Six Flags

unavowed For home(a) utilisation to a greater extentover team up __ TEAM __ assureeting Plan (Sample) MKTG 649, Fall 2009 Prep ard for prof Mahmood Hussain Prep atomic number 18d By Your compel Your Name Your Name Your Name Your Name 1 unavowed For essential expend only Team 8 Executive Summary sixsome staggers has had great success over a number of course of studys by dint of providing a iodine-s result past amusement finish cop with thrilling gyre coaster sit virtuallys and an exciting atmosphere. In new years, except, sixer Flags has been fight and is nowa twenty-four hour periodlights in dire indispensability of a boost to ease happen its success in the Theme green diligence.We center our alternative research on past and afoot(predicate) articles on sextet Flags as well as the cornerst maven putting green industry as a unscathed. Databases and websites were habituated in pull ining this information. In addition, we delved into previous ly conducted research regarding the nucleotide jet industry and half-dozen Flags. This make headway allowed us to gather only how sestet Flags arrived at its success, and ultimately to its failure over the past a couple of(prenominal) years. This is information that could postulate been obtained by means of with(predicate) interviewing sextet Flags employees however, we chose to proceed with the much speak to- in effect(p) choice of secondary research.The biggest affair six-spot Flags faces is its huge debt of over $2 billion dollars. The flying is on the brink of bankruptcy and has been pulled from the NYSE overimput able to their sh bes falling downstairs the $1 requirement. The degraded necessarily to impart $ccc million dollars to preferent sourceholders, and drops the capital to do so. A nonher light upon issue they face is their particularize rank market. six-spot Flags has decreased their focus charge to the y step forwardh, or puerile market w ith less emphasis derriered on appealing to families. This represents a huge loss of potential customers for 6 Flags.Further much than, there is a accept for thrill rides and rollercoasters that six Flags sack hold out to benefit from. In edict to accomplish some(prenominal) of these issues head on, six Flags moldinessiness non only expand their demographic target, but as well as their product pleadings. R chargeue must be fetchd as quickly as likely through adjoind vocation to the rank and product diversification. The market objectives we forecast to address, execute and accomplish atomic number 18 to gain tax in fix through diversification and pricing methodologies, and to increase the target market to take families, teens, and schoolgirlish adults.Increased guest excreteing is a study component of what target markets we argon severe to reach. We want to move a vogue from the teen market, which does non spend much if any money in the put lot beyo nd memory admission charge. The two refreshing target markets half-dozen Flags is dismissal to cater to argon families and 21+ infantile adults. sestet Flags give variousiate itself by providing some(prenominal) of these sources of cheer in one location. We want six-spot Flags to be a place like no un sequenceed(prenominal) in the country. In order for sextet Flags to stay competitive, we need to diversify our means of tax income.That entrust be do with the introduction to two green ventures, Motion Simulators and avenue half a dozen. sixer Flags current pricing strategy for their online effortless books is proving to be successful in toll of attracting to a greater extent visitor attendance. Extended hours for special events give the gate alike reelect an extra added cheer to 21 and over patrons who ar giveing to overcompensate a 25 percent increase on top of rule-governed one- mean solar day admission. Being open until 12 midnight for much(pre nominal) events would grant exclusivity to a littler promote with less falling in line.A nonher feature would be to flip hard liquor and beer priced at a premium to further increase profits. The front sales packaging pass on be a yearbook engagement, e real Fourth of July where all guests get in for forfeit. We volition bid this promotion FREEdom day. Another stalk promotion allow for be called Fun in the Sun. We anticipate an increase in half dozen Flags carry throughance through the execution of our mathematical product Plan. 2 hole-and-corner(a) For Internal Use that Team __ Table of Contents Introduction inquiry Methodology 1 Situation abstract SWOT Analysis.. 2 Competitor Analysis 3 Customer Analysis. 4 fellowship Analysis. 4 selling Problems and Opportunities5 Managerial Recommendations Market centralize Marketing Objectives.. 8 Target Market.. 8 Differentiation.. 8 Positioning9 Marketing Programs Product schema. 9 set strategy. 0 Promotion Strategy.. 10 Distribution Strategy. 11 Implementation and Control pecuniary Data. 11 Financial Projection11 Financial Control. 12 Conclusion.. 12 Appendix. 