Running Head: Individual Assignment The Disney Dream Team 1

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1 Running Head: Individual Assignment The Disney Dream Team 1 A Historical Company - Disney Heather McAlister Feb 23 rd, 2016 MKTG Instructor: M. Gade

2 Running Head: Individual Assignment The Disney Dream Team 2 Table of Contents Executive Statement Business Mission External Environment Internal Environment Goal Formulation Strategy Formulation Metrics Competitive Advantage Overall Consumer Value Proposition Product Management Market Position Strategy Customer Profile Works Cited

3 Running Head: Individual Assignment The Disney Dream Team 3 EXECUTIVE STATEMENT: This supplemental strategy will focus on the large sub- division of Walt Disney, The Walt Disney Parks and Resorts, and will consider both domestic and international parks and resorts. It is clearer- than- day that the Walt Disney brand name has a significant spot in the minds of the millions of believers, worldwide; which all seem to stand behind the wondrous logic of magic and whimsy. BUSINESS MISSION: The official mission statement of Walt Disney Parks and Resorts, available on their public website home page, is: Walt Disney Parks and Resorts is one of the world s leading providers of family travel and leisure experiences, giving millions of guests each year the chance to spend time with their families and friends, making memories that last a lifetime. This mission statement is very accurate to the alignment of recent actions, and goals set for the company; having recently opened three international locations in East Asia 5, and providing a magical park for guests to visit year round, 365 days a year, yes that means Christmas at Disney World. EXTERNAL ENVIRONMENTAL (OPPORTUNITY AND THREATS): Monitoring the key macro environment, and other significant micro environment forces will allow the Walt Disney company to better manage its many assets and services to provide the greatest value to their target markets. The global market is fertile with untouched developing markets, it is clear Walt Disney has already taken advantage of this, with their new park opening in Shanghai, China (a market with increasing spending power). There are many similar frontiers yet to be explored, such as the continent of South America, and Africa, which currently host no Walt

4 Running Head: Individual Assignment The Disney Dream Team 4 Disney, branded parks/resorts, or retail locations. The greatest competition in the industry of parks and resorts is the Universal Studios theme parks in Orlando, which was founded 10 in 1924, and extending the theme park line in The Walt Disney Parks and Resorts have likely been a thorn in the side of Universal Studios for the past nearly hundred years, and this heated competition can be observed in the multiple parallel Universal Studios theme parks existing today, in constant competition with the Walt Disney Parks and Resorts. These two major providers of family- friendly entertainment have been battling it out since day- one, and it seems they will continue wrestling over market share, and customer loyalties. INTERNAL ENVIRONMENT (STRENGTHS AND WEAKNESSES): Standing outside of the magical castle, representative of the Walt Disney world, one cannot resist, but become overwhelmed by the joyful memories of childhood stories featuring princes and princesses, singing birds, and wild fairytales. These fond memories are what have given the Walt Disney brand its immense and increasing strength, through the past hundred years of story- telling. The characters can not be imitated, the stories will never be stolen; the Walt Disney brand is its most powerful asset. On the other hand, constantly living in a world of fantasy has its downfalls, and leaves the company open to extreme criticisms of many unrealistic ideals created by the animators behind their desks late at night. The invention of the connected Internet, and progression of social media, has also left the company defenseless against penniless criticisms backed by no hard data.

5 Running Head: Individual Assignment The Disney Dream Team 5 GOAL FORMULATION: The Walt Disney Company was started nearly a century ago 1, by an American entrepreneur/animator by the name of Walt Disney. The intentions of Mr. Disney to create the giant company that Walt Disney has become today would likely not be predicted, even by himself. The reach of companies due to globalization is further and further, with less and less effort; this can lend itself immensely to allow the Walt Disney Parks and Resorts to penetrate into untouched, and emerging consumer markets. Such as East Asia, which already has three newly opened parks. Yet, there is still uncharted territory, ready to be claimed by the most- loved brand in the world. Bringing the magic to new territories allows Walt Disney the opportunity for total occupation in the minds of global consumers. Their most loved cartoons will always be a Disney character, and for a child s birthday, he/she will ask to visit the Disney Park to make all their dreams come true. STRATEGY FORMULATION: In order to achieve these goals, Walt Disney Parks and Resorts should seek to increase their research and development efforts into opening new parks in new emerging consumer markets. Generally, these are located in developing, rather than developed, countries. A strategic plan to reach these markets will increase the Walt Disney market significantly, it is a new lucrative market not to be ignored or overlooked. By doing further research and development into the new targeted emerging consumer markets, which consist of people residing in countries mostly within the continents of South America, Africa, and Asia. It is crucial to properly handle attempts at gaining share in international markets; the approach taken can

