Introduction to the Company
DXB Entertainments PJSC, previously Dubai Parks and Resorts PJSC, is a leading leisure and entertainment company in the city of Dubai that officially opened its operations on December 18, 2012. According to Schröder, the company is currently the largest integrated theme park and leisure destination in the entire Middle East (21). It is located on Sheik Zayed Road in the city of Dubai and it sits on a 25-million square feet of land. Clients who visit the facility can enjoy a variety of entertainment and leisure services irrespective of their age. The three theme parks, Legoland Dubai, Motiongate Dubai, and Bollywood Parks Dubai offer a variety of services to the visitors (Murray 31).
The facility also has a water park known as Legoland Water Park for visitors who prefer having their leisure in or around water. The Lapita Hotel Dubai is a world-class resort that offers premium quality to its customers. As Kallen notes, Dubai Parks and Resorts is a perfect destination for families looking for leisure and entertainment (21). It is designed to ensure that every member of the family is taken care of at all times. The adults can entertain themselves at the theaters in Bollywood Parks Dubai as the children enjoy the rides and slides in the Legoland Dubai. The facility has also put in place excellent communication infrastructure that can enable parents to monitor the activities of their children with ease. The security of the facility is enhanced to eliminate any worries of kidnapping, robbery, burglary, pickpocketing, or any other acts of crime.
Situation Analysis
It is important to conduct a situation analysis to understand the internal and external forces that this company has to deal with as it seeks to expand its operations to accommodate a higher number of customers than is currently the case. Conducting a SWOT, PEST, and competitive analyses will make it possible to understand the ability of the company to achieve its set goals and objectives.
SWOT Analysis
The strength of this company lies in the diversity of the products it offers to its customers. It makes it an attractive destination for small and large families, individual travelers, business travelers, get together parties, and a wide range of other customers. The strategic location of the park in the city of Dubai is the strength of this company. It is impossible for visitors to Dubai to ignore its presence. However, it is necessary to appreciate that some weaknesses exist that the management of the company needs to address. Dubai is currently one of the top global tourists’ destinations that attract tourists from all over the world. However, enough is yet to be done by the company to popularize the brand in the global market. The market offers huge opportunities that the management of this firm should focus on, top of which is the growing local economy. The growth of the local economy means that local tourism is expected to grow. The improved infrastructure and security in the city also boost the tourism industry. The management should also be keen on dealing with the threats that exist in the market such as stiff competition from the existing and new rivals. The regional insecurity and the fear of extremist groups may also have a negative impact. The following table summarizes the SWOT analysis:
Table 1: SWOT summary.
PEST Analysis
It is important to further scrutinize the external environment using PEST (political, economic, social, and technological) analysis to understand the forces that this company must be ready to deal with to achieve the desired success. The political environment in the United Arab Emirates is very stable and has been so for the past several years. The rulers of the country have done everything possible to ensure that the political environment in the country remains stable. The stability is critical for the economic success of DXB Entertainment PJSC. However, it is worth noting that the regional instability in some countries such as Syria and Iraq may hurt the progress of this company. The economic environment in the country has also been very supportive. Since 2010 when the country came out of the economic recession, it has experienced consistent economic success over the years. The economic boom means that more people can now afford to purchase products offered by this company, which assures it of further growth.
The social environment in the country may impede attracting international visitors. The society does not tolerate some of the western practices prohibited in the Islamic culture. Schröder observes that this issue may not be a problem for a long time because society is becoming more liberal (45). Technology acts as a double-aged sword that may benefit or harm a firm based on the approach taken. The cutting-edge technology embraced by the firm has enhanced security, improved service delivery, and increased the product portfolio of the company. However, the management should monitor disruptive technologies that may render some of its products outdated.