14 3 occult For Internal Use nevertheless Team __ Introduction six Flags has had great success over a number of years through providing a one-stop entertainment polish drop off with thrilling roller coaster rides and an exciting atmosphere.In recent years, however, sise Flags has been struggling and is now in dire need of a boost to alleviate regain its success in the Theme putting green industry. The amusement park industry offers a variety of attractions to a very large and versatile market. With eitherthing from high-flying roller coasters to cartoon and movie character based offerings, study parks entertain created a very successful market that has been on the rise for some(prenominal) years. However, like everything else, companies pull in seen their practised clippings as well as their bad. It seems as though sixso me Flags may be on the bloodline in an exhausted market.Notwithstanding(a) change magnitude attendance on an annual basis, including the sharp-worded decline of their teen market, the amusement park industry has been affected greatly by harsh frugal ms. vi Flags, Inc. specifically has become the trope of this trying industry. De barfe an increasing attendance rate over the years, half a dozen Flags has seemed to dig itself into a hole that it fecesnot seem to get out of. Their debt-load has handcuffed them to the verge of bankruptcy. Their inability to increase attendance to the point of improved profitability and debt-reduction has helped leave behind this come with toward potential failure.The signifi potbellyce of an increased attendance rate in 2008, (up to 25. 3 million from 24. 9 in 2007) yet settle down coverage a net loss of $207 million for the fourth quarter of 2008 is very big. 1 This signifies the tremendous amount of trouble sixer Flags is currently i n as their biggest point of profitability, attendance, has not been enough to dig this company out. This indicates that a drastic change of direction is in need for hexad Flags, Inc. Although the add argon bad for half dozen Flags, a marketing initiative may help induce this dying company back to life. Research Methodology collect to lack of resources and low participant count, we gift decided to focus our research on secondary research only. While we do believe it may be beneficial to gather information and suggestions through primary research, there are many resources available through secondary research that allow sufficient. As the bow park industry is large, a vast amount of publications and information is available. by means of researching readily available information, we are able to gather both positive and negative options and research from very credible sources. Although the usance and execution f primary research is ideal and extremely beneficial, in particula r for marketing initiatives, its boilersuit implementation is not a simple task. The eccentric person of primary research required to make sound marketing decisions, especially for a depressed company like six-spot Flags, would need to be on a much larger scale than we are dependent of handling in such a short period of time. We focused our secondary research on past and current articles on Six Flags as well as the prow park industry as a whole. Databases and websites were utilized in gathering this information.In addition, we delved into previously conducted research regarding the musical composition park industry and Six Flags. This further allowed us to gather just now how Six Flags arrived at its success, and ultimately to its failure over the past some years. This is information that could take in been obtained through interviewing Six Flags employees however, we chose to proceed with the to a greater extent efficient choice of secondary research. 1 Confidential For Int ernal Use only(prenominal) Team __ Situation Analysis SWOT Analysis Strengths Six Flags main(prenominal) strength in the present state of the U. S. economy seems to be its escaped falling prices.For instance, everyone who buys a everyday ticket online for Six Flags denudation region (Vallejo, CA) pays the kids price of $29. 99. This has directly increased attendance. Next to its attractive prices is Six Flags inter subjectly recognized brand name. The name, along with its wide array of entertainment products and experiences, has built enduring equity for 48 years. To refocus and re-energize its brand, Six Flags chief operating officer Mark Shapiro and his marketing and entertainment teams fuck off worked to make the discipline park more family-friendly succession still maintaining its ignature reputation for record- suspensioning thrill rides. The parks are cleaner, there is more unspecific-based entertainment, an enforced code of conduct for guests, and better ingeniou s employees who croup pay more quality service. As a allow for, key satisfaction s magnetic cores were at or above all time highs for the company. Six Flags advocates special causes by holding annual walk-a-thons in the park, connexion the fight to help cure childrens cancer. They further support the green motility by using biodegradable commercial trash bags passim the companys 20 locations in the United States, Mexico, and Canada.Location is another strength of Six Flags. The base of operations park is hardened in major metropolitan flying fields do it a probable, convenient subscribe away from home. Weaknesses Although Six Flags is now cover an increase in visitor attendance due to circulatements limncasing low ticket prices and an increased value offering, its number one weakness seems to be leverage their massive debt load of over $2 billion dollars. It must as well pay $300 million dollars to preferred stockholders in which it has no way of paying.The creation o f new thrill rides can cost up to $20 million dollars each enchantment consumer spending remains low. This debt leave alone pass off to stifle Six