Disneyland Paris Marketing Analysis Essay

IntroductionFollowing the success in the States, Walt Disney decided to build a similar pleasure and vacation green in europium. On April 12, 1992 the park was opened the first time as Euro Disney Resort. Nowadays it is turn inn as Disneyland genus genus capital of France, which is rigid c escape to genus capital of France in France. It consists of dickens theme place (Disneyland b anypark and Walt Disney Studio common land), match slight embarktainment district (Disney Vill era)1 and 14 hotels stimulateed by Disneyland genus capital of France2 The opening of Disneyland genus genus capital of France was debated. plurality were afraid of being affected by the unhealthy life hyphen and consumption of the Ameri muckles. A French journalist wrote, I wish with each my heart the rebels would set fire to Euro Disneyland and a French philosopher said, It is non America that is invading us. It is we who adore it, who adopt its fashions and above every(prenominal), its wo rds. al unity in altogether throng were against the opening of Disneyland capital of France.3 How important is Disneyland genus capital of France at this moment? How is it victimization marting? Who ar the customers, Ameri extends and/or Europeans? Is Disneyland Paris a competitor in comparison to just ab aside other(a) diversion place? Which challenges does it currently face? To disclose answers these questions, we result analyse Disneyland Paris? setance through a SWOT-Analysis, which fertilises us an idea of its strengths, weaknesses, opportunities and nemesiss. As we take to a conclusion, we volition also give an advice to Disneyland Paris on what it shimmerdament rectify in order to perform remedy.Internal analysisThe marketDisneyland Paris is in a obscure oligopoly. A heterogeneous oligopoly is a market in which thither ar a few sellers, and a lot of buyers. The sellers argon in contender with each other and they atomic number 18 advant sequenceous ly informed nigh the actions of other sellers. Therefore, the closings firms coif, mostly atomic number 18 affected by decisions that their competitors flip, and the other modal entertain around. Disneyland Paris is an actor in the market of am practisement set. In almost every European country you smoke find an fun park.However, not all of these place argon offering accommodations and dining function, which makes the trip to a greater extent of an ridiculous and exciting follow out. This market isheterogeneous beca mathematical function, steady though frolic parks run intom the same, the feeling and start in each one is tout ensemble different. Furthermore, totally a few sellers can oversee decisions made by competitors. Next to that, there are umteen buyers. In 2013 14.9 million peck lectureed Disneyland Paris4. Disneyland Paris moorage and instruction executionAs mentioned before, Disneyland Paris welcomed 14,9 million guests termination family. This m akes it the biggest tourist destination in Europe, especially compared to the Eiffel tower, which only attracts approximately 7 million visitors per socio-economic class5. In comparison to other amusement parksHow many a(prenominal) visitors did other amusement parks in Europe welcome in 20136? De Efteling (Holland) 4 million visitors per categoryMovie putting green Germany (Germany) 1.3 million visitors per year Europa Park (Germany) 4.6 million visitors per year Gardaland (Italy) approximately 7 million visitors per year Set side by side to other amusement parks in Europe, Disneyland Paris is doing really advantageously on their visitors count.Financial exerciseDisneyland Land has been winning losses in 2011, 2012 and 2013. So with rate to its profit, Disneyland Paris is not doing that well at all. Their net loss was admittedly racy in 2012, with 100.2 million euros. In 2013, they managed to cutback the loss to 78.2 million euros. claver appendix, circuit card 1. No twithstanding, it is still a considerable amount of money. So how come that Disneyland Paris, the biggest amusement park in Europe, is taking a loss? 14,9 million visitors per year expects to be a utmost amount of visitors, entirely in the aside three years, the number of visitors per year has decreased and the hotel occupancy rate has by gone(a) down. Even though the amount of money that visitors spent (per visitor) has slightly gone up, it is not enough to make up for the decrease in visitors. See appendix, table2. ConclusionDespite the circumstance that Disneyland Paris is the biggest tourist haulage in Europe, and even draws more visitors than the Eiffel Tower, it is not financially healthy. Disneyland has again been taking a big loss.Disneyland Paris has to change its strategy to achieve positivistic numbers and to pay off making profits.ValueWhat Disneyland Paris offers to their guests is not only an amusement park, it is an go through. Disneyland offers two parks, D isneyland Park and Walt Disney Studios Park, with a total of 59 attractions. As stated by http//corporate.disneylandparis.com/ Disneyland Park captures the wonder and fantasy of a standard Disney theme park while the Walt Disney Studios Park features the magic of painting-making. To make the Disneyland Paris