GROUP 1
International marketing
VU AI VAN
M987Z256
TINA
NADIA
M987Z240
M987Z250
CONTENTS
 BACKGROUND
 SWOT ANALYSIS
 MANAGEMENT & NAME CHANGES
 QUESTION & ANSWER
 CONCLUSION
 VIDEO

http://www.youtube.com/watch?v=4bFzw5YJLmo
Background
 Comprises two theme parks, a retail, dining and
entertainment district, and seven Disney-owned hotels.
 Operating since April 12, 1992, it was the second Disney
resort to open outside the U.S (following Tokyo Disney
Resort).
 Disneyland Paris is owned and operated by French company
Euro Disney S.C.A, 39.78 % of its stocks s is held by The Walt
Disney Company, 10 % by the Saudi Prince and 50.22% by
other shareholders.
 A second theme park, Walt Disney Studios Park, opened to
the public March 16, 2002.
Development
 Crisis looms...
 Disney had projected that the new theme park would attract 11
million visitors and earn over $100 million during the first year of
operation. In 1992, amount of visitors reached only 9.2 million
and spent 12% less on purchases than the estimated $33 per head.
Summer 1994, had lost more than $900 million since opening.
 Rescue...
 October 1994 the park's name was officially changed from
EuroDisney to "Disneyland Paris", in order to more closely link
the park with the romantic city of Paris, and to disassociate itself
with the poor reputation that has become linked with the phrase
"Euro Disney".
 The tide turn…
 In 1996, Disneyland Paris became France’s most visited tourist
attraction with 11.7 million (increase 9% from the previous year).
 With 15.3 million visitors in the fiscal year of 2008, it is one of
Europe's leading tourist destinations.
Spending per guest
& Hotel occupancy
Prices initially too high:
Initial
forecast
400
french francs
spending per guest
360
320
280
240
200
1993
1994
1995
1996
258
248
224
248
Spending per guest
100%
Following
price cut
Initial
forecast
hotel occupancy
50%
Occupancy
1993
1994
1995
1996
58%
60%
68%
72%
Actual
Attendance
Financial
Outcome
Forecast: 11,000,000
9,500,000
1993
10,700,000
11,700,000
8,800,000
1994
1995
1996
•STRENGTH
•WEAKNESS
•Disney well-known already
•Huge in capital and investment
( Saudi Arabia royal family )
•Lack of knowing local culture
•Adapting American culture in Euro Disney
•Spending a lot of money in trams
construction
•OPPORTUNITY
•THREATS
•Better Regional demographic
•French has its own lovable
cartoon characters ( Asterix,
the helmeted, pint-sized
Gallic warrior )
•Different breakfast habits of
European ( will gain profit )
•One month family vacation (
European vacation ) – August
shutdown
•Dismal winter weather of Northern
France
•( argued ) Paris not Europe’s most
popular city destination among tourists
of all nationalities.
•Translantic airfare war ( 1992 )
•Currency movement ( 1992 )
•The French image toward Euro Disney
( American Imperialism )
•European recession ( 1980 )
•Gulf War ( 1991 )
•High interest rates and the devaluation
of several currencies against the franc
•Competitor ( The World fair in Seville &
1992 Olympics in Barcelona )
STRATEGY
 Change in marketing
 Pay attention on differing tourist habits around
the continent
 Seperating marketing office open in London,
Frankfurt, Milan, Brussels, Amsterdam and
Madrid. – Charge with tailoring advertising and
packages to its own market.
 Price cut 20% for park admission and 30% some
hotel room rates.
 Special promotion for winter months.
Transformation in park’s name. To be
Disneyland Paris ( October 1994 )
RESULT
 In 1996 Disneyland Paris became Franc’s
most visited tourist attraction.
1.What factors contributed to EuroDisney’s poor
performance during its first year of operation?
 Economical Aspect:
 Regional affairs in Eastern Europe and economic recession
in the western half of Europe and Scandinavia contributed
much to the poor performance of Euro Disney.