Flags growth and may lead them to file for Chapter 11 bankruptcy. Since admission is up, the lines for each major attraction will too increase. This may make impatient patrons waiting in the hot summer sun to go elsewhere for entertainment. Another weakness is the computer memory rate of teenagers and young person adults has pass offd to lessen because they claim theres nothing new for us. Disappointingly, a major weakness that the theme park is also trying to work is its fatal freak accidents. In June 2008, a 17-year-old was decapitated by the Batman roller coaster when he scaled two six-foot fences and entered a restricted area at Six Flags oer Georgia. The year before, a girls feet were cut off when a freefall thrill ride malfunctioned at the Six Flags Kentucky Kingdom. A cable had snapped and wrapped around the 16-year-olds f eet, severing them at her ankles. Opportunities Six Flags is contain in opportunities as they have no bills on hand and an overwhelming debt load.However, to attract back the decreasing retention rate of its young adult market which as a result can leverage the debt, perhaps Six Flags can open a 21 and over nightclub. The club can have different cypher themes each night, such as a Batman or Terminator party. A sports bar and restaurant can attract a new demographic of sports fanatics. Guest appearances by sports icons in these restaurants can also drive traffic through the park. Ride simulators in malls, introducing new and upcoming thrill rides, may also convince prospects to try the real thing at a 2 Confidential For Internal Use OnlyTeam 8 theme park. Six Flags can also try to sell some of its land that it owns surround its parks to help lessen their debt. It can even hold more events ranging from special causes to entertainment and extend its operational hours to the 21 and o ver crowd so as to increase ticket sales. Joining more strategical alliances world(prenominal)ly such as Dubai Holding to build a Six Flags in Dubailand can also prove to be profitable. Most importantly, Six Flags needs to get to the root of the problem and come up with a restructuring agreement that will satisfy both its stockholders and the company.Filing for chapter 11 bankruptcy may inadvertently decrease attendance as visitors may perceive that operations, including recourse on rides and the cleanliness of the premises could be affected (although Six Flags confirms that these will not be affected if they do file). Thus, bankruptcy could ruin Six Flags symbol and limit more of their opportunities to expand. Threats Threats mainly embarrass other major theme park competitors such as Disneyland and Universal Studios and indirect competition with more affordable fun activities such as miniature golfing or watching a movie.Other threats include the current swine flu that has sp read cursorily throughout several states in the U. S. from its origin in Mexico. Some families may think twice before issue to a theme park with hundreds or thousands of other persons in which any may be infect with the deadly virus. Severe weather conditions can even temporarily obturatelipped down the park. In 2005, it was necessary for Six Flags new-fangled Orleans to last down in preparation for Hurricane Katrina. Katrinas heavy winds and floods left an estimated $32. 5 million worth of damages. The park has since been reasond. Competitor AnalysisThe major competitor of Six Flags Inc. is the Walt Disney Company. In comparison, the Disney Company focuses on attracting visitors from crosswise the world to visit its parks while Six Flags targets its local demographic and does not seek to advertise internationally. Although Disneyland offers the magical experience that families have grown up to know and cognize through its flagship characters and movies, Six Flags is seeking to be the alternative getaway in a downward economy. First off, Six Flags is just a drive away for those who live in close radius to metropolitan areas.At Six Flags Discovery Kingdom (Vallejo, CA), as mentioned earlier, everyone can pay the online daily kids price of $29. 99. Disneyland and Disney World mainly require a whole vacation package, including airplane flights and a hotel stay. To visit Disneylands entire theme park in one day, a patron will have to shell out as much as $94 per day. In 2008, Six Flags even reported a 5 percent increase in tax income with reduced costs from the previous year while Disneyland recently reported an 8. 2 percent drop in revenue and increased costs for this years first quarter.Universal Studios movie-theme park, known for simulating their top rated movies into rides and other experiences, is another competitor that also requires a vacation package. Its ecumenic admission is $67. 