1. Introduction
Disney is very successful with its three basic value: quality, imagination and guest
service. American Consciousness is the spirit of Disney core business. Within each
Disney Park, themes were chosen to appeal to a wide variety of interests and tastes.
Adventurous and roller coaster rides are symbols of American consciousness.
Spectacular firms and shows of fantasy story stimulate the audience imagination.
American's Past are culture heritage which is distinct competence of Disney in the
Cartoon Movie and Theme Park design.
Japan Disney is a remarkable success of Walt Disney in international market. The
marketing opportunity in Europe is no doubt a great chance for Disney market
development since its population size, per capita spending and vacation period are
favorable than United States. Research from Paris citizen further supported the set
up of Theme Park in Paris as over 85% of the population agreed the plan.
The market plan of Disney, which is based on ADL Research in the area of operating
assumption for revenue, per capita spending for pricing and distance penetration for
individual target market, are financial feasible. French government support with tax
incentive and new infrastructure built for easy access to the Complex made the Euro
Disney a marvelous market plan .
It is the cultural factor European preference overvalued by Walt Disney's
management in the park design and service delivery that made the brand identity of
American consciousness almost disappeared in the park design. On the other hand,
the impact of poor staff relationship with the staff was underestimated that the
guest service, which is core competence of Disney in exceeding customer expectation,
was criticized by visitors.
In fact, Disney's success is derived from it goes deep into the American
consciousness by selling myth and fantasy. The success of Japan Disney is the real
service extension of Disney home market with its quality, imagination and guest
service. They are totally copying the America way with the successful service delivery
system transferred to Japan.
For Hong Kong Disneyland, top management of Disney are required to consider the
cultural impact in the service delivery system to avoid the Euro Disney failure
happened again.
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2. Evaluation of Disney entry decision in Europe
In examining the entry decision in Europe, we may use the Exhibit 1 as laid out in the
Global Marketing Management Exhibit 9.1 to illustrate the steps how Disney decide
his market plan and development in the global market.
Market opportunity
The market opportunity aboard for Disney land is no doubt a choice between the
countries for its Complex extension. The Disney home market became mature since
the Theme Park was first launched in 1955, it is a right decision to develop its market
overseas. Disney movie is a symbol of American culture and it is accepted worldwide
with its myths and fantasy idea. Peter Pan. Snow White and Cinderella are well known
Cartoon characters to the children without country borderline.
The potential of Europe market in terms of population size, per capita spending and
leisure are similar with United States. The Disney company's optimistic of European
market was the access to the site by the European population and which exceeded
that of the United States by 150 million in roughly one-half of the land mass. Home
market. The preliminary screening of the potential target country market by ADL
Research for the population segmentation initial the right target market for Disney
positioning strategy. The mode of entry is crucial for Disney Land in the long-term
investment in the host country. The joint venture with the local government and the
political stability grantee the return and the recoverability of the revenue.
Preliminary screening - Target country market
The STEP analysis of Europe and Japan may be a good insight of Euro Disney and the
positioning strategy of Europe market.
STEP analysis of Japan Disney strengthen Disney's Europe market decision:

Appetite for American styled popular entertainment - Appeal for Disney's brand
of entertainment even there is difference between the Disney approach and the
Japanese way of life. The fact that popular of Disney approach in Japan persuade
Disney management to launch Euro Disney where the cultural difference is
apparent.

Per capita spending is high in Japan as there was a trend in Japan towards leisure.
In Europe, the leisure is a lifestyle and it is unique in the European vacation
practice.
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2. Evaluation of Disney entry decision in Europe

Political stability of Japan and Europe is important for Disney as the Theme Park
would be a long-term project with substantial investment. The risk of exchange
impact would be higher in a unstable country when the mode of entry is joint
venture with local investor and government. ECU a single Europe market in 1992
was a guarantee not only safeguarded the political risk but it also facilitated the
free access within the Europe under the ECU agreement.
Decision criteria for mode of entry
In evaluating the decision to build the theme Park in Euro, the mode of entry is also
important for Disney.
The decision criteria will influence the choice of entry mode in
terms of

External criteria of market size and Growth, Risk, Government regulation,
competitive environment and local infrastructure ;

