úner Research,
I
Gary Gaetl¡
ntry-of-origi¡
r: A Conjoi¡1
5-100.
'ing Industry',
ori ancl ps¡g,
ursaa (2¡¡1¡,
Marketing
rl
'rg,35 (1Ilt2),
ri 46.1 Case
ancl Cultural
David Howes
lna
Mickey":
n at
Tokyo
seph J. Tobin
ress.
I (1992),'The
talization and
ization Theory
Ghoshal and
in Press,
kagh
(1998),
Contexts: The
: Behaviour',
38.
)onflict', Cairo
ruston (2002),
Lnd Meaning:
tflnternational
Setting the stage
- Disneyland
Resort Paris
Disney is the biggest entertainment company in the world with a market value of US$41.5
billion in May 201t,r and one of the oldest, continuously operating since 1923. Today it comprises filmed entertainment businesses, major media networks, publishing, theme parks,
resorts' a cruiseJine, real estate, and consumer products. Disney's first international park
opened in Toþo, Japan in 1983. Tokyo Disneyland opened with a flourish and continued to
do well until the softening of |apan's economy in the 1990s, from which it has yet to recover.
In an effort to boost attendance, the older male-oriented Toþo DisneySea Park opened in
2001.2 Hong Kong Disneyland opened in 2005 - about the time that Universal Studios opened
China's first world-standard theme park in Shanghai. There has been criticism of value-formoney at Disney parks, which total ten worldwide, with an average admission fee of US$50.
The company recently spent US$5 billion to address this concern and to build new rides and
atÍactions to bolster falling attendance at the parks. The parks account for US$1.2 billion in
operating income, which is 4l per cent of Disney's total - a significant business unit for the
company.3
After their initial success with the fapanese park in the mid 1980s, Disney entered into
negotiations with the Spanish and French governments. The French bid 'won' by enticing
Disney with tax brealts, loans, and below-cost land. Disney was determined to profit more
from the Paris park than they did in Tokyo, where a local operator, Oriental Land, took most
of the initial risk and currently takes most of the profits. Therefore, the company staked a
39 per cent ownership in EuroDisney to operate the park, and to receive 10 per cent of admission fees, 5 per cent of food and merchandise sales, and 49 per cent of the profits.
EuroDisneyland opened in April 1992 to a host of problems, which were to continue until
Disney loosened corporate constraints to fit the desires of local and European visitors.
Disney's admissions and pricing policies were in the 'premium' bracket, even higher than
US parks. At frrst, spending per visitor was half that of Japan, and hotel occupancy rates
were 37 per cent.a French intellectuals and artists had criticized the park since its embryonic
planning stages.s Notably, theatre director Ariane Mnouchkine coined the term 'Cultural
Chernobyl' in the early 1990s, an enduring sobriquet applied to the park and other Disney
ventures even today. Cries of cultural imperialism were heard from the intelligentsia, the
media, and farmers who protested at the expropriation of agricultural land by the government for the park. However, the French had enjoyed Disney cartoons for more than 60 years,
and some supporters of the project were very enthusiastic, such as fi.lm-star/singer Yves
Montand who declared: 'T-shirts, jeans, hamburgers - nobody imposes these things on us.
We like them'.6
156
Chapter
6
Local consumers and the globalization of consumption
It's a small world
-
or is it?