99 a day. Last year, the park underwent attendance downturns due to construction and visitors holding off on vacations until the new rides were complete. However, even in a troubling economy families are willing to pay a premium to visit such parks as Disneyland and Universal Studios to go to a place where dreams come true and to get the ultimate Hollywood experience as seen through television and movies respectively.These are deemed to be more affordable when comparing it to a family trip to Europe or Asia. Six Flags other competition includes the experience of shopping at a mall, dismissal out to the movies, or even staying home and obtaining thrills through Sony Playstation or Nintendos Wii. Consumers feel like getting away once in a while and if they are restricted to a budget, they may consider the cheaper instruction execution that they can parallel more than once during closer periods of time. 3 Confidential For Internal Use Only Team 8 Customer Analysis Approximately 25 million guests attend Six Flags annually.The park appeals to a b road demographic in which seventy-five percent of its customers live inwardly 100 miles. Its main customer focus is its family unit. Most of its parks are limited to world open during the spring and summer seasons and only on weekends during off-seasons (due to weather factors). In this case, generating revenue from the family unit is crucial while still trying to retain its core audience of teens and young adults who are wasted to extreme rides. Thus, Six Flags is providing a wider product offering to increase its overall visitor attendance.It is also re qualification its image into a wholesome, highly-branded, family-friendly place akin(predicate) to that of Disney. There are more rides and attractions not only for a young demographic, but also for families. Six Flags has also given these customers more to do and spend money on by bringing in brands such as Johnny Rockets, Papa Johns, Cold Stone Creamery, and Kodak. The parks attendance has gradually declined in recent years b ut started to pick up again in 2008 and is showing great phone this spring season. For instance, Six Flags Discovery Kingdom had its largest attendance since 2003 during their two-week spring break period.The family unit is price sensitive therefore with daily ticket prices be fairly low along with current low gas prices, Six Flags seems like an affordable trip. The company is drawing 55 percent of its total revenues to come during the months of July and August. More families and higher disposable income families are expected to return to these revenues. Also, seventy-five percent of Six Flags consumers claim that their primary reason for attend the park is to spend time with friends and family. Company Analysis Six Flags, Inc. is the largest regional theme park company in the world providing a national brand with regional focus.The firm has 20 parks total, 18 of which are in the United States, with the other 2 located in Mexico and Canada. The entertainment closes in the U. S . comprise theme, urine and zoological parks with over 900 rides, including one hundred thirty rollercoasters. Six Flags, Inc. is headed by CEO Mark Shapiro and is a publicly-traded corporation headquartered in New York City. The first Six Flags theme park, Six Flags Over Texas, was open(a) in 1961 by Angus Wynn. The parks name came from the six themed sections, pattern after the culture of the six countries whose flags flew over Texas during the states colorful history. Todays parks offer a complete one-stop diversify entertainment destination for all ages. 3 Thrill rides, restaurants, games, themed areas, childrens areas, parades, concerts, shows and much more are available for the customers have intercoursement. Business Model Six Flags operates as a seasonal worker business over 85% of park attendance and revenues are generated between the second and third quarters of the calendar year. 4 Its business ideal is comprised primarily of making money through ticket sales, in-p ark food and swop sales, and sponsorship revenue. 5 4 ConfidentialTicket Pricing For Internal Use Only Team 8 Ticket pricing covers a broad ramble on, with tickets available for a single day park visit to season passes. There are 3 types of tickets available unity day 1 park (general and children admission) single day 2 park pass (general and children admission) Season Pass Single day 2 park passes are for locations that have both a Six Flags theme park and piss park located contiguous to each other. occupy note that some theme parks have a water park inside of them, but do not require a 2 park pass. General admission prices lay out from $29. 9 $69. 99. Children admission prices range from $20. 99 $29. 99. These ranges cover Single Day 1 and 2 park passes for theme, water, and animal parks. Season Pass prices range from $39. 99 $125. Season Passes may be purchased for single park admission or dual park admission. Season Passes include Unlimited visits cede tickets for guests Over $300 in park savings Access to stick up and Scream early openings and private Season Passholder Day Accepted at 15 Six Flags locations including La Ronde, Montreal Season passes are Six Flags core value offering.Passes cost little more than a days unconstipated admission ticket price, and provide Six Flags visitors with added benefits and savings. Six Flags also offers a premium pass the FLASH Pass that serves as a ride reservation system. A limited number of FLASH Passes are available each day of operation and are valid the day of purchase only. There are 2 tiers for the FLASH Pass, Regular and Gold, with different stipulations for each. Regular FLASH Pass Avoid lines by making a reservation Wait as long as everyone else is waiting, but not in line Prices $27. 9 for 1 person to $117. 99 for 6 throng Gold FLASH Pass Enjoy discounted wait time of up to 75% Prices $37. 99 for 1 person to $177. 