INTERNATIONAL ISSUES IN SERVICE MARKETING –

INDIVIDUAL CASE OF EURO DISNEY MANAGEMENT IN

FIRST 100 DAYS
Tomasz Chajduga
Faculty of Management, Czestochowa University of Technology,19 B, Armii Krajowej Str., 42-200 Czestochowa, Poland

Abstract: This article treats about the Euro Disney Case, which is the example of specific Disneyland. Located in France,
Euro Disney was started with problems. Managerial mistakes made the Euro Disney recognized case for business analysis. In
this article, this case is analyzed from the following point of view: the general reason of the success of the Disney service
concept – how theory relates to Disney’s execution, including a description of how Euro Disney’s initial approach fits to the
Gap Model of Service Quality, description of Euro Disney’s approach in the context of Gap Model of Service Quality, the
role of culture in Euro Disney, comparison Euro Disney with similar business in another part of the world, the role of the
customer in service delivery, identification possible sources of potential conflicts, the sources of problems for Euro Disney,
assassination of the Disney’s decision to build a theme park in France. In the end, the conclusion has been made, which
contains the recommendations on what Euro Disney should do in order to overcome all the problems that have been
previously identified
Keywords: Euro Disney case, management, managerial problems

Introduction

Many factors come up together for a business to become successful. In order to analyze the
case of Euro Disney, the following aspects should be taken under consideration. They are:
general reason of the success of the Disney service concept, description of Euro Disney’s
approach in the context of Gap Model of Service Quality, the relation between the theory and
its execution, the role of culture in Euro Disney, comparison Euro Disney with similar
business in another part of the world, the role of the customer played in service delivery,
identification possible sources of potential conflicts and recognition of the sources of
problems of Euro Disney. Additionally, the assessment of the decision to build the Euro
Disney theme park in France. In further step, the author provides recommendations on what
Euro Disney should do in order to overcome all the problems that have been identified. Also,
the indication of points that would be potentially valuable to get to know has been made.

1. The general reason of the success of the Disney service concept – how theory relates to
Disney’s execution, including a description of how Euro Disney’s initial approach fits to
the Gap Model of Service Quality.

The main reason of success of Disney service concept is great fame of created by Walt Disney
characters, which attract many children that affect the expenditures of their parents.
Interesting animated figures moving fluently in ways specific to certain manner, job or feature
are the cause of laugh of not the children only but also their parents and other adults. This
crossing-age ability to understand and react emotionally for the presented in Disney’s
cartoons contents is the real advantage of Disney’s products in comparison to competition.
The children’s desire for possession of majority (or all) of famous Disney’s characters has
increased over years. In fact, Disney’s ideas based on building excellence in evoking people’s
emotions become the parts of many cultures because of well recognition across many
generations, often exposition in TV as well as on silver screen. In the consciousness of
America’s society Disney has very strong rank as the company that sells myth and fantasy
(Rahman, S., 2006). In addition, each America’s Disney parks had images of most treasured
elements of America’s past that were shaping cultural heritage. Another thing was the unique
role that visitors play in the parks of Disney. This required interaction from the guests’ side.
All this made the general concept of Walt Disney recreation parks very successful.

2. Description of Euro Disney’s approach in the context of Gap Model of Service Quality

In terms of the Gap Model of Service Quality, the biggest problem revealed in the case of
Euro Disney is the customer gap what means the difference between perceived service and
expected service. The expected service was significantly different than service delivered.
First, French customers expected higher of proximity level of Euro Disney to their local
culture. This point has been strongly expressed in lack of acceptance of non-alcohol policy
within the park. Wine consumption pattern is deeply ingrained in French culture and offering
dinner without a glass of wine had to be considered as paux pas. As a result, visitors that
decided to drink alcoholic beverages had to congregate outside the park and they were
supervised by unsmiling security men and CRS riot police. The achievement of main goal,
which was happiness of guests, was also hindered by too long waiting lines, inability for some
part of attendants to sit during the dinner. Some visitors considered the cost of day at the park
as too high. What is more, as one of guests stated ‘even on opening weekend some [cast
members] clearly couldn’t care less’. Also, cast members often did not know what language
should they speak. What is more, the style of service presented by Euro Disney was typically
American and did not fit to European culture. With regard to Gaps Model of Service Quality,
there was a gap between company’s perception of consumer expectations and expected
service. The multi-cultural nature of the park, which according to company’s plans should
attract clients, was in fact a dud, because in fact Euro Disney was without one strongly shaped
culture and finally none of clients could identify with it. Also more of previously indicated
problems for example Americanism of service must be perceived as gap between company’s
perceptions and expected service. Moreover, there was a gap between service delivery and
customer-driven service designs and standards. Cast members were not enough motivated and
did not play their roles well enough to satisfy guests. Also, to some extent, there was a gap
between customer-driven service designs and standards and company perceptions of
consumer expectations because employees should be better trained and, for example, know
what language they should use.