6 Running Head: Individual Assignment The Disney Dream Team 6 make or break a new product line launch. Considering a new Walt Disney park and resort, managers at the company must consider the viable land available needed for such a massive park, the cultural values held by the inhabitants of the country, and probable language barriers and problematic differences. The Walt Disney brand is thoroughly packed into American culture, but it is clear there is unchartered space in the market, yet to be claimed. METRICS: As far as the short- term results, Walt Disney may keep track on their customer feedback/opinion of their suggested strategic product line extensions, via social media, and Internet feedback surveys. Continuing along the ideas of keeping feedback data via social media and Internet resources, in the future after these strategies may have been implemented in the chosen countries abroad, Walt Disney may again request people in the population to give their thoughts on the Walt Disney brand name. Competitive advantage (or Disadvantage): A strong competitive advantage is in the hands of the Walt Disney marketing managers. Considering the company is nearly a century old, having been founded 2 in 1925, the brand has had nearly a century to build their brand equity in the minds of their loyal consumers. However, at times the company has been surrounded with much controversy considering the power of social media, negative talk spreads quickly about things as miniscule as a crude joke in the latest Disney princess movie. Over the many years, the Walt Disney brand has suffered slight- damage to their

7 Running Head: Individual Assignment The Disney Dream Team 7 name, yet have always managed to recuperate, sticking strongly to the hearts of many utterly loyal Disney- fanatic families. Overall Consumer Value Proposition: The Walt Disney Parks and Resorts work to offer consumers an incredibly fantasy driven, and whimsical experience. Disney movie characters, such as Cinderella, or Prince Charming and Snow White walk through the park, greeting each guest. The actors and actresses are incredibly talented and are stunningly accurate to their intended characters. This through hiring process by Disney lends itself to the true magic behind the doors of the Disneyland Resorts. Worldwide, there are seven 5 Disney resort locations, California, Florida, Hawaii, France, Shanghai, Tokyo, and Hong Kong. Each of these locations offers an incredibly valuable and unforgettable experience to each man, woman, and child who walks through its gates. Product Management, Lifecycle, and Portfolio Management: It is interesting to note that there are only seven worldwide locations for the Walt Disney Parks and Resorts, since its founding in, yet this seems rather appropriate. As means to comparison, a popular amusement park Six Flags, founded 8 in 1989, already has 18 locations 8 across North America. Entrance price to any Six Flags location is less costly than entrance into the magical gates of Walt Disney World. This comparison demonstrates the value of the Walt Disney brand in its ability to command a higher price point, and keep their park experience offerings exclusive and in remote locations of the world. Such exclusivity motivates consumers to greatly desire the Walt Disney Parks and Resort experience. However, a less thrilling, yet satisfying experience for all Disney- fanatics can be obtained by

8 Running Head: Individual Assignment The Disney Dream Team 8 shopping at the physical Disney store retail location, or online with 200 locations 9 in North America, 80 in Europe 9, and 40 in Japan 9. This retail presence ensures the Walt Disney brand is not forgotten by consumers, or even cheapened by knock- off attempts at the Disney merchandise. Market Position Strategy/Pricing Strategy: The Walt Disney Company started out as an American media company, but over the many years, it has morphed into a giant conglomerate of fantasy- focused stories and characters. This recognizable tangle of fairytales has allowed Disney to paint its brand across the merchandise all over America, and international markets soon followed. With the advent of the Internet, globalizing markets have made it simple for companies to reach international markets, with proper strategy and tactics; these efforts can yield incredible results. Customer Profile/Communication Strategy: It is clear that The Walt Disney Company automatically attracts the attention of young children, with their parents soon following. It could be argued that the devoted customer evolves in the early stages of childhood when one is first introduced to the animated mysticism of Walt Disney stories. The Walt Disney Parks and Resorts do not wish to exclude any Disney fanatic, although the going price for a day in one of the parks can reach 6 $ per day. This pricing strategy attempts to keep the asking rate reasonable, while ensuring the quality, and value inside the parks will make the cost seem unimportant in exchange for the experience received. Walt Disney Parks and Resorts, having been founded in 1964 has managed to build a buzzing community of men, women, and children, around the whimsical venue.

9 Running Head: Individual Assignment The Disney Dream Team 9 Works Cited 1. Keller, Kotler (2012). A Framework for Marketing Management. Upper Saddle River, NJ: Pearson Education, Inc.. 2. Hoovers (2016). Walt Disney Parks and Resorts Inc. Retrieved from Smith, Jaquelyn (2013). Americas Most Reputable Companies. Retrieved from most- reputable- companies- 2/#65b79b5f White, William (Feb. 22, 2016). Disney Star Wars Land: A First Look at the Theme Park Plans. Retrieved from star- wars- land- dis/#.vsx6qjmrire 5. Walt Disney Parks and Resorts (2016). Destinations Around the World. Retrieved from the- world 6. Black, Sally (March 8, 2013). How Much Does a Disney World Vacation Cost?. Retrieved from with- kids/bid/273282/how- Much- Does- A- Disney- World- Vacation- Cost 7. Hoover (2016). Amusement Parks & Arcades. Retrieved from Hoover (2016). Six Flags Entertainment Corp.. Retrieved from

10 Running Head: Individual Assignment The Disney Dream Team Disney Consumer Products (2015). About Us. Retrieved from cp_home_ourbusinesses_company_overview_us 10. Hoover (2016). Universal Studios Inc.. Retrieved from

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