The EuroDisney park lost US$515 million during its first year.' In the early days of
EuroDisney, the management structure was rigid, and little provision was made for local
or employee participation, the prevailing Disney attitude formed by their self-ascribs¿
'infallible experience'.8 Many American managers in Paris were unaware of the many local
and Asian adaptations made in Tokyo, and accepted at face value the relatively short pslchiç
and cultural distance between the US and France as signifring that the two cultures whers
similar.e Therefore, Disney implemented the same amusements, policies and plans in France
as they did in the US with some architectural changes to allow for the cooler weather.ro
In response to local criticism, Disney took steps to 'Europeanize' the park by adding a
Discoveryland based on the writings of nineteenth-century French author Jules Verne, and by
emphasizing characters of European origin such as Pinocchio (Italian), Cinderella (French),
and Peter Pan (British). French managers were recruited as the issues became increasingly
critical, such as the disputes with French employees, who being rather individualistic resented
strict codes of conduct and dress. After a series of adaptations to the local and European
markets, Disneyland Paris frrst became profitable in 1995, going on to become the 'number
one tourist destination in Europe' in 2001, with 12.3m visitors.lt Disneyland Resort Paris
(http://disneylandparis.com) follows Tokyo, Orlando, Florida, and Anaheim, California, to
rank fourth place in terms of attendance per year, which was 12.3 million in 2001.'2 French
visitors currently make up 40 per cent of the park's total, while 18 per cent come from the UK,
8 per cent from Germanf, 8 per cent from Belgium, 8 per cent from the Netherlands and
Luxembourg, 8 per cent from Spain and ltaly, and l0 per cent from other countries.r3
There are seven on-site themed hotels with occupancy averaging 86 per cent in 2001,14 and
about 22 others in the local area. Disneyland Resort Paris concluded joint ventures for the
construction ofthe three hotels that opened in Spring 2003. The hotel partners were Airtours
UK Leisure Group (tour operator), Holiday Inn, and the French hospitality group Envergure.
These hotels added 1100 more rooms to the 5800-room capacity currently within the resort's
seven Disney hotels. The design and décor of the new hotels draws its inspiration from the
many châteaux of the local region.15
Learning from mistakes
As EuroDisney's CEO iay Rasulo admitted, 'We had not yet had an on-the-ground experience
in a multicultural environment. It was really the first park that had the majority of its guests
coming from very diverse cultural backgrounds,' After near-catastrophic losses, Disney was
quick to respond customers' demands. The company reversed its ban on alcoholic beverages'
adding wine to the menu. They developed more table-service restaurants' of which two
employ chefs with Meilleur Ouvrier de Frønce' status Restaurants open earlier tn the evenlng
for ear ly-bird Germ an guests, and stay open later for Spanish night owls. Disneyland Paris ls
now workin Þo closely with French and European tour operators, travel agents, and transPorl
ìó
operators who were formerly disregarded. The com pany has forged better relations with the
local and national government, to the point where rt 1S Mickey Mouse who concludes the
,I,
French national tourism advertisement with the declaration, alme lø Frønce! The resort
needs to exerclse great care 1n setting its prrces, because continental Europeans with srx week'
paid holidays per year are necessarily more thrifty on holiday expenditures than
with their two-week, often unpaid holidays. Europeans therefore have less to spend at
p ark than Disney would like. As Milhomme emphasizes: In short the theme park 1S a
duration recreational means, with a high densitv spending pattern at the opposlte o f
Appendix
:arly days sf
-rade for local
self-ascribed
te many local
short psychic
ultures where
ans in France
ler weather.io
by adding
a
Verne, and by
ella (French),
e increasingly
listic resented
.nd European
the'number
I Resort Paris
:
California, to
,001.12
French
from the UK,
lherlands and
Teaching materiats 157
recreational European pattern which aims at long duration recreational means with low density spending pattern'.r7
Act Two: Disney
Studios
e
Disney Studios opened in March 2001 after a three-month 'soft opening' to test the reactions
of visitors. The park is divided into four areas: the Front Lot, Animation Courtyard,
Production Courtyard, and Back Lot, the whole comprising ten attractions. Front Lot includes
a studio mock-up, complemented by film props, a restaurant, and boutiques. Animation
Courtyard offers visitors the chance to learn aboút animation, while'Animagique' showcases
clips from Disney films, and 'Aladdin' is the backdrop for a magic carpet ride. Production
Courtyard is the home of Disney Channel and allows visitors a backstage glimpse of production through the Studio Tram Tour, while Catastrophe Canyon puts visitors through
an imaginary film shoot. Back Lot includes notably the Rock 'n' Roller Coaster Starring
Aerosmith and the Stunt Show Spectacular featuring Rémy Julienne. Visible efforts were
made to adapt the primarily American material to local and European tastes. In the Tram
tour, for instance, the following actors lend their voices to the eight languages used during
narration: |eremy Irons (English), Irène Jacob (French), Isabella Rossellini (Italian), Inès
Sastre (Spanish), Famke Janssen (Dutch) and Nastassja Kinski (German). An effort was made
in the décor and content to include European references, for instance to the French classics
'Les Enfants du Paradis' and'Les Parøpluies de Cherbour{.
