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Compact case
Case
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Reference no. 596-052-1
Subject category: Marketing
Authors: John Saunders (Loughborough University); T C Melewar (De Montfort University)
Published in: 1996
Length: 5 pages
Data source: Published sources

Abstract

The failure of Disney to make a success of EuroDisney, its first venture in Europe, has cast doubts on the viability of the theme park concept. Investors, the French Government and management alike expected much from the project which opened in the spring of 1992; share prices reached an all-time high and predictions showed EuroDisney would break even in its first year of operation. However, the number of visitors had dropped so far below target during the first two years that by the end of 1993 their financial losses amounted to approximately FF5.5bn. The resultant bad publicity compounded their problems, as potential customers stayed away. While the fortunes of the Disney operation were failing, Grand Peninsula was developing its plans to build a theme park on the Spanish Mediterranean coast, to be called Tibigarden. This would be a more modest venture, aimed at attracting some 2.7 million visitors in its first year of operation, but nevertheless a conventional theme park like the Paris EuroDisney. The question now being asked is whether Tibigarden stands any chance of succeeding when such an experienced, world famous organisation as Disney has apparently misread the market for theme parks in Europe and most of France''s other theme parks are struggling. The teaching objectives are: (1) to demonstrate the application of marketing principles in the service sector; (2) to consider the differences between marketing services and marketing products; (3) to provide a vehicle for the discussion of services in a global environment.
Location:
Size:
USD20 billion
Other setting(s):
1994

About

Abstract

The failure of Disney to make a success of EuroDisney, its first venture in Europe, has cast doubts on the viability of the theme park concept. Investors, the French Government and management alike expected much from the project which opened in the spring of 1992; share prices reached an all-time high and predictions showed EuroDisney would break even in its first year of operation. However, the number of visitors had dropped so far below target during the first two years that by the end of 1993 their financial losses amounted to approximately FF5.5bn. The resultant bad publicity compounded their problems, as potential customers stayed away. While the fortunes of the Disney operation were failing, Grand Peninsula was developing its plans to build a theme park on the Spanish Mediterranean coast, to be called Tibigarden. This would be a more modest venture, aimed at attracting some 2.7 million visitors in its first year of operation, but nevertheless a conventional theme park like the Paris EuroDisney. The question now being asked is whether Tibigarden stands any chance of succeeding when such an experienced, world famous organisation as Disney has apparently misread the market for theme parks in Europe and most of France''s other theme parks are struggling. The teaching objectives are: (1) to demonstrate the application of marketing principles in the service sector; (2) to consider the differences between marketing services and marketing products; (3) to provide a vehicle for the discussion of services in a global environment.

Settings

Location:
Size:
USD20 billion
Other setting(s):
1994

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