Marketing Analysis of the Walt Disney Corporation Essay

Excerpt from Essay :


Analysis of the Walt Disney Corporation

Marketing Mix

Industry Influences

Environmental Influences in Demand

The Walt Disney Corporation started out as a small animation studio in 1923. Originally named Disney Brothers Cartoon Studio, after the founders Roy and Walt Disney, the firm grew and diversified, moving first into live actions films and diversifying with different leisure and entertainment interests either developed internally or acquired (Disney, 2013). A great deal of the firms success sis based in the way in which the firm has been able to market itself and satisfy customer needs. The firm adopted the current name in 1986, reflecting the vast nature of their interests, and the way in which they were continuing to grow. To appreciate the strength and adaptability of this firm the way in which the firm competes and is able to respond to differing environmental pressures may be examined.


Marketing Mix

The marketing mix refers to the 4 P's; product, price, placement and promotion (Kotler and Keller, 2011). The Disney marketing mix reflects the high level of related diversification and its' strong market position.

The first P. is product; this is highly diversified, with different products that are related meeting the needs of different markets, and multiple segments within each market. The firm itself is divided into five divisions defined by product type (Disney, 2013). The first division is media networks, which includes the different broadcasting interests such as the television and radio stations, as well as the publishing products. Television stations include the Disney/ABC Television Group, the Disney Channel which is broadcast in many countries as well as children's magazines (Disney, 2013). The second division is the parks and resorts, with the firm owning or having interests in 11 theme parks across 5 countries, with another resort being built in Shanghai, as well as 43 holiday resorts located in North America (Disney, 2013). The firm has developed its own time share model with the sales of Disney Vacation Club membership (Disney, 2013). The firm has also entered the cruise market, founded in 1996; the company operates 4 luxury cruise ships (Disney, 2013).

The third division is the Walt Disney Studios. This is the creative division, where the movies and television programs are made. The firm has a number of different studio's including the core Disney Animation which acquired Pixar, and is responsible for the latest release; Wreck it Ralph, other studios include Marvel Studio's, Touchstone Pictures, and DreamWorks, each producing their own style of entertainment. The firm has recently acquired Lucas Arts for $4.05 billion (Seeking Alpha, 2013), which adds to this illustrious line up.

Disney Consumer Products is the fourth division, responsible for the consumer goods which are branded with the Disney name or any of the brand names it own. This includes the Disney retail stores as well as the design, sales and licensing of Disney related merchandise (Disney, 2013). The last, and newest, of the divisions is Disney Interactive, which deals with the internet applications and interactive entertainment such as the provision of the online virtual worlds (Disney, 2013).

The second P. is price (Kotler, 2011). The price will indicate the products positioning and support the competitive advantages which is used by Disney; differentiation targeting the mass market, focusing on families. The firm has a premium pricing point for many of its products, emphasizing high quality experiences that are associated with the brand, for example the cruise line has prices above many of its competitors, including Royal Caribbean…

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Industry Influences

Within the leisure and entertainment industry there are a number of influences. Increased use of technology is transforming industry, breaking down geographical barriers and increasing the empowerment level of consumers, especially through media the use of the Internet. It is also increase the ability for companies to interact directly with consumers, even selling content directly, or marketing as well as use of social networking media to support brands (Chaffy, 2011). Consumers are expecting more, and helping to pay less, a trend that has been emphasized with the recent economic downturn.

A trend seen in many areas has been that of mergers

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