UNIVERSIDAD SAN FRANCISCO DE QUITO HOSPITALITY FINANCIAL MANAGEMENT

NAME: Francisco Romero C. DELIVERY DATE: 31 04 2013 Homework 1 Instructions

1ST homework, Service Marketing, Euro Disney Please read the case carefully. Although this case is old, it serves as an excellent example of how services are very different than physical products and how the marketing mix for services you've added dimensions. In your written report please use the case to demonstrate how services are different. I quoted from the case itself and from the text. Provide clear examples of the following: The distinctions between services and products; that services cannot be inventoried, intangible elements dominant value creation, services are often difficult to visualize and understand, customers may be involved in co-production, people may be part of the service experience, operational inputs and outputs may vary more widely, and the time factor often assumes" great importance. The broad categories of services; People Processing and mental stimulus Processing The Seven P's of Marketing of service as applied to Euro Disney

The different types of risk that customers may perceive in purchasing and using a service like Euro Disney (Financial, functional, Social, temporal, physical, psychological, social and sensory) The theater as a metaphor for service delivery The service flower This paper/homework should be at least 10 pages in length, double spaced elements with a maximum font size of 12. Pleas make sure that you use correct grammar and spelling (If I can't understand what you are saying it becomes difficult to grade the home work.) Make sure that you have covered all the points listed above and that all your work is completely original. Plagiarism is not allowed and if detected, will be handled as an infraction against the Honor Code. In the case of the amusement park Euro Disney, we can say that this is dedicated to the sale of dreams, fantasies, illusions, and yearnings of an imaginary world full of happiness and events that can be obtained only in an environment of imagination, which banishes the negative, the bad, and the uncertainty of the real life, to immerse yourself in an atmosphere full of joy and positivism, the product offered in a certain way is a promise of happiness, lasting only within the time limit to cover the visit, these products cannot be manufactured i accumulated them for delivery to each of the visitors, is created during the interaction between the spaces , the characters, the activities and the consumer, resulting from this, a single product since the individuality of each to his or her cultural weight, psychological and emotional will determine to a great extent the result obtained, it should be clarified but,

that what puts Euro Disney to via its infrastructure, their shows, their games, the environment and others, they are also constraints The result. We could cite as examples: What a person feels when traveling on a roller coaster, which are physical sensations and mental or psychological, unique for every being and totally impossible to store already that are created and end up when they bind the physical media and the individual. UNREPEATABLE and unique, and durable in the mind of a child, it will be without doubt, the encounter with their favorite characters in that magical world of the cartoon, in this case the well delivered has a additional attachment that is the stay in the mind, through the memories, all of this impossible to manufacture prior to its realization. As we can deduce from what was said, nothing of what is being said as delivery products seems to be nowhere near to a tangible good physically, by means of the senses, before being purchased. Euro Disney to be a new company in Europe and offering a service so special, by all the features that are scored, and taking into account such as the interrelationship, which is given to ensure that the service is satisfactory, it is evident that the behavior of potential customers, it would have been taken into account when planning your marketing strategy, to adapt to the reactions and responses of these individuals before your offer. The knowledge of this behavior is important since, know how consumers react to certain situations, helping managers of Marketing to predict what will be the results of their

market offerings. In addition, this behavior may reveal the most relevant factors that influence the buying habits and consumption of the products. It must be borne in mind that when offering the service Euro Disney, is doing a group totally heterogeneous of people, from a multiplicity of countries, although it was expected that a high percentage of French tourists, and that therefore the way to co-produce an experience, it would be very different for each of the groups. I mention this because the person may not be a study for these purposes, as an individual entity, but that is part of a conglomerate, which is why this feeding of many stimuli that will constrain a large part of the way they act, these stimuli that reach him constantly can

be conscious and unconscious but the two will affect your way of acting and in the decisions that take in the moment to make a particular purchase, much more if this is directed to intangibles that will only be felt at the time of the experience, as is the case we are trying to. A warning of what could happen can be warn in, the views expressed by a plethora of French social actors who saw in Euro Disney the introduction of a method of imperialist influence in its culture, which was trying to a cultural globalization pernicious for its people. It should be noted that Euro Disney for Europeans is a new product, which at the time of its introduction in the market, this society to which the offer is directed, it lacks the concept on the category of product. This particular places our offer at a clear competitive disadvantage that is not settled properly can affect the success of the company.