99 for 6 people In-park Merchandise and Food Six Flags has variou s licensing and partnership agreements with other firms. Six Flags has held a licensing agreement with DC Comics and Warner Bros. Consumer Products enabling Six Flags to utilize the rights to the cartoon characters. Six Flags has used the licensing agreement to create character programs including meet and greets, meals, photograph and autograph opportunities. 6 5 ConfidentialFor Internal Use Only Team 8 Six Flags has further utilized the characters likeness for swap sales including toys, souvenir items, apparel, and more. In addition, cartoon themed rides have been constructed after both DC Comic and Warner Bros characters. Six Flags employs in-park and out-park alliances with restaurants and food manufacturers. Past and current out-of-park alliances have included promotions with Coca Cola, Krafts Lunchables product line, and Papa Johns Pizza. 7 In-park alliances have included the implementation of restaurant chains inside Six Flags parks.Johnny Rockets, Papa Johns Pizza, and Cold Stone Creamery can be found within the parks, and Tyson chicken has become the official chicken supplier to all parks. 8 Additional Partnerships Other promotional alliances have been implemented as well. sensation such example is the sale and availability of Kodak products in Six Flags paks. Moreover, Six Flags and Nintendo have collaborated by offering free Wii game plays to the Six Flags visitors standing in-line, thus allowing them the opportunity to sample the Nintendo DS games.Six Flags also promotes its brand through American comport, Chase, Blue Green, Panda Express, and The United States Army. 9 American Express and Six Flags have a promotional offering for park visitors in the form of a high muckamuck turnings. Patrons may book their Six Flags VIP Tour Presented by American Express for participating theme parks. Please note that the VIP Tour is for theme parks only and does not include water slides and other waterpark attractions. Tours are given to groups or families b y an experienced tour guide and can be customized.Tours are priced at $299 and include Private guided tour for your family or group Front-of-the-line ride privileges Preferred parking Theme park admission Reserved show seating Private autograph session with select LOONEY TUNES or The Justice League characters Lunch and dinner with reserved seating at restaurants Unlimited snacks Souvenir ride or character photo Expedited retrieve to most rides in the park American Express cardholders gain an extra offer by receiving 20% off each VIP tour booked when they pay with any American Express card. Six Flag ParksCalifornia Six Flags Magic Mountain, Los Angeles theme park Six Flags Hurrican Harbor, Los Angeles water park Six Flags Discovery Kingdom, Vallejo theme and animal park 6 Confidential For Internal Use Only Team 8 Georgia Six Flags Over Georgia, capital of Georgia theme park Six Flags White Water, Atlanta water park Illinois Six Flags outstanding America and Hurrica ne Harbor, Chicago theme and water park Kentucky Six Flags Kentucky Kingdom, Lousiville theme and water park medico Six Flags America, Baltimore/Washington DC theme and water park mommy Six Flags New England, Springfield theme and water park bit Six Flags St.Louis theme and water park New Jersey Six Flags Great Adventure, Jackson theme park Six Flags Hurrican Harbor, Jackson water park Six Flags Wild Safari, Jackson animal park New York The Great Escape and Splashwater Kingdom, Lake George theme and water park Six Flags Great Escape Lodge and IndoorWaterpark, Lake George lodge and water park Texas Six Flags Over Texas, Arlington theme park Six Flags Fiesta Texas, San Antonio theme and water park Canada La Ronde, Montreal theme park Mexico Six Flags Mexico, Mexico City theme park Six Flags will be opening a third international location in the United Arab Emirates, Dubailand, which will open its doors to customers in 2011. Marketing Problems and Opportunities The bigg est issue Six Flags faces is its huge debt of over $2 billion dollars. The firm is on the verge of bankruptcy and has been pulled from the NYSE due to their shares falling below the $1 requirement.The firm needs to pay $300 million dollars to preferred stockholders, and lacks the capital to do so. Another key issue they face is their narrow target market. Six Flags has decreased their focus down to the youth, or teen market with less emphasis placed on appealing to families. This represents a huge loss of potential customers for Six Flags. Furthermore, there is a demand for thrill rides and rollercoasters that Six Flags can continue to benefit from. In order to meet both of 7 Confidential For Internal Use Only Team 8 these issues head on, Six Flags must not only expand their demographic target, but also their product offerings.Revenue must be generated as quickly as possible through increased traffic to the parks and product diversification. Managerial Recommendations Market Focus M arketing Objectives The marketing objectives we aim to address, execute and accomplish are to increase revenue through diversification and pricing methodologies, and to increase the target market to include families, teens, and young adults. We seek to create promotional offers that affect price and new product offerings, and to re-position Six Flags theme parks as an entertainment destination that appeals to all ages, and more importantly families.Value communication is extremely important in the current economic postal service we are experiencing. Six Flags is a one-stop entertainment destination that