Mba Euro Disney

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The international marketer’s task is more complicated than that of the domestic marketer because the international marketer must deal with at least two levels of uncontrollable uncertainty instead of one. Uncertainty is created by the uncontrollable elements of all business environments, but each foreign country in which a company operates adds its own unique set of uncontrollable factors.

The successful manager constructs a marketing program designed for optimal adjustment to the uncertainty of the business climate. Although the marketer can blend a marketing mix from the controllable elements, the uncontrollable elements are precisely that; the marketer must actively evaluate and, if needed, adapt.

A business operating in its home country undoubtedly feels comfortable in forecasting the business climate and adjusting business decisions to these elements. The process of evaluating the uncontrollable elements in an international marketing program, however, often involves substantial doses of cultural, political, and economic shock. The dynamic upheavals in some countries further illustrate the problems of dramatic change in cultural, political, and economic climates over relatively short periods of time.

To adjust and adapt a marketing program to foreign markets, marketers must be able to interpret effectively the influence and impact of each of the uncontrollable environmental elements on the marketing plan for each foreign market in which they hope to do business. In a broad sense, the uncontrollable elements constitute the culture; the difficulty facing the marketer in adjusting to the culture lies in recognizing its impact.

In dealing with unfamiliar markets, marketers must be aware of the frames of reference they are using in making their decisions or evaluating the potential of a market, because judgments are derived from experience that is the result of acculturation in the home country. Once a frame of reference is established, it becomes an important factor in determining or modifying a marketer’s reaction to situations—social and even nonsocial.

Practical Part

- Wrong Self-reference criterion (SRC) specified by Disney which was the US culture, when Disney decided to open Disney in France it faced the challenge which the culture, customer perception, customer tastes, values, symbols, behavior, political and economic system in France are completely differ from United States. These evidences from the case:

- Expensive trams were built along a lake to take guests from the hotels to the park, but European visitors preferred walking

- French culture has its own lovable cartoon characters such as Astérix, the helmeted and pint-sized Gallic warrior. French scorn for American fairy-tale characters.

- In contrast to Disney’s American parks, where visitors typically stay at least three days, EuroDisney is at most a two-day visit or less and stay only one night in the hotel.

- Disney expected that the American-style short but more frequent family trips would displace the European tradition of a one-month family vacation

- Disney management ethnocentrism which Disney's assumed it know better than French how to do business in France and it thought that it can displace the European entertainment traditions by the American traditions and Disney management thought once Disney open in France all French & European people will directly visit. These evidences from the case:

- Disney management response to French bankers that they adopt the old world thinking of Europeans who did not understand U.S.-style free market financing.

- EuroDisney and Disney managers unhappily succeeded in alienating many of their counterparts in the government, the banks, the ad agencies, and other concerned organizations. Kick-the-door-down attitude seemed to reign among the U.S. decision makers.

- Said a former Disney executive “Disney management was a tendency to believe that everything they touched would be perfect because booming in revenues to $8.5 billion, mainly through internal growth.

- Disney executives had optimistically expected that the arrival of their new theme park would cause French parents to take their children out of school in mid-session for a short break.

- Disney management didn't study the European culture and the consumer spending patterns which led to Disney's surprise that Europeans failed to “go goofy” over Mickey and families were reluctant to spend the $280 a day needed to enjoy in the park. These evidences from the case:

- Ban on alcohol in the park despite French are the world’s biggest consumers of wine.

- Women employees were allowed to wear redder nail polish than in the United States.

- The thought of leaving a pet at home during vacation is considered irrational by many French people.

- Disney executives had been erroneously informed that Europeans don’t eat breakfast. Restaurant breakfast service was downsized accordingly.

- Vacation customs of Europeans were not taken into consideration.

- Disney management didn't study the global economic and political trends and European economic and political trends and major events that may potentially affect EuroDisney like the following events:

- Ransatlantic airfare wars and currency movements resulted in a trip to Disneyworld in Orlando being cheaper than a trip to Paris.

- European recession & the Gulf War in 1991, which put a heavy brake on vacation travel for the rest of that year.

- High interest rates and the devaluation of several currencies against the franc.

- The World’s Fair in Seville and the 1992 Olympics in Barcelona were huge attractions for European tourists.

- The wrong marketing mix selected which is based on poor analysis of the French environment which lead to fail the adaptation process and failed to achievement the required objectives. These evidences from the case:

- Fail to explore the needs of French people. Disney failed to convince French with the value to visit Disney park (create problem recognition).

- EuroDisney adopts a wrong pricing strategy as the hotel room prices and the park price is very high and don't suite French visitors.

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