ORGANIZATIONS AND THEIR LEVELS OF STRATEGY Slide 2-14 Strategy Issues in Organizations  The Business  The Mission Mission Mission Stakeholders

Mission Statement LEGOLAND California exists to give children and their families a first-hand experience of the LEGO values – creativity, fun, development, play and learning. We as Model Citizens will deliver the highest standards of value, quality, care, service and safety, making us the preferred choice in the industry.

ORGANIZATIONS AND THEIR LEVELS OF STRATEGY Slide 2-16 Strategy Issues in Organizations  Goals or Objectives Goals or Objectives Profit Sales Market Share Market Share Quality Customer Satisfaction Employee Welfare Social Responsibility

LEGOLAND California Goals/Objectives Nonfinancial: Successfully launch LEGOLAND California in March Develop the highest standard of quality and service. Exhibit creativity, innovation and exuberance in all efforts while operating as an industry leader. Financial: Achieve 1.9 million in attendance and $75 million in revenues (by end of 1999).

SETTING STRATEGIC DIRECTIONS Slide 2-21 A Look Around: Where Are We Now?  Customers  Competencies  Competitors Competitive Advantage

THE STRATEGIC MARKETING PROCESS Slide 2-32 Other Questions to Consider  How do we allocate resources to get to where we want to go?  How do we convert our plans to actions?  How do our results compare with our plans and do deviations require new plans?

THE STRATEGIC MARKETING PROCESS Slide 2-35 Strategic Marketing Process: The Planning Phase  Step 1: Situation (SWOT) Analysis SWOT Analysis SWOT Analysis Situation Analysis Situation Analysis

THE STRATEGIC MARKETING PROCESS Slide 2-40 Strategic Marketing Process: The Planning Phase  Step 2: Market-Product Focus and Goal Setting Points of Difference Set Marketing and Product Goals Select Target Markets Position the Product Market Segmentation

Marketing and Product Objectives Build awareness of LEGOLAND among its new market focus: California residents; family travel industry. Create a sense of excitement about the park. Create compelling advertising messages and deliver impactful multi-media campaign. Secure all attendance-generating programs by March 1 st.

THE STRATEGIC MARKETING PROCESS Slide 2-42 Strategic Marketing Process: The Planning Phase  Step 3: Marketing Program Product Strategy Price Strategy Promotion Strategy Place (Distribution) Strategy

Marketing Program (Marketing Mix) Product strategy - The LEGOLAND California combines nearly 30 “hands on”, interactive attractions, family rides and shows with restaurants, shopping and landscape features. 30 million bricks are used. Price strategy – Adult: $32 Children: $25 – Group discounts; Annual passes Promotion strategy – Advertisements; Sponsorship and promotional partnerships; Sweepstakes; Special offers/coupons; P.R. events Place or distribution strategy (Carlsbad, CA) – 128 acre site includes parking and support facilities. – Access off the I-5 and Cannon Rd interchange

THE STRATEGIC MARKETING PROCESS Slide 2-47 Strategic Marketing Process: The Implementation Phase  Obtaining Resources  Designing the Marketing Organization

THE STRATEGIC MARKETING PROCESS Slide 2-49 Strategic Marketing Process: The Implementation Phase Marketing Strategy  Developing Schedules  Executing the Marketing Program Marketing Tactics

THE STRATEGIC MARKETING PROCESS Slide 2-50 Strategic Marketing Process: The Control Phase  Comparing Results With Plans to Identify Deviations Planning Gap  Acting on Deviations Exploiting a Positive Deviation Correcting a Negative Deviation