Competitive Analysis
The wide product portfolio of this company means that it has numerous rivals in the market that it must compete with for the local and foreign customers. The city of Dubai has numerous five-star hotels offering premium services such as InterContinental Hotel, Waldorf Astoria Palm Jumeirah, Jumeirah Beach Hotel, Armani Hotel Dubai, The Ritz-Carlton Dubai, and Kempinski Hotel & Residences Palm Jumeirah among others. The company must also compete against other top theme parks in the country such as Ferrari World Abu Dhabi, IMG Worlds of Adventure, Wild Wadi Water Park, and the Wonderland Amusement Park (Kallen 56). The fact that DXB Entertainments PJSC offers a wide range of products under one roof offers it a competitive edge over some of its rivals. However, it must find a way of convincing its customers that it offers superior services to its clients. As Ravens suggests, the company will need to use emerging technologies to gain a competitive edge over its market rivals (71). It must find a way of making it’s brand superior to that of the existing competitors.
Customer-Based Brand Equity Model
The strength of a brand in the market defines how successful a company performs, especially in a market that is characterized by high levels of competition. Knowing how to build a strong brand is critical for a firm such as DXB Entertainments PJSC. A customer-based brand equity model may help in explaining the steps that the management needs to embrace to ensure that this company achieves market success using a strong brand. The pyramid, shown in figure 1 below, identifies four steps that should be taken in strengthening the brand of this company.
In the first step, the management must start by defining the identity of the company. The focus at this stage is the creation of deep and broad brand awareness in the market. The targeted customers should be able to identify the brand and what it offers in the market. It is also critical to ensure that the correct perception of the brand is developed among the target audience at this initial stage. The second stage focuses on communicating the meaning of the brand to the target audience. Scholz notes that the building blocks at this stage are imagery and performance (57). In this context, performance involves defining how effective the services of this company meet the needs of the customers. On the other hand, imagery involves how the brand meets the socio-psychological needs of a customer. The firm should ensure that customers are proud to use the services of the company.
The third stage is a brand response that is received from the customers. Its building blocks include feelings and judgments. The management should be keen on monitoring the judgment of the customers to determine if corrective measures are needed. Their feelings towards a brand and its products often define their judgment. If they are pleased, they are likely to make a favorable judgment about the brand, and vice versa hold. Their judgment should define the path that the firm should take in promoting its brand and products. The last stage is the relationships developed based on the decisions and actions of the firm in meeting customers’ needs. Brand resonance is at the top of the pyramid, being the most desirable yet the most difficult stage to achieve. At this stage, the firm has convinced customers that it offers the best in the market, winning their loyalty. DXB Entertainment PJSC is yet to achieve this level of success given that some brands are still stronger in the market because of their superior services and the fact that they have been in existence for decades. However, the performance and growth of this company should that it can realize the target.
Brand Portfolio
DXB Entertainments PJSC has a broad brand portfolio that enables it to attract a wide range of customers. The brand portfolio enables this firm to have products that can meet the needs of minors under 12 years, teenagers, young adults, middle-aged people, and the elderly population. One of the popular brands in its portfolio is Legoland Dubai. It offers families and individuals to engage in themed adventures such as water slides, interactive rides, building, and models experience. Each of these products is designed to meet varying categories of customers, especially based on age and gender. Lapita Hotel Dubai is another major brand in the portfolio. It is a unique gateway to great fun than enables families to bond. The hotel offers world-class hospitality services both to local and foreign customers. Visitors staying in the hotel have access to all other products offered in the portfolio.
Motiongate Dubai is another popular brand, especially among teenagers and movie lovers across all ages. It offers clients cinematic journeys into a world of fantasies (Kallen 36). The motion pictures at this park offer the audience high-value entertainment that is based on the latest technologies of character-animation. Bollywood Parks also offers a wide variety of entertainment services, from action movies, romance, adventure, comedy, music, dance, flavor, and emotion (Trott 43). Riverland Dubai is popular among children under 12 years.
Brand Inventory
Brand inventory, which is one section of brand auditing, provides a comprehensive and current profile of the strategies used by a firm to sell and promote products in the market. DXB Entertainment PJSC has a wide brand portfolio with a variety of products, as discussed in the section. The company has been keen on branding each of them differently but in a way that customers understand that they can be available in one roof, especially for customers staying at its hotels. The figure below shows how Legoland, one of the popular brands of this company, is advertised.
