Case Report: The Walt Disney Company By: Steve Bisson, Jennifer Greer, Megan McNamara, Rye Morris

History In 1923, Walt Disney and his brother began producing cartoon sketches. It quickly took off with cartoons such as Mickey Mouse, Snow White and the Seven Dwarfs, Cinderella, among others. In 1955, The Disneyland theme park was opened. In 1966, Walt Disney passed away and his brother took over In 1971, Disney World opened in Lake Buena Vista, Florida. In 2006, acquired Pixar Animation. In 2009, acquired Marvel Entertainment. In 2012, Disney acquired the rights to the Star Wars franchise

Introduction One of the largest multimedia corporations in the world Provides a large array of family entertainment and other various forms of media 5 Categories: Media Networks Parks & Resorts Consumer Products Studio Entertainment Interactive (Online Games & Mobile Applications).

Media Networks & Parks Media Networks Disney Channel ABC ABC Family ESPN Parks & Resorts 11 Theme Parks and 47 Resorts worldwide Disneyland Walt Disney World Disney Cruise Line

Consumer Products & Studio Entertainment Consumer Products Disney Licensing Disney Publishing WorldWide Disney Store Studio Entertainment Walt Disney Studios Motion Pictures Walt Disney Animation Studios Pixar Animation Studios Disney Music Group Disney Theatrical Group Disneytoon Studios Marvel Studios Disneynature Touchstone Pictures

Interactive Interactive Disney Infinity Club Penguin Where s My Water Disney.com Babble.com

BCG Matrix

BCG Matrix Stars: Media networks: ABC, ESPN, Disney Channel Studio Entertainment: Marvel, Pixar, Touchstone, Walt Disney Studios Cash Cows: Amusement Parks: Disneyland, Walt Disney World Consumer Products: Mickey Mouse, Cinderella Question Marks: Individual Movie: Star Wars Dogs: Interactive Media: computer games

Marketing Strategy Market Penetration: Marvel continues to make superhero movies that attract similar crowds Market Development: Introduction of ESPN channels such as ESPN Deportes Product Development: New Television shows on Disney Channel Diversification: Building Amusement parks around the world

Segmentation, Targeting, Positioning,

Targeting and Segmentation Main Target Families with young children Mainly uses demographics to segment market Commercials are shown on children s television networks For adults: Use commercials showing their Resort s upscale hotels and food Demographics focus on aspects such as age, life cycle, gender, etc. For children: Use commercials with happy children and iconic characters Young children who ask their parents to use Disney s various services Parents who want a low cost yet memorable vacation Also normally have a sales promotion going on Positions company as a family entertainment brand

Targeting Strategy Differentiated marketing strategy Disney covers a vast number of markets but break it down to target each segment Main Segment: young children Target young children through movie characters, Such as, Disney Princesses or Mickey Mouse Break it down even further to gender and age ranges Televisions shows/movies for middle schoolers and different ones for elementary school children

SWOT Analysis

Strengths Disney s success in multiple entertainment segments is one of its major strengths. With amusement parks, TV broadcasting channels, and merchandise, Disney attracts a wide range of consumers. Ability to expand into foreign markets is also a great strength. Walt Disney World attracts families and children, broadcast channels such as ABC and ESPN owned by Disney attract sports fans and and older segment, merchandise attracts children recent expansion in Hong Kong proving to be a great benefit to the company Purchases other well known companies to expand market share and increase profits. Purchase of Pixar, LucasFilms, and many others prove to be extremely beneficial

Weaknesses Limited ability to expand products in the markets they are already successful in. Due to the great focus on families and children, Disney loses out on the ability to attract college aged consumers. Price is also a weakness for Disney high price of tickets and hotel reservations may cause price cautious consumers to look somewhere else for their family vacations In the entertainment industry, a weakness Disney has is the large risk they take with the production of new movies huge investment goes into the production of these movies, and they may not be successfull in theatres.

