...CASE 2-1 Ali Zein Kazmi February 1, 1999 THE NOT-SO-WONDERFUL-WORLD OF EURODISNEY -THINGS ARE BETTER NOW AT PARIS DISNEYLAND- 1. What are the factors contributed to EuroDisney’s poor performance during its first year of operation? Walt Disney overestimated the magic that was to be in introducing Europe's most lavish and extravagant theme park in April of 1992. The fiscal year 1992-1993 brought EuroDisney a loss of nearly $1 billion. Mickey, a major promotion tool of Disney management did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an “over-rated” promotion of American culture and lifestyle, contrary to what was seen by Disney's management as a family affair. In the initial years of operation this led to an overestimation of expected revenue and audience figures. Advertising messages had been miscommunicated, “emphasizing glitz and size…not the rides or attractions”. Disney remained unsuccessful in attracting customers just by vigorous brand name promotion communicated through Mickey and his friends. Moreover, families were reluctant to pay hefty price tags on accommodation and entertainment needed to enjoy the attractions of the park. Disney failed to manage a healthy relationship with partner organizations in the host country, which most importantly alienated them from their number one ally, the French government. Regional affairs in Eastern...
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...Jacob Skinner Case 2-1: Disney MARK4050 1. Factors that contributed to EuroDisney's poor performance during its first year of operation: * French visitor's stayed away. They were expected to make up 50% of attendance figures. "The French see EuroDisney as American imperialism-plastics at its worst." The case mentions that French culture has "its own loveable cartoon characters" one of which (Asterix) has a theme park located near EuroDisney. Initial advertising of the park also aggravated the local populous, many of them felt that Disney was emphasizing glitz and size rather than the amenities they offered. * Initial construction of the park also facilitated the financial burden of Disney. Expensive trams were built to take guests from the hotels to the park, but visitors preferred walking, these additional add-ons cost Disney an additional $340 million. * Economic impact, external factors, and competition: High interest rates and the devaluation of several currencies against the franc. The 1991 Gulf War crisis limited vacation travel for the rest of that year. In 1992, the opening of EuroDisney also had to contend with European's desire to travel to the World's Fair in Seville and the 1992 Olympics in Barcelona. Factors that contributed to Hong Kong Disney's (HKD) poor performance during its first year: * Perhaps being overly cautious of making the same mistakes as EuroDisney, HKD was developed to be a much smaller amusement park. Chinese consumers felt...
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...Case 2-1: The Not-So-Wonderful World of EuroDisney – Things Are Better Now at Paris Disneyland 1. What factors contributed to EuroDisney’s poor performance during its first year of operations? What factors contributed to Hong Kong Disney’s poor performance during its first year? Europeans failed to “go goofy” over Mickey in part because of the high prices of the theme park and nearby hotels. Families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including the food. Staying overnight was out of the question for many because prices ranged from $110 to $380 a night, and $340 to $380 a night at better hotels. Other factors that contributed to poor performance were unforeseen transatlantic airfare wars and currency movements, causing visitors to go to Disney World Orlando for vacation. EuroDisney successfully alienated many European visitors with its iconic American feel at EuroDisney. Many Europeans were put off by the Disney characters which they felt reflected only traditional American Disney characters, not European characters. Disney management’s conviction that it knew best what Europeans liked proved insensitive to the local culture. 2. To what degree do you consider that these factors were (a) foreseeable and (b) controllable by EuroDisney, Hong Kong Disney, or the parent company, Disney? The reluctance of visitors to stopover at EuroDisney due to high prices of the theme park and nearby hotels...
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...CASE 2-1 Ali Zein Kazmi February 1, 1999 THE NOT-SO-WONDERFUL-WORLD OF EURODISNEY -THINGS ARE BETTER NOW AT PARIS DISNEYLAND- 1. What are the factors contributed to EuroDisney’s poor performance during its first year of operation? Walt Disney overestimated the magic that was to be in introducing Europe's most lavish and extravagant theme park in April of 1992. The fiscal year 1992-1993 brought EuroDisney a loss of nearly $1 billion. Mickey, a major promotion tool of Disney management did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an “over-rated” promotion of American culture and lifestyle, contrary to what was seen by Disney's management as a family affair. In the initial years of operation this led to an overestimation of expected revenue and audience figures. Advertising messages had been miscommunicated, “emphasizing glitz and size…not the rides or attractions”. Disney remained unsuccessful in attracting customers just by vigorous brand name promotion communicated through Mickey and his friends. Moreover, families were reluctant to pay hefty price tags on accommodation and entertainment needed to enjoy the attractions of the park. Disney failed to manage a healthy relationship with partner organizations in the host country, which most importantly alienated them from their number one ally, the French government. Regional affairs...
