INTERNATIONAL MARKETING MANAGEMENT

TEAM ASSIGNEMENT I
THE NOT SO WONDERFUL WORLD OF EURO DISNEY

1) What factors contributed to Euro Disneys poor performance during its first year of operation? The factors contributing to Euro Disneys poor performance are: Disney managements misunderstanding of the French Culture Insufficient seating in restaurants and improper selection of breakfast menu. French preferred bacon and eggs Ban on alcohol consumption inside the park Not including local characters like Asterix and Gallic It also affected the construction design of Euro Disney

People generally stayed for a day or two at max against the expected 3 day stay by the management High influence of success of Tokyo Disney Park French thought Euro Disney as American imperialism-Plastic as its worst. Euro Disneys management was mostly run by the Americans. They worked as per their terms and did not include French government, local ad agencies, banks and other concerned organizations European recession, Gulf war of 1991, 1992 Olympics in Barcelona and World Fair in Seville, Spain , high interest rates and devaluation of several currencies. Euro Disney advertising had emphasized Disney image as an alluring bit of American rather than an explaining to potential customers what they can actually do for the park. People were leaving because they felt they were not being understood and they were not being treated in an appropriate manner that was satisfactory to them. Wrong forecasting of visitors to the theme park resulted in poor attendance, lack of room occupancy in rooms inside the theme park High price of rooms and ticket made people to take a trip to Orlando as it was far cheaper than Paris. Difference in the attitude of French parents of taking their kids out only on weekends or holidays.

2) To what degree do you consider that these factors were (a) foreseeable and (b) controllable by either Euro Disney or the parent company, Disney? a) Foreseeable The post-Gulf War kept visitors from taking summer vacations. The Worlds Fair in Seville and the 1992 Olympics in Barcelona will draw huge visitors away from Euro Disney. French Culture like Breakfast requirement, Alcohol consumption, local characters French Attitude towards American as they thought Euro Disney as American imperialism-Plastic as its worst. Attitude of French parents in terms of vacation for kids

b) Controllable Lowered costs on hotel rooms and tickets Marketing campaign should have focused on the entertainment factors in Disney Not Including the locals in the management process Proper Forecasting of visitors High interest rates Construction design and location of the Euro Disney Park

3) What role does ethnocentrism play in the role of Euro Disneys launch?

Ethnocentrism is judging another culture solely by the values and standards of one's own culture. Ethnocentric individuals judge other groups relative to their own ethnic group or culture, especially with concern for language, behavior, customs, and religion. These ethnic distinctions and subdivisions serve to define each ethnicity's unique cultural identity. From the case we see that French people were aggravated by the emphasis on glitz and the size of Euro Disney rather than the attractions. The vacation customs are vastly different in Europe when compared to the U.S. Americans tend to take shorter more frequent vacations, while many Europeans opt for a longer one time vacation generally planned for August. Also the European Parents preferred to take their kids on vacation only during the weekends or holidays Improper management of breakfast and no alcohol consumption was also as big draw back Existing local cartoon characters like Asterix was well etched in the minds of French people. They were not excited by mickey and his friends.

4) How do you assess the cross-cultural marketing skills of Disney? The management of Euro Disney failed in understanding the French culture, values and behavior. Their ignorance buoyed by the success in Japan, made them be lethargic in terms of their research with respect to French culture. This thought by the American team led them to make poor decisions in construction design, marketing, pricing, park management, eating habits, vacation customs, organizational structure and financing.

5) Why did success in Tokyo predispose Disney management to be too optimistic in their expectations of success in France? Discuss. In Tokyo the Japanese were very receptive of a Disney theme park right from the first day. They believed the theme park captured their perception of US entertainment i.e. many Japanese wanted to try the American way of life. The opening in Japan was itself celebrated as a big cultural event. Also Japanese attachment to Disney characters made the theme park a part of their life. Between 1992 -94, 14 million people visited Tokyo Disney park and 3/4rth of them were repeaters. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. This situation of success obviously caused a very optimistic view about the success in France.

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Do you think the new theme park would have encountered the same problems if a location in Spain had been selected? Discuss.

Pros: Spain is right on the Mediterranean Sea, visitors would have been more likely to visit the theme park year around Cost factor would be a big advantage Spain doesnt have any particular hostile attitude towards America Cons: Food Habits Lot of traditional sports fables and characters Also like France, the management could have made big mistakes in understanding the culture of Spanish people. Their food habits, vacation plans, improper marketing, interest rates etc. All these could have led the management of Disney in facing the same issue.

7) In light of near-bankruptcy in 2005, evaluate the proposed plans to strengthen Disneys appeal to the French market. In light of the near-bankruptcy in 2005, Disney strengthened its appeal to the French market by Lobbying for low-cost airplane tickets to the Charles de Gaulle Airport. Created a Pumpkin Man character tailored for European audiences. Euro Disney brought in a new CEO Giving visitors a one-day pass to both theme parks in the place of two tickets. Planned new rides including Tower of Terror rides and other new attractions.

8) Now that Disney has begun work on the new Hong Kong and Shanghai locations, where and when should it go next? Assume you are a consultant hired to give Disney advice on the issue of where and when to go next. Pick three locations and select the one you think will be the best new location for Disneyland X. Discuss. The three locations that I would pick are Singapore Dubai Great Britain And amongst the three the most preferred location would be Dubai because Dubai is a tax-free city, with no income or capital gain tax. This makes it extremely attractive for people from all around the world to come and work in Dubai, as well as invest in property.

 Foreign investors are attracted to Dubai due to the various Free Zones. Also the infrastructure, telecommunication, transport are top class. Dubai is easily accessible, having direct flights from all the major cities in the world. Dubai remains a popular tourism destination with its fabulous shopping malls, five-star hotels, beautiful beaches and numerous attractions. Dubai is extremely safe, having a very low crime rate making it a perfect place for families and wealthy individuals. The climate in Dubai is very pleasant throughout the year, with only 3 months of summer heat. The UAE was ranked #1 as the country with the best quality of life in the MENA region, and 15th in the world out of 160 countries. Dubai attracts among the best talent pool in the Middle East, with over 195 nationalities represented. Many multinationals have set up their offices here.

9) Given your choice of locale X for the newest Disneyland, what are the operational implications of the history of EuroDisney for the new park? Management should take into account the culture and ethnocentrism of the Arab people and try to work with them. Not understanding the culture, value system of French people was the biggest reason for Disneys failure in France. Arabs have strong religious sentiments, restrictions and many unique cultural traits like any other country in the world. So care should be taken by the management to learn from their mistakes at other theme parks and try to not make the same ones again.