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Disneyland case study
This document discusses Disneyland's expansion into different global locations. It summarizes Disneyland's history and then analyzes the poor performances of EuroDisney and Hong Kong Disneyland. For EuroDisney, factors included bringing American culture without understanding French culture, high ticket prices, and competition from other events. For Hong Kong Disneyland, issues were its small size, lack of differentiation, and unfamiliar characters. The document stresses that Disney's cross-cultural marketing strategies must adapt to each new location's unique culture and environment.
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Disneyland case study
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- 2. Content 1. Case summary 2.Factors contributed to EuroDisney’s poor performance - Correction of cross-cultural marketing 3. Factors contributed to Hong Kong Disney’s poor performance – Cross-cultural marketing strategy 4. The future of development TVC
- 3. Case Summary (1) 1955 •California Disneyland 1971 • Orlando, Florida 1983 • Tokyo Disneyland 1992 • EuroDisney/Disneyland Paris 2006 • Hong Kong Disneyland 2015 • Shanghai Disneyland … • X Disneyland
- 4. Case Summary (2) Haveno special strategy Mistaken assumptions Do not understand French culture Competition Economic Financing Losses
- 5. Case Summary (3) 1992:Separate Marketing 1994: Disneyland Paris, Financing help 1996: Success 2005: Facing bankruptcy Leap into China=> Hong Kong Disneyland
- 6. EuroDisney Factors contributed tothe poor performance
- 7. CULTURE Bring American cultureto build EuroDisney
- 8. CULTURE Disney characters contrastedwith French cartoon characters Mickey & Minnie MouseAstérix & Obelix
- 9. CULTURE Habit of eating& drinking Habit of having breakfastBan drinking wine
- 10. CULTURE Disney expected forone-month family vacation
- 11. OTHER FACTORS The transatlanticairfare wars
- 12. OTHER FACTORS World’s Fairin Seville & the 1992 Olympic in Barcelona
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- 14. EuroDisney Mistakes of Cross-cultural marketing Lacking ofawareness of culture SRCEthnocentrism
- 15. Euro Disney Change of the marketing strategy Nationalmarkets were targeted separately Advertising campaign featured the French favorite characters Creating an original character tailored for European audience Prices - Special promotions Adding Walt Disney Studio Theme Park with the history and culture of European film The central theme is that people visit the park for an “authentic” Disney day out
- 16. Hong Kong Disney Factorscontributed to the poor performance Small size Un-Differentiation Unfamiliar characters
- 17. Hong Kong Disney Cross-culturalmarketing strategy (1)
- 18. Hong Kong Disney Cross-culturalmarketing strategy (2)
- 19. Hong Kong Disney Cross-culturalmarketing strategy (3)
- 20. Hong Kong Disney Cross-culturalmarketing strategy (4)
- 21. What location shouldbe next?
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- 23. Conclusion • Disneyland’s globalexpansion got success as well as failure; • Although withdrawing lesson from EuroDisney, Hong Kong Disneyland had to face with its strategies changes; • Wherever locations Disney intent to open, beside its inside necessary preparation, the strategy should be a revolution to adapt new culture and environment.
