1.

What factors contributed to EuroDisneys poor performance during

its first year of operation? What factors contributed to Hong Kong
Disneys poor performance during its first year?
There were two major factors that contributed to EuroDisneys poor performance
during its first year of operation. The two factors include: market research and
cultural competency. Within those two factors there were specific details that
demonstrate where and why they failed poorly. There are listed below:
* Instead of using French cartoon characters, American characters were used.
The French see EuroDisney as American imperialism
plastics at its worst.
* Europeans are known to enjoy drinking wine, but the park banned alcohol
completely.
Disney managements conviction that it knew best was demonstrated
by its much-trumpeted ban on alcohol in the park. This
rule proved insensitive to the local culture, because the French are
the worlds biggest consumers of wine.
*Disney did not stress the
entertainment value of a visit to the new theme park; the emphasis
was on the size of the park, which ruined the magic.
*Vacation customs of Europeans were not taken into consideration.
* Disney executives had optimistically expected that the arrival
of their new theme park would cause French parents to take
their children out of school in mid-session for a short break. It
did not happen unless a public holiday occurred over a weekend.
Similarly, Disney expected that the American-style short but more
frequent family trips would displace the European tradition of a
one-month family vacation, usually taken in August. However,
French offi ce and factory schedules remained the same, with their
emphasis on an August shutdown.
* A misunderstanding regarding breakfast availability cause issues with the guest.
* Disney was informed Europeans did not eat breakfast, which was not correct.
* Many Europeans believed the prices were too high and would not pay.
* Other big events were occurring at the same time the parked open, which cause
lots of issues as well
the Worlds Fair in
Seville and the 1992 Olympics in Barcelona were huge attractions
for European tourists.

On the food front, EuroDisney offered only a French sausage,

drawing complaints from the English, Germans, Italians, and
everyone else about why their local sausages werent available.
This time around, the park caters to the multiple indigenous cultures
throughout Europewhich includes a wider selection of
sausages.
Hong Kong
there were complaints about the park size
just not big enough and not very different from the
amusement parks we have in China. Hong Kong Disneyland has
only 16 attractions and only one a classic Disney thrill ride, Space
Mountain, compared with 52 rides at Disneyland Paris.

unfamiliarity of Disney characters

early advertising that featured the

family missed its mark somewhat by featuring a family consisting
of two kids and two parents, which did not have the impact it
was supposed to have, because Chinas government limits most
couples to just one child.

To what degree do you consider that these factors were (a)

foreseeable and (b) controllable by EuroDisney, Hong Kong
Disney, or the parent company, Disney?
All the factors listed above could have been foreseen. It was obvious that not
enough research was conducted prior to creating EuroDisney. For the first factor, if
there were French cartoon characters, why would American characters be used?
They should have taken that into consideration and utilized their own famous
cartoons in order to capture the consumers attention. The factors regarding the
wine and breakfast could have been prevented. If research were conducted, they
would have found out that Europeans love their wine and breakfast is important to
them. The last factor, the World Fair and The Olympic Games occurring at the same
time as opening day, could have been prevented also. If they had changed the
opening date, they would have had more attendees.
EuroDisney management took steps to rectify immediate problems
in 1992 by cutting rates at two hotels up to 25 percent, introducing
some cheaper meals at restaurants, and launching a Paris
ad blitz that proclaimed California is only 20 miles from Paris.
What role does ethnocentrism play in the story of

EuroDisneys launch?
Ethnocentrism is judging another culture solely by the values and standards of one's
own culture. The EuroDisney was launched with the American theme, without
considering the fact that they have their own cartoon characters. The Europeans did
not react to the amusement park as Disney had hoped. Europeans also believe in
taking shorter vacations, which was not taken into consideration. They would not
stay for long, sometimes did not stay the night, and also would cut expenses as
needed. Overall, American and Europeans are very different cultural wise. Lots of
research should have been conducted prior to creating the park.
The French see EuroDisney as American imperialism
plastics at its worst.
Paris theater
director Ariane Mnouchkine became famous for her description of
EuroDisney as a cultural Chernobyl. In fall 1989, during a visit
to Paris
Early advertising by EuroDisney seemed to aggravate local
French sentiment by emphasizing glitz and size rather than
the variety of rides and attractions.
How do you assess the cross-cultural marketing skills of
Disney?
Disney did well in the marketing aspect for both Americas and Japans Disney
theme parks. They went in with about the same mind set for EuroDisney, while
when they set up building and marketing. They did not take into consideration the
differences of the cultures. Europeans cared mostly about quality and quantity, but
when EuroDisney opened, it was advertised as being big and glamorous, which they
did not care for. Top Executives were misinformed regarding the breakfast situation,
which was another strike against them. Disney did not understand the European
cultural, therefore EuroDisney was not successful.
After that
Separate marketing offi ces
were opened in London, Frankfurt, Milan, Brussels, Amsterdam,
and Madrid, and each was charged with tailoring advertising and
packages to its own market. Prices were cut by 20 percent for park
admission and 30 percent for some hotel room rates. Special promotions
were also run for the winter months.
The central theme of the new marketing and operations approach
is that people visit the park for an authentic Disney day
out. They may not be completely sure what that means, except that
it entails something American. This approach is refl ected in the
transformation of the parks name. The Euro in EuroDisney was
fi rst shrunk in the logo, and the word land added. Then in October

