Euro Disney2
Euro Disney:
Bungling a
Successful
Format
- Varun Dalvi
- Shemeem Saidu Muhammed
INTRODUCTION
• Euro Disney opened in Paris in 1992
• Disneylands in Florida, California and
Japan had been huge successes
• Europeans accounted for 2.7 million visits to the U.S. Disney parks.
• Euro Disney was the second Largest construction project in Europe, second only to construction of the English
Channel tunnel.
• The opening results cast even the future continuance of Euro Disney into doubt.
How could what seemed so right be so wrong?
What mistakes were made?
OPTIMISM
$4.4 billion enterprise sprawling over 5,000 acres 20 miles east of Paris.
Consists of 6 hotels and 5,200 rooms.
Company executives initially predicted that 11 million
Europeans would visit the extravaganza in the first year alone. They reasoned that since Disney parks in the United
States (population of 250 million) attracted 41 million visitors a year, and then Euro Disney attracted visitors in the same proportion, attendance could reach 60 million with Western Europe’s 370 million people.
THE LOCATION DECISION
The clincher for the decision for Paris was its more central location.
Paris was Europe’s biggest tourist draw.
Number of People within 2–6 Hours of the Paris Site
Distance
Number of people Within a 2-hour drive 17 million people
Within a 4-hour 41 million people
drive
France was eager to win the project to help lower its jobless rate and also to enhance its role as the center of
Within
a 6-hour
109 million tourist activity in Europe.
drive
people
Within a 2-hour flight 310 million people CONTRIBUTION OF FRENCH
GOVERNMENT
French government allowed Disney to buy land at 1971 prices. Provided $750 million in loans at below-market rates.
Paris’s express subway was extended out to the park.
A new railroad station for the high-speed Train Grande
Vitesse was built only 150 yards from the entrance gate.
Spent hundreds of millions of dollars on subway and
other
Bungling a
Successful
Format
- Varun Dalvi
- Shemeem Saidu Muhammed
INTRODUCTION
• Euro Disney opened in Paris in 1992
• Disneylands in Florida, California and
Japan had been huge successes
• Europeans accounted for 2.7 million visits to the U.S. Disney parks.
• Euro Disney was the second Largest construction project in Europe, second only to construction of the English
Channel tunnel.
• The opening results cast even the future continuance of Euro Disney into doubt.
How could what seemed so right be so wrong?
What mistakes were made?
OPTIMISM
$4.4 billion enterprise sprawling over 5,000 acres 20 miles east of Paris.
Consists of 6 hotels and 5,200 rooms.
Company executives initially predicted that 11 million
Europeans would visit the extravaganza in the first year alone. They reasoned that since Disney parks in the United
States (population of 250 million) attracted 41 million visitors a year, and then Euro Disney attracted visitors in the same proportion, attendance could reach 60 million with Western Europe’s 370 million people.
THE LOCATION DECISION
The clincher for the decision for Paris was its more central location.
Paris was Europe’s biggest tourist draw.
Number of People within 2–6 Hours of the Paris Site
Distance
Number of people Within a 2-hour drive 17 million people
Within a 4-hour 41 million people
drive
France was eager to win the project to help lower its jobless rate and also to enhance its role as the center of
Within
a 6-hour
109 million tourist activity in Europe.
drive
people
Within a 2-hour flight 310 million people CONTRIBUTION OF FRENCH
GOVERNMENT
French government allowed Disney to buy land at 1971 prices. Provided $750 million in loans at below-market rates.
Paris’s express subway was extended out to the park.
A new railroad station for the high-speed Train Grande
Vitesse was built only 150 yards from the entrance gate.
Spent hundreds of millions of dollars on subway and
other
References: Marketing Mistakes and Success – 11th Edition – Robert Hartley en.wikipedia.org/wiki/Disneyland_Paris http://www.thisismoney.co.uk/money/news/article2789259/saudi-prince-joins-330million-deal-savefrance-s-euro-disney.html http://www.bbc.com/news/business-29503360 http://www.dailymail.co.uk/news/article2783004/Walt-set-bail-Euro-Disney-U-S-wing-controlailing-French-firm-needs-800m-rescue-package-parkopen.html THANK YOU FOR YOUR ATTENTION