The Not-So-Wonderful-World of Eurodisney - Things Are Better Now at Paris Disneyland

The Not-So-Wonderful-World of EuroDisney – Things Are Better Now at Paris Disneyland

The fiscal year 1992/ 1993 brought EuroDisney a loss of nearly $1 billion because European families thought of it to be an overrated promotion of American culture and lifestyle, contrary to what was seen by Disney's management as a family affair. The concept of "Americana" was overestimated and did not create as much attraction as calculated, unlike at the sister theme park Tokyo Disneyland. Advertising messages had been miscommunicated, "emphasizing glitz and size…not the rides or attractions". Disney remained unsuccessful in attracting customers just by vigorous brand name promotion communicated through Mickey and his friends. Moreover, families were reluctant to pay hefty price tags on accommodation and entertainment needed to enjoy the attractions of the park. Disney failed to manage a healthy relationship with partner organizations in the host country which most importantly alienated them from their number one ally, the French government. Regional affairs in Eastern Europe and economic recession in the western half of Europe and Scandinavia contributed much to the poor performance of EuroDisney. Airfare wars during the period of time and disproportionate changes in exchange rate made holidays in "Disneyland, Orlando…cheaper than a trip to Paris". Of greater consequence was the Gulf War which statistically reduced travel to and around Europe. The Olympics in Spain in 1992 marked another landmark event that shadowed fascination towards EuroDisney. The macro-environmental scanning of namely, the political, the cultural, and the economic aspects of Europe had been grossly miscalculated. Disney had to reinvent itself - "European style".

A company the reputation and size of Disney is not allowed to make huge mistakes. Complementary businesses as the hotel industry are reliant upon the success of this one theme park in Paris. Disney should have been able to foresee the unforeseen. Economics, politics and culture complemented with in-depth analysis of the 4 P's follow the basic principles of marketing. Disney should have foreseen the changing economic scene in France with the forthcoming European recession. The relationship with the local government should have been handled with greater care and delicacy because of the size of the investment involved and ultimately, the number of jobs dependent on the success of the project. Disney promoted its product - the theme park - similar to that of Tokyo Disneyland believing naively Europe would just accept it. In the marketing sense the needs and wants of the consumer have to be identified. The package presented by Disney to the customer met neither of these. True success lies in adapting oneself to the surrounding culture and aim for customer satisfaction. Disney fails on both counts. Cultures are dynamic and change