The Disney Company Marketing Plan
Running Head: THE DISNEY COMPANY MARKETING PLAN
The Disney Company Marketing Plan
Shanna Baumgarten, Erin Clark, and Becca Crossen
Marketing,BUSA 308
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The Disney Company Marketing Plan
I
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Company Description
According to the Disney website, The Walt Disney Company was founded in 1923 and
has remained faithful to their everlasting focus on entertainment thru experiences based on
creativity and memorable storytelling. The founder, Walter Elias Disney, provided success
from his powerful and innovated spirit, from which his company and the entertainment
market, targeting every family member across America, has grown to be a vital competitor
in the Broadcasting & Entertainment industry.
Over the past 94 years, Disney has grown to have operations in four segments (1) Studio
Entertainment, (2) Parks and Resorts, (3) Consumer Products, and (4) Media Networks.
The beginning of this legendary organization began in the summer of 1923, in California,
with the brother partners, Walter and Roy, creating a short film entitled “Alice’s
Wonderland.” These movies prospered for the first four years under the company, Walt
Disney Studio. The next major cartoon series that Walt designed was stolen by his
distributor, who saw a profit in allowing less experienced cartoonists create this animation
rather than Walt Disney. This event enabled Walt to understand the value of his work, and
from then on, he has owned all of his creations.
II
Business Mission
The Walt Disney Company has maintained a strong commitment to using quality and
creative content in all aspects of its entertainment experiences and storytelling productions.
The four sections, Studio Entertainment, Parks and Resorts, Consumer Products, and Media
Networks each focus on operating in a manner to maximize exposure and experience longterm, worldwide growth (http://www.disney.go.com).
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Disney considers the Studio Entertainment unit the “foundation on which The Walt
Disney Company was built.” A key focus of Studio Entertainment is continuing to create
animated features and live-action motion pictures that maintain a high quality standard and
providing entertainment for the whole family (http://www.disney.go.com).
The theme parks, cruises, vacation programs, educational programs, and guided tours
promise a unique experience with Disney cast members ensuring the encounter will long be
remembered. The goal of “making dreams come true every day” is a key element in the
global growth strategy (http://www.disney.go.com).
The Consumer Products segment has grown to include: apparel, toys, home décor,
books, interactive games, foods and beverages, electronics, office décor, and fine art, just to
name a few. All of the products are Disney brand merchandise and uphold the Disney high
standard of quality (http://www.disney.go.com).
The Disney Media Network segment includes broadcast, cable, radio, publishing, mobile
and internet businesses, among others (http://www.disney.go.com). This section of Disney
focuses on ensuring quality content, updated platforms, and the ability to change to meet
consumer demands in a timely manner (http://www.disney.go.com).
Apart from the Walt Disney Company segments, a key focus of Disney is the
Environmentality program. This program is a “fundamental ethic that blends business
growth with the conservation of natural resources” (http://www.disney.go.com). As a part
of long-term, sustainable growth and cost savings, Disney gives attention to the
environment which in turn drives new business initiatives. Efforts in this program go
beyond that of just compliance with regulations and environmental law, Disney purchases
recycled products and practices waste minimization and resource conservation. Disney
The Disney Company Marketing Plan
also commits their resources for research and development on behalf of environmental
awareness, involves themselves in community activities, and provides and educates
regarding the environment to help ensure success of the program
(http://www.disney.go.com).
III
Marketing Objective
In 2005, the CEO, Robert A. Iger, identified three strategic priorities for Disney. The
priorities from the 2005 and 2006 annual reports are translated into the following Disney
marketing objectives:
Objective One: To foster an environment of creative innovation in all aspects of the
business. In order to accomplish this marketing objective, Disney must continually
research everything concerning consumer spending and habits by doing some of their
own research and investigate research from other sources. Disney currently has
employees spread all throughout the world watching and analyzing consumer trends
(http://dcpcareers.disney.go.com/dcpcareers/business).
Objective Two: Obtain global expansion by growing the business, particularly
internationally, in the growing markets of China and India, while ensuring long-term,
sustainable growth. To accomplish this marketing objective, Disney must continue to
reach out to countries with entertainment packages customized for the local country.
Many departments of Disney have branched out of the United States. Disney has
placed parks in several different counties, along with having Disney Publishing and
Disney Interactive Studios as global entities (http://dcpcareers.disney.go.com
/dcpcareers/business).
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Objective Three: Disney desires to maintain a strong application of technology.
Disney must remain on a platform that can meet changing consumer demands in a wellpriced and well-timed manner. This marketing objective requires Disney to answer the
changing needs of customers. New technology, such as Apple and Sony Blu-ray Discs,
must be fully embraced. The toy industry recently has come into a head-on collision
with the electronic/technology industry, and Disney has recently restructured to keep on
top of that (http://dcpcareers.disney.go.com/dcpcareers/business).
Disney also has a strategic emphasis on continuing with a high standard of social
responsibility and environmental awareness. This is accomplished with an emphasis for a
healthier living, the Environmentality program, and other current social/environmental
situations.
IV
Situation Analysis: Description of Disney Studio Entertainment
The Studio Entertainment unit is the “foundation on which The Walt Disney Company
was built.” This segment of Disney is responsible for producing animated features, both
traditional hand-drawn and computer-generated films, and live-action motion pictures. The
emphasis on Disney movies is quality entertainment for the whole family, a focus honored
and stressed highly in all Disney productions (http://www.disney.go.com).