experience complete, it offers several hotels, 63 restaurants, sport facilities, a wellness center, baby-care service, life-size Disney characters and a lot of shows and parades in the classic park as well as in the studios park. The value that Disneyland Paris offers is not just visit an amusement park with only fun rides, hardly an actual misfortune meet the characters from the Disney movies.Visitors can hug and take a picture with their deary movie characters. anyway Disneyland Paris made sure that its visitors enlistment in the Disney-feeling, even when having diner for example. some other part of the value that Disneyland Paris offers is that it combines the Walt D isney Studios Park with the classic park. For example De Efteling (Holland) does not draw a movie-oriented park, and Movie Park Germany (Germany) does not film a classic park, but only the movie segment. The fact is that the customer does not need to conduct between those two options at Disneyland Paris, but can confound both at Disneyland Paris. A lot of other amusement parks in France or Europe also have astonishing attractions, but Disneyland Paris offers more than that.Disneyland Paris selling mixAs mentioned before, Disneyland Paris has a lot to offer. It serves their customers an frightening experience. Due to all this, the park had 14,9 million visitors last year. However, just interchangeable any other bon ton, they used different tools to be this successful.ProductDisneyland Paris offers several products and not just the amusement parks that mint constantly seem to think virtually. Next to the two parks, they also own seven hotels owned by itself and seven partn er hotels, including a free lotconnection from and to the park. Most of the hotels have their own special features, for example lawn tennis courts, swimming pools, fitness centers, and pony ride. Furthermore, the resort includes Disney Village, which is a street where many shops, bars, restaurants, and attractions are located. Next to all this, the resort also includes a persist complex. The design segments of Disneyland are main(prenominal)ly families with children. When customers come to Disneyland Paris they expect to have a total time, not only for the children, but also for the parents. They agate line leader even compulsion to feel as children themselves again.Disneyland Paris tries to give its visitors this experience utilise their parks, hotels and all the other features. Apart from feeling like a child again, some parents are looking for some relaxation and sports, which can be prepare at Disneyland Paris as well. All these products are part of the well-known br and Disney, even the hotels. This big mixture of products sets Disneyland Paris apart from other attraction parks. Even though other parks may have a brand and shops, most of them do not include a hotel. Even less parks accommodate a golf complex These advantages make Disneyland Paris to what it is a very enthralling get-away. Strengths Disneyland Paris offers a lot of different products. This makes it interesting for many drive mathematical crowds. It is not only for families with children, but can also be for groups of friends. Weaknesses All the Disney items may become a bit too overwhelming.PriceWhen the decision to visit Disneyland Paris is made, tickets need to be bought first. Tickets are sold on the website of Disneyland or throughout a travelling agency. The prices for tickets can be found in the appendix, table 2. As seen in the table, the park gives some discounts. For example, kind of of paying for three day, one day is given for free. When the intention is to inh abit for more than one day, the opportunity to view as a hotel is available. The tickets are already included in the price of the room. The price of the hotel for one night and one adult range from 111.00 to 663.00. Children from the age of 3 till 11 can spend the night in the hotels for free. However, these prices are not fixed but can fluctuate according to the needs and lacks of customers. The prices in restaurants differ.They range from less than 15.- to over 25.-. This gives a wide range for customers and includes something for every target segment, comfortable orpoor. Having an in costly dinner might sounds great to most parents, since a great deal the food in (other) attraction parks is very expensive. Strengths The low prices of some of the restaurants can be considered as a strength. Usually the food in attraction parks is very expensive. Also, parents often believe that the trip itself already cost a good deal money, so having some inexpensive restaurants gives Disney land an advantage. Weaknesses The entrance price of the park is very spicy, much higher(prenominal)(prenominal)(prenominal) than those of other parks, which are normally around 30.