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1. What factors contributed to EuroDisney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year?

Both Euro Disney and Hong Kong Disney suffered losses in its first year of operations due to several factors that stems from wrong marketing decisions and lack of research. The following are the said factors:
Euro Disney * Location – While the demographics presented by the European government about the number of tourists that comes to Paris is true, Euro Disney failed to make further research on the reasons for this large number. Most tourists go to Paris to visit and wander in the streets of the city and not to visit theme parks. Moreover, the climate in Paris is unsuitable for a theme park thus the off-season attendance was way below target. The French government offered Euro Disney generous incentives that they chose to overlook cultural and weather barriers. * Pricing – Unlike the Japanese, Europeans are not willing to spend much to enjoy the attractions in the park. Euro Disney was confident that Europeans would come flocking to the park despite the premium price. * Euro Disney Marketing Strategy – Euro Disney’s advertising focused on the size of the park rather than the Disney experience. They were trying to sell an alluring bit of American which the European do not particularly like. Europeans do not care that the theme park had cost over $4 billion or that it is 4,800 acres wide. They should have emphasized the benefit one could get from visiting the park. * Over-confidence – Overwhelmed by the success of Tokyo Disney Land, Euro Disney overlooked many factors like culture and the weather. They thought that their marketing strategy in other countries would still work in Europe. * European’s view of America – According to survey done to 16 countries in

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