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EURO DISNEY
BACKGROUND
• Company Name: Walt Disney
• Business Line: Amusement/Theme Parks
• Opening: In 1955, 80-acre theme park in
  ...
Salt        Tangibility   Spectrum
        Soft Drinks
          Detergents
             Automobile
                    Co...
Theme Parks in Europe
Euro Disney Project
• Investments: 21 billion Francs.
• Site Size: 1/5th of the city of Paris.
• Projected : 12000 Employe...
Financial Arrangement
Real Risks Taken…...
• Real Estate Development: Own and
  Operate hotels and resorts nearby
• Phase II Development: shoppi...
Criticism of Euro Disney
Catering Multinational
      Audience
Operations: Reality Vs
      Forecast
Management & Training
Continued…………….

• Disney Trademark: Smile a lot

• Interpretation of Smile in French Culture

• Total customer satisfacti...
Marketing Concerns
Marketing Counter
    measures
Euro Disney’s Problems
Euro Disney’s Problems
        Cont’d
Services Marketing Triangle
The Services Marketing Triangle

                     Company
                   (Management)

       Internal            ...
Internal Marketing
              Company
            (Management)




Employees
External Marketing
         Company
       (Management)




                  Customers
Interactive Marketing

Employees          Customers
GAP MODEL
PROVIDER GAP 1: Not knowing
   what customers expect




        • Lack of market segmentation: All Europeans
        • Fo...
PROVIDER GAP 2: Not selecting
  the right service designs &
           standards
PROVIDER GAP 3: Not
       delivering the Service
             Standards


Customer not       •All language to be spoken: ...
PROVIDER GAP 4: Not
    matching performance to
           promises




Ineffective mgmt. of    • Lack of Adequate Educati...
SWOT
 Analysis

Euro Disney


              11/15/08
Strengths & Weaknesses
• Strengths              • Weaknesses
  – Strong reputation      – Cultural imperialism
    and bra...
Opportunities & Threats
 • Opportunities      • Threats
   – Learn more about –       High prices
     local culture &    ...
Euro Disney Update(
     1993-97)




                      11/15/08
Outlook




          11/15/08
What’s New At Euro Disney
• New Entertainment programs and
  special festivals.
• Opening of the Newport Bay Club.
• Comme...
Five Year Financial Review
         1997     1996   1995      1994   1993


 Sales (in millions)      $838     $772   $7...
Euro Disney Financial
Update




                        11/15/08
Financial Update
Continued




                   11/15/08
Thank You


            11/15/08
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Transcript of "Service marketing-case-study-euro-disney"

  1. 1. EURO DISNEY
  2. 2. BACKGROUND • Company Name: Walt Disney • Business Line: Amusement/Theme Parks • Opening: In 1955, 80-acre theme park in California, US • Theme Parks: US (California & Florida), Tokyo and France. • Famous Cartoon Figures: Mickey Mouse, goofy etc. • Focus : Euro Disney (Disney’s Largest project in 90’s) • Problem Area: Euro Disney “Service
  3. 3. Salt Tangibility Spectrum Soft Drinks Detergents Automobile Cosmetics Fast Food Intangible Dominant Tangible Dominant Advertising Entertainme Airline nt – Theme s Management Park Consulting Insurance
  4. 4. Theme Parks in Europe
  5. 5. Euro Disney Project • Investments: 21 billion Francs. • Site Size: 1/5th of the city of Paris. • Projected : 12000 Employees. • Forecast: 11 million visitors in first year. • Hotels: Complete ownership of total of 6 hotels. • Occupancy: 70% annually for hotels. • Other Features: 18 hole championship Golf Course. • Design: Same as other Disney parks but
  6. 6. Financial Arrangement
  7. 7. Real Risks Taken…... • Real Estate Development: Own and Operate hotels and resorts nearby • Phase II Development: shopping malls , apartments etc nearby • Sell Phase II: When real Estate prices high • Expectation: Soaring Profits!!!! • Negligence: Investment made when European economy was in recession
  8. 8. Criticism of Euro Disney
  9. 9. Catering Multinational Audience
  10. 10. Operations: Reality Vs Forecast
  11. 11. Management & Training
  12. 12. Continued……………. • Disney Trademark: Smile a lot • Interpretation of Smile in French Culture • Total customer satisfaction: Disney Vs Employees thinking
  13. 13. Marketing Concerns
  14. 14. Marketing Counter measures
  15. 15. Euro Disney’s Problems
  16. 16. Euro Disney’s Problems Cont’d
  17. 17. Services Marketing Triangle
  18. 18. The Services Marketing Triangle Company (Management) Internal External Marketing Marketing “enabling the “setting the promise” promise” Employees Interactive Customers Marketing “delivering the promise” 18
  19. 19. Internal Marketing Company (Management) Employees
  20. 20. External Marketing Company (Management) Customers
  21. 21. Interactive Marketing Employees Customers
  22. 22. GAP MODEL
  23. 23. PROVIDER GAP 1: Not knowing what customers expect • Lack of market segmentation: All Europeans • Focus on transactions than relationships: Volumes
  24. 24. PROVIDER GAP 2: Not selecting the right service designs & standards
  25. 25. PROVIDER GAP 3: Not delivering the Service Standards Customer not •All language to be spoken: Expected by customers. fulfilling roles •Barcelona resident Expectations
  26. 26. PROVIDER GAP 4: Not matching performance to promises Ineffective mgmt. of • Lack of Adequate Education to customer expectations customers • E.g. : Toilet signboards were low
  27. 27. SWOT Analysis Euro Disney 11/15/08
  28. 28. Strengths & Weaknesses • Strengths • Weaknesses – Strong reputation – Cultural imperialism and brand name – Ability to realize mistakes and to change – Financially sound – Phillippe Bourguignon 11/15/08
  29. 29. Opportunities & Threats • Opportunities • Threats – Learn more about – High prices local culture & – Increasing value of customs the Franc – Integrate local – Employee culture into theme dissatisfaction park – Customize employee standards to the reflect local culture 11/15/08
  30. 30. Euro Disney Update( 1993-97) 11/15/08
  31. 31. Outlook 11/15/08
  32. 32. 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. 11/15/08
  33. 33. 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 11/15/08
  34. 34. Euro Disney Financial Update 11/15/08
  35. 35. Financial Update Continued 11/15/08
  36. 36. Thank You 11/15/08
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