1994 the Euro was eliminated completely; the park was next
called Disneyland Paris; and now Disneyland Resort Paris.
Why did success in Tokyo predispose Disney management to
be too optimistic in their expectations of success in France?
In China? Discuss.
Disney took the entire U.S. theme park and transplanted it in
Japan. It worked because of the Japanese attachment to Disney
characters. Schools have fi eld trips to meet Mickey and his friends
to the point that the Disney experience has become ingrained in
Japanese life. In the book Disneyland as Holy Land , University
of Tokyo professor Masako Notoji wrote: The opening of Tokyo
Disneyland was, in retrospect, the greatest cultural event in Japan
during the 80s. With such success, is there any wonder that
Disney thought they had the right model when they fi rst went to
France? The Tokyo Disney constitutes a very rare case in that the
number of visitors has not decreased since the opening.
In Japan, Disney did not change much. They simply took the US theme park
and put it in Tokyo. They did not anticipate such a huge success. The
Japanese loved having a piece of America brought to their country. However,
this huge success led to a downfall when EuroDisney was built. They tried the
same concept and it was an epic fail. The lack of marketing research, led to a
disaster in Europe, but with lessons learned, not quite as bad in Hong Kong.
Why do you think the experience in France didnt help
Disney avoid some of the problems in Hong Kong?
During the opening of the Hong Kong Disney park, Disney was faced with a different
set of problems then EuroDisney. Hong Kong did not think their cartoon characters
were better, but simply was not familiar with American characters, such as Mickey
Mouse. Hong Kong wanted something different from what they already have. They
wanted to feel they were in a fairy tale. Disney in Hong Kong was not as much of a
failure as EuroDisney, but did face difficulties. In the future, more research must be
conducted to completed understand the different cultures.

Now that Hong Kong Disney is up and running, will

the Shanghai development benefi t from the Hong Kong
experience?
The Shanghai development will benefit from the Hong Kong experience. Disney now
has a better understanding of the Chinese cultural and what they people want. They
want a fairy tale, not an amusement park that looks like all the others. Disney will
now being able to market the park much better considering what they have learned
from the Hong Kong experience. They must continue their research and found out

what their target audience wants to see. With that being said, Shanghai
Development should be a success.
Now that Disney has opened Hong Kong Disney and begun
work on the Shanghai location, where and when should it
go next? Assume you are a consultant hired to give Disney
advice on the issue of where and when to go next. Pick three
locations and select the one you think will be the best new
location for Disneyland X. Discuss.
The three locations that I would consider are Seoul, South Korea, Moscow, Russia,
and Delhi, India. These cities have large population with potential large target
markets. I believe Disney should wait until Shanghai location is completed before
starting the next. I recommend building at one of the three locations listed above 5
years after Shanghai is completed. I would start with Seoul, South Korea due to the
fact that it is another Asian country. An understanding has been made with Hong
Kong and Tokyo. With all that Disney has learned, they could create an amazing
park at this location.
Given your choice of locale X for the newest Disneyland,
what are the operational implications of the history of
EuroDisney and Disney Hong Kong for the new park?
I believe that with all the issues that Disney came across with EuroDisney and
Hong Kong, which were completely opposite issues, Disney has learned a
great deal. I know they would hate to lose more money, therefore would
research very carefully their next project before going forward with it. They
did make a lot of mistakes, but they also learned from them. They really need
to understand the cultural in order to satisfy their target market.