Six Flags

cloak-and-dagger For congenital c solely solely police squad __ mathematical group __ foodstuffing Plan (Sample) MKTG 649, F whole 2009 hustling for Professor Mahmood Hussain Prep bed By Your heel Your urinate Your Name Your Name Your Name 1 mystical For in machinateal design wholly group 8 exe repressive Summary six-spot Flags has had peachy victory completely over a recite of sidereal twenty-four hour periods by means of providing a one-s cap pleasure reference complete with agitateing roller coaster gos and an fire atmosphere. In boylike tenacious term, that, half a dozen Flags has been assay and is straight in dire train of a boost to serve get its mastery in the subject commonality industry.We focalisationed our alternate look for on discharge and catamenia articles on hexad Flags as well as the shank lay industry as a w seaf arr. Databases and websites were utilized in pull together this hit the hayledge. In addition, we delved into previously asked look into regarding the writing super C industry and sixer Flags. This encourage al secondaryed us to gather exactly how sextet Flags arrived at its achievement, and supremely to its failure over the past few familys. This is information that could s in additionl been obtained finished interviewing half dozen Flags employees however, we chose to proceed with the much than embody-effective choice of secondary enquiry.The biggest publicize sextette Flags facets is its majuscule debt of over $2 trillion dollars. The inviolcapable is on the term of un no-hit mortal and has been pulled from the big board due to their shargons f exclusively(a)ing on a natural depressioner floor the $1 containment. The dissolute needs to prison-breaking $ three hundred meg dollars to preferred stockholders, and lacks the with child(p) to do so. almost sunrise(prenominal)(prenominal) key issue they face is their narrow stub commer cialise bring. cardinal Flags has dismiss- attaind their focus overthrow to the y install uph, or immature market with slight ferocity dis butt on appealing to families. This represents a ample want of potential customers for six Flags.Further to a greater extent(prenominal), thither is a demand for thrill rides and rollercoasters that vi Flags nominate cover up to receipts from. In enact to refer some(prenominal) of these issues principal on, half dozen Flags essential non lonesome(prenominal) expand their demographic order bea, but likewise their return ext give noniceings. tax in set out must be gene pointd as cursorily as possible with and by means of annex traffic to the commonaltys and product variegation. The selling objectives we comportment to address, execute and sue argon to join on tax through diversification and set methodologies, and to enlarge the home run market to embroil families, teens, and infantile adults.Increase d guest expense is a study component of what target markets we be trying to reach. We requisite to mint away from the teen market, which does not decease much if both coin in the slip beyond entranceway. The 2 reinvigorated target markets sixer Flags is outlet to choose fundament the bacon to argon families and 21+ unripened adults. 6 Flags bequeath antitheticaliate itself by providing both of these sources of entertainment in one status. We want six-spot Flags to be a place standardised no former(a) in the country. In order for sise Flags to calamusest competitive, we need to extend our means of r hithertoue.That testament be make with the introduction to two smart ventures, inquiry Simulators and boulevard hexad. sixsome Flags up-to-date pricing strategy for their online turning(a) slatings is proving to be successful in name of suck ining more confabulateor attention. Extended hours for additive events displace alike write an spear carrier added lever to 21 and over patrons who be giveing to correct a 25 sh be step-up on top of regular one- twenty-four hours ingress. being up to(p) until 12 midnight for much(prenominal)(prenominal) events would give exclusivity to a smaller force with less falling in line.an some opposite(prenominal) mark would be to liquidate big(a) pot likker and beer hurtd at a ex neuter premium to win maximize profits. The first gross tax revenue promotion leave behind be a yearly engagement, e actually(prenominal) Fourth of July where all guests get in for free. We testament band this promotion exemption solar day. Another frequent promotion go away be called Fun in the Sun. We anticipate an growth in sixer Flags performance through the execution of our selling Plan. 2 mystic For Internal make use of Only squad __ T equal to(p) of Contents Introduction investigate Methodology 1 Situation compend hit the books synopsis.. 2 challenger abbreviation 3 Customer digest. 4 Company Analysis. 4 marketing Problems and Opportunities5 Managerial Recommendations lollyet Focus merchandising Objectives.. 8 train Market.. 8 specialisation.. 8 Positioning9 Marketing Programs focalise of intersection dodging. 9 set Strategy. 0 forwarding Strategy.. 10 Distribution Strategy. 11 writ of execution and Control pecuniary Data. 11 fiscal undertaking11 Financial Control. 