 Airfare wars during the period of time and
disproportionate changes in exchange rate made spending
for holidays in “Disneyland, Orlando…cheaper than a trip
to Paris”.
 The political:
 Of greater consequence was the Gulf War, which reduced
travel to and around Europe. The next major even inline
was the birth of new democracies in Eastern Europe.
 The 1992 Olympics in Spain marked another landmark
event that shadowed fascination towards Euro Disney.
1.What factors contributed to Euro Disney’s poor
performance during its first year of operation?( con’t)
• It’s operation and marketing:
 Disney budgeted for real estate to account for 22% of
revenues in 1992, 32% of revenues in 1993, 40% of
revenues in 1994, and 45% in 1995. Unfortunately,
due to the collapse of the real-estate market which
caused the demise of the planned development
around the theme park. Thus, Euro Disneyland did
not receive revenue from property development as
had been anticipated.
 Advertising messages had been miscommunicated,
“emphasizing glitz and size…not the rides or
attractions”. Disney remained unsuccessful in
attracting customers just by vigorous brand name
promotion communicated through Mickey and his
friends.
2. To what degree do you consider that these factors were (a)
foreseeable and (b) controllable by either Euro Disney or the parent
company ?
 Foreseeable factors:
 Disney should have foreseen the changing economic scene
in France with the forthcoming European recession.
 The relationship with the local government should have
been handled with greater care and delicacy, because of the
size of the investment involved and ultimately, the number
of jobs dependent on the success of the project.
 Controllable factors:
 Price: Expensive (should be cheaper to encourage
attendance)
 Product: Mickey and Co. (should be French cartoon
characters)
 Promotion: American Culture (should be European culture)
 Channels of Distribution: Europe
3. What role does ethnocentrism play in the story of
EuroDisney's launch?
“Top down" governance as having played a role in
the misfortunes of EuroDisney. It could have been due to
the lack of communication or formalization that is
associated with the top down governance structure that
led to the culture conflict.
Ethnocentrism, as did culture, played a conflicting role
in the launch of EuroDisney. The Disney belief was that
what it sells in the U.S. and Japan would sell just as well
in Europe. A marketing mix was to be adopted similar to
that of what was developed in other markets.
3. What role does ethnocentrism play in the story of
EuroDisney's launch? ( Con’t )
"Ethnocentrism complicates the process of cultural
assimilation by producing feelings of superiority about one's
own culture and, in varying degrees, generates attitudes
that other cultures are
Japan unlike, France, succumbed to Disney's
promotional firepower. Japan welcomed the taste of
American culture; France on the other hand went
nationalistic. Disney followed a domestic market extension
concept, believing one universal product would be accepted
in Europe with as much vigor as was seen in Japan.
4.How do you assess the cross-cultural marketing skill
of Disney?
 The cross-cultural marketing skill as practiced by Disney in

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
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Europe fell short of expectations from the entertainment giant.
The cross-cultural marketing skill of Disney as lacking cultural
knowledge.
Having misinterpreted the data and information retrieved
during the environmental scanning of the elements of
European culture.
Wrong measuring the degree of cultural sensitivity and
tolerance inhibited but the French towards American culture.
The Europeans have to be "attuned to the nuances of culture
so that a new culture can be viewed objectively, evaluated, and
appreciated.
Marketers must understand how their own cultures influence
their assumptions about another culture".
Toward the end being culturally sensitive, followed by open
communication, increased cultural assimilation should assist
in building an ever-lasting relationship with the Europeans.
5.a. Do you think success in Tokyo predisposed Disney
management to be too optimistic of their expectations of
success in France? Discuss.
 The Japanese population is composed by a large number of
younger people. Japan's home culture as I see it is in
transition, influenced a great deal by the influx of American
culture bought in through increasing trade ever since the post
war era. At the time, during the 80's, it seemed the right thing
to do when Japan all over bought American culture in all
forms. Japan created the ripe environment for Disney to enter.
 Europe was part bad luck and part miscalculation.
Management at Disney was of the opinion that success in
Japan would be matched by success in Europe.
