Measuring the impact of IP - IAAPA - The International ... the impact of IP James Kennard, Partner &...
Transcript of Measuring the impact of IP - IAAPA - The International ... the impact of IP James Kennard, Partner &...
Measuring the impact of IP
James Kennard, Partner & Natalia Bakhlina, Partner
Leisure Development Partners
21st September 2016
Introducing your speakers…
James Kennard: 13 years experience, MA Social and Market Research
Natalia Bakhlina: 12 years experience in leisure and real estate economics
Highly
Specialised
Consultants Unrivalled
Global
Experience
Over 50
Years’
Experience
Objective Analysis
Creative Thinking
Leisure Development Partners LLP (LDP) produces feasibility studies, concept testing, due diligence and performance improvement strategies for the worldwide visitor attraction and leisure industry
Who we are…
EVENT VENUESCroydon, Amsterdam, UAE, Mexico City, London Olympics, Hamburg, Asian Games, Qatar, South Africa, Bahrain, Moscow
MAJOR THEME PARKS Disneyland Resort Paris, Universal Studios, The Tussauds Group, Warner Bros, Star Parks, Parques Reunidos, Six Flags Europe, Port Aventura, Gardaland, Heide Park, Tripsdrill, the Prater, Walibi parks, Tivoli Gardens, SeaWorld Entertainment Group, EarthQuest Adventures etc.
DIVERSE VISITOR ATTRACTIONS KidZania (multiple locations), Tour Eiffel, Cite de Science, Natural History Museum, Volkswagen Autostadt, Astrolab Dubai, the Giant’s Causeway, Ripley’s Believe it or Not London, Dixie Stampede, Le Mans etc.
ENTERTAINMENT AND RETAILVitam Ludique, Geneva: Baneasa, Bucharest, Mitino Park Shopping centre, Moscow, Numerous KidZania sites in Moscow, London, and Athens (all with existing or planned retail centres), Confidential shopping centre in Budapest, Entertainment Retail Zones in the Netherlands, Texas , UAE
MIXED-USE ANCHORED BY LEISUREBahrain, Qatar, Dubai, Ajman, UK, Germany, Cyprus, Spain, Latin America, USA etc.
INVESTMENT GROUPSBarclays, Blackstone, 3i, Advent, Palamon, Charter House, Consortium of Banks for re-financing of Disneyland Resort Paris, BNP Paribas, HR Societe Financiere, Stanhope, ING, Mubadala etc.
What we do…
Brand vs IPBrand IP
Intellectual Property (IP) in attractions is typically represented by a character or a storyline
Simple?
But not all are so clear cut…• Lego is a brand but has developed an IP by introducing characters and a movie (i.e. storyline)
- 3 franchise movies under development including The Lego Batman Movie
• Licenced existing external IPs to create collectable minifigures and to strengthen the brand
But not all are so clear cut…
Angry Birds (Rovio) have developed characters via the movie which have helped the development of the IP
Different uses of IP – pure IP attractionsTheme parks Indoor parks Waterparks
(not yet in Europe)
Different uses of IP – IP areas within attractions
Different uses of IP – Small attractions & experiences
Branded parks vs IP parks
Some brands are as strong or almost as strong as an IP but most branded parks still use IPs
Branded parks IP parks
Impact of IP – tangible
• Attendance upside through increased penetration of some markets
• Revenue growth via:
• Increased pricing
• Increased merchandise spend
Impact of IP – Market penetrationThe biggest impact is on tourists
Impact of IP – Attendance growth
• Impact of IP depends on the scale/ strength of the IP in relation to that of the park
• While impressive, in every case these attractions didn’t just add IP, they invested in rides and attractions and marketing.
Impact of IP – Entertainment Value & Pricing
Theme parks: in Europe, 30% average premium on country-by-country basis
Indoor parks: internationally, 12% premium on PPP basis but higher if Russian attractions are taken out (appear expensive due to currency crash)
EV is the perceived price per hour that consumers are spending on entertainment
Impact of IP – Merchandise spendSignificant increase in merchandise sales
Impact of IP – non-tangible
• Addressing gaps in the offer
• Differentiating a product
• Creating a buzz
• Increasing exposure and potentially marketing effectiveness
Implementation is paramount• Implementing an IP is not just slapping it on a ride
• It requires a full integration: an experience, a well-developed storyline, supported by appropriate merchandise and strong marketing
An IP comes at a cost
• Bringing an IP to your attraction requires additional costs:
• Capital cost
• License fee
• Decision to involve a brand owner in your business
Picked your IP? It’s just the beginning…
Want an IP?
Pick an appropriate IP with the help of in-house team or masterplanner
Negotiate licence deal with the IP owner
Understand the costs/ benefits balance. Is it worth it?
Go ahead with an IP
Yes
NO? Go with dinosaurs
Why are there dinosaurs in
Potato City??
Eeerr…because dinosaurs ate
potatoes?
Leisure Development Partners LLP42 Brook Street
LondonW1K 5DB
telephone: +44 (0) 20 7129 1276 www.leisuredevelopment.co.uk [email protected]