Euro Disney (Paris) (Marketing Plan for an Existing Business)

1

• Euro Disney (Paris)(Marketing Plan for an
  Existing Business)
• To accompany Fasttrack Management and
  Organizational Behavior (Chapter 6)

2
Disney Parks Worldwide

• Disney is the worlds largest amusement/ theme
  park operator
• 10 revenues 10.8 billion
• 09 revenues 10.7 billion
• parks only down from 11.5 B in 08
• Global operations began in 1983 with Tokyo park
• Very successful
• A clone of CA FL operations
• Japanese adore Disney, certain elements of U.S.
  culture
• International parks
• Paris (1992)
• Hong Kong (2006)
• Shanghai (planned to open in 2016)

3
Original Mistakes I

• For economic reasons, Disney located European
  park near Paris (rather than in warmer climate
  such as Spain)
• 49 ownership originally later 39 when new
  investors needed
• French generally anti-Disney company failed to
  consider cultural issues
• Farmers angered when property expropriated
• Pricing at park discouraged visitors
• Weather too cold/rainy for year round attendance
• Perception of Disney as a plastic rather than a
  real culture

4
Original Mistakes II

• Arrogance of U.S. management alienated
  government, banks, many French citizens, unions
• Labeled a cultural Chernobyl the tragic
  kingdom
• 1st general mgr. was an American
• Competition from other events
• Seville Worlds Fair
• Barcelona Olympics
• Lack of marketing research
• Inadequate breakfast seating
• Shorter visits than U.S.
• Insufficient focus on entertainment value
• No alcohol allowed

5
2000 2005 Period

• Some recovery by 2000
• Diminished anti-Americanism
• Reduced prices
• Policy changes
• New rides/attractions
• Return of problems
• Post 911 tourism slump
• Iraqi war in March 2003
• Heat wave in Summer 2003
• High cost/inconvenience of travel
• New Disney initiatives
• 500 million infusion from government
• Lobbying to allow cheaper flights
• New European characters in park

6
Disney SWOT I

• Strengths
• Unique characters/animation
• Extensive theme park experience
• Willing to change as required
• Major employer (15-20,000 jobs)
• Economic impact (12 MM visitors)
• Joint venture partners to reduce risk
• Weaknesses
• No global/regional market
• Decisions previously largely U.S. based
• Management arrogance

7
Disney SWOT II

• Opportunities
• Recession reduces travel long vacation trips
  park now attractive for many in EU
• Lessened hostility toward U.S. by 09
• A larger market for all company products theme
  park visitors, films cable, Disney merchandise
  licensing royalties
• Threats
• Future of ? Future of EU?
• High unemployment (8½, 10)
• Low GDP (2 growth, 10)
• Competing visitor attractions (i.e., beach,
  museums, about 35 other theme parks)
• Bad weather

8
Recent Positive Results

• Changes in policies
• Increased guest spending attendance due to
  rational pricing
• Park more reflective of French culture
• Moratorium on royalty payments
• Dropping of pan-European marketing
• Separate country promotions
• Changes in environment
• Favorable foreign exchange
• Operations at about break-even levels (although
  Hong Kong included in reported results)

9
Issues I

• What motivated Disney to set up parks abroad?
• Disney was motivated to expand internationally in
  order to increase sales profits
• Initially, Tokyo Disneyland was established in
  response to a proposal from Japans Oriental Land
  Co., i.e., Disney was pulled into the
  international arena

10
Issues II

• What factors in the external environment have
  contributed to Disneys success, failure
  adjustment in foreign theme parks?
• Market demand for theme park entertainment is
  substantial, as evidenced by foreign visitors to
  Disneys U.S. parks by visitors to its foreign
  operations
• Both the level of demand Disneys profitability
  are sensitive to upturns downturns in the
  economic environment foreign exchange rates
• Why is cheaper for Western Europeans to visit
  Disneyworld (FL) than Euro Disney (Paris)?

11
Issues III

• How has Disney managed its risk in its global
  theme park operations?
• Limit of its financial exposure through licensing
  joint venture operations
• Re-pricing in response to local conditions
• Adding features that are desirable to host
  country visitors
• Adjusting its policies to be culturally
  compatible with host country traditions

12
Issues IV

• What are the other 2012 issues?
• Differentiation of the Paris operation from other
  European theme parks
• Development of a marketing strategy in the face
  of a dynamic competitive environment
• Improvement in the utilization of capital
  resources including the hotels off-season park
  attendance

13
Disney Marketing Plan I

• - Develop relationship with air/rail carriers
  governments for park travel packages
• Negotiation with Air France, other carriers
• Other
• - Emphasize quality of park vs. other parks
  through advertising promotions
• Develop promotions based on recognized Disney
  characters
• Other

14
Disney Marketing Plan II

• - Organize focus groups to determine consumer
  perceptions of Disney
• Hire marketing research firm to contact previous
  visitors
• Other
• - Pursue convention business conference
  business including family packages, particularly
  in off season
• Contact business associations regarding plans for
  future meetings
• Other