offers very low admission prices along with numerous attractions and activities. It is a park that price-sensitive consumers can enjoy and afford. Six Flags needs to increase its revenue to become viable. These additional revenue streams are to include diversification and promotions. The largest project to create more revenue is the creation of boulevard Six.It will create the oppor tunity to have in review stream all year long, rather than just the summer months. It will have a diverse collection of food and entertainment to please the target markets of families and young adults. This will include well known restaurants and entertainment companies, as well as new and excited ventures. Next would be the introduction of Motion Simulator rides located in malls around the nation. These would bring in additional revenue as well as bring awareness of Six Flags. At these locations, the rides would be of the most everyday attractions from across all the Six Flags.Promotions could also increase traffic to the parks and increase the revenue during these times. Boulevard Bash is a Saturday night event for those 21 years and older with live entertainment. Six Dollar Sundays would increase visitors to the parks and would bring in more repeat customers. Too Hot to Resist Days would entice people to come to parks on days when it is warm out. They could partake in the water rides to stay cool during these times. And Freedom Day would increase traffic to the park, however there would be revenue from ticket sales there would be from parking, food, and Boulevard Six.Target Market Increased guest spending is a major component of what target markets we are trying to reach. We want to move away from the teen market, which does not spend much if any money in the park beyond admission. The two new target markets Six Flags is going to cater to are families and 21+ young adults. Six Flags current target market is mass-market blue-collar, with average income $50,000 per year, and probably split between teens and young adults on the one hand, and families on the 8 Confidential For Internal Use Only Team 8 ther. 10 These families are not the type that are/were taking international family vacations. These families are trading from a three-day, four-figure trip to Disney to a one-day, three-figure trip to Six Flags. 11 A trip to Six Flags is not cheap, but it is chea per than. A typical Six Flags visitor in 2007 spent $36 for the day, including parking, the price of a ticket, and meals. So, the company says, a day at Six Flags for a family of four costs less than $175. 12 Young adults are another target market Six Flags is flavour into.They are a segment that had more disposable income than teens do, possible even more than families. Young adults in the U. S. spend 52% of their money on clothing, 22% on food, and 13% on music. 13 With the addition of Boulevard Six, there is the opportunity to bring in more of the young adults, who would commonly go to the local mall. Differentiation Six Flags has a lot going for it right now and with our marketing strategy, it may have the ability to sort out itself from all the competitors. We aim to focus our differentiation based on the way of life of entertainment it offers.Six Flags will be a place people can go to have a day of excitement like no other theme park can offer. Without having to spend lots of money, people can have a great deal of fun during the day at an exciting theme park, and at night can cruise the Boulevard (Discussed below). There are obviously many places where one can go and enjoy a day at a theme park, however, they may have to travel a great distance if they rely to cap off the day with a night on the town. Six Flags will differentiate itself by providing both of these sources of entertainment in one location.Positioning We want Six Flags to be a place like no other in the country. In order to do this, we seek to position Six Flags in two ways. collect to the different offerings from Six Flags we fathert want to position ourselves in just one way. First, we aim to position ourselves as safe, family-friendly, lowcost form of entertainment. This position will be targeted to families and jr. guests. We will advertise through day-time television and kids programming. Second, we will position ourselves as cool, fun, energetic and young-hearted.This position will be targeted to teens and younger adults (over 21) who would be interested in the Night of Fun as set forth below. We will hope to utilize different types of social media to target this demographic and project this type of positioning for Six Flags. Marketing Programs Product Strategy Six Flags has been providing their visitors products through their main origin, theme parks, during their existence. In order for Six Flags to stay competitive, we need to diversify our means of revenue. That will be through with(p) with the introduction to two new ventures, Motion Simulators and Boulevard Six.The motion simulators will be distributed throughout all major metropolitan malls that will be in close proximity to a Six Flags park. Malls are a choice location as they allow us to reach the broad demographics we target families, teens, and young adults. The rides will have a selection of popular rides from Six Flags 19 parks. After the ride is over, it will spit out a 50% off admissio n coupon good for any Six Flags park, and must be redeemed within one month. This tactic is expected to drive sales up dramatically. 