...In April 1992, Disney opened the door of EuroDisney at 30 kilometers east of Paris. During that time, it was designed to be the biggest and most impressive theme park that Disney has ever built in the world. Before the EuroDisney, Disney has built up theme park in California, Florida and Japan. When Disney saw the success of Tokyo Disneyland, they wanted to build other theme parks outside America and after choosing from over 200 potential sites included Spain, Italy and Greece; Paris was the chosen one. The management of Disney has expected to receive the same behaviour in EuroDisney as their Japanese counterparts in Tokyo Disneyland but they actually experienced the exact opposite of what they experienced in Japan. At EuroDisney, families were unwilling to spend the US$280 a day which was only to enjoy the attractions of the park with a milkshake and a hamburger. Staying overnight was not even in their mind as the prices were very high. Paris was chosen due to its location and also that it is the Europe’s most popular city for tourist destination. The management planned to received 11 million visitors and generate more than US$100 million during the first year but the attendance reached only 9.2 million and by summer 1994, they made a loss of more than US$900 million. The financial losses were so huge that the President had to put in place a rescue package to make EuroDisney back on firm financial ground. They had to revise their marketing plan and made new strategic and tactical...
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...The Not-So-Wonderful World of EuroDisney—Things Are Better Now at Paris Disneyland 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. In 1989, EuroDisney was expected to be a surefire moneymaker for its parent, Disney, led by Chairman Michael Eisner and President Frank Wells. Since then, sadly, Wells was killed in an air accident in spring of 1994, and EuroDisney lost nearly $1 billion during the 1992-1993 fiscal year. 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 Euro Disney, 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...
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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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...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 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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...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 costs rising, they faced severe challenges ahead.. In order to attract customers, they lowered their prices and introduced new rides that ultimately improved its performance. Another factor...
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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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...The Not-So-Wonderful World of EuroDisney: a cultural lesson by Emilio González Introduction This paper introduces some thoughts about the Disney strategy choosing the place for its European park and about the beginnings of its operations; in some way related to cultural factors. It constitutes a personal answer to a case study placed in the book "International Marketing" 13/e by Philip C. Cateora and John Graham, McGraw-Hill 2007. Factors that contributed to Euro Disney's poor performance during its first year of operation. There are several different in nature factors that joined together and contributed to a disastrous beginning of operations. Most of them were management mistakes and others, although external factors, if considered, could have result in different management decisions leading to a better start. In my view these are the most important ones: The timing. EuroDisney opened in 1992, just when two other international events had place: the Olympics games in Barcelona and the World's Fair in Seville; both in Europe and relatively close to Paris. It's obvious that been unrepeatable events, available only for a certain limited amount of time they were a strong competition. A huge amount of people choose attend to these events instead visiting EuroDisney. Suffice it to say that more than 40 million people visited the Seville Expo during the 6 months it was open (versus 9 million EuroDisney visitors accounted for 1992 all year around). To add insult to injury...
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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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...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 Study EuroDisney 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? It was cheaper for European families to travel to Disney World in Orlando, FL. Not only was the trip to Orlando going to be cheaper, but it was almost guaranteed that the weather was going to be spectacular. People go on vacation to have a good time, but more importantly to enjoy the weather. People in Europe and around the world are not going to vacation at a spot where the weather is going to be unpredictable. France gets 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. The French culture did not like the American Fairy-tale characters. The French had their own fairy-tale characters; one even has a park located near EuroDisney. Starting up a company internationally is an extremely hard task. Researching the culture of the country in which the company is going to be located is extremely important. When the plans to bring EuroDisney to Paris were finalized, they should have begun extensive research on the culture and history of France. By not doing that Disney may have insulted the French, but more so they hurt their chances of making money. The whole Disney idea was not sitting well with the French people. For example, during a trip...
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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 in Eastern...
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...all ages. The company is known for the following four segments, which consist of Studio Entertainment, Parks and Resorts, Consumer Products and Media Networks. The Walt Disney Company consists of five (5) Disneyland and Disney Park Resorts, in total. Two are located in the United States, one in Europe and two in Asia Pacific. The original Disneyland Resort was built in 1955, in Anaheim, California; followed by Disney World Resort, 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...
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...EuroDisney 1. What factors contributed to EuroDisney’s poor performance during its first year of operation? The factors contributing to EuroDisney’s poor performance are: a) Hotel Rooms were high priced. b) Poor Attendance in 1992. c) Gulf War in 1991. d) The World’s Fair in Seville, Spain. e) The 1992 Olympics in Barcelona, Spain. f) Too few seats at restaurants for guests at breakfast. g) No alcohol served with meals h) French visitors stayed away from EuroDisney (Cateora, Graham, 2007, pp. 614-616) 2. To what degree do you consider these factors were a) Foreseeable because Disney knew they were taking a risk by opening the theme park. The post Gulf War kept visitors from taking summer vacations. The World’s Fair in Seville and the 1992 Olympics in Barcelona drew visitors away from EuroDisney. Disney didn’t know what to expect for breakfast and was unprepared. b) Controllable because Disney could have anticipated the French custom of having wine with every meal. They could have lowered costs on hotel rooms and flights into Paris to see EuroDisney right away. (Cateora, Graham, 2007, pp. 614-616) 3. What role does ethnocentrism play in the role of EuroDisney’s launch? Ethnocentrism played an important role in the story of EuroDisney’s launch that Disney believed that the French visitors would really go for a Disney theme park. The variety the theme park had to offer needed to change to attract French visitors...
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