Internal criteria of company objective, need for control, internal resources,
assets and capability and flexibility.
The population of Europe is huge and greater than in United States. The vacation
practice is one the external criteria for building theme park where the visitors could
easy access around the Complex. French Government built a new railway for Disney
land in transporting the tourists to the Park.
Since the control of delivery service system is the key factor of Disney success in
Europe, therefore the probability of the system successfully transferred is the
primary concern. It is found that the failure of Euro Disney is the reason that the
quality service could not be effectively delivered to the visitor by the cast members.
The joint venture with European investor and agreement with French government has
proven a good investment decision for the long term project as the participation of
government and European guarantee the recoverability of the revenue. However, it is
inflexible for the exit of Disney when the visitors is fall short of the forecast
number.
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3. Segmentation, targeting market and positioning
The socioeconomic factors are the bases for Disney in determine the market
segmentation. The vacation practice of European is five week for every year and Paris
are the popular destination of the tourists as 50 million visitors came to Pairs and spent
$21 billion per annum. Consumption patterns for many goods and service is largely driven
by the consumer wealth or the country's level of economic development in general. The
effective market segmentation has to be sizable and large enough to be worth going.
Europe is an alternative market of United States as many products coming from United
States are part of the international marketing strategy of US company.
Market segmentation
According to the ADL Research, European enjoyed their vacation and the period of
vacation per annum in Europe was five weeks. It was greater than the three weeks
vacation in United States. European selected Paris as vacation destination and spending
an estimated $21 billion from the 50 million tourists therefore they were used as the
basis of the market segmentation and the distance from the site in Paris were
subdivided into different group in assessing the individual target market.
Target Market and Disney's Positioning strategy
As the Research Disney conducted on European travel to the United States showed that
the three things tourists were most interested in seeing were New York, Disneyland, and
the Western United States, the Complex that Disney built in France was the most
"Western American" of all of Disney's Parks. However, the initial idea of Disney is not
based on the "American Consciousness". Rather, the design was to accommodate the
preferences of European guests and certain French cultural requirements.
The target market of Disney in Europe was past visitors of United States Disneyland
from Europe and the design of theme park was focus into attracting these visitors to
come back again and "experience" the Disney again. Market research was used to set the
tone of the resort. The service adaptation of Disney Park design for cultural
requirement, involving park design, grooming standards for employees, and eating habits,
were expressed by vocal French intellectuals, French government officials and local
press. Subsequent to concerns raised by the French government, Disney assured that
French would be the first language of the park while most signs would be bilingual as
would be the park's employees.
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4. Development and organization of the park - American hardware design and European
preference combination
The implication of this target market has reflected in the design of the park where
Disney attempted to imbue the park with a European flavor. The combination of
American design with European preference destroyed the American Spirit of the theme
Park. In Fantasyland, it was stressed that Disney characters had their roots in European
mythology. The Peter Pan attraction featured Edwardian-style architecture, snow White
had her home in a Bavarian Village. Adventure land would invoke the imagination of
famous European adventure tales such as Sinbad the Sailor, Arabian Nights and the
Thief of Baghdad.
Disney concerned the toleration of French visitors of long waiting lines and planned films
and other entertainment diversions for guests in line for a ride. The other issue was the
eating habits between American and European. In anticipation of concerns about food,
Euro Disney featured foods from around the world at its many theme restaurants and
snack bars. This was in contrast to the strictly American flavor of Tokyo Disneyland.
The human size of the Park is the core competence of Disney and the organization of
the Park is built with the guest service and quality of the service stemmed from the
service system delivered to the customer by cast members. The biggest challenge for
Disney was preparing operationally to provide Disney's standard of customer service transferable of service system to Europe. The indoctrination of all employees in the
Disney service philosophy is the critical factor for Disney to deliver the service system
effectively to the visitor i.e. guest service and quality of service.
The comment from visitors that the park did not meet the U.S. Standard, suffering
from poor service and operational glitches had proved the European preference and
service adaptation is a wrong decision.
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5. US and Japan Disney formula transferable to Europe
It is the three basic Disney value of quality, imagination and guest service which are the
element of traditional Disney theme park success formula. An extensive orientation
program was the first step for both individual cast members and the company's quality
assurance efforts. The Disney University provided the training and modeled the
attitudes required to re-create the desired level of service in the Park. At Disney theme
parks, standard of service, park design and operating details, and human resource
policies and practices were integrated to ensure that the Disney "play" would be
flawlessly performed day in and day out at each location. To exceed its customer