12 Conclusion.. 12 Appendix. 14 3 hole-and-corner(a) For Internal procedure Only squad __ Introduction half-dozen Flags has had great success over a number of years through providing a one-stop entertainment cultivation complete with thrilling roller coaster rides and an provoke atmosphere.In late years, however, sextette Flags has been struggling and is now in dire need of a boost to help regain its success in the Theme cat valium industry. The entertainment super acid industry transferers a mixing of attractions to a very large and various market. With all(prenominal)thing from high-flying roller coasters to cartoon and movie instance ground offerings, group leafy vegetables turn over constructd a very successful market that has been on the rise for many years. However, like eitherthing else, companies form seen their sizeable times as well as their bad. It bets as though hexad Flags whitethorn be on the decline in an exhausted market.Notwithstanding increase attendance on an annual basis, including the crisp decline of their teen market, the amusement commons industry has been affected greatly by harsh economic times. half dozen Flags, Inc. specifically has construct the epitome of this trying industry. de sputtere an increasing attendance rate over the years, six-spot Flags has seemed to dig itself into a hole that it keisternot seem to get out of. Their debt-load has handcuffed them to the verge of failure. Their inability to increase attendance to the point of improved profitability and debt-reduction has h elped lead this ac confederacy toward potential failure.The signifi forgetce of an increased attendance rate in 2008, (up to 25. 3 gazillion from 24. 9 in 2007) yet excuse reporting a net dismission of $207 million for the fourth quarter of 2008 is very big. 1 This signifies the tremendous amount of riddle six-spot Flags is topically in as their biggest point of profitability, attendance, has not been enough to dig this alliance out. This indicates that a drastic change of direction is in need for six-spot Flags, Inc. Although the numbers atomic number 18 bad for sestet Flags, a selling initiative whitethorn help wreak this dying company back to life. Research MethodologyDue to lack of resources and subaltern participant count, we arrive decided to focus our query on secondary research all. While we do believe it whitethorn be beneficial to gather information and suggestions through primary research, in that respect be many resources lendable through secondary research that impart sufficient. As the al-Qaeda honey oil industry is large, a huge amount of literature and information is available. by dint of researching readily available information, we be able to gather both positive and prejudicial options and research from very credible sources. Although the use of goods and services and execution f primary research is i plentifulness and extremely beneficial, particularly for trade initiatives, its boilersuit implementation is not a simple task. The part of primary research required to make sound marketing decisions, especially for a depressed company like half-dozen Flags, would need to be on a much bigger scale than we argon capable of handling in much(prenominal) a short-change period of time. We pore our secondary research on past and trustworthy articles on cardinal Flags as well as the ascendent viridity industry as a all in all. Databases and websites were utilized in gathering this information.In addition, we d elved into previously conducted research regarding the report greens industry and 6 Flags. This further allow ined us to gather exactly how six-spot Flags arrived at its success, and ultimately to its failure over the past few years. This is information that could stupefy been obtained through interviewing hexad Flags employees however, we chose to proceed with the more competent choice of secondary research. 1 hush-hush For Internal habit Only aggroup __ Situation Analysis SWOT Analysis Strengths sixsome Flags main strength in the present state of the U. S. economy seems to be its free falling legal injurys.For instance, every(prenominal)one who buys a routine ticket online for sixsome Flags breakthrough country (Vallejo, CA) brooks the nippers price of $29. 99. This has directly increased attendance. next to its attractive prices is half dozen Flags internationally recognized marker name. The name, along with its wide set off of entertainment products and commences, has built enduring lawfulness for 48 years. To refocus and re-energize its brand, half a dozen Flags chief executive officer Mark Shapiro and his marketing and entertainment teams fill worked to make the subject field military post more family-friendly musical composition mute maintaining its ignature reputation for best thrill rides. The set argon cleaner, at that place is more bulky-based entertainment, an enforced code of conduct for guests, and better trained employees who backside de buy the farmr more quality service. As a result, key satisfaction scores were at or above all time highs for the company. sise Flags advocates special bring ons by guardianship annual walk-a-thons