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Transcript of the not so wonderful world of eurodisney

The Not-So-Wonderful World of EuroDisney * Things Are Better Now at Disneyland

Resort Paris

Eurodisney was designed to be the biggest and ost la!ish thee "ar# that Walt Disney

$o"any %Disney& had built'

$utting rates u" to () "erent+ introduing soe hea"er eals at restaurants+ and

launhing a Paris ad blit, that "rolaied $alifornia is only (. iles fro Paris'

Management and Names Changes

Frenchman Philippe Bourguignon took over at EuroDisney as CEO in 199 and !as a"le to

navigate the theme park "ack to pro#ita"ility$

%n the park they o##ered photos& videos& autographs #rom Disney characters to appeal the

attention o# tourists& tourist also could "uy typical #ood shaped like Mickey Mouse heads$

't Euro Disney& #amilies !ere reluctant to spend the ()*+ a day needed to en,oy the attractions

o# the park- including les ham"urgers and les milkshakes and the .otel rooms !ere so high

priced

/he French see EuroDisney as 'merican imperialism

Financial losses "ecame so massive at EuroDisney that the president had to structure a rescue

package to put EuroDisney "ack on 0rm 0nancial ground$ o& Disney management rapidly

revised its marketing plan and introduced strategic and tactical changes in the hope o# 2doing it

right3 this time$

EuroDisney !as relocated at Paris "ecause is the most popular city destination among tourists o#

all nationalities and has "etter demographics than at any other Disney site

Committed to maintaining Disney4s reputation #or 5uality in everything& more detail !as "uilt

into EuroDisney$ For e6ample& the centerpiece castle in the Magic 7ingdom had to "e "igger and

#ancier than in the other parks$ E6pensive trams !ere "uilt along a lake to take guests #rom the

hotels to the park

torm clouds ahead

/he approaching o# the European recession$

/he 8ul# ar :1991;

Devaluation o# several currencies against the Franc


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Di##iculties regarding the competition

'd,usting to the culture

EuroDisney had to allo! the consumption o# alcohol inside the park$Di##erent changes regarding their personal grooming$

/he thought o# leaving a pet at home$

Managerial Failures

percent stake in the park$

/he panAEuropean approach to marketing !as dumped& and national markets !ere targeted

separately$ /his ne! localiation took into account the di##ering tourists4 ha"its around the

continent$

Prices !ere cut "y )+ percent #or park admission and + percent #or some hotel room rates$

pecial promotions !ere also run #or the !inter months$ /he central theme o# the ne! marketing

and operations approach is that people visit the park #or an 2authentic3 Disney day out$

/he 2Euro3 in EuroDisney !as #irst shrunk in the logo& and the !ord 2land3 added$ /hen in

Octo"er 199> the 2Euro3 !as eliminated completely- the park !as ne6t called Disneyland Paris-

and no! Disneyland ?esort Paris$ %n 199& Disneyland Paris "ecame France4s most visited

tourist attraction& ahead o# "oth the ouvre 'rt Museum and the Ei##el /o!er$

ith the recovery o# Disneyland Paris& Disney em"arked on an am"itious gro!th plan$

alt Disney tudios /heme Park !as added to Disneyland Paris

/he alt Disney tudios "lends Disney entertainment and attractions !ith the history and

culture o# European #ilm since French cameraAmakers helped invent the motion picture$

/heme Park E6pansion in the % Century


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?ather than cele"rating the history o# $$ Disney characters& the characters in the ne! theme

park speak si6 di##erent languages$ ' "ig stunt sho! #eatures cars and motorcycles that race

through a village modeled a#ter the French resort to!n o# t$ /rope$

/his time around& the park caters to the multiple indigenous cultures throughout EuropeG!hichincludes a !ider selection o# sausages

nlike Disney4s attitude !ith their #i rst park in France& 2No! !e realie that our guests need to

"e !elcomed on the "asis o# their o!n culture and travel ha"its&3 says Disneyland Paris Chie#

E6ecutive$

/he root o# Disney4s pro"lems in EuroDisney may "e #ound in the tremendous success o# Hapan4s