expectation every day is the Disney's stated goal and we could find it in U.S. and
Japan Disney.
Visitors complained of the workers were simply not aiming to please and cast members
were acting like real people instead of 'Disney' people. Consistent with Disney's
entertainment concept, employees were called "cast members". They wore "costumes,"
not uniforms, and were "cast in a role". These entertainment concepts, however, was not
appeared in Euro Disney. The Disney service, in fact, could be transferred to Europe as
it did in Japan Disney even there is a cultural difference. Following the success elements
of Japanese culture in obeying their bosses and being part of a team, Euro Disney could
recruit staff from those European countries where the collectivism is high or carry out
character test for new recruitment.. Therefore, the efficiency and politeness of staff
members in Japan Disney could be transferred to Euro Disney.
The "American Consciousness" is the core success of Disney theme Park. It is proven
that the American way was the primary reason of Japan Disney so success even there
was a completely different between the Japan's lifestyle with the Disney culture. In
Euro Disney, American visitor complaint the Park was a kind of strange feel whether it is
going to be an American park, a French park or a European park. The difficulties in
accommodating the cultural diversity of the complex were also noted by the press - the
issue "Can an American theme park in Europe please all ages and nationalities?"
The fact that the cultural difference is the selling point of Disney service as it did
successfully in Japan and United States where different countries people visited the
Park again. The transfer of American entertainment culture is a key success factor for
Euro Disney to consider its development path in the phase II of the theme park.
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6. Disney's service delivery system
We could use Enterprise Resources Planing (ERP) model to analysis Disney management.
The Customer Relationship Management (CRM) for top priority of customer concern is
explicitly stated in Disney's stated goal to exceed the customer expectations. The
standards of service, park design and operating details, and human resource policies and
practices were integrated to ensure that the Disney "play" would be continually
performed in each location are the Supply Chain Management (SCM) concept and the
service delivery system is the infrastructure of this model.
The focal point of the service delivery system was "Disney University", the company's
in-house personnel development organization with units specific to each site. It is similar
to the total quality control system of Japan. Quality of service and its delivery to the
customers are their primary concern and teamwork is the spirit of Disney service. In
Euro Disney, the teamwork and total quality control system could not be implemented
due to the cultural factor of individualism.
Disney University modeled the "attitudes" required to re-create the desired level of
service in the Park. To achieve the desired level of service, an extensive orientation
program for both individual playing different roles and cast members and the company's
quality assurance efforts is the first step to indoctrinate the Disney's service
philosophy to the staff. Aiming to exceed customer expectation, happiness and
customer perceptions are the "attitude" training target while employees had wide
latitude to "act as a company" are the means of Disney service to achieve the target of
customer concern. However, the "Attitude" training was not success in France because
French is tended to enjoy entertainment which was more intellectual in nature and the
cast member's attitude of entertainment concept could not be easily changed in the
servicing of guest - they are aiming to please.
The integration of the service delivery and the attitude of the cast members is the key
factors for Disney's service delivery system. However, the attitude of the cast member
of Euro Disney could not integrated with the service delivery to the visitors. The staff
relationship was poor due to the management did not fulfill the Disney's Service
philosophy to cater for their employees like their guest.
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6. Disney's service delivery system
The housing shortage was a shortfall of the Disney as there are 670,000 sq. meters
office space (Exhibit 5 of the assignment) from the agricultural Marne-La-Vallee. The
extra charge of adding rooms for the staff was opposite to Disney's philosophy of
entertainment concepts - the fixing customer problems was given top priority.
Disney's management could dissolve the accommodation problem by building sufficient
apartments to the staff without charging rent. It would be very useful step to persuade
the cast member in changing the attitude of grooming requirements in the guest service.
Moreover, the creation of friendly climate for the communication and concerning the
staff social need are the basic element of a customer relationship management e.g.
social gathering function in European culture. In fact, Disney's management could
understand and know more about the culture for its long term planning of the theme
park design from the staff experience. It is advantage for the Enterprise Resource
Planning and strengthens its customer relationship management that is acquiring new
customer in Europe, enhancing the profitability of existing customers to come back Euro
Disney again or previous visitors to US Disneyland, and retaining profitable customers
for life.
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7. Recommendation of proceeding the second theme park
According to the model of Disney entry decision process from Exhibit 1, we find the
Disney market plan seems not appropriate with resources and objectives. The service
delivery system could not train cast members to provide the guest service and achieve
the quality standard that is the objective of Disney's management. The overall
performance was much below the expectation with the lower profit derived is the main
reason why we recommend not proceeding the second theme park at this moment unless
a new marketing plan for correcting the current management issue could be found.
The management issue of Disney's management before proceeding the Phase II project
are namely:

