Place
•   Product
•   SLEPT Analysis
•   Market Research
•   Joint Venture
•   Location
•   The 3 C’s
•   Price
•   Rest of 7 P’s
•   Questions
           Objective
To open a Madame Tussauds in Orlando
Florida by May 2006. We plan to break
even and start profiting by May 2007 and by
May 2008 to have increased our profits to
25-40% of total revenue.
We will reach these objectives by providing
excellent customer service, quality
entertainment that exceeds customer’s
expectations, while offering superior return
on investment for our stakeholders.
              Product

• Service of Entertainment
    – Wax figures
•   Professional Photographs
•   Wax hand replicas
•   Snacks and Refreshments
•   Gift Shop / Memorabilia
               Place
Anaheim, California USA
• Anaheim receives a much smaller national
  percentage (1.8 %) than Orlando (~11%) of
  the Nation’s visitors
• Madame Tussauds Las Vegas
• Hollywood competition
• Anaheim has numerous theme parks such
  as Disney World & Adventure City
                   Place
• Philadelphia, PA USA
• Philadelphia earns $4 billion in visitor profits vs.
  Orlando’s $35 billion
• Lower Number of tourists than Orlando $2 million
  in Philadelphia vs. $45-50 million in Orlando
• New York Madame Tussauds
• Philadelphia does not have empty space to
  accommodate Madame Tussauds
• Local competition such as Museum of Art, Penn’s
  Landing, Liberty Bell, The National Constitution
  Center
              Place
•   Other Locations Considered
•   China
•   Russia
•   France
              Place
• Orlando, FL USA
• 45-50 million tourists annually
• Close proximity to Walt Disney World
  & Orlando International Airport
• Young well educated population &
  newcomers
• Famous for film production (ex. Blair
  Witch Project)
                    SLEPT Analysis:
                    Orlando Visitors
                      Orlando Tourism by Season



 30%


 25%


 20%


% 15%


 10%


  5%


  0%
        Jan.-Mar.      Apr.-May            Jun.-Aug.   Sep.-Dec.
                                  Months
       Social Aspects
• Orlando Visitors and Population earn
  approximately $50k-75k annually
• Marketing campaign by Orlando
  tourism officials
• Large contingent of international
  newcomers from Great Britain,
  Southeast Asia and South America
             Legal
• Comply with international and
  domestic Florida law
• Legal Department headquarters
• Receive appropriate permissions for
  building
• Comply with copyright laws
     Economic Factors
• Orlando has median household
  income is $44,179
• Tourism contributes the most to the
  city revenue
• Credits against sales tax for job
  creation
           Politics
State of Florida and American Politics
do not represent a barrier for our joint-
venture with Walt Disney.
        Technological
• Similar to our other International
  Locations
• Open airy rooms for construction of
  wax figures
• Clay, plaster, fibreglass, materials
       Market Research
• With so much success in international
  markets, the Tussauds Group has decided
  to open another museum in the United
  States

• After considering many locations, Orlando,
  Florida was chosen

• Prime reason for location was tourism
  market
 Market Research (cont’d)
• It is a $57 billion industry in Florida with
  over 76 million people visiting the state
  last year, growing 21.7% in the past 5
  years

• Orlando is the most visited Floridian city
  with 45-50 million tourists each year,
  contributing over $35 billion to Florida’s
  total tourism industry
            Market Research (cont’d)
              Annual Florida Visitors and Dollars Spent

60                                                  90
                                                    80
50
                                                    70
40                                                  60
                                                    50    Total Number
30                                                        of Tourists (in
                                                    40
                                                          millions)
20                                                  30
                                                          Total Tourism
                                                    20    Spending (in
10
                                                    10    billions)

 0                                                  0
     1999    2000    2001    2002    2003    2004
          Joint Venture
• Do not see Disney World as
  competitor, rather as a business
  partner
• They will offer discounted tickets to Disney
  World visitors for Madame Tussauds
  Museum and in turn keep 12.5% of all ticket
  revenues sold through Disney
• With over 20 million visitors each year,
  Disney World is a prime target market
  providing competitive advantage in
  generating customers and helping to
  increase sales
                Joint Venture (cont’d)
  • Disney will also draw more visitors to Madame
    Tussauds because our tickets will be much
    cheaper compared to a Disney theme park
    ticket. The incremental cost for customers to
    upgrade to include a Madame Tussauds ticket
    will be miniscule.
Disney Ticket     Adult          Child

