Seminar 3 Industry and Competitive Situation

1. Industry and Marketplace

a. The Industry

The San Diego Zoo is very well known for their many animals that they have. They provide many natural habitats for the animals that they have saved. The zoo also does many things to try to save the endangered animals and they sometimes are able to give the animals mates for them.

The main type of industry for the San Diego Zoo is the tourism aspect. According to www.sandiego.org the zoo has about 34 million visitors each year that spend $9.2 billion annually.  (San Diego Tourism Industry Research, n.d.) With the many visitors every year, they have to have many employees to make the experience unforgettable for their consumers, so that they will come back. They employ over 173,000 people in the area (San Diego Tourism Industry Research, n.d.) Giving many people in the local area work.

** (San Diego Tourism Industry Research, n.d.)

This industry is expected to grow at a steady rate of the next few years. This industry is expected to stay. The rate which they are growing and the things that the zoo is doing is outstanding.

b. Definition of the Industry

An industry is one organization or a group of companies produces the same product. With the San Diego Zoo, this might be where they get the animals or their food.  (Difference between Market and Industry, 2015)

c. Shape of the Industry

The industry is growing as shown in the chart above. There is an attraction for the product. Millions of people come to the zoo every year.

** (Zoological Society of San Diego)

**(Sea world Entertainment 2014 Annual Report)

When you compare the San Diego zoo to one of their competition such as Sea World, you can see that there is a lot of room for the company to grow. If their competition can bring in more than they do, it is very possible that they can continue to grow over the next ten years.

d. Development of the Industry

The zoos of today look nothing like the zoos of the past. With most zoos starting to look at conservation and the protection of wildlife more seriously, the need for creating as natural of a habitat for animals as possible has changed the zoo industry.  Zoos today combine technology along with increased vegetation and have a focus on education for visitors. According to research done by students for the European tourism futures institute (ETFI), in the 21st century, exhibit design continues to develop as zoos seek to better fulfill their objectives. The latest generation of exhibits combines technology, new construction techniques and a variety of additional interpretive media to create what has been referred to as an immersion experience (institute, 2015). After research was conducted by ETFI the most important thing for visitors were the animals. Visitors want access to animals, but more importantly they want the well-being of the animals to be the primary focus of the zoo. What visitors valued most of all were “happy looking animals” in spacious natural surroundings (institute, 2015). This has all lead to a conservation approach and developed into an educational experience. Today visitors can watch animals on camera when they are not readily available to see in their surroundings, watch animals on live web-cams from the zoo website, observe studies of animal behavior, and get the chance to pet and feed animals and gain an understanding on what they can do to help save endangered animals.

e. The Marketplace

According to the American Zoo and Aquarium Association (AZA), there are over 10,000 zoos worldwide. In the U.S. alone, the Department of Agriculture licenses 2,400 "animal exhibitors," of which 212 are members of the AZA, an organization that requires high standards of animal care, science, and conservation (Fravel, 2003). According to the association of zoo and aquariums, zoos and aquariums have over 181 million annual visitors - more visitors than NFL, NBA, NHL, and MLB annual attendance combined. Visitors are primarily women or mothers who are in the age 25-35 and have a household income of $50,000 - $75,000 and two out of three adults visits a zoo with a child and 50% of adults visit an aquarium with a child.

f. Current Condition of the Marketplace

The world around us is changing fast. Species of wildlife are facing global extinction on a massive scale. About 21% of the world's mammal species, about 12% of the bird species and about 33% of all amphibian species are threatened with extinction. Zoo is taking a holistic approach to wildlife conservation. While the Zoo has been involved in helping save endangered species for decades, our goal today is create a sustainable future for wildlife and for people around the world. Ultimately, we need to help save the ecosystems on which animals and humans depend (Zoo, 2015).

g. Changes in the Marketplace

There are many changes that are happening in zoos around the country. One of the major changes is creating raceways that allow animals to walk around the zoo. These raceways may connect animal enclosures together, expanding the areas open to species for exploration and exercise. By creating these raceways, the animals are allowed to have more space instead of just being trapped in one enclosure. The changes also allow zoo visitors to see zoos as more dynamic institutions and less like museums (Young, 2014). These changes are not cheap, but they are cheaper than building new exhibits for the animals, yet provide a better experience for the visitors and the animals. Let the link below give you a personal look at these mesh raceways.

https://youtu.be/Zq4HjpoHxkk

2. Competitive Situation 

Direct Competitors

Orange County Zoo: Located in Irvine Regional Park in Orange, CA. This zoo exhibits animals and plants native to the southwestern United States.

