Chia, Mharyie Jhoi C.

Section 1

The Disneyland Paris

Founder is Michael Eisner

Founded April 12, 1992
Originally Euro Disney Resort, is an entertainment resort in Marne-la-Valle, and it is the
most visited theme park in all France and Europe.
It is owned and operated by Euro Disney S.C.A., a publicly traded company in which The
Walt Disney Company owns a majority stake.
The resort covers 4,800 acres (19 km2)[3] and encompasses two theme parks, several
resort hotels, a shopping, dining, and entertainment complex, and a golf course, in
addition to several additional recreational and entertainment venues.
Disneyland Park is the original theme park of the complex. A second theme park, Walt
Disney Studios Park, opened in 2002. The resort is the second Disney park to open
outside the United States, following the opening of the Tokyo Disney Resort in 1983.

Article:

Disneyland tourists panic as railway station nearby evacuated when suspect package found

The principal railway station for Disneyland Paris was evacuated last night after a 'suspicious
package' was found inside.
Hundreds of people including families with young children were caught up in the drama shortly
after 8pm. However, by 11pm, the alert was scaled down, although the station remained
blocked off before being re-opened. 'Marne la Valle station was shut down as a precaution,'
said a local police source. Soldiers and police had been seen flooding the area, which is around
20 miles from the centre of the French capital.
It is the third time in as many weeks that suspect packages have been found at Marne la Valle
station. All train traffic was halted on July 18 and 20 when bomb disposal experts attended the
scene. The packages were declared safe.

Source: http://www.dailymail.co.uk/news/article-3733706/Disneyland-Paris-evacuated-suspect-
package-train-station-neighbouring-theme-park.html#ixzz4NDnh0QaA

Statistics:

 Market and Sales Strategy:

Currently, in the time of a recession, it is important to know consumers and the market well and
the following statistics come from many different studies and surveys:

With the lowering of purchasing power, 57% of Europeans think that the financial
situation will continue to worsen(this figure is 75% in France and 61% in the Netherlands.

81% of consumers wait for promotions before booking or buying items or services.

In 2013: 32% of people in France did not wish to travel, 75% of people in France want
to spend less on their holidays(this number is 87% in Spain).

Children are still seen as a priority in homes.

Disneyland Paris remains seen as a special destination.

Anniversary celebrations are the most important celebrations.

Themed seasons (such as Halloween and christmas) also have a strong impact.

Disneyland Paris' TV advertising is memorable.

Disneyland Paris' brand image is continually measured and has increased for 8.0/10
in 2010 to 8.3/10 in 2013 across Europe.

The perception of Disneyland Paris's value for money has also increased in the
same timeframe from 6.7 to 6.9.

The intention to visit the resort has increased in the last year, from 42% in 2012 to
48% in 2013. The conversation rate from intention to actually making a booking, however, is still
much lower.

There were 14.9 million visitors in 2013, more than the visitors to the Louvre and the
Eiffel Tower. To compare Blackpool Pleasure Beach in the UK saw 5.9million visitors in 2012
and Europe Park in Germany had 4.6million in the same year.

Important events to come:

Opening of Ratatouille

Continuing development of the themed seasons such as Halloween and Christmas

 Continuing renovation of the Disney hotels

From all this research Disneyland Paris has developed six ways to improve its overall strategy.

The 6 strategic points:

1. Continue to reduce the barriers to visits

2. Create an urgency to visit

3. Adapt straggles based on media consumption

4. Improve the on-line experience

5. Optimise investments depending on the market, and redefine distribution strategies

6. Improve the visitor experience and slowly reduce the number of offers to increase
turnover and improve brand image,

Some of these points were these expanded on in more detail.

Points 1) and 2): As the conversation rate for visitors is low, marketing will be focused on:

A unique experience that only Disney can offer

Create emotion and engage the consumer

Add an expiry date to offers to create a sense of urgency and encourage to book now

The resort will no longer do annual themes [such as Mickey's Magical Party], instead
showcasing its base product with special celebrations (in order to create a consistent image
every day of the year), the Halloween, Christmas and anniversary seasons will be strengthened
as these are the most effective.

3) Media Strategy:

Consumers' media habits have changed drastically over the past few years with less TV viewing
and more use of internet connected devices. The Resort will:

Reduce its spending on TV advertising

Increase its spending on digital advertising

 Work on its partnership with The Walt Disney Company.