Aims of the new park
¡tries.r3
in
6
2001,14 and
ntures for the
were Airtours
rp Envergure.
in the resort's
tion from the
nd experience
y ofits
guests
s, Disney was
llic beverages,
Disney Studios expected to attract guests from further away, such as Scandinavia and Spain,
more likely to consider the distance traveled as offset by the increased benefits. According to
EuroDisney Chairperson Jay Rasulo, the Studios should increase visitor counts to l7 million
yearly, up 36 per cent from 12.3 million in 2001. The park should increase the average length
of stay pervisitor from today's 2.4 days to 3.4, and increase return visits from 41.5 per cent.rs
The visitors attending the opening of Disney Studios could observe the improvements
implemented over the past decade, including the expansion of Disney Village, and the dedicated rail station (with RER and TGV trains)re bringing Paris within 20 minutes and Belgium
or the UK within less than three hours. Within the immediate vicinity is an outlet mall that is
open seven days per week. Disney Studios was not designed to deal with the SARS epidemic,
the Iraq conflict, fears of terrorism, a disastrous summer heat wave, massive strikes, and
destructive forest fires, all of which increased cancellations and prompted holidaymakers to
go elsewhere.2o
of which two
in the evening
:yland Paris is
and transport
tions with the
Financial matters: Some day my prince will come.
..
EuroDisney is still plagued with troubles. In Septembe r 2003 The Times rcported that the park
was asking one of its major investors, Saudi prince Alwaleed bin Talal, for a refinancing deal.
rith six weeks'
Due to low park admissions the company was expecting to have difficulty meeting its debt
payments in 20A4.2t Walt Disney Studios reportedly cost the company US$600 million. The
company reported a profit of 30.5 million euros for the frnancial year ending September 2001,
an Americans
, spend at the
rark is a short
>posite of the
20 per cent less than the previous year.22 Stock analysts do not appear to be interested in
Disney stock. Contributing factors include a debt load that is two times equity ar US$13 billion,23 and a stock price of about 1 euro - one-tenth of its value a decade ago.2a There are
concerns that a debt-loaded park that is managing approúmately 50 per cent more capacity
concludes the
lhe resort sti]l
158
chapter
6
Local consumers and the globalization of consumption
in a time of slowing economies and a fast-growing theme park sector may be putting itself
which 15
in danger.r5 The avJrage visitor spends 43 euros per day at Disneyland.Resort Paris,
given
is
worrying,
that
ûgure
This
2O perient lower thanlhe figures for Orlando or Anaheim.
France
In
addition,
theme parks make their proãt, from their hotels and their merchandise.?6
year), caused by
began in 2001 to see a slowdown in GDP growth (down to 1.9 per cent that
of uncertainty and softer global economic conditions that slowed exports' '{'t hor¡s,
lower inventory
this has translated into higher unemployment (up to 9.8 per cent in 2002),
with the park's
levels, and a lower level áf business confidence.27 Analysts are concerned
accessibie' full:
an
as
launch during an economic downturn; however, some point out that
economy.2s
a
softer
service, short]break destination, Disney Studios could even benefit from
u
.ìi*ut.
Marketing the studios
'Come and
A massr VC campalgn for Disney Studios started ln December 200 with the slogan
prln
t,
billbo ard,
live the maglc of clnema Advertising agency Publicis focused on television,
Uffi' the
Belgi
and online advertising. The ads were rolled o 11t 1n the U K, Germ an v F rance,
resort,
the
k
from
N ether lands, Sp a1n and Italy and were designed to differentiate the new par
which was accordingly renamed 'Disneyland Resort Paris. According to Disneyland
a Journey
central marketing director Christian Darquier Disney Studios 1S positioned AS
ation 1S made'
behind the screen to understand how the maglc of movles, television and a nlm
entertain.
whereas the resort was 'designed to make guests live out the storles behind Disney
ment' In an unusuai move, Disney used direct marketing tn the UK and the Netherlands.