Los Angeles Zoo & Botanical Gardens: This 133 acre zoo is located in Los Angeles, CA. The zoo is home to more than 1,100 mammals, birds, amphibians and reptiles and 800 different plant species.

Santa Ana Zoo: Located in Prentice Park in Santa Ana, CA. This zoo is 20-acre zoo focusing on the animals and plants of Central and South America.

Living Desert Zoo & Gardens: This zoo is located in Palm Desert, CA and exhibits animals and plants from around the world.

Indirect Competitors

Aquarium of the Pacific: This aquarium located in Long Beach, CA is home to more than 11, 000 ocean animals, and representing nearly 500 species.

Knott’s Berry Farm: Knott’s is a 160-acre amusement park located in Buena Park, CA. They offer dozens of rides, shows, roller coasters, and attractions.

Disneyland Park: Originally Disneyland, is located in Anaheim, CA. Disneyland Park is Walt Disney’s original theme park and is divided in 8 extravagantly themed lands.

LEGOLAND California: This theme park is located 30 minutes north of San Diego in Carlsbad, CA. It has more than 60 rides, shows and attractions. This park is also home to SEA LIFE Aquarium and the world’s first LEGOLAND Water Park.

 

 

 

References

(n.d.). Retrieved from San Diego Toursim Industry Reasearch: www.sandiego.org/industry-research.aspx

Difference between Mareket and Industry. (2015, march 19). Retrieved from http://www.differencebetween.com/difference-between-market-and-vs-industry/

Fravel, L. (2003, November 13). Critics Question Zoos' Commitment to Conservation. Retrieved from National Geographic:http://news.nationalgeographic.com/news/2003/11/1113_031113_zoorole.html

institute, t. E. (2015, April 20). Next-Generation Zoos. Retrieved from ETFI: http://www.etfi.eu/blog?blog_id=86890

Sea world Entertainment 2014 Annual Report. (n.d.). Retrieved from http://s1.q4cdn.com/392447382/files/doc_financials/Annual%20Reports/2014-SEAS-Annual-Report.pdf

Young, R. (2014). Zoos of the future break down the enclosure walls. Retrieved on November 22, 2015, from website:http://www.scientificamerican.com/article/zoos-of-the-future-break-down-the-enclosure-walls/

Zoo, S. L. (2015, November 20). Why Zoos Matter. Retrieved from Saint Louis Zoo:http://www.stlzoo.org/about/whyzoosmatter/

Zoological Society of San Diego. (n.d.). Retrieved from            http://zoo.sandiegozoo.org/sites/all/themes/zoostrap/downloads/financial-reports/SDZG2014FinancialStatement.pdf

2. San Diego Zoo Company Overview

Company Overview

San Diego Zoo Global is a not-for-profit organization that operates the San Diego Zoo, the San Diego Zoo Safari Park, and the San Diego Zoo Institute for Conservation Research. San Diego Zoo Global is the largest zoological membership association in the world, with more than 250,000 member households and 130,000 child memberships, representing more than a half million people. Members enjoy free admission to the Zoo and the Safari Park, a subscription to the magazine ZOONOOZ, and other benefits. Both Zoo and Park are open every day of the year (Zoo, 2015).

Business Description-

 The museum and zoo industry demand is partly linked to growth in local income and to tourist travel. The profitability of individual institutions depends largely on good marketing. Large institutions have the advantage of name recognition or proximity to mass tourism areas. Small institutions can compete successfully by concentrating on specialty topics, or by operating in a favorable location. The US industry fragmented the top 50 institutions account for about 35 percent of revenue.

Museums account for about two-thirds of industry revenue; zoos and botanical gardens together generate about a quarter. For the industry as a whole, about 40 percent of revenue comes from contributions and grants from private and government sources. Other sources of revenue (each accounting for between 10 and 15 percent) include admission fees, investment income, and sales of food and merchandise. Among individual institutions, the revenue mix can vary significantly, as some receive significant support from endowments.

 Company History- 

Dr. Harry Wegeforth, heard the roar of caged lions that were part of the 1915-16 Panama-California Exposition in Balboa Park. Dr. Harry, as he was affectionately called, decided then and there that San Diego was ready for a zoo and later convinced the city to follow his lead.