3. The role of culture in Euro Disney

Culture plays the ultimate role in all of Disney’s parks. In some cultures certain things are
more accepted than in others. We can say even stronger, in some cultures some behaviors are
understood while in other cultures they are prohibited. Such differences are easy to notice
especially when analyzing cultures from different continents. However, the exception that
should be mentioned here are these cultures, which have some historical common base. The
good examples are British and Indian cultures. These countries, despite being situated on
different continents have some certain common items because India was a colony of Great
Britain. American and French cultures have no such periods in past. Instead, they differ
because American culture is perceived as opened while the French one is rather closed.
French are famous because of their distinctness, laissez-faire approach to work and duties in
life and their, basing on above-mentioned things, pride of being French. Moreover, as Jeremy
Rifkin states in ‘The European Dream’ (Rifkin, J., 2004), the European culture in general is
based on different values than American one. American values are their melting pot where all
people are mixed together, speaking one language. For European citizens their values are
drawn from the histories of their countries, moreover, Europeans significantly value their own
different languages, besides they learn to speak more than the only national one. With direct
regard to Euro Disney, the core competence of this type of business bases on the premise of
cultural acceptation and well recognition of promoted values. These values are shown as
characters from Disney’s cartoons and cinema movies, stories and fairy tales of different
origin. This one and second value, the advantage of being within the world of Disney (for
entire family), should make the general mission of Walt Disney accomplished: making people
happy. However, this pictured can easily distorted through, for example, exorbitant entrance
fee, lack of ability to drink favorite wine during dinner or cardboard, plastic, appalling colors,
hardened chewing gum and idiotic folklore. Personally, I do not like clowns and similar
figures because they seem to be dishonest to me and too artificial. Moreover, I appreciate
Americans as nation because of their technological development and general good income per
capita compared with strong international position but not for any of aspects connected with
their culture.

4. Comparison Euro Disney with similar business in another part of the world
This part has been prepared basing with comparison to Tokyo Disney. To begin, the distance
between USA and Japan is huge. Even though many Japanese would like to visit USA, they
cannot because of high prices of the airplane tickets and additional administrative regulations
that hinder travelling. This is the first thing boosting the demand of Tokyo Disney. In
addition, Japanese culture is very hierarchical and demanding from the perspective of
employee. This has several positive connotations for Tokyo Disney. One of them is the fact
that it must be comparably much easier to find devoted employees in structural and
hierarchical Japan than in laissez-faire France (Smoodin, E.,1994). The second one is that
American open culture in Tokyo Disney is good product for stressed and overworked
Japanese. It is easy to imagine that somebody from Japanese culture will treat Tokyo Disney
as great way to relax and get rest and the final effect can be that he or she will come to Tokyo
Disney comparably often than in any other part of world. The confirmation for this words is
the percentage of repeat visitors - 75% in 1988. What is more, the demand for American
culture among Japanese citizens is nothing new and with time, as there is increasing trend in
Japan towards leisure, the forecast demand is auguring very positive development. This trend,
from the American investor’s point of view, should be perceived as quicker return from
investment.