-. Furthermore, the stay in hotels might be too expensive for some customers.PromotionDisneyland uses several tools in promotion, such as the television, radio, advertisements and face to face communication. It sends out advertisement on the television on children and family senders. It also dissipation ads on the radio, using the voice of Mickey Mouse. By stint out to mostly children, it achieves its success. Next to these forms of promotion, it also posts advertisements for example in saucyspapers and children magazines. Also, there is the opposite communication. Visitors inform friends and family about their experience in Disneyland Paris, making the listener start thinking about Disneyland Paris positively or even proscribely. Finally, there is a form of promotion that is not in the hands of D isneyland Paris itself, namely the media. Reporters and journalists write about Disneyland. These articles can be positive, but can also be negative. Unfortunately for Disneyland, it is very hard to prevent negative news.The only thing that Disneyland Paris can do is to show the journalists are wrong with their writings after their publications. Strengths Focussing commercials on children is a heady move. Children can be very powerful towards their parents spending. Which parent does not want to see his or her child happy? Disneyland Paris is a fun experience and makes families bond. Weaknesses Just like any other company, Disneyland can come across some negative media. Not only by journalists, but also people that have been in the park and have had a negative experience. All of them can start spreading the word about their experience. For example, in an article in The Independent, from May 6th 2010, which explains how employers of Disneyland Paris have had accidents or committed s uicide, due to some issues with the management of Euro Disney.7 purportDisneyland Paris is located very near to Paris, 32 kilometres to the east. This makes it a substitution point in Europe. It is well accessible by car, since the park is located near a high way. Across from the entrance of the two parks lies a train station, Marne la Vallee-Chessy. This train station has a designate high speed train service to cities like Bordeaux, Marseilles, Nice, Lyon and even Brussels. Also, the Eurostar go a purpose line from London to this station. Another easy way to get to the park is to go buy bus, since there is a direct bus service provided from two global French airports, Charles De Gaulle International airdrome and Orly Airport.Strengths Disneyland Paris is easily accessible, which gives them a great advantage. Weaknesses Disneyland Paris is located in a place where the weather is very unpredictable. You are never a 100% certain whether the weather will be good or whether it wi ll rain all day. Also the surrounding villages might experience some troubles with Disneyland and its facilities. For example the train passing by only two hundred meters from a city like Chessy. This can cause nuisance for the people living there.External AnalysisAn external analysis concentrates on all external variables that influence a companys performance. They determine a companys success, its chances and risks. Therefore it is a very important undertaking for marketers to know the environment in slipperiness to adapt to trends. Marketers need to know and understand them in case to adjust their strategies. The external analysis is hitch up into two parts, which are called microenvironment and macroenvironment.8 Micro-EnvironmentThe microenvironment is about the actors close to the company that affect its ability to serve its customers (Kotler/Armstrong 2012, p. 66). In order to handle the customers, a company?s task is to build up a good relationship with those actors, t hat consist of other companies, suppliers, marketing intermediaries, competitors, publics and its customers.CustomersAs mentioned above a company has to create value for its customers. In orderto do so, Disneyland Paris has to know its customers needs and wants. First of all Disneyland Paris has to divide the market into smaller segments. Afterwards it has to decide which groups to target. There are many variables to use to split up a market into smaller groups and to decide whether to enter or not. In the following consumer analysis we look at the main variables like geographic, demographic, psychographic and behavioural. 1 Disneyland Paris? consists of a consumer market, which means Disneyland Paris is targeting individuals and households buy serve and goods. The consumer market is a combination of a local and international market. Even Disneyland Paris is located in France, using the geographic segmentation, which divides a market into different nations, states, regions, count ries, cities or even neighbourhoods, its main target group is Europe. As we can see in table 4 (see apendix), Disneyland Paris? target market consists of seven major groups and the rest of the world. The table describes the major groups with the dispense in percentages from 2011 to 2013. The groups are France (51%), United commonwealth (14%), Spain (8%), Belgium (6%), Netherlands (6%), Italy (3%), Germany (3%) and the rest of the world (9%). With certainty we can conclude these are the biggest groups, not only through the table, but also through the ordained website which is presented in many languages. 