 The targeted European market consists of an older nationalist
population. This being on of the more general observations,
though one to which little heed was paid, may be attributed
among other factors to why EuroDisney performed so poorly
in its earlier years.
 Success in Japan proved so overwhelming that management
treated both markets as equals. Disney was blinded of the
implications for its actions.
5.b. Do you think the new theme park would have encountered the
same problems if a location in Spain had been selected? Discuss.
 The launch of EuroDisney in Spain would have been met with less
criticism. Unlike the central and east Europeans, the southerners
receive foreign culture with greater warmth. But once again Spain
cannot change itself to what some may see as overbearing American
pomposity.
 International marketing is a function of culture, what you are able to
do in marketing to a particular foreign product is shaped by the
cultural variables of the country. Success for Disney to market its
theme park internationally forces them never to over-emphasize the
importance of understanding a foreign culture. A theme park in
Spain as in any other part of Europe would face a varying proportion
of, legal restraints, political risk, culture conflict, and economic
disruption.
 Professional analysis by the Disney marketing intelligence
unit may reveal accurate data regarding macro and micro
indicators of market size relevant to the launch of EuroDisney.
Nonetheless, if a comparison is made with a Spanish city the
odds will be against Paris.
 Geographic conditions provide sunshine all year round, and
milder winter temperatures. As a market Spain may attract
potential customers from northern Africa and the Arab world.
The local Spanish market is just as fruitful, in terms of, total
population, density, and buying power as its French
counterpart.
6. Now that Disney has succeeded in turning around Disneyland Paris and
has begun work on the new Hong Kong and Shanghai locations, where and
when should go next ? pick three locations and select the one that you think
will be the best new location for Disneyland X.
The Culture of China is one of the world's oldest and most
complex cultures[1][2]. The area in which the culture is
dominant covers a large geographical region in eastern Asia
with customs and traditions varying greatly between towns,
cities and provinces.
The Dubai culture is a cosmopolitan one. With the influx of
great number of foreign population which includes, Persians,
Indians, Baluchis etc ,the culture in Dubai has become a
global one. With Islam as its official religion , Culture in
Dubai is essentially a Muslim one but the presence of Hindus,
Christians , Sikhs etc cannot be ignored and their presence
has left an undeniable mark on the Culture in Dubai
Brazil is a European social nature clearer
because there are many immigrants from
Portugal, Italy, Germany and Spain.
We suggest Brazil the best new location for Disneyland X.
 Since China location is near to HongKong and Japan and
Dubai might have problem in cultural acceptance.
 Brazil cultural background is influenced by the
contributions of Italian, German and other European
immigrants who arrived in large numbers in the South and
Southeast of Brazil. So its easy to adapt Disneyland cartoon
figures ( we can learn from France culture ).
COUNTRY
GDP
TOTAL
TRADE/G
DP
POPULAT
ION
CHINA
$4.9 Trillion
8.70%
1.3 billion
$ 37 Billion
$ 1.482
Trillion
17.90%
1.204 million
18%
194.4 million
SIDE
9.571.300
km²
DUBAI
BRAZIL
4.114 km²
8.511.996
km2
7. Given your choice of local "X" for the newest Disneyland, what are
the operational implications of the history of EuroDisney described
above for the new park?
In-depth study based on exhaustive research into
every applicable aspect of the economy, laws, culture,
climate, interests, customs, life-style habits,
geography, work habits ( adapt local culture)
Conclusion
 The lesson learned is that any meal providing company
contemplating expansion into any foreign market should
be intensely indoctrinated on all aspects of the eating
habits of people in and near that country. On the other
hand, not all lessons learned are based on Disney's
negative experiences
 In order to determine the best way for a business to enter
a new foreign market it should review the external and
internal environment ( also adapt local culture) which
being important factor to learn about before settled in
that particular market.
 Through adapt local culture and to know important
external and internal factors that impacts the business
when contemplating entering the market would have the
ability to increase its chances of success as well as
decrease its chances of failure.