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...CASE 21 The Not-So-Wonderful World of EuroDisney*—Things Are Better Now at Disneyland Resort Paris BONJOUR, MICKEY! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned ...
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...CASE 21 The Not-So-Wonderful World of EuroDisney*—Things Are Better Now at Disneyland Resort Paris BONJOUR, MICKEY! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned the initial financing...
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...CASE 2-1 Ali Zein Kazmi February 1, 1999 THE NOT-SO-WONDERFUL-WORLD OF EURODISNEY -THINGS ARE BETTER NOW AT PARIS DISNEYLAND- 1. What are the factors contributed to EuroDisney’s poor performance during its first year of operation? Walt Disney overestimated the magic that was to be in introducing Europe's most lavish and extravagant theme park in April of 1992. The fiscal year 1992-1993 brought EuroDisney a loss of nearly $1 billion. Mickey, a major promotion tool of Disney management did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an “over-rated” promotion of American culture and lifestyle, contrary to what was seen by Disney's management as a family affair. In the initial years of operation this led to an overestimation of expected revenue and audience figures. Advertising messages had been miscommunicated, “emphasizing glitz and size…not the rides or attractions”. Disney remained unsuccessful in attracting customers just by vigorous brand name promotion communicated through Mickey and his friends. Moreover, families were reluctant to pay hefty price tags on accommodation and entertainment needed to enjoy the attractions of the park. Disney failed to manage a healthy relationship with partner organizations in the host country, which most importantly alienated them from their number one ally, the French government. Regional affairs...
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...CASE 21 The Not-So-Wonderful World of BONJOUR, MICKEY! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned the initial financing, but the Disney response was that their views reflected...
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...October 1, 2014 MKT 608 Case Study 2-1 The Not-So-Wonderful World of EuroDisney Things Are Better Now at Disneyland Resort Paris 1. What factors contributed to EuroDisney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year? There were two major factors that contributed to EuroDisney’s poor performance during its first year of operation. The two factors include: market research and cultural competency. Within those two factors there were specific details that demonstrate where and why they failed poorly. There are listed below: * Instead of using French cartoon characters, American characters were used. * Europeans are known to enjoy drinking wine, but the park banned alcohol completely. * A misunderstanding regarding breakfast availability cause issues with the guest. * Disney was informed Europeans did not eat breakfast, which was not correct. * Pricing was an issue * Many Europeans believed the prices were too high and would not pay. * Other big events were occurring at the same time the parked open, which cause lots of issues as well At Hong Kong Disney, they had experienced the opposite of what EuroDisney experienced. Hong Kong tried to hard to make it fit. They conducted research and tried to make it work, but guest were disappointed. The park did not differ from other amusement parks in China and therefore consumers...
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... Lake Buena Vista, Florida in 1971. After the success of these two large theme parks in the United States, Disney decided to expand internationally. First Tokyo Disney Resort built in 1983, secondly, Disneyland Resort Paris (EuroDisney) which opened its doors in 1992, and thirdly, Hong Kong Disneyland, opening its doors in 2005. Case Study Questions 1. The factors that contributed to EuroDisney, now called Disneyland Resort Paris, poor performance during its first year of operation was the lack of knowledge of their target market, cultural differences between the USA and Europe, and the failure to take into account that “Paris is Europe’s most-popular city destination among tourist of all nationalities”. Disney did a bad job at understanding Europeans and their lifestyles. Unfortunately, for Disney the French were neither happy nor receptive to having what they called “America Cultural Imperialism”. Many specially the children welcomed Mickey and his character friends, but there were many against the “cultural Chemobyl”, such as the French Communist Party and many demonstrator who with the following action, of throwing eggs and ketchup at Disney President, Michael Eisner upon his arrival to Paris in 1989, let Disney know they were not welcome.1 The prices were much...
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...1. What factors contributed to EuroDisney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year of operation? a.) EuroDisney: * Families were reluctant to spend $280 a day to enjoy the attractions of the park * Staying overnight was out of the question because hotel rooms were so expensive * Old Work thinking of Europeans who did not understand US style free market financing lead to French Bankers hesitating to provide funding * By summer 1994, EuroDisney had lost more than 900 million dollars * Disneyworld in Orlando ended up being cheaper than a trip to Paris due to currency movements and transatlantic airfare wars * French visitors stayed away due to view EuroDisney as “American imperialism—plastics at its worst” * Advertising by EuroDisney aggravate local French sentiment by emphasizing glitz and size instead of the attractions * The Gulf War in 1991: * Put a heavy break on vacation for the rest of the year * High interest rates and devaluation against the franc * Competition due to “The World’s Fair” in Seville and the 1992 Olympics in Barcelona * Ban on alcohol goes against French culture * Disney executives believed in cultural inconsistencies such as: Europeans didn’t eat breakfast which is not true * Disney didn’t stress the entertainment value of visit to the theme park in their promotions which “ruined the magic”...
