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Disney Theme Park is the global top and busiest park. The company has subsidiaries globally, including in China, France, Hong Kong, and Japan. It has the marketing muscle and can influence the theme park industry. With several and most prominent outlets worldwide coupled with the drop in attendance, Disney must look for ways to sustain this profitability and maintain its market share. This article shall dive into those pricing strategies the company should apply in the wake of increasing costs of running the parks (Sylt, 2019).
The first strategy Disney can practice is price discrimination. It involves charging different prices in various zones of operations or to different customers (Elgar, 2015). It requires a comprehensive analysis of its markets and a thorough understanding of its clients. If in a market like Europe, the customers are able and willing to pay extra coin, they should not charge the same with another market where the opposite is exact. They can as well make their prices negotiable to tap all sorts of customers (Sylt, 2019).
Also, Disney can apply a two-part pricing strategy. In this strategy, the company should introduce a fixed fee or the initiation fee. For example, there should be a fixed ticket fee depending on the length of stay of the clients in the parks; then, the clients will get to pay for the services they receive inside the park-like food and merchandise(Sylt, 2019).
Another strategy is block pricing. It involves packing together items in bulk and selling them as one unit (Ciotti, 2015). This strategy discourages attempts by customers to buy a single product. For instance, instead of selling single DVDs, and it can put a collection of movies or series and trade as one item. Besides, the company can bundle out its various products and services and sell them at a single price. In this case of Disney, it can integrate the costs of entry and that of meals(Sylt, 2019).
Moreover, the company can price its products and services based on demand and supply. During peak hours, it should raise the prices above normal and reduce them during off-peak hours (Ciotti, 2015).
In conclusion, there are so many strategies, as discussed above, that Disney can apply to stay afloat in a globally competitive environment. The firm should understand when and how it should use each one of them to realize the best outcomes.
References
Ciotti, G. (2015, September 9). 10 Pricing Strategies That Can Drastically Improve Sales. Retrieved from https://www.entrepreneur.com/article/250289
Elgar E. (2015). Pricing Strategies of Dominant Firms. International Competition Policy. doi:10.4337/9781847200242.00012
Sylt, C. (2019, July 25). The Secrets Behind Disney's $2.2 Billion Theme Park Profits. Retrieved from https://www.forbes.com/sites/csylt/2014/07/14/the-secrets-behind-disneys-2-2-billion-theme-park-profits/#a3376ca584fb
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