marketing globally cseibl final case study analysis kopie · pdf filepestle analysis of case!...

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Student'Name:'Calvin'Seibl!Griffith!Student'ID:'s5018261


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Table&of&Contents!

BACKGROUND!...............................................................................................................................!3!

CASE SUMMARY!..............................................................................................................................................!3!

SINCE THE CASE!...............................................................................................................................................!4!

Disney!.................................................................................................................................................................!4!

Dubai!..................................................................................................................................................................!4!

ISSUE IDENTIFICATION!............................................................................................................!5!

PESTLE ANALYSIS OF CASE!.......................................................................................................................!5!

DISCUSSION!.......................................................................................................................................................!5!

COURSE OF ACTION!...................................................................................................................!6!

CONSIDERATIONS!............................................................................................................................................!6!

IMPLEMENTATION PLAN!...............................................................................................................................!8!

FOLLOW-UP PROBLEMS!.................................................................................................................................!9!

BIBLIOGRAPHY!..........................................................................................................................!10!

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! 3!

Background

Case Summary Thirty-three years ago, in 1983, Disney commenced international expansion of their theme

park business. The first location was Tokyo, Japan were Disney “copy and pasted” their

existing parks from the United States, with no adaptation to the Japanese market. It proved

successful but led to, arguably Disney’s largest blunder, Euro Disneyland, in Paris, France.

The standardised ‘American experience’ employed in Japan was used again but yielded

results unalike their first attempt. From the onset, Disney encountered cultural challenges

which put-off prospective customers. They were criticised for ignoring French culture and

shoving American imperialism down visitor’s throats (Brannen, 2004). The park was not

designed to fit the preferences of its host, language, alcohol consumption and management

style being examples, resulting in backlash that drew comparisons of the park with

Chernobyl, Ukraine. The abandoned city of a nuclear disaster, meaning that Disney had truly

missed a trick. Lessons were learned and an integrated strategy marrying French and

American elements was brought in to control the damage on Disney’s image. The park’s

fortunes have changed, but its never been able to recapture how successful Disney imagined it

to be.

Disney’s newest theme park, opened in 2005 in Hong Kong, had an assimilated approach

from conception, requiring a larger planning period. A function of the added consideration for

cultural and environmental preferences. Superstition was a consideration of the targeted

markets that was identified as key to success. Specific measures to satisfy cultural trends in

feng shui, numerology and colour, as well as language and cuisine, aimed to ensure the park

was well-received by the Cantonese, South Chinese and wider Chinese-origin communities

around Asia. For example, Singapore. The venture has proven prosperous and the park is

perceived as a good matrimony between East and West.

Disney is now considering to enter the Middle Eastern market with a new park in Dubai,

United Arab Emirates (UAE). This report focuses on this possible new venture and the

marketing implications requiring analysis to provide the best chance of success for Disney

and its stakeholders.


! 4!

Since the Case

Disney

Over the last half-decade Disney has expanded its international theme park portfolio.

Suggesting that the Disney brand remains strong and market demand for such products is

there. In June 2016, Shanghai Disney Resort theme park, three times the size of Hong Kong

Disneyland, is scheduled to open in China. Starting construction in 2011, the project is a joint

venture between Disney and Shanghai Shendi Group, owned by the Chinese government

("Shanghai Disney Resort", 2016). By having this stakeholder on board, even greater

relevance to target markets can be expected through local knowledge and expertise.

Hong Kong Disneyland has also expanded, three times, demonstrating the success of the park.

Every year, from 2011 to 2013, a newly themed land was added to the park ("Hong Kong

Disneyland's" ,2013).

Dubai

The city of 2.5 million inhabitants attracted over ten times this amount,13.2 million, in

visitors in 2014 (Townsend, 2015), demonstrating it as a growing tourism destination. In fact,

Dubai experiences tourism growth rates of 8.2%, almost double the global average of 4.7%,

and targets 20 million visitors by the year 2020 (Townsend, 2015). Key emerging economies

like China, Brazil and Nigeria saw double-digit tourist growth and entry-visa regulations to

the UAE were recently relaxed for 13 European Union states (Townsend, 2015). A strategy to

target tourism as a key revenue source for Dubai is identifiable and suggests that there is a

door wide open for Disney. Enticingly, the chief executive of the Department of Tourism and

Commerce Marketing identified family tourism, key for Disney, as a relatively untapped

opportunity in Dubai. The segment accounts for 12.5% of travel and its $1.7 trillion value is

expected to develop 5% up to 2020 (Townsend, 2015).

In addition to these conditions, senior figures in Dubai have named Disney as an opportunity,

particularly after the Expo 2020 (Gerbich, 2015). Issam Ezzedine, principal design architect

at the National Engineering Bureau, said in no uncertain terms “If you’re going to have all

these extra hotel rooms and do not build new leisure facilities … those hotels will be isolated.

Why don’t we think of Disneyland in Dubai? Dubai is a strong worldwide destination now …

Disneyland is one of those developments … maybe this is something we need to be

considering. Once 2020 is over, we have an opportunity” (Gerbich, 2015).


