The Cultural Environment of Global Marketing - Disneyland Resort Paris Case Study - Marketing Assessment Answer

Disneyland Resort Paris Case Study - Marketing Assessment Answer

Assessment Task:

CASE 2-1 The Not-So-Wonderful World of EuroDisney * —Things Are Better Now at Disneyland Resort Paris

BONJOUR, MICKEY! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan.

Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. And Continues...

QUESTIONS

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?

2. To what degree do you consider that these factors were (a) foreseeable and (b) controllable by EuroDisney, Hong Kong Disney, or the parent company, Disney?

3. What role does ethnocentrism play in the story of EuroDisney’s launch?

4. How do you assess the cross-cultural marketing skills of Disney?

5. Why did success in Tokyo predispose Disney management to be too optimistic in their expectations of success in France? In China? Discuss.

6. Why do you think the experience in France didn’t help Disney avoid some of the problems in Hong Kong?

7. Now that Hong Kong Disney is up and running, will the Shanghai development benefit from the Hong Kong experience?

8. Now that Disney has opened Hong Kong Disney and begun work on the Shanghai location, where and when should it go next? Assume you are a consultant hired to give Disney advice on the issue of where and when to go next. Pick three locations and select the one you think will be the best new location for “Disneyland X.” Discuss.

9. Given your choice of locale X for the newest Disneyland, what are the operational implications of the history of EuroDisney and Disney Hong Kong for the new park?

CASE 2-2 Cultural Norms, Fair & Lovely, and Advertising

Fair & Lovely, a branded product of Hindustan Lever Ltd. (HLL), is touted as a cosmetic that lightens skin colour. On its Web site (www.hll.com), the company calls its product “the miracle worker,” “proven to deliver one to three shades of change.” While tanning is the rage in Western countries, skin lightening treatments are popular in Asia.

According to industry sources, the top-selling skin lightening cream in India is Fair & Lovely from Hindustan Lever Ltd. (HLL), followed by CavinKare’s Fairever brand. HLL’s Fair & Lovely brand dominated the market with a 90 per cent share until CavinKare Ltd. (CKL) launched Fairever. In just two years, the Fairever brand gained an impressive 15 per cent market share. HLL’s share of the market for the Fair & Lovely line generates about $60 million annually. The product sells for about 23 rupees ($0.29) for a 25-gram tube of cream. And Continues...

QUESTIONS

1. Is it ethical to sell a product that is, at best, only mildly effective? Discuss.

2. Is it ethical to exploit cultural norms and values to promote a product? Discuss.

3. Is the advertising of Fair & Lovely demeaning to women, or is it promoting the fairness cream in a way not too dissimilar from how most cosmetics are promoted?

4. Will HLL’s Fair & Lovely Foundation be enough to counter charges made by AIDWA? Discuss.

5. In light of AIDWA’s charges, how would you suggest Fair & Lovely promote its product? Discuss. Would your response be different if Fairever continued to use “fairness” as a theme of its promotion? Discuss.

6. Propose a promotion/marketing program that will counter all the arguments and charges against Fair & Lovely and be an effective program.

7. Now that a male market for fairness cream exists, is the strength of AIDWA’s argument weakened? 8. Comment on using “Shakti Ammas” to introduce “fairness cream for the masses” in light of AIDWA’s charges.

CASE 2-3 Starnes-Brenner Machine Tool Company: To Bribe or Not to Bribe?

The Starnes-Brenner Machine Tool Company of Iowa City, Iowa, has a small one-man sales office headed by Frank Rothe in Latino, a major Latin American country. Frank has been in Latino for about 10 years and is retiring this year; his replacement is Bill Hunsaker, one of Starnes-Brenner’s top salespeople. Both will be in Latino for about eight months, during which time Frank will show Bill the ropes, introduce him to their principal customers, and, in general, prepare him to take over.

Frank has been very successful as a foreign representative in spite of his unique style and, at times, complete refusal to follow company policy when it doesn’t suit him. The company hasn’t really done much about his method of operation, though from time to time he has angered some top company people. As President Jack McCaughey, who retired a couple of years ago, once remarked to a vice president who was complaining about Frank, “If he’s making money—and he is (more than any of the other foreign offices)—then leave the guy alone.” When McCaughey retired, the new chief immediately instituted organizational changes that gave more emphasis to the overseas operations, moving the company toward a truly worldwide operation into which a loner like Frank would probably not fit. In fact, one of the key reasons for selecting Bill as Frank’s replacement, besides Bill’s record as a top salesperson, is Bill’s capacity to be an organization man. He understands the need for coordination among operations and will cooperate with the home offi ce so that the Latino office can be expanded and brought into the mainstream. And Continues...

QUESTIONS

1. Is what Frank did ethical? By whose ethics—those of Latino or the United States?

2. Are Frank’s two different payments legal under the Foreign Corrupt Practices Act as amended by the Omnibus Trade and Competitiveness Act of 1988?

3. Identify the types of payments made in the case; that is, are they lubrication, extortion, or subornation?

4. Frank seemed to imply that there is a similarity between what he was doing and what happens in the United States. Is there any difference? Explain.

5. Are there any legal differences between the money paid to the dockworkers and the money paid the jefe (government official)? Any ethical differences?

6. Frank’s attitude seems to imply that a foreigner must comply with all local customs, but some would say that one of the contributions made by U.S. firms is to change local ways of doing business. Who is right?

7. Should Frank’s behaviour have been any different had this not been a government contract?

8. If Frank shouldn’t have paid the bribe, what should he have done, and what might have been the consequences?

9. What are the company interests in this problem?

10. Explain how this may be a good example of the SRC (self-reference criterion) at work.

11. Do you think Bill will make the grade in Latino? Why or why not? What will it take?

12. How can an overseas manager be prepared to face this problem?

CASE 2-8 Ultrasound Machines, India, China, and a Skewed Sex Ratio

General Electric Co. and other companies have sold so many ultrasound machines in India that tests are now available in small towns like Indergarh, where there is no drinking water, electricity is infrequent, and roads turn to mud after a March rain shower. A scan typically costs $8, or a week’s wages.

GE has waded into India’s market as the country grapples with a difficult social issue: the abortion of female fetuses by families who want boys. Campaigners against the practice and some government officials are linking the country’s widely reported skewed sex ratio with the spread of ultrasound machines. That’s putting GE, the market leader in India, under the spotlight. It faces legal hurdles, government scrutiny, and thorny business problems in one of the world’s fastest-growing economies. And Continues...

QUESTION

What should GE management do in India about this problem, if anything? In China?

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