Daan Muller
Marketing 326

Case Study #2

July 22, 2004

Case Study “Euro Disney”

Question 1: What factors contributed to Euro Disney’s poor performance during its first year of operation?

Answer:

There were a number of factors in which hurt Euro Disney. Along with location, price, lack of research in exchange rates, as well as the style of the theme park all played roles in the lack of success. They located Euro Disney 20 miles outside of Paris, a location that was thought to be very convenient. It played a negative role in the success for Disney. How many people go to Paris to get glimpses of American theme parks? Most of the tourists going to Paris would spend time traveling the city and its wonders. On top of this, the price for a single day at Euro Disney was outrageous. Why would tourists coming from America or any other location want to spend as much as $600 a day to go to Disney, when they could see it back home in the States. Another factor for Disney was the design, size of the place; Europeans did not fall in love with the American style theme parks as the marketing plan expected them to. This ties in to the marketing plan and target market of Disney. They marketed to people who had no really big clue as to who Mickey Mouse was. Europeans did not follow the American trends as Japan did, hence the success in Japan. They marketed in a area which the exchange rate was different, and at the time European currency was fairly poor in relation to the American dollar.  It wasn’t until late 1993 when the Disney started seeing success.

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Question 2: To what degree do you consider that these factors were (a) foreseeable and (b) controllable by either Euro Disney or the parent company, Disney?

Answer:

I believe that these factors could have been foreseeable, my personal feeling is when Euro Disney was established the considerations maybe been taken into account… however I feel that they worked in the arrogant nature of the American thinking. In this I mean, they expected the Europeans to act as Americans and thrive over this newly designed theme park. I feel that they forgot that they were producing a ...

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