EURO DISNEY

BACKGROUND
• Company Name: Walt Disney
• Business Line: Amusement/Theme Parks
• Opening: In 1955, 80-acre theme park in
California, US
• Theme Parks: US (California & Florida),
Tokyo and France.
• Famous Cartoon Figures: Mickey Mouse,
goofy etc.
• Focus : Euro Disney (Disney’s Largest
project in 90’s)
• Problem Area: Euro Disney “Service
 Salt Tangibility Spectrum
Soft Drinks
Detergents
Automobile
Cosmetics
Fast Food

Intangible Dominant

Tangible Dominant

Advertising
Entertainme Airline
nt – Theme
s
Management
Park
Consulting
Insurance
Theme Parks in Europe
 Euro Disney Project
• Investments: 21 billion Francs.
• Site Size: 1/5th of the city of Paris.
• Projected : 12000 Employees.
• Forecast: 11 million visitors in first year.
• Hotels: Complete ownership of total of 6
hotels.
• Occupancy: 70% annually for hotels.
• Other Features: 18 hole championship
Golf Course.
• Design: Same as other Disney parks but
Financial Arrangement
 Real Risks Taken…...
• Real Estate Development: Own and
Operate hotels and resorts nearby
• Phase II Development: shopping malls ,
apartments etc nearby
• Sell Phase II: When real Estate prices
high
• Expectation: Soaring Profits!!!!
• Negligence: Investment made when
European economy was in recession
Criticism of Euro Disney
Catering Multinational
Audience
Operations: Reality Vs
Forecast
Management & Training
Continued…………….

• Disney Trademark: Smile a lot

• Interpretation of Smile in French Culture

• Total customer satisfaction: Disney Vs

Employees thinking
Marketing Concerns
Marketing Counter
measures
Euro Disney’s Problems
Euro Disney’s Problems
Cont’d
Services Marketing Triangle
The Services Marketing Triangle

Company
(Management)

Internal External
Marketing Marketing
“enabling the “setting the
promise” promise”

Employees Interactive Customers

Marketing
“delivering the promise”

18
 Internal Marketing
Company
(Management)

Employees
External Marketing
Company
(Management)

Customers
 Interactive Marketing

Employees Customers
GAP MODEL
PROVIDER GAP 1: Not knowing
what customers expect

• Lack of market segmentation: All Europeans

• Focus on transactions than relationships:
Volumes
PROVIDER GAP 2: Not selecting
the right service designs &
standards
 PROVIDER GAP 3: Not
delivering the Service
Standards

Customer not •All language to be spoken: Expected by

customers.
fulfilling roles •Barcelona resident Expectations
 PROVIDER GAP 4: Not
matching performance to
promises

Ineffective mgmt. of • Lack of Adequate Education to

customer expectations customers
• E.g. : Toilet signboards were low
 SWOT
Analysis

Euro Disney

11/15/08
 Strengths & Weaknesses
• Strengths • Weaknesses
– Strong reputation – Cultural imperialism
and brand name
– Ability to realize
mistakes and to
change
– Financially sound
– Phillippe
Bourguignon

11/15/08
Opportunities & Threats
• Opportunities • Threats
– Learn more about – High prices
local culture & – Increasing value of
customs the Franc
– Integrate local – Employee
culture into theme dissatisfaction
park
– Customize
employee
standards to the
reflect local culture

11/15/08
Euro Disney Update(
1993-97)

11/15/08
Outlook

11/15/08
What’s New At Euro Disney
• New Entertainment programs and
special festivals.
• Opening of the Newport Bay Club.
• Commercial real estate development of
land around Euro-Disney.
• A new suburban rail station.

11/15/08
Five Year Financial Review
 1997 1996 1995 1994 1993

 Sales (in millions) $838 $772 $735

$709 $954

 Net Income (loss) 38 40 40

(292) (869) (in millions)

 Avg # of employees 10,229 10,307 9,356

10,941 12,177

11/15/08
Euro Disney Financial
Update

11/15/08
Financial Update
Continued

11/15/08
Thank You

11/15/08