In its branding strategy, this film tries to depict what customers are offered. They try to influence the perception of the customers based on the images, colors, words, and sound used. They also try to distinguish their brand from that of their customers. As shown in the figure above, one of the most conspicuous elements in their advertisements is the brand name and logo. The brand name Lego is so conspicuous in the above image, being the first element at the top and the most recurring word. The same is repeated in all the brands of this firm. One also notices that all the brands use simple memorable words such as Legoland, Riverland, and Lapita. It is also evident that all these brands end with the word Dubai, which is a reminder to the customers about the location of the company.
Brand Elements
When auditing a brand, Trott says that one of the most important areas that should be taken into consideration is brand elements (45). Ten items must be audited when auditing the brand of DXB Entertainments PJSC. They include the following:
Brand Identity
Brand identity is the name, logo, or both that a firm uses to identify it in the market (Scholz 38). DXB Entertainments uses both name and logo to help in enhancing its identification in the market. The approach of using both name and logo makes it easy for it to be easily recognized in the market. Figure 3 below shows the name and logo that the firm uses in the market. It is important to note that the logo of the firm is a further expression of the name of the brand.
Brand Image
Brand image, as Murray observes, is the idea of the brand that is developed in people’s minds defining what they expected from it (92). In most of the cases, it is based on the positioning approach that is taken when promoting the brand. At DXB Entertainments PJSC, the image created is that of fantasies and dreams. The brand promises its customers entertainment that meets their wildest fantasies, as suggested in its brand motto. In the mind of its customers, the brand offers a series of thrilling games and entertainment that meets a wide variety of needs irrespective of one’s age or gender.
Brand Positioning
Brand positioning defines how a firm’s product is placed in a given market and the market segment it targets (Weindel 82). DXB Entertainment PJSC is positioned as a brand for families and individuals who want to have some good time away from work and away from home. The wide variety of products offered under this brand is meant to ensure that every family member will be entertained, as long as one is over two years old. Some of the sub-brands are also positioned to target young couples who are interested in finding a place where they can relax away from their families.
Brand Personality
The personality that has been created for DXB Entertainment PJSC is play and fun. Every time the brand name is mentioned, play and fun come into mind. The products of this company are designed to ensure that even adults can find interesting games to play and have fun in the process. For those who are not interested in engaging in the wide range of games offered within this facility, they can have fun watching their latest favorite movies in state-of-the-art theaters. In the end, everyone who comes to this facility will have fun based on personal interests.
Brand Equity
Brand equity, as Rossolatos observes, is the value of a brand that may include tangible financial values and intangible benefits (63). DXB Entertainment PJSC has created brand equity that cannot just be defined by its revenues and market share but also the premium value that customers believe they get from it. Brand equity is discussed further in the section that follows.
Brand Experience
Brand experience entails all that a customer goes through before, during, and after purchasing a product (Murray 97). At DXB Entertainments PJSC, the joy and fun that customers get when they play and get entertained at different theme parks and theaters define their experience. The company has been keen on ensuring that the experience of their customers is standardized. What a customer gets today is what he or she will get in the future when they make another visit.
Brand Differentiation
Brand differentiation enables a company to distinguish itself from other existing brands in the market (Weindel 58). This firm has been keen on ensuring that it differentiates its products from that of its rivals through brand name, brand logo, and brand positioning. It has also developed unique products different from that of its rivals in the market. For instance, customers who check-in at Lapita Hotel Dubai are offered free access to the theme parks.
Brand Communication
The management of this company has been committed to ensuring that DXB Entertainment communicates its unique offering to its customers. It has been using various platforms such as mass media (television and radio commercials) and social media (Facebook and YouTube) to reach out to its target audience with relevant informative and promotional messages.
