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Euro-Disney: The First 100 Days. The Walt Disney Traditional Formula. Theme parks--core of attractions organized to an identical set of themes Offerings for adults Offerings for children Offerings for different psychographic targets Stable of characters.

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the walt disney traditional formula
The Walt Disney Traditional Formula
  • Theme parks--core of attractions organized to an identical set of themes
  • Offerings for adults
  • Offerings for children
  • Offerings for different psychographic targets
  • Stable of characters
the walt disney traditional formula cont d
The Walt Disney Traditional Formula (cont’d)
  • Commitment to always having something new and different at parks
  • Service delivery
  • Concept of guest experience
  • Attention to detail
  • Disney University
    • Qualifying potential hires
    • Transmitting Disney values
    • Training employees to be effective in jobs
    • Grooming standards
services marketing problems
Services Marketing Problems
  • Heterogeneous target market--multi-national, local/traveling--makes strategy more difficult
  • Pricing too high
  • Poor market research
  • Cold weather location
  • Lack of consideration for local culture
  • Service standards hard to implement
criteria to assess first 100 days
2/3 into initial 5 1/2 month operating period, have 2/3 of projected revenues

figure of 3.6 million visitors slightly behind pace to achieve 7 million projected, although summer months remain

Substantial cost problem

Extra 5,000 workers needed

Pre-opening and other costs

ATTENDANCE

COSTS

PROFITS

Criteria to Assess First 100 Days
criteria to assess first 100 days1
Very high in beginning period

No employee housing

More because difficult role to perform than in any other park due to language

Appears to be ahead of other parks at same point in time

EMPLOYEE

TURNOVER

OVERALL

PERFORMANCE

VS OTHER

PARKS

Criteria to Assess First 100 Days
what aspects transferable not transferable
TRANSFERABLE

Theme park formula: Values/quality/imagination

Guest service

Structure of parks

NOT TRANSFERABLE

Service standards conflicted with French labor unions

Policy toward wine

Waiting lines

Management of local employees by expatriates

What Aspects Transferable/Not Transferable?
considerations before extending service concept across borders
Considerations Before Extending Service Concept Across Borders
  • Adapting service itself
  • Adapting promotion and distribution
  • Adapting entry modes
  • Adapting communication
  • Adapting market research international
  • Adapting work force management
    • culture’s effect on employee behavior
    • adapting service employee incentives
    • adapting service standards for international delivery
what can disney do now
What Can Disney Do Now?
  • Lower prices
  • Build additional ride capacity
  • Improve cast friendliness
  • Coordinate marketing of parks with release of films
  • Change to local management team
  • Aggressive cross-promotion
  • Attract and retain high quality employees
update march 93
Loss of $40 million before deferral of $20 million debt payment

Underutilization of hotel rooms

Bombarded with negative publicity

Fitzpatrick stepped down as president

Lowered admission prices by 25% for adults and 33% for kids

Update: March ‘93
changes and update 1998 an impressive turnaround
More than 11 million visitors per year--bigger than Eiffel Tower or Louvre

#1 short-stay tourist destination in Europe

Higher hotel occupancy rate (64%) than Paris hotels

Profits 1997 rose 77%

Renamed Disneyland Paris

Added new Space Mountain Ride

“Kids Go Free” promotions

Changes and Update 1998:An Impressive Turnaround
current situation
Current Situation

Profitable for last 3 years

  • 1997 income up 21.5% yr to yr; Costs up 8.3%
  • 1998 1st quarter income up 16.6% over 1997
  • 12.6 million in attendance in 1997
  • 78% hotel occupancy in 1997
  • Recovery due in part to “American” cost controls
  • Slight increase in average guest spending
  • Emergence of major conference center
labor unrest
Labor Unrest
  • 80-160 employees went on strike in July 1998
    • Wanted classification as “artists” not “extras”
    • Resentful that multiple skills were not rewarded
    • Costumed strikers smiling, not confrontational
  • Average striking worker making more than minimum wage; artist classification would net $330 more per month
  • Disgruntled employees returned to work without government support
future plans
Future Plans
  • Control 3,200 acres around current location
  • Creating Val d’Europe - a “town” outside Euro Disney
    • 90,000 sq. meter shopping mall
    • 1,610 housing units
    • Office space
    • International business park
rejected new names for eurodisney
"Rejected New Names for EuroDisney"

10.Euro Disaster

9. El Biggo Mistake-o

8. Never-Never-Profit Land

7. La Veal de Guys in Big Smelly Costumes

6. Gumpworld

5. Beaucoup de Crap Americain

4. Johnny Depp's Hotel of Destruction

3. Boutros Boutros-Goofy

2. Have-You-Forgotten-We-Saved-Your-Ass-in-the-World-War-Two-Land

1. Ooh-La-Lame

As presented on the 9/15/94 broadcast of LATE SHOW with DAVID LETTERMAN