9 Confidential For Internal Use OnlyTeam 8 Boulevard Six will be an alfresco shopping district located outside of Six Flags larger parks. Its purport is to help produce revenue all year long, even while the parks are closed for the season. Boulevard Six will have a mix of food, shopping and entertainment for all ages. Restaurants will include California Pizza Kitchen, P. F. Changs, Johnny Rockets and more. Shopping will include Fossil, Gap, Abercrombie and more. pastime will come from the Comcast Sports Bar, nightclubs, live concert stages, Lucky Strike bowl and movie theaters.Boulevard Six will also be the location of Boulevard Bash. Pricing Strategy Six Flags current pricing strategy for their online daily tickets is proving to be successful in terms of attracting more visitor attendance. A great example is Six Flags Discovery Kingdom (Vallejo, C A). As a price bundle, the theme park can also offer online daily tickets with one-day discounted parking at 20 percent to further raise attendance. For its Discovery Kingdom park, visitors will pay $29. 99 plus $12 for one-day parking totaling $41. 99.If paid separately, parking would cost $15. For its season pass holders, Six Flags can give an automatic 10 percent on all meals and merchandise simply by presenting their season passes at point-of-sale. Vouchers and coupons do not need to be redeemed for the sake of customers convenience. In addition to perks such as free tickets for your friends on select days, and free special events, season pass holders who are 21 and over will also pay a discounted price of $15 to get into Six Flags exclusive nightclub in Boulevard Six (mentioned under Promotion).Season parking passes also purchased online can be reduced by 20 percent and bundled with their appropriate season passes to increase the affordability and convenience of visiting Six Fl ags respectively. The V. I. P. tour requires a 4-person lower limit and can cost up to $299 per person. This may seem like an inordinate and an unnecessary option. However, American Express cardholders with more discretionary income can enjoy this option at a 20 percent discount. To appeal towards more price-sensitive families who still want to get the ultimate V.I. P. experience, online specials should include a 20 percent discount on select days regardless of what opinion card is being used. Extended hours for special events can also deliver an extra added value to 21 and over patrons who are willing to pay a 25 percent increase on top of regular one-day admission. Being open until 12 midnight for such events would grant exclusivity to a small crowd with less falling in line. Another feature would be to have hard liquor and beer priced at a premium to further maximize profits.Ride simulators (mentioned in opportunities under SWOT analysis) will cost the consumer $9 for a four-m inute edge-of-your-seat excursion (These will be located in all major metropolitan malls that will be in close proximity to a Six Flags park. ) After the ride is over, it will spit out a 50% off admission coupon good for any Six Flags park, and must be redeemed within one month. This tactic is expected to drive sales up dramatically. Promotion In order for our marketing efforts to be successful, we need to attract customers to the previously discussed new park and activities.This is where the use of promotions will come into play. With exciting new attractions offered by Six Flags, we will need to engage more people through various type of promotions. We suggest by starting with sales promotions. The first sales promotion will be a yearly engagement, every Fourth of July where all guests get in for free. We will call this promotion FREEdom Day. By incorporating the Independence Day 10 Confidential For Internal Use Only Team 8 theme, every Six Flags park will be the most enjoyable p lace to be on the Fourth of July.This will be a day where families can come to experience the rides and attractions, all themed accordingly, and can end the day with a 45 minute long firework display coordinated to a serious of popular current music hits. We want this promotion to help Six Flags become the leading place to be during the Fourth of July. Due to capacity constraints in each of the parks, attendance will be limited to the maximum capacity the park can handle. We will let more people in as other leave, and while everyone waits, we will have activities and entertainment out in the waiting area.Even though the guests are not in the park yet, they should still be able to have an enjoyable time while they wait. Since one of our main goals is to improve loyalty among our guests, we also want to have promotions on a more frequent level. iodin of these frequent promotions will be Six Dollar Sundays. We will offer admission to all Six-Flags for only $6 every Sunday. Another fre quent promotion will be called Fun in the Sun. Anytime the temperature hits above a certain temperature (depending on the location of the park) admission will be half-price.This will help entice the people that are reluctant to come to the park if it is too hot outside. This next promotion will give free admission to people on their Birthday. We will call this our Birthday society and promote keep records of every persons Birthday so every year we can send them reminders to entice them to come back. Our final examination promotion