Marketing Assignment

On
International Cultural Environment
Brand name: ‘Walt Disney’
By UNIQUE group
Members:
Ashish Mishra (Leader) Sec. A
Pinky Kherajani Sec.A
Mehul Maksana Sec.B
Paryank Dave Sec.B
 Disney’s Claim to Fame
• Innovator in the animated motion picture
industry
• Leader in theme park entertainment
• Vertically integrated company
• Global competitor
– Operations in California, Orlando, Tokyo, and Paris

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 Disney’s Cycle of Success

Produce Market New

New Movie Products &
Services

Customers Continue to
Buy Products & Services

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 Euro Disney’s Competitors
• Tourist Attractions
– Louvre
– Eiffel Tower
• Theme Parks
– Euro Disney does not have any direct theme park
competitors in Europe

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 Strategic Problem
&
Strategic Direction Analysis

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 Strategic Problem Analysis
• Disney failed to effectively analyze the
external environment in which it attempted to
compete
– Disney did not recognize that economic and
cultural differences existed between the U.S. and
Europe
• Disney simply copied its operations from the U.S. and
Tokyo to Europe

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 External Environment Analysis
• Demographic
• Economic
• Political/legal
• Sociocultural
• Technology
• Global

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 Euro Disney’s Problems
• Visitor Spending - European visitors did not spend as
much as American visitors
– Result of exorbitantly high product, service, admission,
and accommodation prices
• Visitors would spend most of their time riding the rides
• Cheaper to eat/stay in Paris than within the park
• French Economy - The value of the French Franc
increased
– Cheaper for non-French visitors to travel to Orlando

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 Euro Disney’s Problems Cont’d.
• Cultural Imperialism - Disney failed to recognize
the existence of cultural differences in Europe
– Made financial projections based on American
vacationing habits
– Served American foods rather than local foods
– Refused to sell cigarettes/alcohol
– Required employees to act in ways that conflicted
with their social customs

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 SWOT Analysis

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 Strengths & Weaknesses
• Strengths • Weaknesses
– Strong reputation and – Cultural imperialism
brand name
– Ability to realize
mistakes and to change
– Financially sound
– Phillippe Bourguignon

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 Opportunities & Threats
• Opportunities • Threats
– Learn more about local– High prices
culture & customs – Increasing value of the
– Integrate local culture Franc
into theme park – Employee dissatisfaction
– Customize employee
standards to the reflect
local culture

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 Solving Euro Disney’s Problems

• Frenchman Philippe Bourguignon becomes

President and Chairman
– Customizes the theme park to match the local
culture

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 Euro Disney Update

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 Outlook
• Seven Additional screens added to
Gaumont cinema.
• Highlight new seasonal events and focus
on affordability of a visit.
• Strengthen the emphasis on the sale of
transport inclusive packages

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 What’s New At Euro Disney
• New Entertainment programs and special
festivals.
• Opening of the Newport Bay Club.
• Commercial real estate development of
land around Euro-Disney.
• A new suburban rail station.

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 Five Year Financial Review
 1997 1996 1995 1994 1993

 Sales (in millions) $838 $772 $735 $709 $954

 Net Income (loss) 38 40 40 (292) (869)

(in millions)

 Avg # of employees 10,229 10,307 9,356 10,941 12,177

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 Euro Disney Financial Update

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 Financial Update Continued

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 Thank You For Your Attention
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