Opportunities and Threats A great opportunity for Disney would be to continue to expand their current amusement parks to attract a wider range or consumers Continue to expand their brand globally Increase online entertainment options more thrill seeking rides, continue to add attractions that relate to recent movies children are spending more time online, will continue to be familiar with the Disney brand Threats include the competition of nearby amusement parks, as well as competition in the entertainment industry Six Flags, Universal, Fox, etc

Strengths Weaknesses Television targeted at key segments Films overseas success Successful acquisitions Opportunities Expanding their parks Expanding to new markets Limited opportunities for expansion within the current market high prices for tickets/merchandise risks of new entertainment Threats New park nearby Entertainment industry-threat from competitors (FOX, nickelodeon)

Marketing Mix: Product, Price, Promotion, Distribution

Product Strategies Disney owns most kinds of common entertainment Media Networks, Consumer products, Amusement Parks/Resorts, Product lines include: Walt Disney Studios, Walt Disney Parks and Resorts, and Disney Consumer Products and Media Networks Walt Disney Studios: Lucasfilm, Marvel, Animation, Pixar Disney Resorts: DisneyLand, Walt Disney World Disney Consumer Products and Media Networks: Merchandise, Disney Interactive and television channels (ABC, ESPN)

Product Strategies Three levels of product: core, actual, and augmented Core: Aspects customer s seeking from product. Most important for Disney because they mostly provide entertainment Actual: The physical product For Disney it is their movies, television shows, resorts, and merchandise The vessels through which Disney provides entertainment Augmented: Services that come with a product For Disney: Consumer service in their resorts

Product Strategies Most products Disney owns are in the mature phase of the Product Life Cycle Assets such as Disney Parks, their television networks, and Disney characters do not need much promotion New Product Development Strategy: Product Line Extension Use existing products and gain a new market like a new ride Brand Development: Line Extension Release new product under an already established brand to gain new market

Pricing Strategies Disney practices competition-based pricing Price increases allow them to better price segment their customer base Target price-sensitive market with bundle deals After nearby Universal Studios announced price hikes they announce theirs Looks like responding to market pressures, not being greedy ex: Stay two nights get the third free Price increases also enables Disney to price skim additional profits from customers willing to pay full price

Promotion Strategies Disney mostly uses advertising and sales promotions Use advertising for promoting their television networks/shows and films Commonly seen with Pixar or Marvel films, and Disney Channel or ESPN for example. Disney uses sales promotions for Disney Resorts and Cruises Vacations are expensive and people would be more drawn to a Disney Vacation if they thought they are getting a deal

Promotional Strategies

Distribution Strategies Both direct and indirect channels of marketing Direct channels to distribute their park tickets and hotel reservations this allows Disney to control the pricing of their products Indirect channels are used to distribute merchandise Disney sells their toys, merchandise, and entertainment to stores such as Target, Walmart and many others, This allows consumers to buy Disney products even when not visiting the park, constantly providing the company with a profit.

Distribution Strategies Continued Disney owns a vast majority of the channel levels that they deal with, which leads to very little channel conflict Constantly forming joint partnerships to provide their product to even more consumers Exclusive Distribution Strategy used for park tickets and hotel reservations Intensive Distribution Strategy Teaming up with Hulu to stream their hit shows BesTV to improve entertainment options in China mass producing apparel and toys, and distributing them around the world Selective Distribution Strategy Disney decides what stores to sell their products in, focusing on department stores that cater to children and families.

Suggestions for Disney Expand current amusement parks in order to attract a wider range of consumers Increase interactive advertisements on social media Adding more thrill seeking rides, as well as attractions that are related to new and popular movies, such as Frozen sponsored pictures on Instagram, use of hashtags on twitter, this will increase Disney's marketing that will reach the teenager age bracket. On their broadcasting channels, increasing the airing of shows that were popular to college aged consumers Lizzie McGuire, Hannah Montana, That s So Raven Airing these shows at late night times when teeneagers are more likely to be looking for something to watch.

References Company Overview The Walt Disney Company." Company Overview The Walt Disney Company. N. p., n.d. Web. 03 Dec. 2015. "Disney Theme Park Tickets." Disney. Disney, n.d. Web. 3 Dec. 2015. "Value Line - The Most Trusted Name in Investment Research." Value Line - The Most Trusted Name in Investment Research. N.p., n.d. Web. 01 Dec. 2015. N.d. Web. 1 Dec. 2015. <http://www.orlandodiscountticketsusa. com/images/disney_world_orlando_promotion_.jpg>. Walt Disney Company. Walt Disney Company. N.p.,n.d. Web. 06 Dec. 2015.