! 5!

Deeper analysis of the business environment in Dubai is presented later, under the section

titled “Course of Action”. Nevertheless, the apparent open ecosystem in the region seems to

invite Disney to build a theme park. Discussion of the cultural and environmental

considerations in setting up a park in Dubai starts the next page under “Course of Action”.

Issue Identification PESTLE Analysis of Case

Discussion In analysing the studied case, there are various global marketing theories present. When

entering a new international market, as Disney are about to do in Dubai, understanding what

cultural differences there are, the extent these differences affect consumption and what

changes to the marketing mix are required are crucial to success.

The first step is in determining the typical profile of a customer, done through market

research. Which designates the process of systematically gathering project-specific data on a

global basis. A challenge is that this introduces unique biases within each location data was

collected. Comparing this data with markets previously penetrated, marketers can identify

cultural differences. In the case, Disney failed to appreciate the differences between the USA

and France, leading to disaster. Mistakes in market research are easy to make and require

additional evaluation of the following: The need for research, adequacy of research and the

precision of research.

Political Economic Socio-cultural Technological Legal Environmental

Collaboration with local governments

Rapidly growing Chinese market

Most Chinese do not grow up with

Disney

Subway access to park Heavy water

usage

Good fortune

French affinity for their culture that Disney did

not expect

Travel of international visitors

Incense burning

Chinese superstitions/ link between

humanity and the earth

Hi-tech Hong Kong

Engaging local

community leaders

Ability to modify/create

new structures in park to suit

cultural preferences

Communication (staff, customers, management)

Incorporate elements of Fire,

Earth, Metal, Water and Wood


! 6!

Secondly, an important consideration is how sensitive the host country is to their

environment. This determines the extent of adaption required for the market. Comprehension

of this is key as these trends permeate the entire society, independent of demographics, and

influence its consumption and purchasing. The French were generally unaccepting of

American culture in Euro Disneyland, but what was critical was food. It is the single most

culturally-sensitive category of consumer goods. The Americans have failed in diffusing

Starbucks coffee and Dr. Pepper soft drink into Australia. Coffee culture in Australia had

developed into sophistication and did not accept the American imposition, similar to how

American cuisine was rejected in Paris.

Finally, Disney has to evaluate which elements should be adapted and why. This decision

permeates the entire marketing mix (4Ps). In Paris, Disney’s choice to standardise was

catastrophic and Hong Kong demonstrates how creating the optimum environment for

customers is key. Disney went to great lengths to accommodate Chinese culture effectively. A

key focus was integrating feng shui into the park’s architecture as it had an observable effect

on the Chinese hospitality industry. Contemplation of the adaption vs standardisation question

was present from the start as a feng shui geomancer was consulted on the parks design before

construction. This has resulted in an adapted park. Architectural implications in buildings and

paths, numerology present throughout the park and opening Hong Kong Disneyland at a

precise time all aid in the community’s acceptance of the park.

Course of Action

Considerations Entering a new international market is a critical management decision for the myriad of

concerns present. A critical strategy is how the consumers adopt the new product. The UAE

possesses a couple of cultural characteristics that can effect how well a Disney park is

adopted. The most relevant to product diffusion is the high level of collectivism present in the

society, using Hofstede’s Cultural Dimensions framework. Loyalty overpowers most societal

rules suggesting that targeting community leaders as innovators can influence larger portions

of society to trial Disney’s product. Association with Sheikh Khalifa as an innovator and

prime proponent of the project is suggested. Power distance is very high at 90 ("United Arab

Emirates", 2016) also suggesting that community leaders will be listened to. This could ease

satisfaction of the mental process of adoption as there is a societal pull to agree with Disney’s

targeted innovators.


! 7!

Another equally important marketing strategy must be defined before entering new markets,

the level of investment in the new market. Contingent on Disney’s vision, attitudes towards

risk, available investment capital and desired level of control there are five strategies

available. In the situation of Disney building a new park in Dubai, a joint venture between

Disney and local, perhaps government owned, companies would be prudent. Franchising or

licensing may provide the market with a better culturally tailored product, but the investment

Disney has made into their brand and the control they would lose make this unfeasible.

Instead they would build on each other’s strengths and provide Disney the opportunity to

learn the market. The collaborative aspect of this arrangement is what would allow Disney to

tailor their marketing mix. It is critical in Dubai as uncertainty avoidance is high in the UAE ("United Arab Emirates", 2016). Collectively, Emiratis stick to a rigid set of beliefs and are

intolerant of unconventional behaviour. This implies that Disney are walking on a cultural

tight-rope as activity that does not conform to the set of beliefs will be harshly rejected. The

repercussions in terms of time, money and brand image are not desired. Therefore, the

collaboration should analyse every aspect of the marketing mix. Disney has the capacity for

the workload that comes with a joint venture as they currently operate so in Shanghai Disney

Resort. Due to part of the Disney theme park experience being service quality of staff, like

characters and wait time for rides, the additional Ps of people and process, have been included

in the culture focused implementation plan.