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...Randi Foreman International Marketing Professor Gray June 28, 2015 Case 2-1 The Not-So-Wonderful World of EuroDisney With Walt Disney and the Disney parks being so popular, you would think that the one built in Europe would have been a hit. During its first year of operation, EuroDisney didn’t succeed at all. Disney didn’t do their research and lacked cultural awareness which was their major downfall and the reason for their performance. EuroDisney was built just like the American Disney parks and failed to accommodate to Europe and their culture. For example, the pricing was all wrong, they banned alcohol in a place that likes to drink wine, and they thought that Europeans didn’t enjoy breakfast so they cut back on their serving. Being more culturally aware of the Europeans likings could have easily made this park a success. The exact opposite thing happened in Hong Kong though. Disney did their research and was culturally aware but everyone was just disappointed because Disney failed to make their park stand out from all the other amusement parks in China. Many things could have been foreseeable and controlled by just simply being culturally aware. Disney would have found that Europeans love their wine and breakfast, that they already have their own cartoon characters, and that Europeans don’t tend to vacation as long as Americans do. All of those things could have been easily controlled and made their park a success. The only thing that couldn’t have been controlled...
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...1. The first year of Eurodisney in Europe was disastrous for many reasons. Actually, the first one could be the weather. People who are going on vacations to have a good time, but more importantly to enjoy the weather. People in Europe or from everywhere are not going to vacation at a spot where the weather is going to be irregular; they choose a place where they have more chances to enjoy the journey. France get cold in the winter, therefore going to Disney World in Orlando would be more logical. It will be cheaper and the weather is going to be decent for whenever you choose to go. Secondly, European and other people haven’t got the same Fairy-tale culture. In France, they have their own characters and stories. Maybe it’s because of that Mickey did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. The diffenrence of price could be also a reason of this failure. For example, if we compare how much can pay a French and a Japanese family to enjoy a whole day in family in Eurodisney, the gap is really big ($280 and $600). The macro-environmental scanning of namely, the political, the cultural, and the economic aspects of Europe had been grossly miscalculated. They definitely had to change their way of seeing European people like American people and adapt Eurodisney to the European culture. For the Hong kong one, I think the most important thing is that the designers didn’t create the park as the population...
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...Lovely May O. Rile BSBA-4 March 4, 2014 1. What factors contributed to EuroDisney's poor performance during its first year of operation? What factors contributed to Hong Kong Disney's poor performance during its first year? Many factors contributed to Euro Disney' poor performance during the first year of operation and many of these factors could have been alleviated if the proper factors would have been previously considered. The first year for EuroDisney was unpleasant and devastating because of various poor decisions taken by the management besides some external factors. Major aspects involve location, foreign exchange rates, management problems, poor understanding of the marketplace and the cultural dissimilarities between the two nations and their distinct ways to business and life. The Gulf war in 1991 had a negative impact and during the same period, Europe was facing a recession. The opening of the park in 1992 with huge events such as the Olympic Games in Barcelona during the summertime and the World’s Fair in Seville was disadvantageous to EuroDisney. Besides this entertaining occurrence, the currency movement made going abroad for vacation is a cheap option for Europeans and gets an additional benefit of enjoying the weather. This resulted in just a minimal difference between going to Disneyland Orlando and EuroDisney for the holidays. Hence, EuroDisney did not have many guests visiting it that year. Almost none of its targets were met and with...
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...------------------------------------------------- THE NOT-SO-WONDERFUL WORLD OF EURODISNEY Things Are Better Now at Disneyland Resort Paris February 16, 2014 mktg 417 WIU February 16, 2014 mktg 417 WIU JULIA BIDDENSTADT & TAYLOR SMITH JULIA BIDDENSTADT & TAYLOR SMITH 1. The major factors that contributed to EuroDisney’s poor performance was the lack of market research and cultural awareness. EuroDisney was built just like American Disney parks, without giving though to cultural differences. American characters were used, instead of French cartoon characters. Disney banned alcohol in a culture that enjoys drinking wine. Everyone showed up for breakfast in the mornings, when Disney had cut down their serving because they were erroneously informed that Europeans do not eat breakfast. Pricing strategy was not accomplished correctly. Many Europeans would not pay the prices that EuroDisney was charging. In addition, Europeans do not vacation as long as Americans do. Other factors were the transatlantic airfare war and currency movement. This made it cheaper to go to Disneyland Orlando than EuroDisney. In addition, the park opened during the Olympics in Barcelona, and the World’s Fair in Seville. Hong Kong Disney had the exact opposite problems. Disney did its research and tried to make the park fit in with its surroundings, and guests were disappointed. The park was very small, and visitors thought it was just like all the other amusement parks...
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