MARKETING MISTAKES AND SUCCESSES

MARKETING MISTAKES AND SUCCESSES

Question 1. How could the Company have erred so badly in its estimates of spending patterns of European customers?

The Company erred significantly in estimating its spending pattern on the European customer. The Company did not remember to put into consideration the cultural and geographic differences that existed between the Americans and the Africans. The examination of the cultural and geographical differences is vital for any company. The cultural help gives insight into the specific commodities that the Company could produce for a particular group of the people; cultural understanding also enhances the Company to understand which products are not supposed to be manufactured in a particular region. Knowledge of the culture of the target consumers is critical for any company before starting the business. Understanding the culture of a particular group of people helps the Company to establish a detailed knowledge about consumer preferences.

Euro-Disney Company made a huge mistake on its failure to investigate the cultural differences and the boundaries that lied amid the Americans and the Europeans. The Company projected its income revenue in France based on the data gathered from America. They never investigated the uniqueness of the European culture; this could have led the Company to incur considerable losses. Also, the other mistake made by the Company was that they considered the European conservative spending style. Hence the Euro-Disney they regarded the Europeans as the monopolists that can set any price they need to. Thus, they conducted a high price procedure before for their commodities. The assumption regarding the way of life of Europeans without analysis of sufficient research about the Europeans is another source of error. The Euro-Disney was supposed to first conduct detailed research and analysis of the aspect of the life of the Europeans before setting the procedures to start their Company in Europe.

Question 2. Could a better reading of the impact of cultural differences on revenues have been achieved?

Yes. I believe the Euro-Disney had all it takes to conduct a detailed investigation and analysis of how the differences in culture could have affected the rate of revenue. The Company could have used the supervisors who have the sharpest knowledge of customer relations. The Company could have sent its supervisors first in the region they wished to start their Company in. The supervisors could have collected various data about the culture of the Europeans. Hence, in turn, the Company could have used the fact obtained from the research and analyze the impact that it could have on its revenues.

The Euro-Disney Company could also have used the case study of the prior companies set in the place. This could have enabled the Company to determine the effect that culture has on those companies. Also, the Company could have been able to learn about various techniques used by already existing companies in the region. Thus would lower the impact of the cultural differences on the revenue. If stakeholders conducted a proper investigation on the minor societal standards and the social contracts found on the European culture, they could have been able to reduce the effect of the cultural difference on their Company’s revenue. The stakeholders of the Euro-Disney could have employed a comprehensive research from the internet to understand the European culture better. Hence use the data collected to investigate how it could have affected the purchasing power amongst the Europeans. Thus, the Company could then have been to set clearly understand the prevailing conditions in the European culture that could have hindered their business. Then come up with an appropriate strategy to address those challenges. A low-value practice with an inclusive of the drinking and eating tendencies is an excellent social knowledge bit of the Europeans that could have shown the great need for the Company.

Question 3. What suggestions do you have for fostering a climate of sensitivity and goodwill incorporate dealing with French?

To attaint the climate of wellbeing and sensitivity with French. The Euro-Disney could have employed the necessary strategies to foster a good understanding, willingness, and cooperation amongst the French. The attainment of excellent knowledge, collaboration, and desire could have been possible only if the Euro-Disney did alienate the French in their dealings. Alienating the French from their transactions discouraged the climate of goodwill and sensitivity amongst the French. Incorporating them in their dealings could have made them feel better and feel like they are part of the Company. Thus, this could have, in turn, resulted in the fostering of the goodwill incorporate amongst the French.

Whenever a company treats a particular group as subjects for their business, the group ends up encountering discouragement and humiliation. Hence, they end up moving further away from the business and never wish to be associated with such a business anymore. This was the case for the Euro-Disney; the Company treated the French as their subjects and did not fully include them in the various processes of their business. This in turn made the French feel like they were not part of the Company. To foster the climate of goodwill and sensitivity, they were supposed to involve them more of their various processes. They were not supposed to never treat them as their subjects. The central policy that discouraged climate of goodwill and sensitivity by the Euro-Disney was the (Do as we say because we know best”. The policy made the French feel as if they did not do anything at all; hence they were never in good terms with the management of the Euro-Disney company. The Company was supposed to eliminate the policy and, instead, allow French to contribute their opinions regarding various processes of the Company. Hence, they could have felt worthy and part of the Disney Company.