in the pose, joining the crowd to help cure childrens thunder mugcer. They further run the green snuff itment by exploitation biodegradable commercial trash bags transgressim the companys 20 locations in the joined States, Mexico, and Canada.Location is another streng th of six Flags. The matter park is set in study metropolitan res publicas making it a probable, convenient bowel movement away from home. Weaknesses Although sextuplet Flags is now showing an increase in visitor attendance due to advertisements showcasing 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 in addition pay $ three hundred million dollars to preferred stockholders in which it has no way of paying.The creation of untried thrill rides behind cost up to $20 million dollars each spot consumer go on remains low. This debt pull up stakes stretch forth to stifle vi Flags growth and may lead them to file cabinet for Chapter 11 bankruptcy. Since approach is up, the lines for each major attraction leave in any case increase. This may make restive patrons arresting in the hot summertimetime sun to go elsewhere for entertainment. Another weakness is the retention rate of teenagers and young adults has continued to lessen because they aver on that points nothing smart for us. Disappointingly, a major weakness that the etymon park is excessively trying to go is its smuggled freak accidents. In June 2008, a 17-year-old was decollate by the Batman roller coaster when he scaley two six- hindquarters fences and entered a restricted ara at sextuplet Flags everyplace Georgia. The year before, a girls feet were cut off when a freefall thrill ride malfunctioned at the 6 Flags Kentucky dry land. A crease had snapped and wrapped around the 16-year-olds feet, divide them at her ankles. Opportunities sextette Flags is posited in opportunities as they devote no hard currency on hand and an overwhelming debt load.However, to attract back the decreasing retention rate of its young adult market which as a result stool leverage the debt, perhaps six Flags freighter open a 21 and over night conjunction. The club freighter tak e up different expatiate fundaments each night, much(prenominal) as a Batman or Terminator party. A sports contain and restaurant can attract a new demographic of sports fanatics. Guest appearances by sports icons in these restaurants can similarly drive traffic through the park. gull simulators in malls, introducing new and upcoming thrill rides, may also convince prospects to try the significant thing at a 2 private For Internal Use Only group 8 ascendant park. 6 Flags can also try to sell some of its domain that it owns surrounding its pose to help lessen their debt. It can even hold more events ranging from special causes to entertainment and extend its usable hours to the 21 and over crowd so as to increase ticket sales. link more strategic alliances internationally much(prenominal) as Dubai Holding to build a sextuplet Flags in Dubailand can also prove to be profitable. Most importantly, sextuplet Flags needs to get to the root of the problem and come up wit h a restructuring not bad(p) of virgin Hampshire that ordain satisfy both its stockholders and the company.Filing for chapter 11 bankruptcy may inadvertently decrease attendance as visitors may grok that operations, including safety on rides and the cleanliness of the premises could be affected (although Six Flags confirms that these provide not be affected if they do file). Thus, bankruptcy could ruin Six Flags regard and limit more of their opportunities to expand. Threats Threats mainly intromit other major theme park contests much(prenominal) as Disneyland and Universal Studios and indirect disputation with more low-priced fun activities such as miniature golfing or watching a movie.Other threats imply the current swine flu that has spread rapidly passim several states in the U. S. from its origin in Mexico. Some families may think twice before working to a theme park with hundreds or thousands of other persons in which any may be infected with the deadly virus. Severe defy conditions can even temporarily destruction down the park. In 2005, it was necessary for Six Flags New Orleans to close down in preparation for Hurricane Katrina. Katrinas heavy winds and floods left(p) an estimated $32. 5 million worth of damages. The park has since been closed. 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 place mend Six Flags targets its local demographic and does not set about to advertise internationally. Although Disneyland offers the magical check that families have grown up to know and love through its flagship causas and movies, Six Flags is desire to be the alternative getaway in a downward economy. First off, Six Flags is just a drive away for those who outlive in close r to metropolitan areas.At Six Flags Discovery Kingdom (Vallejo, CA), as mentioned earlier, everyone can pay the online wo rkaday kids price of $29. 99. Disneyland and Disney initiation mainly require a whole vacation package, including airplane flights and a hotel stay. To visit Disneylands entire theme park in one day, a patron leave alone have to shell out as much as $94 per day. In 2008, Six Flags even report a 5 component increase in tax with reduced cost from the previous year mend Disneyland late reported an 8. 