Brand Gap
Brand gap refers to the difference between what a brand offers and what it promises to offer in its communication (56). At DXB Entertainment, the management has been keen on closing this gap as much as possible by paying attention to the feedback from customers and acting upon them as necessary. Continuous improvement of the quality of products at this firm has been critical in eliminating the gap.
Brand Extension
The brand extension enables a firm to offer a wide range of products beyond what it first focused on offering. The initial idea was to develop a theme park that would enable its visitors to watch Bollywood and Hollywood animated characters. However, the company has expanded to a variety of products, including hotels and resorts to expand its product portfolio.
Brand Equity
Brand equity can be analyzed from a wide perspective, as Rossolatos observes (73). The value that is derived from a brand can be tangible or intangible. In this section, the brand equity of DXB Entertainment will be analyzed based on marketing mix elements.
Product
The primary element in a marketing mix is the product. When analyzing the brand equity of DXB Entertainment, one of the areas that should be of primary focus is the products that it offers under a wide variety of brands. Lapita Hotel Dubai is one of the most important brands of this company. It offers hospitality services to local and international clients. This firm ensured that its hotel services are up to the international standards in terms of space, the facilities within the rooms, meals offered to the clients, among others. One of the unique services offered at this hotel is a workstation, as shown in figure 4 below. The rooms have access to fast-speed and reliable Wi-Fi, which means that visitors who come to this facility can easily do their work while in the facility. Other than the ambiance of the room, as evident in the figure below, visitors can relax in the room or the balcony based on the time of the day and the desires of the customers. Comfort is another factor that the management does not take chances with at this facility. The bed and beddings are perfect, lighting regulated, and temperature managed accordingly. The Lapita Hotel is currently one of the premium hotels in the city of Dubai, and the image below demonstrates why it is classified as so.
Legoland Dubai is another brand that offers unique services to its clients. According to Johansson, Legoland Dubai is set to be the only place where people can watch The Lego Movie 4D in the entire Middle East (51). The Legoland 4D movie theatre is one of a kind, design to change the experience of watching movies. It takes its viewers to a completely new experience, a world of fantasies where they feel they are part of the show. It is a product that is uncommon in the country. Within the facility, several other services will be available for the customers.
Motiongate Dubai is another important brand of the company that also offers unique products to its clients. The concept was inspired by the fact that a large population of Dubai residents loves Hollywood movies. As such, this product was designed based on Columbia Pictures, the Smurfs, DreamWorks Animation, and Lionsgate. The facility also has dining and shopping facilities for its visitors. Bollywood Parks Dubai, just like Motiongate Dubai, was influenced by the popularity of Bollywood in Dubai. The facility offers action, romance, comedy, and adventure all of which are Bollywood style. Bollywood music, dance, emotion, and flavor are also offered in this facility. The facility is very popular among teenagers and young adults. Legoland Water Park is a recent portfolio product introduced to meet the interest of families with children below ten years. It offers a wide variety of products, some of which parents can enjoy alongside their children. The figure below shows a family enjoying a ride in a waterway within the facility.
According to Kallen, companies that operate in the entertainment industry are trying to diversify their products to ensure that they meet the needs and interests of a diversified group of customers (56). That is the same strategy that DXB Entertainment is taking. The company has come up with such a wide variety of products in its portfolio to ensure that their visitors do not have to leave to other facilities once they check into their hotels. Another unique factor about these products is that they are designed to meet family needs in the best way possible. For instance, the waterway was designed in a way that both parents would enjoy the ride alongside their children in a genuine way. It is thrilling to adults, just like it does to the children (Murray 77). It offers a perfect bonding opportunity where parents get to understand the needs and fears of their children. In other ordinary parks, parents are forced to play passive roles, where they have to watch from a distance as their children play, keen to ensure that they do not come in harm’s way. However, that is not the case at this firm. Most of these products are designed to ensure that parents and children play together and go to the movie together because of a common interest created.