Potential customers accustomed to a type of service, in the European parks and even though they had an idea of what Euro offered , i do not think achieved display properly the scope of this new offer as to compare with the existing situation and make a purchase decision to go to the new product on the market. Euro Disney as a company with great experience in the activity, dedicated to the supply of the services previously described, and holder of three parks located , two in the United States of North America and one in Japan, with which it has had a great commercial success and financial, has been created during all the years of activity, a company's culture that is evidence in the administrative structure, an offer more or less standard in all its business, how to act and behave in their employees with respect to the institution and in his way to behave when they are answering and try to meet the requirements of the clients all this has worked without problems in handling their three facilities; however, in the case of Europe, many of these parameters were affected since European and more specifically the French by culture could not be framing completely within the parameters that Euro Disney was accustomed to handle , proof of this is the behavior of employees in relation to the discipline labor, example the clothing, the Way to dress up personally to give an image of beauty, unconditionality for the requirements of schedules, how to show courtesy to the customers using the feature smile Disney etc. All these aspects caused internal problems and external toward the customers producing a decline in the quality of the services offered, and therefore directly affecting the economic performance of the company since many of the forecasts made and which were based on detailed aspects could not be met affecting the proper development of the business. What was happening in the park was in stark contrast with what is offered in European parks that if is completely tailored to the

needs of the cultures in which they carried out his activity, this competition turned out to be a headache, which was not planned by decreasing the possible clientele for Disney. Another important aspect to be taken into account is the number of mistakes that were made when considering the times, in this aspect the expectations of customers according to the days of the week for example, were not accurate, the influx to the park are not substantially increases the days Friday as was the case in the USA, or deteriorate the Monday as it was the custom, on the contrary in Europe this day had more concurrency, which brought about problems with the staff and an increase in costs because the times had to conform to the conditions of Europe, also the expectations of permanence, to deal with the hotel facilities fault doing that this income is anticipated in reality very lower than desired. In addition, the immediate attention to the customer, when arrived at the park, it was not the expected, causing discomfort in the same since their times to receive the services they were looking for were altered to the detriment of their satisfaction and the image of the company, this was produced by cultural factors, that prevented deploy a corporate culture to the diverse diagrams Accepted by them. It was also clear that the means by which they were trying to communicate were not appropriate as the excess of exhibitions flashy, it was not an accepted method causing a reaction against the expected. The Marketing emphasis used taking as the brightness and the greatness of the rides was perceived by Europeans as an imperialism of american plastic, that it was fatal for them and showed that apart from the Great arrogance to EuroDisney.

The Euro Disney park offers a very special service, as detailed in the past, the sale of dreams, fantasies, illusions, and yearnings of an imaginary world full of happiness and events that can be obtained only in an environment of imagination, these characteristics contributed to the company, apart from the traditional activities of the park as their characters Mickey and others are kept but other representations such as that of the sleeping beauty or the pirates of the Caribbean, they had to be adapted to the European average, which has led to changes in the basis of the products offered, in regard to food was not present the customs of the peoples to whom the offer was directed, Example of this, and that led to modify business policies was the habit of taking alcoholic beverages with meals like wine or beer, these alterations contributed to the failure of Euro Disney. The company, incurred in some strategic and financial failures as their forecasts on inflation or the low interest rates, or the presage a flattering economic outlook, according to which the growth of the company would be insured, in addition to thinking that they would be strong income thanks to the real estate business around it that it would be more likely to be able to pay without problem debts made with banking, this fault and the debts are increased. Helped defeat the does not conform to the established budgets and may incur additional costs. On the other hand the European recession was not noticed and this made the prices of the shares will stagger by diluting the possibility of a sale of shares to get fresh money. This recession decreased purchasing power of the Europeans and consequently your availability for vacation using the infrastructure of the park.

