...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 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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...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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...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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...------------------------------------------------- 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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...It was early 1991, and Michael Eisner, chairman and CEO of the Walt Disney Company, was sitting down with Frank Wells, president and chief operating officer, and Gary Wilson, executive vice president and chief financial officer, to discuss Disney's prospects for the new year. These men were still basking in the glow generated by another record revenue- and profit-breaking year in Disney's history. Disney's businesses were performing at an unprecedented level, and confidence was high. The problem facing the trio who had engineered Disney's turnaround was how to maintain Disney's explosive growth rate and its return-on-investment goal of increasing earnings per share by 20 percent over any five-year period to achieve a 20 percent annual return on equity. Paradoxically, the very success of their strategy, which had originated to protect an underperforming Disney from the rampages of corporate raiders and the threat of takeover, was causing the opposite problem: how to maintain the company's explosive growth in a business environment where attractive opportunities for expansion were becoming increasingly scarce. The men were reflecting on how to develop a five-year plan that would cement the strategy that had led to their present enviable situation and make the 1990s the "Disney Decade." This case is intended to be used as a basis for class discussion rather than as an illustration of either effective or ineffective handling of the situation. This case was...
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...PART II INSTRUCTOR’S NOTES ON TEXT CASES CASE GUIDE CHAPTER CASE | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 1–1 Starbucks – Going Global Fast | X | X | | X | X | | | | | | X | X | | | | | | | | 1–2 Nestlé – The Infant Formula Incident | | X | X | X | X | | | X | | | X | X | | | | | | | | 1–3 Coke and Pepsi Learn to Compete in India | | | | X | X | X | | | | | X | X | | | | | | | | 1-4 Marketing Microwave Ovens to a New Market Segment | | | | X | X | | | | | | X | X | | | | | | X | | 2–1 The Not-So-Wonderful World of EuroDisney | | | | X | | X | X | X | | | X | | | | | | | X | | 2-2 Cultural Norms, Fair and Lovely, and Advertising | | | | X | X | | | X | | | X | X | | | | | | | | 2–3 Starnes-Brenner Machine Tool Company – To Bribe or Not to Bribe | | | | | X | | X | | | | | | | | | | X | | | 2-4 Ethics and Airbus* | | | | X | X | X | X | | | | | | X | | | | | | | 2–5 Coping with Corruption in Trading with China | | | | | X | X | X | | | | | | | | | | | | | 2–6 When International Buyers and Sellers Disagree | | | | | | | X | | | | | | | | X | | | | | 2-7 McDonald’s and Obesity | ...
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...Bloodlines of Illuminati by: Fritz Springmeier, 1995 Introduction: I am pleased & honored to present this book to those in the world who love the truth. This is a book for lovers of the Truth. This is a book for those who are already familiar with my past writings. An Illuminati Grand Master once said that the world is a stage and we are all actors. Of course this was not an original thought, but it certainly is a way of describing the Illuminati view of how the world works. The people of the world are an audience to which the Illuminati entertain with propaganda. Just one of the thousands of recent examples of this type of acting done for the public was President Bill Clinton’s 1995 State of the Union address. The speech was designed to push all of the warm fuzzy buttons of his listening audience that he could. All the green lights for acceptance were systematically pushed by the President’s speech with the help of a controlled congressional audience. The truth on the other hand doesn’t always tickle the ear and warm the ego of its listeners. The light of truth in this book will be too bright for some people who will want to return to the safe comfort of their darkness. I am not a conspiracy theorist. I deal with real facts, not theory. Some of the people I write about, I have met. Some of the people I expose are alive and very dangerous. The darkness has never liked the light. Yet, many of the secrets of the Illuminati are locked up tightly simply because secrecy is a way...
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...ESSENTIALS OF MARKETING THIRD EDITION JIM BLYTHE Essentials of Marketing ii Marketing Planning: principles in practice We work with leading authors to develop the strongest educational materials in marketing, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing please visit us on the World Wide Web at: www.pearsoned.co.uk Last A Head on Spread 000 Jim Blythe University of Glamorgan Essentials of Marketing Third Edition Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published under the Financial Times Pitman Publishing imprint 1998 Second edition 2001 Third edition 2005 © Financial Times Professional Limited 1998 © Pearson Education Limited 2001, 2005 The right of Jim Blythe to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written...
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