Price
Pricing is a critical factor in a marketing mix that must be set with precision. As Johansson observes, there is always a dilemma when setting the price of a product and the management of DXB Entertainment must have faced this predicament (21). When the product is set very high, the message that is sent to the market is that the product offered is of very high value. The customers’ expectation of the product is therefore high. However, the problem is that it locks out many potential customers because of the issue of affordability. Only a few customers can afford to pay premium prices. The fundamental principle of success to any firm is to have as many customers as possible purchasing its products. It means that high prices may not be advisable because it reduces the size of the target market. On the other hand, prices set below the market average pass a message to customers that the quality offered is also below average even if that is not the case. In such instances, people may avoid such products because of the perceived poor quality (Kallen 64).
DXB Entertainment was forced to find a deliberate balancing act when setting the prices for its products. It had to come up with prices that would be affordable to as many of its customers as possible while still reminding them that the firm offers the best quality in the market. Most of the products offered by this firm are just below the premium prices in the market. They are above the market average, but at the same time below the most expensive products in the market. This is meant to inform the customers that the firm offers premium products but it is considered enough to charge fair prices that its customers can afford. For those visiting Motiongate, the ticket price is AED 235. The same price is charged for those visiting the firm’s Legoland. Once the ticket is paid at the gate, one can have access to all entertainment available in the facility. Visitors coming to the Dubai Parks and Resorts, they will need to pay a single-day ticket of AED 240. At the Lapita Hotel Dubai, a single adult pays AED 760.61. A couple without children will pay the same amount if they need only one room. A couple with two children (if they need two rooms) will pay AED 1521.23 per night. The prices charged by the firm are slightly below the highest prices charged by some of the market rivals. However, the firm was keen on ensuring that they were above the market average.
Place
The place element is another critical factor of the marketing mix that defines the level of success that a firm can achieve in the market. According to Trott, the location of a business is often defined by the nature of the product it offers (24). For manufacturing companies, it may not be necessary to have the processing plant located close to the masses. However, the retail outlet will need to be close enough to the target population. For parks and resorts, location is so crucial that if a wrong choice is made, it may be almost impossible to achieve the desired success in the market. At DBX Entertainment, the place element is one of its strongest factors that give it an edge over its market rivals.
First, the company ensured that all its facilities, from the Lapita Hotel and Motiongate to Legoland and Bollywood parks are within the same expansive land. It means that when a customer is staying at the Lapita Hotel, he or she can easily access all the facilities offered in the different parts of the company without having to commute. The strategy helps in maximizing the profit for the company. It eliminates cases where a customer visiting the parks is forced to stay at different hotels because the Lapita Hotel is located several miles away. The brands for the company are supportive of that environment because when a customer visits to purchase one of the products, he or she will be presented with other equally desirable products.
The second strategy in the place element that DXB Entertainment embraced is the accessibility of its facility. The expansive facility is along Sheikh Zayed Road in Dubai. The road is one of the major transit routes for those visiting the city of Dubai. It is the major road that links the city of Dubai to Abu Dhabi and Sharjah. It means that people traveling along this important road, even if they were not aware of the existence of this facility, can easily see it along the highway. Al Maktoum International Airport is just a short distance away from the facility. It is one of the resorts which are nearest to this airport. Such a strategic location means that it is likely to attract international tourists in the region than most of its market rivals. Johansson notes that most tourists coming to Dubai are often keen on visiting the Palm Jumeirah and Palm Jabel Ali because of their unique architectural designs (48). The park is located a few miles from these facilities. One can easily walk from the Lapita Hotel to Palm Jabel Ali because of the proximity. The facility is also close enough to other amenities that may be needed by the visitors. Numerous banks are close to enable clients to conduct their banking transactions without fear. The facility is close enough to the Dubai beaches. It is also worth noting that other parks and resorts are located close by, making the area a point of interest to the government in terms of enhancing security.