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Editor's Notes
- #8 Having ethnocentrism while launching: Disney took the entire U.S. theme park and transplanted it in Japan. Japan’s Disneyland succeed because the Japanese attach to Disney characters. This is just a very rare case. But Disney applied the model of Japan’s Disneyland to EuroDisney
- #9 Lacking of awareness of culture:Disney’s characters not familiar with the French who very proud of their culture:The French proud of their culture and lovable cartoon characters such as Astérixwho has a theme park located near EuroDisney, they see EuroDisney as American imperialism-plastics at its worst.Focusing on glitz & size rather than the variety of rides and attractions:Not alike the American love imposing and big thing, the French prefer subtle thing. However, Disney focus on glitz & size rather than the variety of rides and attractions.They emphasize on the size of the park which "ruined the magic", instead of stressing the entertainment value. Ex: the center castle is bigger and fancier than in the other parks, expensive trams were built to take guests from the hotels to the park but visitors preferred walking. Total construction costs significantly increased compared with initial estimation, but still lacked attractions.Not allow employees using alcohol in the park;
- #10 Disney management didn’t allow employees using alcohol in the park, this rule proved insensitive to the local culture, because the French are the world’s biggest consumers of wine, to them a meal without wine is unthinkable.Having SRC that got mistaken assumptions: Disney management team got Self reference criterion that have mistaken assumptions affected construction design, marketing, pricing policies, park management as well as initial financing. Ex: They informed that Europeans don’t eat breakfast, so restaurant breakfast service was downsized. However, everybody showed up for breakfast, the lines were horrendous
- #11 Another example of mistake assumption is vacation customs of Europeans. Executives had optimistically expected French parents take their children out of school in mid-session for a short break, but it didn’t happen unless a public holiday occurred over a weekend. Not as American-style, family trips long last about one-month as European tradition,usually taken in August.
- #15 - The French proud of their culture and lovable cartoon characters such as Astérixwho has a theme park located near EuroDisney, they see EuroDisney as American imperialism-plastics at its worst. Disney’s characters not familiar with the French who very proud of their culture;- Not alike the American love imposing and big thing, the French prefer subtle thing. However, Disney focus on glitz & size rather than the variety of rides and attractions.They emphasize on the size of the park which "ruined the magic", instead of stressing the entertainment value. Ex: the center castle is bigger and fancier than in the other parks, expensive trams were built to take guests from the hotels to the park but visitors preferred walking. Total construction costs significantly increased compared with initial estimation, but still lacked attractions.- Disney management didn’t allow employees using alcohol in the park, this rule proved insensitive to the local culture, because the French are the world’s biggest consumers of wine, to them a meal without wine is unthinkable.- Disney took the entire U.S. theme park and transplanted it in Japan. Japan’s Disneyland succeed because the Japanese attach to Disney characters. This is just a very rare case. But Disney applied the model of Japan’s Disneyland to EuroDisney- Disney management team got Self reference criterion that have mistaken assumptions affected construction design, marketing, pricing policies, park management as well as initial financing. Ex: They informed that Europeans don’t eat breakfast, so restaurant breakfast service was downsized. However, everybody showed up for breakfast, the lines were horrendous. Another example of mistake assumption is vacation customs of Europeans. Executives had optimistically expected French parents take their children out of school in mid-session for a short break, but it didn’t happen unless a public holiday occurred over a weekend. Not as American-style, family trips long last about one-month as European tradition,usually taken in August.
- #16 The new CEO of EuroDisney had new approaches in marketing strategy. Instead of seeing Europe as a target market, he divided into national markets, marketing offices were opened in London, Frankfurt (Germany), Milan (Italy), Brussels (Belgium), Amsterdam (Netherland), and Madrid (Spain), and each was charged with tailoring advertising and packages to its own market.To counter the sarcastic remarks “EuroDisney ruined the magic”, advertising were changed to feature Zorro (a French favorite), Mary Poppins the witch, and Aladdin (star of the huge moneymaking movie success). A print ad campaign featured Aladdin, Cinderella’s castle, and a little girl being invited to enjoy a “magic vacation” at the kingdom where “all dreams come true”.Some new rides and attractions were added. Disney created an original character tailored for European audience called Pumpkin Man, the prices were cut down by 20% for park admission, 30% for some hotel room rates; and special promotions were run for the winter monthPrices were cut down - Special promotions were run for the winter month - Introducing a one-day pass giving visitors access to both two parks- In Human resource policy, Disney relented the alcohol using and allowed women to wear redder nail polish, which is not allowed in the US.- The central theme is that people visit the park for an “authentic” Disney day out, this approach is reflected in the transformation of the park’s name to Disneyland Paris.- The Walt Disney Studio Theme Park was opened, it blends Disney entertainment and attractions with the history and culture of European film.- The new Disneyland Paris CEO also introduced a one-day pass giving visitors access to both two parks which is cheaperthan 2 separate tickets
- #17 Drawing from the experience in France, Disney was determined not to make cultural and management mistakes in Hong Kong Disneyland. Ex: Disney observed fengshui in planning and construction. But it didn’t help much to avoid some of the problemsThe visitors complained that it was too small, has only 16 attractions and 1 thrill ride compared with 52 rides at Disneyland ParisIt’s not very different from amusement parks in ChinaMoreover, Chinese tourist lacked of knowledge of Disney characters, until a few years ago, hardly anyone in mainland China knew Mickey Mouse and Donald Duck even existed. They unfamiliar with Disney’s traditional stories
- #18 To compensate for the lack of awareness of Disney characters, a building upon entering the park exhibits artwork and film footage of Disney history. Tour groups are greeted by a Disney host who introduces them to Walt Disney, the park's attractions, characters, and other background information.
