Hong Kong's Ocean Park bills itself as a leisure destination that combines entertainment, conservation and education.
Having recently celebrated its 25th anniversary, however, the brand is increasingly viewed as being of declining appeal although the 2002 revenue rebound would appear to tell a different story.
Even with the 2002 turnaround, when revenues increased by HK$100 million (about US$13 million) over 2001 and attendance climbed by 23 per cent to about 3.4 million, concern remains over Ocean Park's brand health especially after the Sars outbreak in Hong Kong and Asia in April and May decimated visitor numbers.
The park depends heavily on local and China visitors.
However, a growing trend among locals, who account for 60 per cent of the park's attendance, to spend on leisure interests across the border is presenting a huge challenge for Ocean Park even before Disney arrives.
The US entertainment giant is due to open in either 2005 or '06. With its gleaming rides, mascots and movie-linked attractions, it will provide a serious competitive threat to Ocean Park.
According to Colin Bates, brand consultant at Brandstorm, while some of the reasons for Ocean Park's apparent decline can be traced to economic factors, the facility itself needs to better attract repeat visitors.
"They have had it easy over the past few years, but things have now got tougher," explains Bates. "People know it well, but there is no particular reason to go back."
Indeed, much of the challenge for the brand may stem from having to reverse the perception that it is failing and that the time is ripe for closure of a Hong Kong institution. The general belief is that Ocean Park must become more exciting to visitors, and find ways of encouraging repeat visits. At the moment it is not a prime leisure choice. In terms of its core product, Ocean Park still has a great deal to offer. But by combining entertainment and education in a unique manner, the park will be creating the building blocks to put better branding initiatives firmly in place.
VITAL SIGNS
2001 2002
Revenue 367.4m 463.5m
Surplus/deficit for year 80.5m 15.3m
Attendance 2.8m 3.38m
SOURCE: Ocean Park
CURRENCY: HKdollars
DIAGNOSIS
LINA WONG, Managing partner, Bang
Sars has taught us not to put all our eggs into one basket, in this case labelled "tourists". To attract locals, Ocean Park has found its success formula, creating special events, such as the Halloween bash to attract encouraging numbers of visitors. For an entertainment product, the key is not to repeat the formula. Being original, creative and offering refreshing experiences with each festival is crucial in bringing people back.
Despite its strong educational offering, which is already widely recognised, many local families consider a trip to Ocean Park expensive. Its annual pass, though, is a great bargain, to parents who do see the educational value the park offers. Why not push this annual pass more aggressively?
What about pushing more frequent school visits? School visits always bring a sales message home.
With Disneyland just around the corner, however, the park faces a threat.
If you can't beat them, join them. Join hands with Disneyland and other players in the tourism trade. Line up with airlines, hotels and even Disneyland and offer discount packages.
Meanwhile, continue to fill the calendar with themed events and strengthen its educational appeal among tourists. After all, you'll find nature and wildlife in Ocean Park whereas in Disneyland, you'll see mascots.
COLIN BATES, Brand consultant/training head, Brandstorm Hong Kong
These are uncertain times for Ocean Park.
Sars had a 'catastrophic' effect on visitor numbers and revenue, and it has been clear for some time that the market is swinging against the park.
Consumer habits are changing as more Hong Kongers spend their leisure dollars over the border, Disney offers a new competitive threat, and there is even talk of a change of ownership as the Government considers selling out.
Tough challenges, but Ocean Park does offer a great experience: a day-out at Ocean Park is a very enjoyable combination of family entertainment and education. So they have the core product right, an essential basis for building any successful brand.
It needs to grow from here to create more excitement: giving consumers reasons to talk about the brand, encouraging repeat purchase more effectively and working harder to be 'front of mind' as a leisure choice. (Raising the brand's 'saliency' is the technical term).
It has started to make good use of special events, with last year's month-long 'Halloween Bash' a notable success. So it has many elements in place, but it has not yet built a strong enough bond with its key consumer segments, to see itelf through the challenges ahead.
TREATMENT
WONG'S PRESCRIPTION
- The needs of the two key local target groups - young adults and kids - differ, so should the park's message, voice and channels used to reach them.
- Review the pricing structure for local families with young children, who can't enjoy all the rides. Consider selling annual passes through schools.
- Strengthen the educational and wildlife conservation aspect of product offering in marketing. This is an area Disneyland will find hard to compete in.
BATES' REMEDY
- More 'special events', particularly tie-ups with owners of global entertainment brands (such as Universal Studios) to create 'buzz' and encourage repeat visits.
- Better CRM to keep in touch with visitors between visits (I am an 'Annual Pass' holder, but hear nothing from Ocean Park between visits).
- Greater reach into the community (schools, universities and companies) to build relationships, educate and inform, and to create 'pull' into the park.