The failure of the company and the economic conditions of the continent, not cuadraron with prices that were put to the attractions, meals, hotels etc. reaching limits within which a vacation at Disney Orlando was for the cheapest European made it on Euro Disney. The location of the park, 32 km from Paris, appeared to be adequate because to begin, allowed easy access to the French tourists that according to the expectations they had had to be the largest percentage of the concurrent, secondly the position of the country within the continental map also facilitated the arrival of the great public the rest of countries, for the two cases the road infrastructure and alternative means such as trains and planes were one of the best, and the tourists could attend without impediments of mobilization, additionally it is thought that the tunnel that would unite the continent with great Britain, would increase assistance, all of these assumptions have failed for many reasons, among them i think the lack of an appropriate study on the European consumer and additionally because they arose or were already running other options of parks in different parts of Europe that gave greater ease of reach and their distractions were compatible with the different cultures. The approach of the promotion, i think it was wrong, trying to sell it as a place in which to holiday family for a period of 7 days, I do not think i am emotional aspects, and the reality was that the visitors did not stay for more than two, another negative aspect was the lobby with an exaggerated grandeur and extravagance, when what is best i think would have been to appeal the emotional aspects of the customers such as the continued existence of precious memories, the path by which he chose was counterproductive as Europeans took it as a sign of the North American arrogance, here we can make reference to the type of posters and advertisements of dimensions and designs that do not fall within the European mentality, was also glaring a lack of proper communication to the inside of the company ,

with investors and much more with the press, all aspect that influenced a poor promotion of the services offered. People are important, particularly the marketing of services, because these are intangible and customers are looking for tangible evidence to determine its value or quality. Here failed miserably starting from the understanding of the target markets, following the selection of staff, their training and mainly on the assumption that they could impose on the two external groups a culture toward which already in advance were opposed. Evidence of this is the lack of adaptation to work schedules, loyalty to the firm, as conceived in Disney, the little warmth in the customer care on the part of employees, primarily those French, all of this went to the attention in the service offered is not scaring customers quality and denying the possibility of loyalty of those who went. Largely as a result, many of the problems detailed above, the company was not prepared to maintain its operating procedures, within the parameters of quality with which is strangely in the parks of other localities, the selection of staff, the administrative structure, the training, the very culture of the employees, time lags in the schedules of attention by the hour or by day, even caused by the European customs, were all factors that prevented a proper development in the production of the services offered, delays in schedules, lack of availability of personnel for in a same time submit all attractions, behavior little slices of the employees in relation to customers, are examples of that activity was not carried out properly. The facilities of the park, if they had a presentation solvent and self-evident, that might suggest convincingly the type of services that would be the people that attend the

same, including many of the physical attractions were improved when compared to what is offered in the rest of parks of the same chain, we can cite what was done with the central square or the roller coaster, in the same way, the commercials were physically impressive and reflected according to the company the grandeur of what they would receive their customers, unfortunately some of the thing made as for example the signs had a negative effect and the rest did not end to convince potential users. "A representation consists only of two essential elements: actors and public. The representation may be mimicry or use verbal language, as the characters do not have to be human beings; the puppets or guignol have been greatly appreciated throughout history, as well as other scenic resources, can enhance a representation by means of the costumes, makeup, props, accessories, lighting, music and special effects. These elements are used to help create an illusion of places and times, different characters, or to emphasize a special quality of representation and to differentiate it from the everyday experience" 1 It is the theater by their features an art, that i could configure a set of expectations, and participation in the dreams on the part of the spectator through the creation of an illusion that is only operationalizes at the time of the union of all the actors, for this reason we could take it as a metaphor for what it means the supply of services. Francisco Romero c. Bibliography.

.HOWARD, J. A. The consumer behavior in the marketing strategy of Diaz of Santos, Madrid, 1993. LYN BURGOYNE, Walt Disney Company's Euro Disneyland Venture to study in corporate foreign expansion icc-bull .1995. Internet.

Service Marketing Christopher Lovelock and rue Wirtz Jochen. 1.Microsoft Encarta 2009 1993-2008 Microsoft Corporation.