Promotion
Promotion is another crucial aspect of the marketing mix that defines its ability to succeed. Murray notes that after developing a great product, identifying a perfect location, and setting the most appropriate price, the next important phase is to inform the targeted customers about the existence of the product (6). In promotional campaigns, the aim is not just to inform the clients about the existence of a product. The goal is to ensure that customers are convinced about the superiority of the product and brand of the company. The value offered by the firm must be presented in the promotional campaign message in a way that would influence customers to purchase the products (Ravens 45). At DXB Entertainment, advertising is one of the core activities that the management has given top priority. The company has been using various strategies to enable it to reach out to its customers in the market through various platforms. For local customers, the firm has mainly been using mass media marketing. Television commercials have been used extensively to inform the targeted customers about the existence of this firm, the unique product it offers, and its unique pricing as a way of winning their loyalty. In its effort to target international customers, the company has been using social media marketing because of its wide reach. Facebook and YouTube have been popular platforms through which the company tries to reach out to the international audience.
One of the marketing approaches that this firm has been using is to have a brand ambassador. Having a popular local or international figure that can help convince the local or international community of the superiority of the brand is critical. As shown in figure 6 above, DXB Entertainments used Justin Beiber in 2017 as its brand ambassador in the international market. During national holidays such as Eid al-Fitr, the firm comes up with a promotional offer for local and international clients. One such advert is shown in figure 7 below.
In its promotional campaigns, DXB Entertainment is always keen on reminding its customers about the integrated nature of its products. It reminds them that everyone is taken care of when they visit the facility. The figure below shows a wide range of products it offers and the target audience. Customers are informed that irrespective of their age or gender, they will have fun at this facility.
Strategic Recommendation
DXB Entertainment is one of the fastest-growing brands in the leisure, entertainment, and hospitality industry in the city of Dubai. It has understood its market well and created a platform where families can play and have fun together irrespective of the age or gender barrier. However, the management must understand that market forces such as competition, changing technology, changing tastes and preferences, economic forces, and government policies may influence its operation and level of success. Murray observes that in a highly competitive market, no single position can be permanent (45). A market leader can easily be toppled if it fails to understand the changing needs of its customers. Similarly, a once struggling firm can experience impressive growth if it embraces the right strategies that offer customers high value for their purchases. The following strategic recommendations should be taken into consideration to ensure that the firm registers continued growth.
- The firm should use emerging technologies to enable it to maintain a continuous innovation in its product delivery. Instead of waiting for other rival companies to come up with new unique products, this company should become the pacesetter in the local market in terms of innovativeness.
- The strategic partnership is critical for companies in the hospitality industry. Partnering with leading regional airline companies such as Emirates Airline and Etihad Airways can enable it to maintain its hotels adequately booked even during low seasons. In some cases, it may even be necessary to partner with market rivals just to meet the needs of the customers in the best way possible.
- The management should consider increasing its investment in international marketing campaigns, especially in North America and Europe. The city of Dubai is receiving an incredibly high number of tourists from these two regions. These visitors need to know about this brand and its unique value even before they arrive in the country.
- DXB should engage other stakeholders, especially the government and rival companies in the leisure and hospitality industry, to come up with a system of enhancing security within the region. Customers should not just be made to feel safe. Their safety needs to be guaranteed.
Tactical Recommendation
The strategic recommendations set above will enable the firm to achieve its strategic goals of growth and development. However, strategic goals can only be realized if they are aligned with tactical goals that define the daily operations of the company. The following are the tactical goals that should be considered by this company:
- The management should engage in regular advertisements both locally and internationally to inform customers about daily changes in product offerings and pricing, such as during important holidays.
- The firm will need to inspect and regularly improve its infrastructure to enhance the safety and security of its customers. Wear and tear are common in the gaming facilities and if these equipment and systems are not replaced or repaired at the right time, they may cause serious accidents that may affect the image of the firm.
- The marketing unit should have a proper customer feedback platform that enables visitors to share their experiences. It can be the suggestion boxes located strategically within the facility. It can be online platforms or any other reliable channels.
- The firm should always be committed to acting upon the feedback from the customers with the primary goal of improving its service delivery.
Works Cited
Dubai Parks and Resorts. Dubai Parks and Resorts Special Offers. 2017, Web.
DXB Entertainments. Legoland Dubai. 2016, Web.
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