O nce upon a time... - PowerPoint PPT Presentation

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francis ramiandrasoa marie france guay neal topf hector mendoza yujin kume l.
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  1. Francis Ramiandrasoa Marie-France Guay Neal Topf Hector Mendoza Yujin Kume Once upon a time...

  2. Vision Initial ooops!! Where they failed Financial impact Magic solution Identify Customers Communication Enhance Distribution Channels Increase Employee Satisfaction Improve Service Partners & Innovation Questions and Answers

  3. Vision

  4. “Bringing Disney Magic to life for our guests... through Creativity, Initiative, Humour... Excellence and Realism” Irrespective of your age, color of your skin and content of character

  5. Initial ooops!!

  6. Recipe approach • Customer • Price • Relations with tour operators • Employee motivation • Service efficiencies (no wine, long lines) • Commercial partners • Power of “Disney” brand • Damaged Image, “Cultural Chernobyl” • Low revisit rate 26% Where they failed

  7. Who’s the target? 160 km 16 million people 320 km 109 million people 2 hour flight 310 million people

  8. Where the money lies, • Attendance • Spending per guest • Hotel Occupancy

  9. Although they failed to meet the initial forecast… 11,000,000 Attendance has grown since 1994 Making Disneyland the #1 tourist attraction in Europe • …but the problem lies in, • spending per guest • occupancy rate

  10. Initial forecast Following price cut Initial forecast Actual Prices initially too high: spending per guest hotel occupancy

  11. Debt restructuring required Equity: 20.7b Debt : 10.0b Total : 30.7b Equity: 8.7b Debt : 18.5b Total : 27.2b Financial Outcome • Return to profitability • drastic cuts in operating costs • price cuts • 18 month interest free • 5 year moratoria on royalties & management fees

  12. FF 165 1992 before opening FF 72 At emission 1989 FF 11.40 1996 FF 7.55 Average 1994 Weak financial performance reflected in stock price

  13. Magic solution

  14. Who What How Focus on selling to... • Rides • Merchandise • Restaurants • Hotels • Characters • Parades • Convention centers • Movie theaters • Shopping malls • Magic • Entertainment • Diversion • Fantasy • Belonging • Youth • Leisure • Adventure • French/Non-French • Kids • Families • Adults without kids • Elderly (retired) • Adolescents • Corporate • Paris bound travellers • School trips ...satisfying the needs for... * * ...through its

  15. Who What How Focus on selling to... • Rides • Merchandise • Restaurants • Hotels • Characters • Parades • Convention centers • Movie theaters • Shopping malls • Magic • Entertainment • Diversion • Fantasy • Belonging • Youth • Leisure • Adventure • French/Non-French • Kids • Families • Adults without kids • Elderly (retired) • Adolescents • Corporate • Paris bound travellers • School trips ...satisfying the needs for... * * ...through its Ending with... =

  16. Implementation Communication Tour operators “Happy cast” & Service New offers Financial Short-term Long-term

  17. Databases TV Magazines Coca-Cola Movies Toys 1 - 18 Potential Visitors Getting the message across Direct Marketing Corporate Partners – Sales Promotion Word of mouth General Advertising Merchandising

  18. Past hotel reservations • Disney direct sales 21% • Telemarketing • Direct mail • Web • Corporate partnerships • Merchandising 25% • Walk up Channel strategy Tour operators 54% Potential Visitors

  19. Channel strategy • Tour operators 54% • Improve relations with agents • Maintain favorable commission programs • Offer all-inclusive packages Potential Visitors

  20. The increase in employee motivation... Each interaction between employee and the visitor has to be a “Magic Moment” • Job rotation • Decentralized organization • No more foxes • Team building • Broad professional training to younger employees • Monetary and Non-monetary incentives • Peer evaluation ...increases customer satisfaction...

  21. The increase in customer satisfaction also depends on... “Magic Moments” are everywhere !! • Appearance / cleanliness • Pleasure / excitement (parades, rides) • Reduce waiting time • Improve restaurant selection (Fast-food) ...results in a higher revisit rate

  22. Current guests New guests short term long term

  23. The Proposed Financial Plan is… • Short-term • maintain current admission prices • no further operating cost cuts • Long-term • negotiate progressive repayment of royalties scheduled to begin 1999 (1% in 1999, 2% in 2000…) • resuscitate and increase partnership agreements • refinance debt in 1999

  24. The 1997 projected results are… millions of French Francs

  25. The moral is...

  26. This presentation was brought to you by The Cast Q&A