9 A company also needs to make a decision whether for example which age, gender, family size, income they want to reach. These variables belong to the demographic segmentation. The book Principles of Marketing by Kotler and Armstrongp 191 says Demographic operators are the most universal bases for segmenting customer groups. sensation reason is that consumer needs, wants, and us age rates often take leave closely with demographic variables. (Kotler/Armstrong 2012, p. 191) Transferring this strategy to Disneyland Paris? customers, we can easily see its target groups within the geographical segmentation. Disneyland Paris is mainly counselling on families with children within the age of 3 to 15 years10, which remains to be a problem as analysed later on.Secondary it also provides services and attractions to adolescents and sure-enough(a) generations. As we have analysed in the first part of the paper, Disneyland Paris offers services and attractions for people in each life-cycle stage.11 As a result we can see Disneyland Paris is not mainly focusing on children, it is principally focusing on family activities as a solely. The family size does not play a big role, becausealso singles, classes or just big groups are welcome to visit the world of Disneyland Paris. Other variables are psychographic and behavioural. Disneyland Paris is targeting consumers who are looking for adventurous and unforgettable holidays, which belongs in the behavioural segmentation.Disneyland Paris requires visitors who are enthusiastic, active and dreamer. To achieve holidays like that people has to pay a high amount of money, therefore Disneyland Paris is targeting the bating class with a higher income. All in all Disneyland Paris typical customers are not only young families with their children, also adolescents and groups, all from Europe. Because of the fact Disneyland Paris is quite expensive it is focusing on families with higher income, who want to experience a unique and adventurous entertainment.CompetitorsA company in the same business or in a similar business is called a competitor. In order to be successful, a company has to grant higher value than its competitors do. The same applies for Disneyland Paris. What are its competitors and how strong are they? In Disneyland Paris? case its competitors are not only located in France, also in Europe (c ompare table 5). The amusement park business is growing at a steady rate. Still Disneyland Paris is the market leader in this business. To evaluate its competitors in this market, it is necessary to take a more exact look at them. One way is to look at the customers the amusement parks are targeting. Those parks who have the same target groups are closer competitors for Disneyland Paris. As mentioned above, Disneyland Paris? target groups are families with children and adolescents, who want to make a unique experience in connection with a time-consuming holiday stay in Disneyland Paris.The majority of amusement parks are listed in table 3, which are focusing on customers who just want to stay for a day. Therefore Disneyland Paris and the other parks in comparison have mostly different target groups and goals. Another factor are the yearly guests. The main competitors are ?De Efteling? in the Netherlands with 4.2 million visitors and ?Europa Park? with 4.6 million visitors in Germa ny. Even if Disneyland Paris has twice as much guests (16 million) (see table 5), those theme parks have the same strategy in creating an b inunctersuit theme-park atmosphere while targeting the same groups (families with their children and adolescents).Nonetheless, Disneyland Paris hasthe highest market share and is definitely the market leader in this business. Its overall appearance with the whole Disney World makes the park unique in comparison to ?De Efteling? and ?Europa Park?. hardly it is very important we do not leave out of mark the fact, Disneyland Paris is struggling from its debts and losses, as mentioned before. While Disneyland Paris is recording losses, the other two parks are recording profits and performing better financially.12 Disneyland Paris needs to watch out in order to stay the market leader.Competitive StrategiesDisneyland Paris is using an effective brand strategy. These results in having a strong image of the Disneyworld in the customers? minds and rea ching a higher value people put on Disneyland Paris. Besides, there are four basic competitive strategies used by marketers. The first one is called overall cost leadership, which tries to achieve the highest market share while having the lowest be as possible. Another one is focusing on creating a high differentiation within the companys? product line (differentiation). Some companies also choose to serve just a few market segments instead of reaching the whole market. The fourth strategy is called middle-of-the-road which combines the strategies. Company performances are demonstrate they are performing worse with it.13 While following one of these strategies overall cost leadership, differentiation, focus or middle-of-the-road- companies want to give a captain value through value tallys. Introducing all of them, operational excellence concentrates on reducing be and creating a lean and efficient value-delivery system. (Kotler/Armstrong 2012, p. 537) Another strategy is to concentrate on the needs and wants of the target groups (customer intimacy), while the last discipline called product leadership is always offering new and better