Since those humble beginnings, the San Diego Zoo has grown to a world-class animal facility. We were one of the first zoos to have open grotto enclosures without iron bars for lions, tigers, and bears-oh my! In 1972 the Zoo opened its sister facility, the Wild Animal Park, featuring animals living in natural groupings inside huge field exhibits. In 1975 we founded CRES (Conservation and Research for Endangered Species), now one of the largest zoo-based research centers in the world (Diego, 2015).

Key People-

Douglas Myers

President/CEO, San Diego Zoo Global

Mr. Myers serves as the executive leader for San Diego Zoo Global. In this role, he is responsible for setting policy and maintaining the organization’s role as a leader in conservation and animal care.

Matthew Musella

Chief Operating Officer, San Diego Zoo Global

As Chief Operating Officer of San Diego Zoo Global, Mr. Musella serves with the President/CEO in overseeing all aspects of San Diego Zoo Global.

Paula Brock

Chief Financial Officer, San Diego Zoo Global

As Chief Financial Officer, Ms. Brock oversees the financial management of the organization.

Mark Stuart

Chief Development and Membership Officer, San Diego Zoo Global,

President, The Foundation of San Diego Zoo Global

Mr. Stuart leads the team devoted to friend-raising and fund-raising efforts to support San Diego Zoo Global’s animal care, conservation and education programs. He also serves as President of The Foundation of San Diego Zoo Global, a separate nonprofit organization devoted to raising major gifts to address the institution’s strategic priorities.

Dwight Scott

Director, San Diego Zoo

As Director of the San Diego Zoo, Mr. Scott is responsible for the overall operation of the 100-acre zoo, which is located in Balboa Park just north of downtown San Diego. He oversees daily operations of all departments, including admission, transportation, education, food service, retail, facilities, animal care, veterinary services, horticulture, special events, and construction and maintenance.

Robert M. McClure

Director, San Diego Zoo Safari Park

As Director of the San Diego Zoo Safari Park, Mr. McClure is responsible for the overall operation of this 1,800-acre wildlife preserve located near Escondido. He oversees the administration of all departments and operations, construction and maintenance, animal services, veterinary services, horticulture, and special events.

Officers

Robert B. Horsman

Chairman

Sandra A. Brue

Vice Chairman

Judith A. Wheatley

Secretary

Steven G. Tappan

Treasurer

Board of Trustees

M. Javade Chaudhri

Berit N. Durler

Richard B. Gulley

Clifford W. Hague

Linda Lowenstine, D.V.M, Ph.D.

George A. Ramirez

Patricia L. Roscoe

Location and Subsidiaries-

San Diego Zoo-

 North of downtown San Diego in Balboa Park

San Diego Zoo Safari Park-

 It is located 30 miles (48 kilometers) north of downtown San Diego in the San Pasqual Valley near Escondido, California.

 San Diego Zoo Institute for Conservation Research –

  San Diego Zoo Institute for Conservation Research is located in Escondido, California

 Brands, Major Products and Services

San Diego Zoo-

The 100-acre (40-hectare) Zoo is home to over 3,700 rare and endangered animals representing more than 650 species and subspecies, and a prominent botanical collection with more than 700,000 exotic plants. It is located just north of downtown San Diego in Balboa Park.

San Diego Zoo Safari Park-

The Safari Park is an expansive wildlife sanctuary that is home to more than 2,600 animals representing more than 300 species. Its renowned botanical collection represents 3,500 species and 1.5 million specimens. Over half of the Park’s 1,800 acres (730 hectares) have been set aside as protected native species habitat.

San Diego Institute For Conservation Research-

San Diego Zoo Institute for Conservation Research is one of the largest zoo-based research centers in the world. Founded in 1975, it is dedicated to preserving and protecting rare and endangered wildlife and habitats. Staff develop, gather, and increase knowledge vital for the establishment of self-sustaining populations of wildlife.

 Corporate Vision

The corporate vision of the San Diego Zoo is to lead the fight against extinction.

Corporate Mission

“San Diego Zoo Global is committed to saving species worldwide by uniting our expertise in animal care and conservation science with our dedication to inspiring passion for nature.”