The Disney Channel, with its headquarters within Disney Studios, is working to raise
in the 1990s.
ness of the park, just as the channel successfully did for the resort
Not everybody loves DisneY Studios
are
Disney Studios has drawn criticism from visitors, who claim that the ten attraction
from
stemmed
crr
ticisms
Other
half-day
one
for
entertained
a
family
enough to keep
of the
three rides cloned from w alt Disney world, AS well AS the 'tame nature of some
30
ln
for
children.
and
boring
park
dull'
as
new
the
to
refer
rides. Other ournalists
French
there 1S contlnulng wider criticism of 'Hollywood and American culture by
American
regarding
France
IS
sweeplng
concern
wave
of
new
tuals and the media. A
lsm, cultural or otherwise, at a tlme when geopolitical considera tlons have focused
from
on the globai actions of the US. Anti-globaliza tion activist José Bové, who went
of the
leader
AS
a
fame
to
global
France
of
south
1n
the
mg a McD onald' S restaurant
France'
S ambivalent
for
spokesperson
himself
mondialiste movement, considers
US
towards globalization. Even for those within the globalization camp France and the
On
raq'
over
recen
tly
policy
most
foreign
and
over
trade
had several rancorous disputes
decision
operator'
of
tour
a
acts
lmp
for
the
concern
smaller scale, a ournalist voiced his
31
Placecl
change from 'Paris and the Chateaux de la Loire' to Paris and Disneyland
co
to
an
international
according
the framework of more quantitative terms, however
whose
natlons
Other
n
Europe.
tlve study the French gr ve the US the lowest ratings
of the U S
have flocked to the park in the Past have been eq ually alienated by the policies
to operate
contlnues
complex
Disney
ernment.32 This may give cause for concern that the
a culturally sensitive environment.
Competing with a better mousetrap
There is stiff competition among amusement/theme par ks throughout Europe, of
blend
France has its share. Parc Astérix, located 30 minutes away ln Plailly offers a unrq ue
Appendix
"rt**t
:is, which
6
Teaching materials
159'
ig
given that
:ion, France
|, caused by
:s. At home,
¡,
r inventory
, the park's
:ssible, fulleconomy.2s
'Come and
l, billboard,
elgium, the
r the resort,
yland Paris
'a journey
ln
is made',
¡ entertaintherlands.2e
'aise aware-
ons are not
d from the
rfthe other
n addition,
ch intellecn imperialed scrutiny
rm destroy-
f the 'alter)nt attitude
Questions
1' More than a decade later, has Disney's top management completely addressed
the lack of
cultural sensitivity observed at the opening of the first park in jgg2?'
2. comment in more detair on the issue of horiday regurations in Europe,
the us and Japan
(duration,
paid versus unpaid horiday) and their impaòt on reisure
consumptron.
3'
How will changing geopolitical situations affect park attendance?
What can be the repercus_
sions of a US-led conflict in the Middle East or Far East?
4'
Taking the case study, use curturar factors to exprain why visitors
from Germany make up
onrv
8 per cent of total Disneyland Resort Paris visitors. Do you think
that Disney Studios rn,ilr o++.^^,.
he iJS have
Iraq. On a
decision to
rced within
more Germans than the other park? what steps coutd management
ta*ein
the German share of the market?
5'
,l compara-
he US govr
operate in
Do you consider that the company made a wise decision in incurring
debt to develop Disnev
studios? Given the state of the economy, the need to continually
s[eno on new aftrâôri^^^'
and the rapid rate of development for other competing theme par'ks
in
this investment is justified in the long term?
ose citizens
rrroò., oå;", ;j,u.ï;
saskia Fâulk and Joan-claude usunier prepared this caso solely to provìds
materiat for class discussi(
lå"ffi','.îi.",åitr:J:fy*H::::1å"Jil*ö
o
:, of which
ue blend of
orJei;"#;:åi
äi"'
'iË,äJ:vs¡üation.
r¡. *tnã,s
'ãv
n"än-n".il:,;.'::,#ffi:,"i::::'îl'ilî
IRM/HEC, 2011
201
1
_05_20
Usunier and Lee 2013, pp. 155
Version: (A)