Euro Disney: The first 100 days

Presented By:Liz Mathews (9021)

Sameera K (9042)

Shamitha Raj (9045)

Sumasree B S (9053)

Vidya Nagaraju (9118)

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Walt Disney Company

• Founded by Walt Disney and his brother Roy in 1923

• Consisted of theme parks and resort complexes, motion picture, consumer products licensing, publishing and retail

• Disneyland – company’s 1st theme park, located in California

• Tokyo Disneyland in Tokyo, Japan• Euro Disney in Paris, France

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Core Issues

• Acceptance of Disney culture by the French• Service Delivery• Pricing

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Objectives of the case

• Suggestions for phase 2 in France• Evaluation of employee training and

management policies

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Major Concerns

• Experience too “Americanized”• Language of the park• Serving of wine and alcoholic beverages• Long waiting lines• Differences in eating habits• Stringent grooming standards• Nature of work• Cost of experience• Difference in idiosyncrasies• Accommodating culture diversity

Core Service

Supplementary Services

Myth and Fantasy

Theme Parks

Rides and attractions

Costumes of employees

Architectural style of

Buildings

FoodSouvenirs

UNIQUE Disney cartoon

Characters

Visitors – participants in

the Play

Floral Garden

Hotel and conference facilities

Retail complexes 6

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Level of Customer Contact

• The 3 levels– High • Visit service facility in person, active involvement with

service organization and personnel

–Medium• Low degree of involvement with service providers

– Low• No physical contact between customers and service

providers

• In case of Disney it is ‘High Level’

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Nature of DemandExtent to which Supply is Constrained

Extent of Demand Fluctuations over Time

Wide Narrow

Peak demand can be met without major delay

Electricity Insurance

Natural gas Legal services

Police and fire emergencies Banking

Peak demand regularly exceeds capacity

Passenger transportation Same as above

Hotels and motels

Theaters

Disney comes under this category

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Type of Relationship between Disney and Its Customers

• The relationship could be of two types : – “Membership” Relationship– No Formal Relationship

• Nature of Service delivery– Continuous Delivery of Service– Discrete Transactions

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Type of Relationship between Disney and Its Customers

Nature of Service Delivery “Membership” Relationship No Formal Relationship

Discrete Transactions • Customers are allowed to enter into a membership with Disney

• They would be updated on the latest developments and attractions at all Disney locations

• Advantages over casual users – Discount Rates and Priority Reservations

• Customers pay for each visit separately and at the standard price

• Payment to Disney by anonymous customers for each usage

• No information on these kind of customers and the extent of their use of service

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Level of CustomizationUSA Japan France

• They could connect easily with the American crowd

• US customers could easily relate to the ‘theme’ parks as they involved treasured elements of America’s past and myths that had shaped its cultural heritage

• There was no need for high level of customization in Japan

• Japanese accepted American entertainment culture, so cultural pollution was not an issue

•All signs and logos were written in English, even the cast member name badges

• There was very low level of customization in France

• It had same rides, attractions and themed lands as the other Disney parks.

• Design of the complex differed to accommodate European tastes and French cultural requirements

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Level of CustomizationUSA Japan France

• Disney characters were staples of American youth experience

• They wanted take their customers to the heart of the theme

• Most live shows were in English

• Out of 30 restaurants, only 1 was Japanese

• They adopted discretionary adaptation in Japan

•Tried to imbue the park with European flavor

•Employee standards and type of food had to be according to French government,trade unions,press etc.

•They had styled the entire complex to reflect western US.

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Level of CustomizationUSA Japan France

•French was the first language of the park due to government’s requirements.

•They had entertainment diversions for people in waiting lines

•They had restaurants serving cuisines from around the world

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Interdependence

Marketing

HROperations

Marketing the concept of FUN- a myth and fantasy world

•Treat employees as you want them to treat your customers•FUN – very high involvement experience•People need to be trained to understand and connect with visitors to help them experience this fun

•Different theme lands creation•Wholesome experience- food, stay and comfort•Environment where there is no scope to be in touch with reality- Fantasy driven

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Framework

System

CUSTOMER

Skills (Employees)

Strategy

•Capitalize on Disney fame, create theme parks to replace amusement parks•Extend basic Disney values, Quality, imagination and fun to a new level•Sell Myth and fantasy•Modifications every year

•Selling myth and fantasy – heavily dependent upon attitude and competence of employees•Disney university created – in house personal development in line with company requirements•Smile essential, Cleanliness•Lively cartoon characters

•Provide facilities to make the experience comfortable- hotels, snacks, high service standards, customer helpline etc.•Different themes to connect with varied tastes•Rides, golf course, campsites

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Framework (different locations)Tokyo Disneyland Euro Disneyland

Strategy:•Reach out to Disneyland fans across the globe•Capitalize on international Disney fame and strong Japanese appetite for American culture

Strategy: •Following customers•Capitalize on high tourist population of Europe•International acceptance of Disney

System customization: LessJapanese speaking cast members to assist visitorsJapanese Snow White×Lives shows mostly in English×English sign boards×Only one Japanese food stall

System customization: ModerateBilingual sign boards and cast membersFantasyland- European MythologyFrench connect to all charactersFood- mixed cuisine “But how well was this customization as per customer expectation? “

Skills: (employee – attributes )Less psychic distance, clean cut image requirement, team attitude, obeyed rules, similar concept of “FUN”

Skills: (employee – attributes )High psychic distance, rules too strict, don’t understand the importance of their role in the process

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Customer Experience

• A world of dreams and fantasies• Away from reality• A place full of fun, greetings and smiles• Playing parts• Oneness with imagination

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Recommendations

• Need to recognize the requirement of customization

• Treatment of employees – employee satisfaction is equal to customer satisfaction

• Training of employees – adding depth, knowledge, language and attitude

• Phase II–More investment on Filmed entertainment

and theme parks

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