- This report continues on the subsequent page -


! 8!

Implementation Plan Product Price

•! Greater attractions for the Disney characters/stories best received o! Possible example: Aladdin

•! Culturally appropriate costumes for staff and visual depictions of female Disney characters

o! A contentious aspect of Western culture, disrespect of local culture here would receive huge backlash

•! Food and beverage products adhere to religious codes; no pork on premises o! Most sensitive element of culture; risk reduction

•! Market Skimming - charge premium price o! Introduce product; brand recognition; target trend setting portion of

society •! Geocentric

o! Much collaboration with local organisations already taking place; helps tailor price to market

Place Promotion •! Collaboration with local government to secure best location

o! Local expertise to better secure a deal •! All communications (maps, safety requirement signs, announcements) at the

park to be in English and Arabic o! Greater relevance to locals and visitors from within the region

•! Collaboration with local marketing/advertising agencies o! Ensures the correct message is communicated in the right manner

•! Culturally appropriate visual depictions o! Key in making the perception of the park as locally tailored or a

more colonial imposition •! Priority on print and electronic

o! Metropolitan and technologically advanced •! Aware of restrictions on media

o! Blocked searches/websites, religious laws People Process

•! Culturally appropriate staff positions for genders o! Dynamics between males and females is critical in this culture and

customers may feel uncomfortable/insulted if not observed •! Culturally appropriate profile of staff members for specific duties

o! Service industry typically staffed with Southeast Asians, seeing an Arab in such a role may be off-putting

•! Local management o! Key for customers culturally- dispute handling

•! Only male staff members to come in close proximity/contact with customers (Greetings, transactions, support staff members)

o! Physical contact/support may not be welcome from females •! Always have at least one male and one female medical staff on premises

o! Affects available treatment options


! 9!

Follow-up Problems A possible mismatch between Disney’s brand and the cultural values of the UAE. In the

West, Disney has the connotation of princesses. They are extensively featured as characters in

their films as well as at their theme parks. There is also a social movement in the West for

women empowerment, in all regards like clothing and freedom of expression. Implementing

this franchise in the UAE would have major adaptations. Disney cartoons are already

censored or modified in the country and the park should follow suit. Review of all

promotional material would be necessary and aspects of the park like staff and depictions of

characters would also be open for criticism. With the high uncertainty avoidance present,

contention with beliefs should be avoided at all cost. Disney could “sanitise” everything for

this particular market, but what would the reaction back home in the USA be? Disney could

be seen as selling their values for cash from an untrustworthy source, particularly for the

people not properly educated on the Middle East. Destroying lifetimes of work and a cash

cow to enter one new market does not make sense.

The cultural factors, particularly social, that interplay between Disney, Americans and

Emiratis are what will dictate this project’s success and that of the greater Walt Disney

Company. Disney must aspire to be aware of all implications at all times and evaluate their

cultural relevance. While that may never happen, collaboration with all stakeholders is a

requirement for the aspiration to come true. This Disney can do. What should result is a

holistic approach to the marketing mix that should be most relevant to prioritised stakeholders

while maintaining a positive perception to subsequent stakeholders.


! 10!

Bibliography “Disney Live! Mickey Music Festival‚Äô comes to Dubai. (2016). GulfNews.

Retrieved 11 June 2016, from http://gulfnews.com/leisure/events/disney-live-

mickey-s-music-festival-comes-to-dubai-1.1663608

Brannen, M. (2004). When Mickey Loses Face: Recontextualization, Semantic Fit,

and the Semiotics of Foreignness. The Academy Of Management Review, 29(4),

593. http://dx.doi.org/10.2307/20159073

Gerbich, C. (2015). Dubai needs Disneyland says top city architect. Arabian

Business. Retrieved 11 June 2016, from http://www.arabianbusiness.com/dubai-

needs-disneyland-says-top-city-architect-585244.html

Global Connections - The Middle East. (2002). Pbs.org. Retrieved 12 June 2016,

from

http://www.pbs.org/wgbh/globalconnections/mideast/themes/culture/#globalized

Hong Kong Disneyland's Mystic Point opens May 17. (2013). Ttgasia.com. Retrieved

11 June 2016, from http://www.ttgasia.com/article.php?article_id=20853

Kwah, J. & Cohen, J. (2008). Hong Kong Disneyland: when big business meets feng

shui, superstition and numerology (1st ed.). University of South Australia.

Shanghai Disney Resort Official Site. (2016). Shanghaidisneyresort.com. Retrieved

11 June 2016, from https://www.shanghaidisneyresort.com/en/

Townsend, S. (2015). Dubai attracts 13.2m visitors in 2014, up 8.2%. Arabian

Business. Retrieved 12 June 2016, from http://www.arabianbusiness.com/dubai-

attracts-13-2m-visitors-in-2014-up-8-2--591427.html

United Arab Emirates - Geert Hofstede. (2016). Geert-hofstede.com. Retrieved 12

June 2016, from https://geert-hofstede.com/arab-emirates.html

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