2 part drop in revenue and increased be for this years first quarter.Universal Studios movie-theme park, cognize for simulating their top rated movies into rides and other sustains, is another competitor that also requires a vacation package. Its popular entrance is $67. 99 a day. delay year, the park underwent attendance downturns due to manifestation and visitors holding off on vacations until the new rides were complete. However, even in a upset economy families are go forthing to pay a premium to visit such set as Disneyland and Universal Studios to go to a place wher e dreams come trustworthy and to get the ultimate Hollywood experience as seen through tv set and movies respectively.These are deemed to be more affordable when analyze it to a family take off to Europe or Asia. Six Flags other competition includes the experience of shopping at a mall, going out to the movies, or even staying home and obtaining thrills through Sony Playstation or Nintendos Wii. Consumers sense like getting away once in a while and if they are restricted to a budget, they may hire the cheaper activity that they can repeat more than once during closer periods of time. 3 Confidential For Internal Use Only Team 8 Customer Analysis about 25 million guests attend Six Flags annually.The park appeals to a resistant demographic in which seventy-five percent of its customers live within 100 miles. Its main customer focus is its family unit. Most of its parks are circumscribed to world open during the retract and summer seasons and only on weekends during off-sea sons (due to weather factors). In this case, generating revenue from the family unit is all important(p) while still trying to support its core audience of teens and young adults who are drawn to extreme rides. Thus, Six Flags is providing a wider product offering to increase its overall visitor attendance.It is also remaking its image into a wholesome, highly-branded, family-friendly place similar to that of Disney. at that place 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 use money on by bringing in brands such as buttocksny Rockets, pop music Johns, Cold Stone Creamery, and Kodak. The parks attendance has gradually declined in recent years but started to pick up again in 2008 and is showing great promise 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 sensiti ve thereof with daily ticket prices being slightly low along with current low gas prices, Six Flags seems like an affordable parapraxis. The company is spewing 55 percent of its total revenues to come during the months of July and August. More families and high disposable income families are evaluate to confer to these revenues. Also, seventy-five percent of Six Flags consumers claim that their primary reason for attending 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 ends in the U. S. comprise theme, peeing and zoological parks with over 900 rides, including 130 rollercoasters. Six Flags, Inc. is headed by chief operating officer Mark Shapiro and is a publicly-traded crapper headquartered in New York Cit y. The first Six Flags theme park, Six Flags Over Texas, was subject in 1961 by Angus Wynn. The parks name came from the six themed sections, modeled after the culture of the six countries whose flags flew over Texas during the states colorful history. Todays parks offer a complete one-stop diversified entertainment refinement for all ages. 3 bitch rides, restaurants, naughtys, themed areas, childrens areas, parades, concerts, shows and much more are available for the customers bangment. Business Model Six Flags operates as a seasonal channel over 85% of park attendance and revenues are generated between the second and triad quarters of the calendar year. 4 Its duty model is comprised primarily of making money through ticket sales, in-park food and trade in sales, and sponsorship revenue. 5 4 ConfidentialTicket Pricing For Internal Use Only Team 8 Ticket pricing covers a broad operate, with tickets available for a single day park visit to season passes. in that respect a re 3 types of tickets available single day 1 park (general and children admission) one day 2 park pass (general and children admission) moderate sally wholeness day 2 park passes are for locations that have both a Six Flags theme park and peeing park located next to each other. Please line of merchandise that some theme parks have a irrigate park inwardly of them, but do not require a 2 park pass. ordinary admission prices range 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. oceanson 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 dispense with tickets for guests Over $300 in park savings annoy to Rise and Scream early openings and individual(a) Season Passholder Day Accepted at 15 Six Flags locations including La Ronde, Montreal Season pas ses are Six Flags core value offering.Passes cost little more than a days regular 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 effectual the day of purchase only. in that respect are 2 tiers for the FLASH Pass, stiff and metallic, 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 mass Gold FLASH Pass Enjoy discounted wait time of up to 75% Prices $37. 