Disneyland Paris

634 Words Jan 25th, 2013 3 Pages
International Marketing Final Exam

First Question:
Disneyland Paris was one of Disneyland 's Global projects. Please discuss its advantages and disadvantages, and from reading and understanding the case suggest what was/were the mistake/s that Disney committed from the beginning till now.

Answer:

Advantages: 1- New site serving the 67millions population in France and 79 millions of tourists there, as Paris is the most-popular city destination among tourists of all nationalities. 2- 310 million people in Europe live within two hours’ air travel of EuroDisney, and 17 million could reach the park within two hours by car. 3- Famous characters to people in all over the world which have thrills. 4- The high
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Disney management expected some 50% of park attendance to include French visitors. The French people in general proved to be reluctant in their response to this example of “Americana” in Europe. EuroDisney’s management seriously underestimated negative attitudes among the French. Visitors of other nationalities were also unwilling to pay the high prices of EuroDisney or to stay more than one or two days (instead of the expected three days). Clearly, perceptions of the park’s benefits among tourists differed from those of the American. 3- Real-estate investments. 4- Expensive or inappropriate park design and construction. Total park construction costs were estimated at FFr 14 billion ($2.37 billion) in 1989 but rose by $340 million to FFr 16 billion as a result of all these add-ons. Hotel construction costs alone rose from an estimated FFr 3.4 billion to FFr 5.7 billion. 5- Flawed initial marketing, pricing, staffing, and park management policies. 6- Disney’s management decision to pursue a market skimming policy to earn a fast return, might have led to poor attendance levels. 7- Disney’s management was being insensitive to cultural differences, as Europeans are much more independent and value deeply their own cultural habits and traditions. This would require the design of a theme park that is more in keeping with French and European cultural norms. Allow
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