Company’s Current Promotional Strategy

The San Diego Zoo and its partner facilities incorporate social media as an integral part of their marketing and program awareness strategy. They use social media outreach, managed by Hootsuite, to connect with their audience and share the stories of many of their animals and programs. In 2013, the zoo welcomed the birth of a panda cub and documented it through social media. By doing so, San Diego Zoo saw a 500% increase in traffic to their panda cam, gained 28,000 new Facebook likes in 5 months, gained 22 million Facebook impressions, received 4,500 new Twitter followers, 4,500 re-tweets, 35 million potential Twitter impressions, and had over 4 million YouTube view (Slideshare, 2013).

Product Sales History

The San Diego Zoo sales include admissions, memberships, retail products and food.

In the year ending 2013, the San Diego Zoo sales were $200,533 thousand. (San Diego Zoo, 2015) In the year ending 2012, the San Diego Zoo sales were $182,233 thousand. There is an increase in sales over the last two years.

Current Marketing Objective

The current marketing objective of the San Diego Zoo is to inform their current and future visitors of their great educational opportunities and their large efforts in animal conservation.

Media Expenditure

The San Diego Zoo strategically seeks partners with similar goals and objectives to support their marketing needs. Some of the powerful tools they use include discount offers, publicity, publications, premiums and tickets, sweepstakes and onsite opportunities. In addition, the zoo uses local, regional, and national media promotions as one of their most powerful ways to reach their target audience. Ticket giveaways and promotional campaigns are proven winners of their media expenditure (San Diego Zoo, n.d.).

SWOT Analysis

Strengths:

The San Diego Zoo provides many different strengths:

·         They are known for its cages less, open exhibits and large plots of land for animals to inhabit. This allows the animals to live in a more natural habit.

·          The Zoo has a large education experience for both children and adults.

·         They are a major player in the animal conservation efforts as well.

·         The Africa Tram allows people to get a closer look at the animals. Customers can purchase a ticket or package that will allow them to take a ride, and get a closer look at the animals.

·         Video Cams, this allows people to go onto their website and see what the animals at the zoo are doing. It gives the consumer an idea of what kind of animals are there so that they can plan their stay. 

Weakness:

As the San Diego has many strengths, they do have some weakness:

• Large open areas for animals to roam results in missed opportunities to view animals. If the animals are not where people can see them, it is a missed opportunity for the consumer and they might not be satisfied with their visit.
• High prices of admission - Adult (ages 12+) $48.00 Children (ages 3-11) $38.00. The prices are a little higher than some of their competition.
• Long Lines, people do not like to stand in long lines because then they do not get to do everything that they had intended on doing.
• It is so big that you cannot see everything in one day.

Opportunities:

Some opportunities are as follows:

• Large efforts in animal conservation gives San Diego Zoo a positive outlook amongst visitors
• Large push of educational opportunities increases interest in zoology.
• Provide Busing from zoo to the Safari Park, this helps the consumer from having to find other parking.
• Dinner Package with the price of admission. It is a big zoo and many people are going to want to eat there as well. By creating a dinner or lunch package, they will feel like they are getting a better deal.

·         Hotel on site, this would allow customers to return for a few days at a time. They would have a great experience without feeling rushed for time.

Threats:

• Large competition in the California area; such as Walt Disney Land
• Animal rights groups; they may feel like the animals should be in their own environment.
• Negative views from the public of animal parks such as Sea World on the treatment of animals.

Reference

San Diego Zoo. (n.d.). Sand Diego Zoo global mission and vision. Retrieved on November 15, 2015, from website: http://zoo.sandiegozoo.org/content/san-diego-zoo-global-mission-and-vision

Slide Share. (2013). Case study: San Diego Zoo. Retrieved on November 15, 2015, from website: http://www.slideshare.net/hootsuite/hootsuite-san-diego-zoo-case-study

 Diego, S. (2015, November 15). San Diego Zoo: Celebrating our first 90 years. Retrieved November 15, 2015, from San Diego.Org:http://www.sandiegozoo.org/90th/

Zoo, S. D. (2015, November 15). About Us. Retrieved Novemeber 15, 2015, from San Diego Zoo: http://www.sandiegozoo.org/disclaimers/aboutus.html

San Diego Zoo. (2015, November 16). Retrieved from sandiegozoo.com: http://zoo.sandiegozoo.org/sites/all/themes/zoostrap/downloads/financial-reports/SDZG2013FinancialStatement.pdf