Question 4. How do you account for the great success of Tokyo Disneyland and the problems of Euro Disney? What are the vital contributory differences?

The main difference that existed between Euro Disney and Tokyo Disneyland was the cultural differences. Cultural differences contributed significantly to the success of Tokyo Disneyland. The cultural differences also resulted in the problems experienced by Euro Disney. When the Tokyo Disney land began, there was not Japanese food during that period. Hence most of the Japanese came to the park from various parts of Japan to purchase the food from Tokyo Disneyland. Also, most of the Japanese were not aware of the hamburgers and hot dogs. Hence most of the Japanese could buy the food from Disneyland. Disneyland was favored by the Japanese culture supported the successful growth and expansion of Disneyland. The higher number of customers contributed significantly towards the success of Disneyland. Euro-Disney, on the other hand, experienced some difficulties while establishing its Company in Europe, the problems can also be traced back to the issue of cultural difference. The Euro-Disney did not conduct an excellent analysis of the European culture, hence ended up making its revenue projections based on the assumptions. The predictions made on assumptions regarding European culture did not work. Thus made the Euro-Disney encounter huge problems.

The other underlying reason that leads to the Tokyo Disneyland success and the problems encountered by the Euro-Disney was the allocation of the assets. The performance of Tokyo Disneyland was in contrast to the Euro-Disneyland, which never attained any of its targeted objectives. The Japanese were attracted to the American food offered in Tokyo Disneyland park. French, on the other hand, were never attracted to the American services offered in the Euro-Disneyland. Hence, this contributed significantly towards the success of Tokyo-Disneyland and the failure of Euro-Disneyland.

Question 5. Do you believe that Euro Disney might have done better if located elsewhere in Europe rather than just outside Paris? Why or Why not?

No, I don’t believe the change in the location of Euro-Disneyland could enhance its success. I don’t think that a shift in the position of Euro-Disney land a Paris to another area could have added value to its success. The primary reason that contributed to the failure of Euro-Disneyland was the cultural difference. Since most of the European share a common cultural norm, a shift in the location could not have yielded any better results. The other European groups, such as Britons, shared a common culture with the French. They all complained that it was not wise to overspend on unnecessary recreation activities. They never aligned with the services offered by the Euro-Disneyland. Hence, shifting the Company to another region in Europe could not affect the success of Euro-Disney. The Company could have failed even if it was moved to a different location.

Having failed in Paris, the Euro-Disney could not have worked elsewhere in Europe. Considering that Paris was in a strategic position ideal for the business performance, the Euro-Disney could not have succeeded even if it was taken to another region within Europe. Paris had a considerable population; the government boosted Paris with infrastructural development and subsidies. Hence Paris was the best place to run the business. Thus, shifting of the Euro-Disney to another place in Europe could not have yielded any better results for the Company.  It seems that what caused the failure of Euro-Disney was not its location, but instead, the problem was in the products it offered. Its products did not rhyme with the cultural norms in Europe. Hence changing its location could not have had any effect on its overall performance. The Company could only have succeeded even it focused on strategies to address the cultural difference.

Question 6. “Mickey Mouse and the Disney Park are an American cultural abomination.” Evaluate this statement.

The statement above is linked to the tough line that was taken by French Leftists. They never allowed American citizens to interfere with their culture. The French Leftist appealed that the Mickey Mouse was the leading cause of the interference of the European cultural ambiance. The French suggested that Mickey Mouse and the Company from America played a significant role in eroding the European culture. A particular European group criticized the Disney project; they claimed that the Disney project was founded on the American culture. Hence bringing it to Europe could have affected the French culture. The statement means that the Mickey Mouse was viewed as an intruder in the French who introduced new foodstuffs intended for the Americans. Hence his Company was considered by particular groups of French as an interference to the culture of the French. They believed that his activities in the French could lead to the interference of their culture.