1- Day            $59.75         $48.00

2- Day            $119.00        $96.00

3- Day            $171.00        $137.00
              Location
• Orange County has an Urban Enterprise
  Zone funded by Enterprise Florida between
  Orlando Int’l Airport and Interstate 4, the
  main highway into Disney World

• Urban Enterprise Zones offer many tax
  credits to eligible companies simply for
  relocating to a specific site (in hopes of
  boosting that regions economy)

• We will be saving over $3 million through
  this program
Location (cont’d)




            X
      Location (cont’d)
• Build new museum on existing land
  property

• Estimated 9 - 10 months for building
  construction

• Open for business in Spring 2006
              The 3 C’s
• Customer
  – Tourists from Greater Orlando area, mainly from
    Walt Disney World
  – Local Florida population which has been
    growing in the past 10 years
• Company
  – The Tussauds Group is one of the World's
    leading visitor attraction businesses built on the
    strength of our balanced portfolio (international
    museum sites, the London Eye, various theme
    parks throughout Europe)
  – At the core of our business is a desire to enthrall
    and inspire and we are constantly developing
    our ability to do this. We want to position our
    company as a prime entertainment and leisure
    attraction.
        The 3 C’s (cont’d)
• Competitors
  –   Orange County Historical Museum
  –   Regional History Center
  –   International Trolley and Train Museum
  –   Orlando Museum of Art
  –   Orlando Science Center
  –   Ripley’s Believe It or Not Museum
      New or Adapted?
• Reason why companies may not
  succeed

• Selling Entertainment through Wax
  – Must be adapted to fit environment
                Price

• 5 other locations priced in general
  Tourist Attraction range
  – Higher than Movies, below Sports and
    Shows
     • Ex. Tussauds London Adult – £21
           London Dungeon Adult – £17
           Price (cont’d)
• Orlando Science Center
   – Adult - $15
   – Student - $14
   – Child - $10
• Kennedy Space Center
   – Adult - $30
   – Child - $20
• Theme Parks (Sea World, Busch Gardens)
   – Adult - $60
   – Child - $45
         Price (cont’d)

• Our Pricing Strategy
  – Employ same model as other locations
  – Discounted tickets if purchased through
    Disney
  – Steal market share with lower, more
    affordable prices
    Price (cont’d)

• Tickets by us         • Tickets by Disney
  – Adult - $25            – Adult - $18
  – Student - $20          – Child - $10
  – Child - $14


• 12.5% of revenue from Disney tickets
  sales to be retained by Disney
            Promotion
• Orlando County Convention & Visitor
  Bureau
  – $8 Million Marketing Campaign
• US and Florida Travel Guides and Travel
  Agencies
• Sunday Travel Section of Major
  Newspapers
• Enlisting celebrities to come out and pose
• Annual Ticket Pass
               People
• Local, Domestic, and International
  visitors
  – 70.3 million domestic travellers
  – 6.5 million international travellers

• Target Market is not structured
  towards a particular age group or race
            Process
• Place of Purchase
  – Madame Tussauds Ticket Booths,
    Madame Tussauds Orlando on-line,
    Telephone, and Walt Disney Ticket
    Booths
• Give map showing layout of facility
• Customers move at own pace
• Multiple Employees in each section
        Physical Evidence
• Wax figures
• Building in of itself
   – Spacious Galleries
   – Wide Halls

• Exhibitions
   –   Famous Actors and Actresses
   –   Pop Idols and famous movie characters
   –   American Idol
   –   Past and present world leaders
   –   Famous Athletes
   –   Shaq Attack!
   –   All about Florida
   –   Ride through US and Florida History
        In Summary
• Researched Industry and Target
  Market
• Analyzed possible locations
• Complied with Laws and Regulations
• Developed Promotional and Pricing
  Strategy
• Adapted our product for new
  environment
Questions

				
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