How to get the service system up to the standards and cost levels of the other
Disney Parks. Such issue as waiting lines, consistent cast member courtesy and
employee turnover;

What is the marketing plan of the park to achieve winter attendance targets in the
light of the visibility of Disney's critics in France.

Whether the adaptation of the Disney entertainment concept could apply to Phase
II and improve its chances for success.
The customer relationship management system of Euro Disney is the critical factor for
the operation of Phase I in Winter season and the Phase II theme park. The waiting line
impact would be lessened when there is few visitors in Winter. The courtesy and
turnover of employee could be corrected by inter-exchange of cast members between
United Stated and Europe so that the local cast member has a chance to remodel their
attitude. The build up of accommodation for local employee could solve the long term
problem of the housing shortage and the cancellation of additional charge for rent would
dissolve the bad feeling of the cast members.
It may be an opportunity instead of a threat for Euro Disney to open a new park for the
attract new customer as Northern part of Europe will have the vacation in the southern
European countries like Italy, Spain and France. These visitors would be the target
market for Disney to positioning with the advertising media. "Euro Disney" - A place for
your Winter vacation with American venture. The American consciousness is the core
competence and selling point to the European visitors.
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7. Recommendation of proceeding the second theme park
The adaptation of Park Design for European preference and culture had been not
welcome by the visitors since the Fantasy and myths are symbols of American
consciousness. The American movie is so popular in Europe and international market
because of its unique American spirit, adventure and innovation. When European visitors
come to Euro Disney only find the mixture of America and Europe design, they would
create a bad image of Disney and comment every service of Euro Disney even there is
only a operation glitches. Therefore, the traditional American style design of theme
park, ride and attraction are what Euro Disney need to aware and basic service to
exceed the customer expectation.
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8. Conclusion and recommendation for Hong Kong Disney park
The failure of Euro Disney in the first 100 days could be summarized as the poor
marketing plan without a real consideration of the culture factors of the visitors and
the cast members. They are the core persons in the customer relationship management
of Disney 's service system. The overvaluation of the European preference with the
culture in Park design was contradict with the customer relationship management
concept of maintain the profit with existing customer while the park could not attract
new customer. The effective delivery of service is relied on the cast members and the
design of the guest service for the European. The resource spending, cost and timing are
the relevant items in the Supply Chain Management. The flow is stemmed from the
information feedback from the customer and Disney's management arranges and plans
the resources and commits Disney's service philosophy of exceeding the customer
expectation by taking customer concern to the top priority.
The target market of Hong Kong Disney park is Greater China and people from Mainland
China. The American way movies are very popular in Hong Kong and China as well.
The
innovation of the park design provide unexpected imagination to the visitors would be a
distinct advantage of Hong Kong Disney Park as it did in United States and Japan. The
cultural factor is the barrier of the service effectively deliver to the Chinese customer
as language barrier but it may be a competitive advantage since the American
consciousness and culture are what Chinese visitors want to compare. The entertainment
climate likes crowded and happiness are the favor of the Chinese visitors of the Hong
Kong Disney Park as it is part of the China culture.
The lesson of staff relationship management from Euro Disney is valuable because the
service delivery system is the key of the Disney basic value: quality, guest service and
imagination. The housing for the employee and the training program would be the
primary concern since the rent is high in Hong Kong and that the attitude to service of
Hong Kong people is doubtful in compare with Japan. Good beginning is a 50% success of
any plan in China wisdom, the high turnover rate of employee in Europe had a direct
impact of the quality and guest service in the first 100 days. The supply chain
management of service delivery to visitors is required to focus into the contingency plan
of unexpected large number of visitors for the first few months as it always be the case
in China and Hong Kong. The poor service the visitors received at the beginning of the
Disney Park would be a disaster of Disney similar to Euro Disney case.
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8. Conclusion and recommendation for Hong Kong Disney park
The long waiting line and cleaning problem would be another issue of Hong Kong Disney
park because Chinese visitors may not tolerate the long waiting line outside the park and
it creates the cleaning problem if there is snack provided in the waiting queue. The
eating habit of Hong Kong is various and people accept the fast food eating habit for
long but the throwing of waste food habit would produce the bad image to the visitor
and cleaning problem.
The segmentation of European visitors according to the distance from the Park for
individual target market would be a good method for planning the hotel accommodation
and traffic facilities and infrastructure of the Disney Park. Visitor takes the plane from
Mainland China usually five to six hours from Peking and Shanghai while East Asia
countries would take four to five hours. These visitors will use the hotel facilities while
the one day trip from southern part of China may be arranged for the noon time
entrance.
The final issue would be the training of the guest service as Hong Kong people are not
willing to please the visitors from Mainland China. However, Hong Kong is a international
city with good presentation in English communication. The "attitude" required to
e-create the desired level of service in the Park may be the difficult problem that Hong
Kong Disney park has to handle carefully.
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