Continue to work in partnership with European TV (such as The Voice, Dance avec les
Stars, Sky, etc.)

Increase visibility in search engines (SEO and advertising)

Reduce spending on press campaigns

5) Optimise investments depending on the market:

Almost half of all visitors stay in a Disney hotel:

44% on an on-site hotel

23% are local residents without an annual passport who sleep at home

21% stay off-site, usually near DLP

12% are annual pass holders who sleep at home

6) Pricing Policy:

Invest in the Product and adaptation of the pricing policy:

At the hotels:

o The creation of the Empire State Club at Hotel New York, replacement of the
bungalows at Davy Crockett Ranch, and renovation of the Sequoia Lodge, Santa Fe and the
Newport Bay Club hotels.

o There is a lot of interest in concierge level experiences, e.g. Empire State Club,
Golden Forest Club.

o The aim therefore is to look at pricing throughout the renovation period and
continue to create new higher classes of rooms and clubs, and to recommend higher level
hotels to consumers.

In the parks:

o Continue investment for the birthday celebrations (E.g. Disney Dreams for 20th
anniversary), the seasons (Halloween and Christmas), new developments (Ratatouille) and
refurbishments.
o Strengthening the seasons which are of high demand allows the raising of prices
for these periods.

o Walt Disney Studios will be developed into a full-day park which will later allow
the increase of ticket prices.

Merchandise:

o Several efforts have already been made: Opening of the World of Disney store,
differentiation of boutique, exclusive rangers (20th anniversary, Paris themed), innovations such
as Disney Light'Ears.

o Confirmation that the Light'Ears are selling well and that sales are ahead of their
predictions, and that they allowed there to be several articles in the press showing the
innovation that Disney can make therefore essentially providing free advertising.

o A Strategy of "Good/Better/Best/Premium" allows products to be available in four

different price ranges, allowing for different budgets. Examples include: Princess dresses, mugs
and T-shirts.

Dining:

o Increase the use of higher quality dining product at quick-service food locations
(such as Angus Beef), an improvement of the buffets and table service restaurants, and a new
menu at the Lucky Nugget.

Reduce offers:

o Eliminate the free annual passport offers - they were used to help increase
awareness of annual passes but renewals were not sufficient.

o Continue the slow and "reasonable" increase in prices

o Review pricing for locals, e.g. The Francillien ticket which was launched at the
price of 29 euros for the 15th Anniversary; it is now 45 euros.

o Review the range of annual passports, communication and yield packages.

o Review packages: after the launch of half-board meals, then a full-board option,
an all-inclusive option is now being pursued.

Some numbers:
 Average spending per guest: 46,2 (2011) - 46,4 (2012) - 48,1 (2013)

Average spending per room: 219,7 (2011) - 231,3 (2012) - 235 (2013)

After the main presentation, the floor was opening up to questions and several remarks were
made by shareholders:

Marketing for Ratatouille should already have been in place around the resort for the
Halloween season, as the Halloween and Christmas seasons attraction many visitors who
would be exposed to these adverts.

The declining quality of many Disney Village restaurants since Disneyland Paris began
running them again.

The monthly payment option for annual passports is extremely useful and should be
kept.

The lack of figures during this presentation, including conversation rates, does not allow
shareholders to truly understand what marketing strategies are working.

During these question and answer session Disneyland Paris also revealed that:

It continues to investigate the range of annual passports, and especially the "Premium
Annual Passport" for which there is a demand but that it is too early to launch such a product
until Walt Disney Studios starts to become a full-day park.

Research is being done into having kiosks installed at counter service locations as well
as smartphone apps where guests can order food more quickly, but this of course relies on the
resort's kitchens improving speed-wise too. This is not something that will appear immediately
but it is rather a long-term project.

The huge decline in hotel occupancy rates from 87% in 2011 to 79% in 2013 is not only
due to lower visitor numbers, but also because about 500 rooms are being renovated per year
(not simultaneously) which guests cannot stay in. These 500 rooms have not been removed
from the 5800 rooms usually available, leading to a lower occupancy rate.

Disneyland Paris is conscious of having made errors and admit to them, include their
free annual passport promotion, the 2011 Halloween season and the official website experience.