Introduction and company background
For more than nine decades, the name Walt Disney has been preeminent in the field of family entertainment. From humble beginnings as a cartoon studio in the 1920s to today's global corporation, The Walt Disney Company continues to proudly provide quality entertainment for every member of the family, across America and around the Disney is an American diversified multinational mass media corporation headquartered in Walt Disney Studios, Burbank, California, United States. It is the largest media conglomerate in the world in terms of revenue. Founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Walt Disney Productions established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. Taking on its current name in 1986, The Walt Disney Company expanded its existing operations and also started divisions focused upon theatre, radio, music, publishing, and online media. In addition, it has created new divisions of the company in order to market more mature content than it typically associates with its flagship family-oriented brands.
Strong and well known brand name that has a good reputable image. •
Market oriented corporation that targets entire family with different products. •
The effective use of brand extension strategy
Has first mover advantage as a pioneer company in the entertainment industry since 1923. •
Provide high quality entertainment to different consumers •
Strong positioning and high brand equity.
Increasing cost of capital as the past several years Disney has seen its cost of capital steadily increase, which reduce the range of possible investment. •
Lack of Corporate Control over Divisions
Expand into new areas to reach other uncovered consumers’ segments. •
Keep up with technological advancements in the industry to allow for more effective product development and to keep current consumers and attract new ones 2.4
Change in consumers’ interests due to the increase of product variety •
The increase of competition which is increasing with the dramatic technological changes.
Segmentation, Targeting, Positioning and Differentiation
Disney offers different products that target different consumers as they produce films, labels, theatrical performance, parks, resorts and other consumers’ products that target different consumers not only specific segment as follows: •
Geographically: Some of their products have no geographic boundaries such as films and others such as parks located in United States. •
Demographically: Target consumers age from five and above, both genders, educated and uneducated people with different income levels as there are products target low income people and also higher levels and also people from all professions •
Psycho graphically: Target consumers who have outgoing personality, love fun and entertainment whether a child, teen or parent from different social classes •
Behaviorally: For usage rate there are heavy consumers who are addicted to Disney and also medium and law usage rate specially for low income consumers the same for awareness and loyalty level. 3.2
It’s a "segmented market" using the "Differentiation strategy" (by offering different product for different segments targeting different customers). Disney for example target customers with high income with products like Resorts and Theme Parks; as targeting customers for medium and low income with toys for kids and films.
Disney positioning is “trust, fun and entertainment that resonated with children, families and adults”. This positioning comes from the company’s focus on its brand history to create consumers’ trust and the continuous use of product and market development strategies to position itself...
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