Walt Disney Marketing Strategy – Marketing Strategy of Walt Disney: Walt Disney and Roy O. Disney founded the multinational entertainment and mass media company in 1923. This American multinational is the market leader in America’s entertainment industry, offering diverse services like television, live-action film production, and theme parks.
It currently operates in four business segments: Media Networks; Consumer Products Interactive Media; Studio Entertainment; and Parks and Resorts. These segments generate incomes of $7.75 billion, Parks and Resorts $ 3.29 bn, Studio Entertainment $0.2.70 bn, and Consumer Products & Interactive Media $1.97 bn.
Walt Disney At A Glance – Marketing Strategy of Walt Disney
Company : The Walt Disney Company
CEO: Bob Chapek
Founder: Walt Disney
Year founded: October 16, 1923, Los Angeles, CA
Headquarters: Burbank, CA
Annual Revenue: US$67.418 billion
Profit | Net income: US$1.995 billion
Number of employees : 223,000
Products & Services: Amusement parks, Films, Music, Video games, Web portals — Disney’s global consumer products operations include the world’s leading licensing business across toys, apparel, home goods, digital games and apps; the world’s largest children’s print publisher; Disney store locations around the world; and the shopDisney e-commerce platform.
Walt Disney Competitors
Competitors: Comcast | Time Warner | Fox | CBS Corp. | Discovery Communications | Max Fleischer | ViacomCBS (VIAC) | Charter Communications (CHTR) | Sony (SNE) | Comcast (CMCSA)
Walt Disney Fun Facts: Many people mistakenly believe that Mickey Mouse was the first original character that was created by Walt Disney as it is for this character which he is usually associated and best-known. However, the actual first original character he created was a rabbit called Oswald the Lucky Rabbit. This character appeared in a series of silent cartoons until 1928 when Walt Disney lost the contract with the distributor due to a legal loophole. It was then that Walt Disney created Mortimer Mouse. His wife disliked the name he had chosen for the character, so it was renamed Mickey Mouse. This character is now the most famous of all the Disney characters and the one that the most visitors want to meet during a trip to the theme parks and resorts. In 2006, The Walt Disney Company bought back the rights for Oswald the Lucky Rabbit from NBC Universal in a deal that included both the intellectual property to the character and all 26 of the cartoons that were created by Walt Disney.
Marketing Strategy of Walt Disney
Walt Disney’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Walt Disney? Let us discuss.
Segmentation, Targeting, Positioning – Walt Disney Marketing Strategy
Segmentation allows for the identification of the target groups. The market is then divided into subgroups with similar characteristics and Demand patterns. The Walt Disney Company is a leader in its industry and uses a mixture of demographic and psychographic segmentation strategies.
Children are the main target segment of the Walt Disney Group. They are specifically targeted with their merchandise, animated cartoons, and theme parks. Disney has had such an impact on our lives that even adults are their target segment.
The company offers services that are tailored to different customer groups. It uses a differentiated targeting strategy in order to meet the needs of each customer segment. Differentiation can be made possible by the creativity it uses in its creations.
It is the second-largest media conglomerate, with a high brand valuation. This gives it a high share and shares in the wallet. It employs a value-based positioning strategy.
Walt Disney Mission Statement
“ To be one of the world’s leading producers and providers of entertainment. Using the portfolio of brands and different businesses to differentiate the content, services, and consumer products, it seeks to develop the most creative, innovative, and profitable entertainment experiences in the world”
Walt Disney Vision Statement
“To generate best creative content possible; foster innovation, utilize the latest technology; and expand into new markets around the world”
Walt Disney Tagline
“The Most Magical Place on Earth”
Competitive Advantage – Walt Disney Marketing Strategy
Broad Product Portfolio:
The company offers a variety of services including television ( ESPN, 100+ Disney Channels, Freeform Networks) and radio stations, Cable networks, broadcasting, video-on-demand, theme parks, hotels, and resorts as well as studio entertainment services.
Walt Disney cartoons and movies have a huge distribution and are very well-received in the movies that they make. This worldwide acceptance and distribution is a major advantage for Walt Disney Company.
The cult-like status of the cartoon characters Mickey Mouse, Donald Duck, Winnie, and countless others has been created by their popularity. Its T.V channels, animated movies, and theme parks have made it a magical experience and have generated strong brand associations.
Walt Disney’s assets are not easily defined on paper. They have won the hearts of both children and adults around the globe. These creations include Goofy, Donald Duck, Ariel, and Aladdin, among many others. These creations are extremely competitive, and very few media companies have been capable of replicating a small part of their success.
BCG Matrix – Walt Disney Marketing Strategy
The company is primarily involved in four Strategic Business Units ( SBs), namely Media Networks and Consumer Products & Interactive Media. Studio Entertainment and Parks and Resorts are also included.
The company has been able to surpass its competitors in each business line, which has allowed it to become a leader in the industry, second only to Comcast. The BCG matrix is a shining example of the SBUs. All of them have a high market share, but they all operate in highly competitive markets. Universal Studios are now challenging Disney’s theme parks.
Distribution Strategy – Walt Disney Marketing Strategy
The company has been able to create a platform that allows for optimal utilization of resources from other businesses by working collaboratively with suppliers across all lines of business.
Brand equity – Walt Disney Marketing Strategy
Based on market capitalization, the 8 most valuable brands in the world have been valued at $169.3 billion (As per Forbes magazine May 2016). According to Forbes magazine, Walt Disney is ranked 71 on the global list of Top 2000 Companies. However, it is ranked 2 in the World’s Most Reputable Companies after Rolex.
Competitive Analysis – Walt Disney Marketing Strategy
Walt Disney competes against companies in one or several segments. The Media Networks segment is a competitor for viewers of TV and cable networks as well as online video services. It competes against companies in the meta market segments to broadcast advertisements via media such as radio, television, electronic media, newspapers and magazines, billboards, hoardings, and billboards. Revenue is affected by seasonality changes in the industry where they operate.
It competes against companies such as Comcast, Time Warner Inc., Twenty-First Century Fox Inc., CBS, and Viacom Insect.
Market Analysis – Walt Disney Marketing Strategy
Many factors influence the market where a company operates, including rising per capita income, increasing disposable income, and migration of communities. Digital disruption, growth of emerging markets, government regulations, and an increase of instances of unethical hacking on the internet are some of the many factors that affect the market.
Customer Analysis – Walt Disney Marketing Strategy
Walt Disney Company customers come from all age groups, as they offer a wide range of entertainment services.
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