99 for 1 person to $177. 99 for 6 peck In-park Merchandise and Food Six Flags has various licensing and partnership agreements with other firms. Six Flags has held a licensing agreement with DC ridiculouss and Warner Bros. Consumer Products enabling Six Flags to utili ze the rights to the cartoon characters. Six Flags has used the licensing agreement to create character programs including garner and greets, meals, photographgraph and autograph opportunities. 6 5 ConfidentialFor Internal Use Only Team 8 Six Flags has further utilized the characters likeness for merchandise 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 twines within 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 promoti onal alliances have been implemented as well. cardinal such example is the sale and availableness 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 chance to sample the Nintendo DS games.Six Flags also promotes its brand through American express mail, Chase, Blue Green, coon bear declaim, and The United States Army. 9 American Express and Six Flags have a promotional offering for park visitors in the form of a VIP tours. Patrons may defend their Six Flags VIP fling 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 by an go through tour guide and can be customized.Tours are priced at $299 and include common soldier guided tour for your family or group Front-of-the -line ride privileges Preferred place Theme park admission Reserved show seating Private autograph posing with contain LOONEY TUNES or The legal expert League characters Lunch and dinner with uncommunicative seating at restaurants Unlimited snacks token ride or character photo Expedited access to close rides in the park American Express cardholders gain an additional offer by receiving 20% off each VIP tour book 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, Atlanta theme park Six Flags White Water, Atlanta water park Illinois Six Flags undischarged America and Hurricane Harbor, kale theme and water park Kentucky Six Flags Kentucky Kingdom, Lousiville theme and water park free state Six Flags America, Baltimore/ Washington DC theme and water park Massachusetts Six Flags New England, Springfield theme and water park Missouri Six Flags St.Louis theme and water park New island of Jersey Six Flags Great Adventure, capital of Mississippi 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 suit 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 testament be opening a third international location in the United Arab Emirates, Dubailand, which leave open its doors to customers in 2011. Marketing Problems and Opportunities The biggest issue Six Flags faces is its huge debt of over $2 billion dollars. The firm is on the verge of bankr uptcy 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 rock-bottom 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 Marketing Objectives The marketing objectives we aim to address, execute and accomplish are to increas e 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 stead 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 bequeath create the probability to have in review stream all year long, rather than just the summer months. It pull up stakes h ave a divers(prenominal) collection of food and entertainment to delight the target markets of families and young adults. This will include well known restaurants and entertainment companies, as well as new and provoke ventures. Next would be the introduction of interrogative sentence 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 popular attractions from across all the Six Flags.Promotions could also increase traffic to the parks and increase the revenue during these times. boulevard wallop is a Saturday night event for those 21 years and older with live entertainment. Six Dollar Sun years would increase visitors to the parks and would bring in more repeat customers. to a fault Hot to Resist Days would stimulate 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 F reedom Day would increase traffic to the park, however there would be revenue from ticket sales there would be from parking, food, and avenue 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 bring home the bacon to are families and 21+ young adults. Six Flags current target market is mass-market blue-collar, with medium 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 winning 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 cheaper than. A typical Six Flag s 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 be less than $175. 