Marketing Mix of Walt Disney
Walt Disney is famous across the world for its renowned Disney toon characters and for its award winning animated movies. The brand has brought some of the most entertaining characters and movies to its audiences around the world. The company was founded by two American brothers Walt and Roy O Disney in 1923 (Wikipedia). It is a diversified global entertainment company with operations across four business segments – Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media.
Most fans know it as simply Disney. Its financial performance over the past several years has been quite impressive. From 45 Billion dollars in 2013 the brand’s revenue has increased to 55 Billion dollars in 2017. Its Net income reached 9.4 Billion dollars past year. Services comprise the larger part of the brand’s revenue accounting for more than 85% of its revenue past year. Its revenue from services was 46.8 Billion dollars whereas that from products was 8.3 billion. As a brand, Walt Disney enjoys very high level popularity and customer loyalty. This is a marketing mix of Walt Disney analysing the four P’s – Product, Place, Price and Promotion.
Walt Disney company has greatly expanded its product mix since Disney brothers founded the brand. The global entertainment company has its business divided into four operating segments. They include Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. Businesses in the media network segment include cable and broadcast television networks, television production and distribution operations, domestic television stations and radio networks and stations. The brand has also invested in other television networks. Primary cable networks operated by the company include branded ESPN, Disney and Freeform.
Broadcasting businesses of the company include a domestic broadcast network, television production and distribution operations, and eight owned domestic television stations. The Walt Disney company owns and operates the Walt Disney World Resort in Florida; the Disneyland Resort in California; Disneyland Paris; Aulani, a Disney Resort & Spa in Hawaii; the Disney Vacation Club; the Disney Cruise Line; and Adventures by Disney. The company also has effective ownership stakes in Shanghai Disneyland Resort and HongKong Disney land resort. In its studio entertainment section, the company produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. Walt Disney Pictures, Pixar, Marvel, Lucasfilm and Touchstone are the banners under which the company distributes films.
Disney is a global business, famous in nearly all corners of the world. Some of the oldest cartoon characters like Mickey Mouse and Donald Duck created by Disney helped it find a place in people’s hearts all around the world. It has already reached almost all corners of the world with its entertainment products. Disney owns a large number of properties in USA and apart from that several in other parts of the world including Japan and Hongkong. Disney is a global brand and offers its services in all corners of the globe through several channels. Internet has brought it closer to its customers. A lot of its content can be availed of easily through online channels.
Disney has mostly used an affordable pricing model to stay close to its customers. Its channels are available in several countries and most of them are available in attractive and affordable package bundles. Disney’s theme parks and resorts might be offering a slightly costlier experience. However, they are still not something that an average family will find unaffordable. In the recent years, Disney raised the prices a little at several points but not in a manner that could make customers think it was trying to burn their pockets. The pricing details related to the resorts and theme parks can be found on the Disneyland website. Based on the differentiated and unique experience these resorts offer and their popularity Disney does hold some pricing power.
Its prices have also kept rising steadily year over year since the 1980s. However, it has never tried to raise prices abruptly in a way that could annoy visitors. The company would not like to go against its founder’s vision of affordable family entertainment. As per a WSJ article, Disney has already introduced a limited version of dynamic pricing to its parks under three categories that include value, regular and peak dates. For Disneyland, the prices range between $97 and $135 whereas for Walt Disney World the prices can range between $102 and $122. Apart from these things, the brand sells consumer products like branded merchandise and interactive media including games to its customers.
Disney’s target market are families and children. It uses a multi channel strategy to market its brand. It has established itself as a fun brand for families that focuses on providing exclusive experiences full of fun. Disney offers a distinctive experience that is vastly different from the normal fun parks. Infact the biggest strength of the marketing strategy of Disneyland is its emotional connection with its audiences. Its excellent and distinct characters like Donald Duck and Mickey Mouse have always been successful at at striking and emotional bond with its audiences. Created to impress the kids, these characters ended up being a favourite of the audiences of all ages.
Pixar movies have also been equally successful at helping Disney create a special place in the hearts and minds of its audiences. Social media and Disney’s own website are also some great channels that the brand has used to relate with its audiences and to engage them. Details of its theme parks and resorts can be found on its website. One can also take a virtual tour of its theme parks from its website. Disney enjoys excellent customer loyalty which it has built with great care. Its parks are a cherished destination for its customers and it has used some great methods to retain its customers including points and prizes. The brand is also great at the art of story telling and its stories have given birth to several celebrity characters. Sales of branded merchandise is also an attractive method of marketing and bonding with the customers.
Disney has established itself as a distinct brand in the world of fun and entertainment. Apart from the great quality of products and services that mainly target kids and families, the brand has used an affordable pricing model according to the vision of its founders. the founders had envisioned a distinctive experience that was targeted at giving its customers a world far from stress and full of fun and pleasure. Their dream has come true and Disney’s performance has kept growing better and better and so has its bond with its customers. Today, it is a destination brand that enjoys very high level of customer loyalty.
Walt Disney Annual Report 2017