Disneyland$ /he /okyo Park !as a success #rom the #i rst day& and it has "een visited "y millions

o# Hapanese !ho !anted to capture !hat they perceived as the ultimate $ entertainment

e6perience$

%n the early stage o# EuroDisney& the Disney management team had #ailed to conduct a thorough

research on the culture& values and "ehavior o# their French customers$ /he team made poor

assumptions that a##ected the construction design& marketing and pricing policies& park

management and initial #inancing o# the park$

/here !as lack o# kno!ledge a"out the Disney characters

Disney characters !ere "anned in China #or almost >+ years& #or this reason consumers !ere

un#amiliar !ith the characters$

%n .ong 7ong& Disney opened an amusement park "ut as consumers !ere not #amiliar !ith the

characters& Disney introduced some Chinese culture in Disney characters

Chinese culture !as adapted to the Disney characters& #or e6ampleI Mickey Mouse usually !ears

a redA gold suit Chinese$ Characters o#ten talk in the park up to languages including English&Cantonese and Mandarin$

/he park has too many complaints due to the space or capacity o# the park& #or that reason the

.ong 7ong Park has lost more than (1J+ "illion in each o# the last t!o years$ /hey are planning

to increase the capacity o# the park$


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Disney !ill set a ne! park in hanghai in !hich it !ill have an investment o# ($ "illion$

KE/%ON

'ttractions in the park and hotel rooms !ere so high priced$

%t !as cheaper to go to Disney!orld in Orlando that the one that !as in ParisCultural and Marketing FactorsI

/he French see Eurodisney as as 'merican imperialism

Poor understanding o# the marketplace

eather FactorsI Dismal !inter !eather o# northern France

hat #actors contri"uted to EuroDisney4s poor per#ormance during its 0rst year o#

operationL LLLLLLLLLLLL

)$ /o !hat degree do you consider that these #actors !ere :a; #oreseea"le and :"; controlla"le "y

EuroDisney& .ong 7ong Disney& or the parent company DisneyL

'll those #actors !ere #oreseea"le and controlla"le "ecause the principal pro"lem in the strategy

plan !as the lack o# in#ormation and also the assumptions "ased on statistical data #or a totally

di##erent market !hich !as the 'merica$

Disney Company #ailure to adapt di##erent customs or models to the ne! head5uarters in Europe&

most o# these #ailures !ere in the cultural and market "ehavior$ /hat is the reason !hy they had

to change their principal aim and convert their plan "ased on market demand and in order to

recovered the all the investment #or the Euro park

$ hat role does ethnocentrism play in the story o# EuroDisney4s launchL

Ethnocentrism is the tendency to "elieve that ones ethnic or cultural group is centrally important&

and that all other groups are measured in relation to ones o!n$

/his one plays a relevant role in EuroDisneyss French launch& "ecause at the "eginning the

citiens o# this country didn4t #ind any e6traordinary on this theme park& they re,ected the

cultural impact o# 'merica& "ecause French people sees EuroDisney as 'merican imperialism$

'ttempting to impose 'merican values& like nondrinking on the French !as a terri"le mistake i#

they thought every"ody acts like 'mericans$ Disney version o# #airytales like Cinderella !as

almost unrecognia"le to those !ho had gro!n up on the European versions o# the stories suchas 'steri6& Mary Poppins and so on$

.o! do you assess the crossAcultural marketing skills o# DisneyL

Disney has al!ays prided itsel# on 5uality o# service that its visitors !ill e6perience "ut it #ell

short o# "eing sensitive to the cultural di##erences "et!een 'mericans and French people such asI


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Eating ha"its o# Europeans$ nlike 'mericans !ho !ere used to eat snacks many times in a

day& French people have a more #i6ed schedule #or their meals


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have the same success "ecause o# the long acceptance o# products and Disney #ilms #rom the

European market$ ith the park in France& Disney !as going to get an advantage in the market

"ecause many people !ould not have to travel so #ar to visit the Disney Park$ But there !ere

many things that !ere not assessed at the time o# esta"lishing the park such as the customs and

culture that Europeans have as they are very di##erent #rom 'mericans$On the other hand in China !as a success "ecause they share tastes !ith the 'mericans even

though they have di##erent cultures their li#estyle is similar$

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