- #19 Hong Kong Disney implemented localize marketing strategy:Product: There were some unique features built. Ex: Fantasy gardens designed to appeal to guests from HK and mainland China who love to take pictures. A character Mulan has her own pavilion designed like a Chinese temple, Mickey has a red-and-gold Chinese suit. Restaurant has local fare such as: Indian curries, Japanese sushi, Chinese mango pudding.On special Chinese holidays such as: Lunar New Year – The year of the Rat, the park feature traditional decorations, with red-and-gold color, the parade down Main Street featuring a dragon dance, the god of wealth, longevity, and happiness
- #20 Communication: Truly family oriented. Early ad. featuring a family consisting of 2 kids and 2 parents but China's government limits most couples to just 1 child -> revised ad featured 1 child, 2 parents and 2 grandparents together. The message of the TVC was “Let’s visit Mickey together”. The Disney vice president of marketing for China said about the message that: “In US and Europe, parents introduce their favorite stories to the kids. But in China,the kids and families are discovering Disney stories together”. Another Disney’s marketing consultant said that” 5 or 6 years ago, if you asked people in China - particularly men - what was most important to them, they would have talked about material success. Now, they say family and happiness”.Promotion: Run promotions throughout the yearPersonnel: Employees are diverse, understand various cultures, speak three languages: English, Mandarin, Cantonese.Ex: When you go to Jungle cruise ride. If you can understand English, you come into a boat which the staff speaks in English / Mandarin or Cantonese.
- #21 Communication: Truly family oriented. Early ad. featuring a family consisting of 2 kids and 2 parents but China's government limits most couples to just 1 child -> revised ad featured 1 child, 2 parents and 2 grandparents together. The message of the TVC was “Let’s visit Mickey together”. The Disney vice president of marketing for China said about the message that: “In US and Europe, parents introduce their favorite stories to the kids. But in China,the kids and families are discovering Disney stories together”. Another Disney’s marketing consultant said that” 5 or 6 years ago, if you asked people in China - particularly men - what was most important to them, they would have talked about material success. Now, they say family and happiness”.Promotion: cooperate with the airlines, payment services to run promotions throughout the yearPersonnel: Employees are diverse, understand various cultures, speak three languages: English, Mandarin, Cantonese.Ex: When you go to Jungle cruise ride. If you can understand English, you come into a boat which the staff speaks in English / Mandarin or Cantonese.
- #23 Why Malaysia?Location in South East Asia – the most dynamic and fast developed area, the population rate is 8.4% of world populationNo visa from otherAsean countriesGood transportation infrastructureHigh average income/pax is 9,700 USD (2011) (compare with Vietnam: 1,300 USD, Thailand: 5,281 USD)Rather developed ourism
- #24 During Disneyland’s global expansion, they made success as well as failures. Walt Disney Company has international strategies for each Disneyland theme park, but not all of them are successfulAlthough withdrawing lesson from EuroDisney, Hong Kong Disneyland had to face with its strategies changes. It was not meaning success/failure surelyThus, wherever locations Disney intent to open, beside its inside necessary preparation, the strategy should be a revolution to adapt new market, especially new culture/environment ( language, consumer behavior, government, climate, geographic, competitors…)