The French citizens wanted to practice their culture in various recreational centers. They seemed to be conservative, who never wanted to replace their culture with the American culture. They feared that the introduction of the new recreational centers founded on the Americans culture could have resulted in the elimination of their culture. They were never ready to accept the Americans culture; they only wanted to maintain their French culture. This claim was amongst the primary reasons that caused the failure of the Euro-Disney. This made the French employ every possible tactic to refuse the usage of the Americans products to ensure that their culture remains relevant. They even refused to use the products and the Euro-Disney recreational facilities to enhance the continuity of their culture. For instance, they claimed that it was not wise to spend a lot of money on unnecessary recreational activities; this was one of the strategies to refuse the American products offered by the Euro-Disney.

Question 7.  Consider how a robust marketing approach might be made to both Europeans consumers and intermediaries, such as travel agents, tour guides, even bus drivers.

A robust marketing approach needs to be introduced to both the middlemen and European consumers. There needs to be an establishment of specific creative ideas to enhance a robust marketing approach to the European consumers as well as the various middlemen. Proper advertisement is one of the superior methods that can be taken to enhance as a robust marketing approach. The other strategies that can be used involve; use of special events and use the discounts on various commodities to attract more consumers. Special branding and packages design, contests, and promotional brochures can also act as a superior tool to charm both the Middlemen and European consumers. The use of promotional brochures will tend to capture the attention of various consumers and intermediaries. The existence of more appealing features on the products can also be used to entice the European middlemen and European consumers.

The usage of a higher discount rate that is higher than the one used by other competitors in Europe will attract more consumers and intermediaries. The usage of discounts tends to lower the actual price of a commodity. Hence a high discount rate will tend to attract more consumers; also, intermediaries will be attracted by the high rate of discount rate so that they can be able to make high profits on the products and commodities. The Euro-Disney should have employed the above robust strategies to attract more consumers and intermediaries in their Company. Despite that, the Europeans remained reluctant to purchase the American commodities, the use of string enticement strategies by the Company could have attracted the attention of the foreigners in French. Hence it could have won the confidence of the consumers at the end. The setting of a price ceiling that is lower than that of other French companies could also have attracted more consumers and intermediaries.

Question 8. Discuss the desirability of raising prices at the time when attendance is static profits are non-existent, and new attractions are a month and several years in the future.

Increasing admission prices, as stated in the above question, is not an effective strategy. High prices will lead to loss of the customers, during the high prices, customers tend to find alternatives and opt products of low prices compared to the products with high prices. Hence it is not competent to raise the price when profit is non-existent. High prices will lower the performance of the Company since consumers will move to other products that have a lower price. Despite that the Company had a monopoly, a large number of European consumers had another alternative of moving to parks. Hence this contributed to the shift of customers from one company to the other. This indicates that it is vital to adjust the price at a relatively sound level that is in range with the price of competitors. Setting a higher price than the competitors can make the consumers shift from your Company to the pother.

High prices triggered European consumers to move to lower price substitutes.  A lower number of customers will lead to lower profit levels in the Company, lower profits will lead to the failure of the Company. Also, the act of raising prices can depend on the customers; it is essential to consider the number of customers that can be able to afford the higher prices. If the number of those that can afford the high prices is adequate, it could be desirable for the Company to raise the price to realize a higher profit margin. However, it is not desirable to set higher prices; the lower price is helpful to attract more customers. More customers will lead to high rate of sales and lower rate of competition. This will lead to the realization of the economies of the scale in the future by the Company.

Reference

Hartley, R. F., & Claycomb, C. (2013). Marketing mistakes and successes. Wiley.