1. EURO DISNEY

2. 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

3. Salt Tangibility Spectrum
Soft Drinks
Detergents
Automobile
Cosmetics
Fast Food
Intangible Dominant
Tangible Dominant
Advertising
Entertainme Airline
nt – Theme
s
Management
Park
Consulting
Insurance

4. Theme Parks in Europe

5. 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

6. Financial Arrangement

7. 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

8. Criticism of Euro Disney

9. Catering Multinational
Audience

10. Operations: Reality Vs
Forecast

11. Management & Training

12. Continued…………….
• Disney Trademark: Smile a lot
• Interpretation of Smile in French Culture
• Total customer satisfaction: Disney Vs
Employees thinking

13. Marketing Concerns

14. Marketing Counter
measures

15. Euro Disney’s Problems

16. Euro Disney’s Problems
Cont’d

17. Services Marketing Triangle

18. The Services Marketing Triangle
Company
(Management)
Internal External
Marketing Marketing
“enabling the “setting the
promise” promise”
Employees Interactive Customers
Marketing
“delivering the promise”
18

19. Internal Marketing
Company
(Management)
Employees

20. External Marketing
Company
(Management)
Customers

21. Interactive Marketing
Employees Customers

22. GAP MODEL

23. PROVIDER GAP 1: Not knowing
what customers expect
• Lack of market segmentation: All Europeans
• Focus on transactions than relationships:
Volumes

24. PROVIDER GAP 2: Not selecting
the right service designs &
standards

25. PROVIDER GAP 3: Not
delivering the Service
Standards
Customer not •All language to be spoken: Expected by
customers.
fulfilling roles •Barcelona resident Expectations

26. 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

27. SWOT
Analysis
Euro Disney
11/15/08

28. 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

29. 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

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

31. Outlook
11/15/08

32. 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

33. 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

34. Euro Disney Financial
Update
11/15/08

35. Financial Update
Continued
11/15/08

36. Thank You
11/15/08