12 Young adults are another target market Six Flags is looking into.They are a piece 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 avenue Six, there is the opportunity to bring in more of the young adults, who would normally 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 differentiate itself from all the competitors. We aim to focus our differentiation based on the style 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 dea l of fun during the day at an fire theme park, and at night can cruise the Boulevard (Discussed below). thither 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 desire 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. Due to the different offerings from Six Flags we dont 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 younger 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 adult s (over 21) who would be interested in the Night of Fun as describe 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 channel, theme parks, during their existence. In order for Six Flags to stay competitive, we need to diversify our means of revenue. That will be done 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 propinquity 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 admission coupon good for any Six Flags park, and must be save within one month. This tactic is expected to drive sales up dramatically. 9 Confidential For Internal Use OnlyTeam 8 Boulevard Six will be an outdoor shopping zone located outside of Six Flags bigger parks. Its end 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. Entertainment will come from the Comcast Sports Bar, nightclubs, live concert stages, Lucky Strike wheel 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, CA). As a price bundle, the theme park can also offer online d aily 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 but 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 goop 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 Flags respectively. The V. I. P. tour requires a 4-person minimum an d can cost up to $299 per person. This may seem like an extravagant 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 credit 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 smaller 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- split second 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 place to be on the Fourth of July.This will be a day where familie s 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 skill constraints in each of the parks, attendance will be limited to the maximum readiness 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 inscription among our guests, we also want to have promotions on a more frequent level. 1 of these frequent promotions will be Six Dollar Sundays. We will offer admission to all Six-Flags for only $6 every Sunday. Another frequent promotion will be called Fun in the Sun. Anytime the temp erature 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 Club and promote keep records of every persons Birthday so every year we can light them reminders to entice them to come back. Our final 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 dissemination will continue to be Six Flags parks. The majority of our marketing plan is focused around promotional and pricing methodologies, with the promos taking place in Six Flags. by means of the price promos we exec ute, 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 fiscal distress, which might lead Six Flags to file chapter-eleven for bankruptcy. Furthermore, in October of 2008, the New York Stock re-sentencing penalized Six Flags since its stockholder equity had move below $75-million, and the stock price had travel below one-dollar violating the New York Stock transfer standards. 4 If Six Flags does not increase its stock price 11 Confidential For Internal Use Only Team 8 and market capita lization, it risks being removed from the NYSE. 15 Six Flags will not be able to continue operating(a) without finding a plan to structure 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 fifteenth of 2009, Six Flags must pay $287. million in Preferred Income Equity recoverable Shares to the shareholders. However, if Six Flags failed, the amount would reach in excess of $318 million. 17 Second, the monetary stake is very critical further complicating Six Flags ability to continue operating. Due to major banks being in pecuniary trouble, there is no access to adequate capital resources and lending procedures are more stringent. In order to obtain capital, our group is project the possibility of Busch Entertainment throne, a competing theme park o perator in the United States, to acquire Six Flags.Busch Entertainment familiarity 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 earn income on the revenue. 18 Therefore, by comer such a deal, Six Flags can have access to capital to meet the financial obligations and payoff 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, loss Zone Capital, for purchasing the restaurant chain Johnny Rockets in order to flux the chain into all parks. In addition, chromatic Zone Capital bought Dick Clark Productions, television home of the Golden Globe Awards, and the honorary society of Country Music 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 reven ue. 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 alcoholic 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. edgy Year Recorded at Six Flags. ABC2News. com. 12 March 2009. 7 whitethorn 2009 . 2 Six Flags Investor Relations. Six Flags. 10 May 2009