Case Study

Q. No. 1 what factors contributed to Euro Disney‘s poor performance during it first year of
operation?

Ans – There were several factors, which hampered Euro Disney’s performance in Paris.

1. Mistaken assumptions affected constructions design, marketing, and pricing policies, abs initial
pricing.
2. Cross cultural ignorance, highly influenced by success of Tokyo Disney Park
1. Finance: A trip to Orlando was cheaper than Paris, Hotels in Paris were expensive, and food was
also expensive.
2. French Attitude towards American as they thought Euro Disney as American imperialism-Plastic
as its worst.
3. Early advertising was more expensive.
4. Euro Disney’s management worked everything as per their wish, did not include government,
local ad agencies, banks and other concerned organizations.
4.1980’s European recession, Gulf war of 1991, high interest rates and devaluation of several
currencies.
5. World fair in Sivelle and Barcelona Olympics in 1992 attracted more tourists.
6. Ban on alcohol consumption despite the fact that French can not have meal with out wine.
7. Poor and underestimated arrangements of breakfast
8. Difference in Attitude of American tourists/parents and European ones.

Q.No.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?

Ans – Foreseeable: Many of these factors were foreseeable

1. Cross cultural ignorance,

2.1980’s European recession, Gulf war of 1991, high interest rates and devaluation of several
currencies.
3. World fair in Sivelle and Barcelona Olympics in 1992 attracted more tourists.
4. Ban on alcohol consumption despite the fact that French can not have meal with out wine.
5. Difference in Attitude of American tourists/parents and European ones.
6. French Attitude towards American as they thought Euro Disney as American imperialism-Plastic
as its worst

Controllable

1. Mistaken assumptions,, design,marketing,and pricing policies, and initial pricing.

2. Early advertising was more expensive.

3. Euro Disney’s management worked everything as per their wish, did not include government,
local ad agencies, banks and other concerned organizations.
4 Ban on alcohol consumption despite the fact that French cannot have meal with out wine.
5. Poor and underestimated arrangements of breakfast
6. Difference in Attitude of American tourists/parents and European ones

Q.No 3.What role does ethnocentrism play in the story of Euro Disney’s launch?

Ans 3’ Ethnocentrism is the tendency to believe that one's ethnic or cultural group is centrally
important, and that all other groups are measured in relation to one's own. The ethnocentric
individual will judge other groups relative to his or her own particular ethnic group or culture,
especially with concern to language, behavior, customs, and religion

Ethnocentrism occurs when one culture or nation places itself at the top of an imagined hierarchy of
cultures and nations and subsequently assigns other cultures and nations equivalent or lower value
on that scale. The idea that Nation 'A' is intrinsically 'better' than any other is inculcated in the
population until it becomes naturalized', that is, a commonly held belief that Nation 'A'
has always been the best. It has never been any other way, and that all other nations can be judged
according to the model Nation 'A' represents. Nation 'A' is the center and all other ethnicities must
strive to emulate it in order to move up in the imaginary hierarchy.

Same thing happen in this case. American management did not try to understand French
expectations and they went forward to implement stuff in Disney Park as per their wishes. French
who never wanted Americanized entertainment did not accept it.

Q, no.4 how do you assess the cross-cultural marketing skills of Disney?

Ans; Disney failed to analyze success of Disney in Japan, they went ahead with same idea
in France. However when it did not work out they realized their mistake.

They started welcoming tourists on their own culture basis.

Later on they not only changed their marketing and pricing strategies but also worked on
Food as well. Food offering were great not only for French but other courtiers tourist as
Well.

They also changed the park name from euro Disney to Disneyland Paris.

Success of Disney Park in France says a lot about cross-cultural skills of Disney.

Q 5. Why did success in Tokyo predispose Disney management to be too optimistic in their
expectation of success in France? Discuss.

Ans 5

Disney Park was a success in Japan due to well known Japanese sentimental attachment to
American cartoon characters. So Japanese tourists went ahead and enjoyed park not only
Once but twice as well.

1992 -94, 14 million people visited Tokyo Disney park and 3/4rth of them were repeaters.

Such high figures gave high hopes to Disney management while operating this park in
Paris.

Q 6. Do you think the new theme park would have encountered the same problems if a
location in Spain had been selected? Discuss.

Ans 6: New theme park would have definitely encountered some of these problems.
Well Spain doesn’t have any particular hostile attitude towards America however issues like
personal grooming, food should be paid major attention.
Marketing, local ad agencies, initial pricing again should be as per Spanish view point.

Q7. In light of the near-bankruptcy in 2005, evaluate the proposed plans to strengthen
Disney’s appeal o the French market,

Ans 7.New plan for French markets are,

1. Low cost airlines – can definitely bring tourists

2. Creation of Original “pumpkin man” might charm European audience
3. one day passes for both parks can sure bring in more people as it is again cost effective strategy.
4. Introduction of new rides will generate curiosity hence tourists.

Q8.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 o of where and when to go next. Pick three locations and select the one you think will
bathe best new location for “Disneyland X” Discuss.

Ans 8. India is coming up as next big market is almost every field due to strong presence of
customer base and more disposable income. American culture is already so popular in India, with
some care in Food department; Disney Park can become major success.

Three major locations could be

1. Delhi
2. Mumbai
3. Bangalore

Delhi has almost everything to attract tourist but being situated in north, south Indian tourist might
left out. Also Delhi is very hot in summers when schools are closed in summer vacation. People
prefer to go to cold places.

Mumbai is again a great location, equally access to north n south India but Mumbai already have
Water Park and space could be major issue.

Bangalore is nice choice as Weather is really good. Due to India’s IT hub lots of people from north
India work n live in Bangalore, tourist will sure come.
So next best location is Disney Bangalore.