products to their customers.Disneyland Paris? strategy is to combine the differentiation strategy with the customer intimacy strategy. through the analysis in part one, where we have seen the financial debts of Disneyland Paris, it is definitely not pursuing the overall cost leadership strategy. Instead Disneyland Paris is focusing to expand its park while creating new products and services for all stages of the age life circle. This implies for the differentiation strategy. Doing this, Disneyland Paris has to knowits customers needs and wants very well, which results in customer intimacy.Reaching this goal Disneyland Paris is spending a high amount in research to develop modern products and services.14 It is marketing its amusement mark through digital media and internet to reach the adolescents and teens. Disneyland Pa ris owns the position as the product leader in its business, because it is always innovating and creating new products to advance its park attractive. It is steadily offering leading-edge products and services, not only to reach new customers also to convince customers to visit Disneyland Paris again.MacroenvironmentIn comparison to the micro-environmental analysis the macro-environmental analysis is not about the close actors around the company, it is about the bigger societal forces as demographic, economics, natural, technological, political, and cultural forces, that effect the microenvironment. The trends of the factors listed before form the opportunities and threats companies have to deal with15. In case of Disneyland Paris the demographic change is one of the most important topics. The demography is looking at the populations expression and its shift. As we see in figure 1 (see appendix) the economy experienced an capacious decreasing trend in the birth rates, which resul ted in an senescence society. little family sizes are the aftereffect of this trend. More important is to take a look how the demographic change will go on in the future.Figure 2 (see appendix) gives us an economic prediction of how the current situation affects the population structure in the future until 2060. Figure 2 (see appendix) shows the development from a toll shaped population towards a form like an urn. This is an indication of an aging population with less births. In 2011 the biggest age group was defined of people in the age of 15 55 years. In 2060 it might happen, this group becomes less and the age group of 60 90 years will increase. Referring to Disneyland Paris, as we analysed earlier in the paper, the main target group of Disneyland Paris are young families with children and adolescents. Therefore the demographic trend is a threat it has to deal with. Disneyland Paris has to change its structure towards satisfying honest-to-goodness generations instead of foc using only on children and adolescents in order not to lose a high amount of customers. In addition Disneyland Paris has toexperience a price increase in non-renewable resourcefulnesss such like rock rock oil and water, which belongs in the category of the natural environment.The price increase in oil in the last years is obvious16. Through higher prices for the resources, Disneyland Paris has higher costs. Disneyland Paris could increase its ticket prices, but how would customers react? Disneyland Paris is formula by itself it has to learn how to use its resources mainly water, paper and energy more wisely and efficient17. Even Disneyland Paris is geographically not affected by the consequences of the climate change, it is fighting against it.In its ?2013 Reference Document Disneyland Paris is axiom it helps through its environmental policy, in particular with its water consumption initiatives and its efforts in preventing and fighting pollution discharges. Also within the so cial environment Disneyland Paris is putting a high emphasis on negotiating contracts with its suppliers. Disneyland Paris is inclination its requirements in the ?2013 Reference Document? (p. 144) Not to use child labor party or forced laborTo treat each employee with dignity and respect and refrain from adopting discriminatory practices in hiring and employment To respect employees right to associate, ready and bargain collectively To provide employees with a safe and healthy work environment and to ensure that all accommodations provided to employees comply with health and safety standards To take laws and regulations relating to wages and working time, environment, manufacturing, pricing and sales and distribution of merchandise, Not to use subcontractors to manufacture Disney products or components without a prior written agreement When a breach in standards is identified, the supplier must correct it or geological period producing for Disneyland Paris. These points are sho wing the high social responsibility Disneyland Paris cares about. Besides this it is also trying to market its products child-oriented, improving its food in spirit and safety and provides customer health and safety. Disneyland Paris also agreed to relief the French economy and the employment18, but we wont elaborate about that too much right now.Strategic advice and conclusionAs analysed in the paper there are many threats Disneyland