will be called Boulevard Bash. This will be for the 21 and older crowd and will be priced at $25 per person. We will block off our Boulevard Six (described below) and admit only persons of age.We will provide alcohol and bring in musical talent to perform every Saturday night. Distribution The main channel of distribution will continue to be Six Flags parks. The majority of our marketing plan is focused around promotional and pricing methodologies, with t he promos taking place in Six Flags. Through the price promos we execute, we anticipate an increase in sales of in-park merchandise as consumers will have more disposable income due to their savings on park admission. There will be one other channel of distribution, however, for the thrill Motion Ride simulators.The ride simulators will be distributed throughout all major metropolitan malls that will be in close proximity to a Six Flags park. Malls are a choice location as they allow us to reach the broad demographics we target families, teens, and young adults. Implementation and Control Financial Data Six Flags is in financial distress, which might lead Six Flags to file chapter-eleven for bankruptcy. Furthermore, in October of 2008, the New York buy in Exchange penalized Six Flags since its stockholder equity had fallen below $75-million, and the stock price had fallen below one-dollar violating the New York Stock Exchange standards. 4 If Six Flags does not increase its stock price 11 Confidential For Internal Use Only Team 8 and market capitalization, it risks being removed from the NYSE. 15 Six Flags will not be able to continue operating without finding a plan to restructure the debt. Six Flags lost $113 million in 2008, which is compared to $253 million in 2007. However, the most recent forth quarter its reported loss is $201 million, which is compared to 2007 forth quarter $127 million. 16 The projections for Six Flags are concerning. First, by August 15th of 2009, Six Flags must pay $287. million in Preferred Income Equity Redeemable Shares to the shareholders. However, if Six Flags failed, the amount would reach in excess of $318 million. 17 Second, the financial situation is very critical further complicating Six Flags ability to continue operating. Due to major banks being in financial trouble, there is no access to adequate capital resources and lending procedures are more stringent. In order to obtain capital, our group is projecting the poss ibility of Busch diversion Corporation, a competing theme park operator in the United States, to acquire Six Flags.Busch Entertainment Corporation is a subsidiary of Anheuser- Busch. Busch Entertainment Corporation operates nine-theme parks across the nation including the Sea World and Busch Garden Parks. The companys financial performance has been generating revenue of $1. 3 Billion and a positive realise income on the revenue. 18 Therefore, by reaching such a deal, Six Flags can have access to capital to meet the financial obligations and government issue the creditors. On the other hand, it will diversify its risk portfolio, and the advantages to share assets of both Six Flags and Busch Entertainment Corporation.Financial Projection Financial Control Six Flags CEO has been proactive in restructuring the Six Flags itself, and not only the debt. For instance, by making some major changes, Six Flags can survive these crucial economic circumstances. Therefore, CEO Mark Shapiro has used his private equity firm, Red order Capital, for purchasing the restaurant chain Johnny Rockets in order to flux the chain into all parks. In addition, Red Zone Capital bought dickhead Clark Productions, television home of the Golden Globe Awards, and the Academy of Country practice of medicine Awards.This was done with the intention of featuring celebrity and music events in the parks to generate revenue and stimulate and increase foot traffic. 19 Financial control over the Six Flags situation is still valid, by both restructuring the debt, and the theme parks. In addition, to potential of gaining access to some financial resources from a possible merger or consolidation with the Busch Entertainment Corporation is valid as the firms have similar revenue models and Busch has experienced more successful financial performance than Six Flags. ConclusionSix Flags financial situation is extremely dire and the firm is currently floundering to stay afloat. We believe that with our Marketing Plan, we may enable them to greatly increase foot traffic and sales revenue. The pricing promotions will bring people to the park and cause them to spend the money they save on ticket sales, on in-park food or merchandise. The promotions for young adults featuring 21+ nights will provide a great source of income through food and sousing beverage sales. The Boulevard will further create a diversified source of revenue.The re-positioning of Six Flags as a fun, low-cost entertainment destination for the family will further increase their target market and communicate value to price-sensitive consumers. Six Flags is an enjoyable theme park where all of your family entertaining needs may be met. We anticipate an increase in Six Flags performance through the execution of our Marketing Plan. 12 Confidential For Internal Use Only Team 8 McCann, Kyle. Rough Year Recorded at Six Flags. ABC2News. com. 12 March 2009. 7 May 2009 . 2 Six Flags Investor Relations. Six Flags. 10 May 2009