5. The role of the customer in service delivery

In terms of Disney’s parks, client has very significant role in service delivery. First of all,
client cannot be just an observer, he or she must be the part of the play. This approach,
considered by the top management of Disney Company as one of utmost, is very important
because of various aspects. First, the client that takes part in service delivery is more active
and less bored so at the outcome there is much higher probability that active client will be
satisfied from the visit in Disney’s park. Secondly, client involved in service delivery is less
critical in stating opinions about entire service. Additionally, comparing two situations: A
when client is not involved is service delivery and B where client is involved in service
delivery. The first situation brings the additional risk of bad performance of service delivery,
under-delivery or over-expectations (if certain number of people already told us about good
service than our expectations are higher and the risk of under-delivering appears). Another
thing is fact that if company designed their service in the way that requires to be delivered by
customer that makes client’s personal experience a part of the service. The great after-effect is
stronger memorizing of entire service (many sources claims that best possible memorizing
can be done through experience rather by reading, listening or even watching). Managing the
customer mix may be done through assessment of compatibility of segments, isolation of
compatible segments and enhancement segment compatibility. Compatibility management is
a key issue here. In Disney’s parks customers are in close physical proximity therefore
through active participation they will more often notice each other and be influenced by
other’s behavior. Sometimes verbal interaction among customers may take place, for example
during meal. Conversation can be the element building additional satisfaction. When
customers are engaged in number various activities at the same time then the activities
themselves cannot be compatible. If the service environment attracts a heterogeneous
customer mix then these service environments will attract various consumer segments. In
Disney’s resorts customers often must wait for service. This is monotous and anxiety
producing. Stress and boredom can be lessened or magnified by other customers with regard
to their compatibility. I think it is possible to place the attractions in such a way that would
divide the demand of the most homogenous customer segment into smaller waiting lines.
Because customers are expected to share the same time, service and space with each other, the
capacity constraints should be designed at the level that will spread the demand between
customers evenly for the assumed number of visitors equal to 50000. Of course, setting this
number at the lower level of about 47000 could also solve the problems connected with
waiting lines.

6. Identification possible sources of potential conflicts

Certain problems could be observed in the Euro Disney. First of all, wages of employees were
too low, they could not afford for housing in Paris so the company had to increase the number
of offered at affordable prices housing placed (Karadjova-Stoev, G., Mujtaba, B., 2009).
Another problem was connected with dress code. It was very strict, it could be said that for a
average French employee the dress code was extremely strict and do not leave any room for
expressing own style. This approach was very American, however, not French at all. Disney’s
corporate culture failed at this point because French visitors felt strange in so unified world as
Disney had delivered to them. Moreover, the motivation of the employees decreased
significantly (Forgacs, D., 2014). Also, as I have mentioned before, language was the
problem. The exact thing was recognition of Europe as speaking many languages and
implementing the very bad strategy of communication in many languages without detailed
explanation to the employees when they should use which language. In the effect, many staff
was feeling tension because they tried to communicate their messages in many languages at
the same time what was very hard. Working hours were also a problem. French employees
have no such approach as Japanese or Americans who feel committed in all actions that is
team performing at their job, also, French did not use to work overtime (Smoodin, E., 1994).
Actually, it was hard to expect this commitment because top management did not listen to
them, when they were complaining. With regard to theory, it divides employee conflicts into:
person/role conflicts, organization/client conflicts and inter-client conflict. The person/role
conflict was about dress code and high requirements without listening to the employees. In
fact, staff felt uncomfortable because of gap between their own beliefs and feelings and
requirements of the management. There was no organization/client conflict in Euro Disney.
The inter-client conflict was caused by long waiting lines. For many employees the fact that
so many clients was waiting in queues was very frustrating. Then the commitment to the job
was meeting the powerlessness of the employee. Also, many clients expressed their emotions
openly in the front of employees (and often addressing their anger to them). Generally, the
problem was corporate culture taken directly from the USA. American culture is very
concentrated on client. Around 470 managers were trained accordingly to this culture and
with no regard to French culture. Also approach to trade unions is different. In France, trade
unions do not let employees work too many hours in the peak. Disney wanted to adapt the
employees to his culture but failed.