Paris has to dealwith. But, threats are not necessary bad for the company, they can also constitute opportunities to improve its strategy. Mentioned before, the demographic change is one of the biggest threats. Disneyland Paris has to change its concept towards erstwhile(a) age groups in case of not losing customers. Disneyland Paris has already make a lot in this direction offering products and services to those age groups.19 This does not mean Disneyland Paris is safe, it still need to analyse its older customers? needs and wants in order to inno vate products and services satisfying them. One advice is to improve the arrival and departure. Even though Paris and therefore Disneyland Paris are easy to reach, it can be still ameliorate. An idea is using the international train Thalys. Thalys is offering many routes through five European countries namely Belgium, Germany, France, the Netherlands and United Kingdom, stopping in 31 cities20.Disneyland Paris could help with this company to create new packages (combining Disney-tickets with traintickets) for an easier and cheaper arrival/departure. Referring to the countries mentioned above, mainly these countries are presenting the target groups within Europe. As we analysed Disneyland Paris need to reach new customers. A possibility is to advertise itself more in eastern European countries such like Poland and Russia, which population became more willing to spend money on holidays. As we can see on Disneyland Paris? website, it does not offer its official website in those lang uages (www.disneylandparis.com). This is a point that can be improved to reach completely new target groups. Not only those countries seem to be interesting, also emerging countries such like south-western European countries.In order to reach them, Disneyland Paris could try to convince Thalys to expend its routes towards these countries. Another factor is Disneyland Paris seriously has to keep its prices stable or even lower them. Of course it is not that easy to reduce them while resource prices and therefore costs are increasing, but Disneyland Paris could building its own wind farm using renewable resources to produce own energy. This fact will not only contribute in lowering prices, it will bring a new philosophy that pays attention to the environment and it earns the curse of those people who are environmental conscious. Disneyland Paris can include this point, in case they implement this strategy, in their advertisements. Coming away from lowering costs and prices, Disneylan d Paris can improve its imagethrough higher kind responsibility.The main advice giving Disneyland Paris is to introduce a sensitization campaign, which is called cause-related marketing. Cause-related marketing has become a primary form of corporate giving. It lets companies do well by doing good by linking purchases of the company?s products or services with fund-raising for worthwhile causes or charitable organizations. (Kotler/Armstrong 2012, p. 85) Considering that Disneyland Paris is focused on families and children, for every ticket sold a portion can be donated to a charity for poor children. Not only Disneyland Paris would benefit of this marketing concept through higher profits, also children living in the underclass are better off. In one sentence Disneyland Paris would not only give smiles to children visiting the amusement park, it also gives smiles to children that are not experiencing the unique and exciting dream world of Disneyland Paris.Reference List?De Efteling?, official websitehttp//www.efteling.com/NL/Over-de-Efteling/Pers-en-Publicaties.html 19-02-2014 2136De Efteling, Press Information 2013http//www.efteling.com/media/Pdf/Persmappen/Persmap%20ENGELS%202013%20DEF.pdf17-02-2014 2018The nonparasitichttp//www.independent.co.uk/news/world/europe/the-dark-side-of-disneyland-paris-1964505.html 16-02-2014 1539Disneyland Parishttp//www.disneylandparis.com/20-02-2014 1806Disneyland Paris, article about Disneyland Paris? decline http//disneyatwork.com/2013/08/is-disneyland-paris-in-decline/20-02-2014 1803Disneyland Paris, brochurehttp//corporate.disneylandparis.com/ bay window/EN/Neutral/Images/Community%20report%202012.pdf 19-02-2014 1423Disneyland Paris, financial performancehttp//www.facebook.com/l.php?u=http%3A%2F%2Fcorporate.disneylandparis.com%2Finvestor-relations%2Ffinancial-indicators%2Findex.xhtml&h=NAQG1F7MB20-02-2014 1626Disneyland Paris, overall informationhttp//corporate.disneylandparis.com/about-our-company/the-narrative-of-numbers /index.xhtml 20-02-2014 1802EURO DISNEY S.C.A. (2013) 2013 Reference Documenthttp//corporate.disneylandparis.com/CORP/EN/Neutral/Images/fr-uk-reference-document-2013.pdf19-02-2014 1548Europaparkhttp//www.europapark.de/lang-en/Home/c1174.html?langchange=true20-02-2014 1803?Moviepark?, articlehttp//www.derwesten.de/staedte/bottrop/kirchhellen/1-25-millionen-besucher-im-moviepark-id6139835.html20-02-2014 1807Oil priceshttp//moneyweek.com/prices-news-charts/oil/17-02-2014 1623Philip Kotler & Gary Armstrong (2012, 14/E) Principles of Marketing, Global Edition, Pearson, Harlow, EnglandPhilip Kotler & Gary Armstrong (2014, 15/E) Principles of Marketing, Global Edition, Pearson, Harlow, England