Service Marketing Case Study: Euro Disney
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Transcript of Service Marketing Case Study: Euro Disney
EURO DISNEY
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 Delivery Ability”!!
Tangible Dominant
Intangible Dominant
SaltSoft Drinks
DetergentsAutomobile
CosmeticsFast Food
Advertising
AirlinesManagement
Consulting Insurance
Tangibility SpectrumTangibility Spectrum
Entertainment – Theme Park
Theme Parks in Europe
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 made adapted for Northern European Weather conditions
Financial Arrangement
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
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 satisfaction: Disney Vs Employees thinking
Marketing Concerns
Marketing Counter measures
Euro Disney’s Problems
Euro Disney’s Problems Cont’d
Services Marketing TriangleServices Marketing Triangle
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The Services Marketing TriangleThe Services Marketing Triangle
Internal Marketing
Interactive Marketing
External Marketing
Company(Management)
CustomersEmployees
“enabling thepromise”
“delivering the promise”
“setting thepromise”
Internal MarketingCompany
(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• Focus on transactions than relationships: Volumes
PROVIDER GAP 2: Not selecting the right service designs & standards
PROVIDER GAP 3: Not delivering the Service Standards
Customer not fulfilling roles
•All language to be spoken: Expected by customers.•Barcelona resident Expectations
PROVIDER GAP 4: Not matching performance to promises
Ineffective mgmt. of customer expectations
• Lack of Adequate Education to customers• E.g. : Toilet signboards were low
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SWOT Analysis
Euro Disney
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Strengths & Weaknesses
• Strengths– Strong reputation and
brand name– Ability to realize
mistakes and to change– Financially sound – Phillippe Bourguignon
• Weaknesses– Cultural imperialism
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Opportunities & Threats• Opportunities– Learn more about local
culture & customs– Integrate local culture
into theme park– Customize employee
standards to the reflect local culture
• Threats– High prices– Increasing value of the
Franc– Employee dissatisfaction
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Euro Disney Update( 1993-97)
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Outlook
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• 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.
What’s New At Euro Disney
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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
Five Year Financial Review
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Euro Disney Financial Update
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Financial Update Continued
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Thank You