7. The sources of problems for Euro Disney

The main source of Euro Disney’s problems was cultural differences between Americans and
French and lack of one coherent cultural character. Americans were concentrated on
competition and client focus. Unfortunately, they did not focus enough on their own
employees and ignored their voices (again: strict dress code, low wages, too long working
hours, lack of housing close to the resort). What is more, as in Disney’s company employees
are evaluated by supervisors basing on energy, enthusiasm, outstanding service delivery and
pride they had to be constantly undervalued (Rahman, S., 2006). It is very hard to find the
employee that is energetic and committed to work when his boss in not listening to his
complaints at the same time. Other things visible from the customer’s point of view were lack
of opportunity to consume wine, unmotivated staff, ‘appalling colors and too high prices. As
research indicates, the power of French press was neglected. In France media play strong role
in creating the opinion in the society. The outcome was that many potential visitors were
discouraged to visit the Disney’s park. In addition, research points out that the company was
well aware that Disney characters and stories combined with the company’s strong corporate
culture might be offensive to some segments of the Parisian intellectual community.
However, Disney treated this without focus enough to omit the obstacles.

8. Assassination of the Disney’s decision to build a theme park in France

There are some advantages supporting the decision about building the Euro Disney in France.
First of all, the location in the heart of the Europe means that it is easy to get to the park from
many places in the Europe. Paris is located around 2 hours of travel from many European
capitals and this fact must boost the potential demand. In addition, France and Paris were
already the aim of holiday trips and that could make the Euro Disney the place that many
people would like to drop by to, when visiting Paris. On the other hand, there are some
disadvantages of such a decision. First, the winter in France is much colder (23 degrees of
Farenheit) in comparison to the second considered location, which was Spain (Loveman, G.,
Schlesinger, L., 1992). Moreover, besides France offered interesting support for the new
investment, Spanish offer was better. In addition, the culture that Spain represents is definitely
more open than French one and especially when considering the Paris, which is the most
conservative part of France. Also, in Spain the role of press is less opinion affecting than in
France. What is more, Spanish culture of work is less developed than the French one and in
fact trade unions have less power what makes foreign investments easier. Finally, Spain is
cheaper country than France and each investment of comparable scope is less costly there.
The author consider that full assessment of Disney’s decision to build a theme park in France
is impossible because case does not give any information about Spanish and French, how fast
they become rich. Because Euro Disney is a huge investment that information would be
necessary for me. Also, the author did not find any information about compared forecasts in
terms of visitors of both French and Spanish Euro Disney and how Spanish Euro Disney
would generate (or not) higher profits because of longer season with regard to price levels in
both countries and inevitable levels of manpower cost in these countries.

Conclusion - Recommendations on what Euro Disney should do in order to overcome all

the problems that have been previously identified
First of all, the statement that ‘you must treat your employees the way you would like them to
treat your customers’ should be implemented in Euro Disney. Employees cannot express their
happiness to clients when nobody listens to them and they have no accommodation.
Moreover, additional set of meetings of management staff with employees should be
conducted in order to decrease the person/role conflict and inter-client conflict. They should
have more freedom in the way of they look at work. Also, the salaries should be raised,
especially on the positions of employees dealing with inter-client conflict themselves. They
cannot work overtime because of the tension. In Euro Disney guests should be allowed to
drink wine to dinner because this is the important part of their tradition. More tables and space
in restaurant in the resort is needed in order to make the atmosphere more private. I would
make the French language as basic and the main language at Euro Disney, all the staff should
contact with clients in this language as default and use English only in the case of emergency
(if need). In the end, the customer should be informed better about Euro Disney. The
reception of marketing information must be checked on sample group of customers before
initiating the entire marketing communication process to be sure that expectations of clients
will meet the offered service (avoiding customer gap). What is more, the author would leave
the entrance fee at the same level. To indicate the points that would be potentially valuable to
get to know, the author distinguished: he outcome from poll conducted among people living
in Paris, with open question about most preferred change in Disney’s service, information
from other companies how they deal with trade unions, outcome from above-mentioned
consulting and public relation companies, additional information about Spanish option of
Euro Disney, the forecast of number of visitors, profit expected, costs and revenues forecast
and info about how much better was Spanish offer

Bibliography

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2014
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Dream", TarcherPerigee, August 2005
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