Situation Analysis: Industry Analysis of Disney Studio Entertainment
Industry Trends: The top four studio entertainment industry firms are all set to release
blockbusters within a few months of each other in mid 2007. Sony Pictures Entertainment
started the summer slam with Spider-Man 3, soon to be followed by Disney’s Pirates of the
Caribbean: At World’s End, Dreamworks’ Shrek 3, and Warner Bros.’ Harry Potter and
the Order of the Phoenix. Thus far, Spider-man 3 has set the standard for weekend release
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sales; however, it is very possible that Disney’s new Pirates movie may earn the number
one ranking. Each of the four movies is an installment to a well-known family
entertainment series, complete with an all star cast and well-known and loved characters.
Each film sets the bar high for other movie releases to compete with.
Competitors: The Studios Entertainment segment of Disney has nine competitors,
according to Hoovers. The top three competitors are: DreamWorks, Sony Pictures
Entertainment, and Warner Bros. The remaining competitors include: Fox Filmed
Entertainment, Lionsgate, Lucasfilm, MGM, Paramount Pictures, and Universal Pictures.
Situation Analysis: SWOT Analysis of Disney Studio Entertainment
Strengths: The 2006 acquisition of Pixar gives Disney a renewed breath of feature
animation and creativity, combining two very strong and talented companies into one.
Pixar came to Disney with an already strong history of success in animated films plus a
recent period of working well together, allowing Disney to incorporate their ideas and
innovation, while reducing the threat from a competitor. The technology utilized by
Disney in their movies is a powerful strength in that movie-goers have come to expect the
level of quality expressed in Disney (and Pixar) films, and anything less is noticed. Disney
is a well established company with a strong financial backing. However, to help reduce
production costs, Disney produced the second and third Pirates movie together. The
Pirates of the Caribbean: Dead Man’s Chest was the number one movie of 2006, and it is
likely the third Pirates will claim the 2007 title. As the Federal Trade Commission and the
public criticize broadcasters for television violence and language and Disney will likely
avoid much of the negative attention due to their current standard of family entertainment
quality. Disney is a trusted and known image in the public eye. For the most part, one
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only has to see the Mickey Mouse ears to recognize the Disney image. Disney movies
have long held a standard of fun and quality. In asking anyone around, they could probably
reiterate their favorite cartoon or movie by memorization.
Weaknesses: Movies based on Marvel comics have grown in popularity and number in
the past few years. Most comic movies are family oriented and very successful, Spider-man
being a prime example of this. Disney can expect heavy competition from Sony Pictures
Entertainment as the Marvel comic movies prevail in popularity. While the Disney
standard of family entertainment goes hand in hand with quality and enjoyment for
children, some adults may find a Disney product or experience to be geared towards
children. However, this is not true in all cases. The Disney image may prevent potential
customers from buying a Disney product because of their association to child-related
entertainment.
Opportunities: The greatest opportunity for success right now for the Studio
Entertainment segment of Disney is the third installment of the Pirates of the Caribbean
movie series. The third movie has the potential to break the record for opening weekend
sales. Pixar’s established use of technology will give Disney the opportunity to utilize their
experience and expertise. Consumers and stockholders can expect a high quality from
films created by the two powerhouses. As Disney pursues the global expansion goal, the
opportunity to reach new demographics with their motion pictures may open new markets.
This expansion may also provide new storylines to the creators of Disney films.
Threats: The three greatest threats to the Studio Entertainment segment of Disney are the
other summer blockbusters: Spider-man 3, Shrek 3, and Harry Potter and the Order of the
Phoenix. The threat is not only these movies, but also future movies in each of the series.
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Spider-man will likely have at least a fourth, Shrek will have five movies in total, and
Harry Potter will likely have at least one more movie.
Aside from Disney, the whole movie industry has its own problems. The industry
will continue to face declines in attendance because of the ever rising costs of the movie
tickets and accessories. Piracy over the internet is a growing concern for the movie
industry for loss of stolen revenues also.
Situation Analysis: Description of Disney Parks and Resorts
The place “Where Dreams Come True” and the extraordinary memories come to life at
the Disney Parks and Resorts according to Disney’s corporate website. The first park
opened in 1955 in Anaheim, California with the name of Disneyland. The growth of this
segment of Disney has expanded tremendously over the past 50 years to the Disney Cruise
Line, seven Disney Club Vacation resorts (with more than 100,000 members), Adventures
by Disney, and five resort locations (encompassing 11 theme parks) on three continents.
The locations of Disney’s Parks and Resorts are: Disneyland Resort (Location: Anaheim,
California), Walt Disney World Resort (Location: Lake Buena Vista, Florida). This resort
is North America's most frequented tourist spot and encompasses four theme parks: Magic
Kingdom, Disney-MGM Studios, Epcot, and Animal Kingdom. It also has hotels and
resort facilities, water parks, golf courses, and a cruise line. Tokyo Disney Resort
(Location: Urayasu, Chiba) only earns The Disney Company royalties. Disneyland Resort
Paris (Location: Marne La Valle, France), in which the Disney Company owns 51% of this
resort. Hong Kong Disneyland (Location: Penny's Bay, Lantau Island) is 43% owned by
The Disney Company.
Situation Analysis: Industry Analysis of Disney Parks and Resorts
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Trends and Competitors: Disney currently holds the leading position in the Amusement
Parks, Arcades & Attractions Industry (Schein). Hyatt, Six Flags and Universal Parks are
the three primary companies that compete with Walt Disney Parks and Resorts. Six Flags
is the top competitor if the focus is on Amusement Parks and Hyatt is, if the focus is set on
specifically Resorts (Schein). The level of customization that is put forth through the
vacation experiences at Disney parks is what breaks them away from their worldwide
competition. According to the Walt Disney Company’s website each customer’s dreams
will come true by means of the Disney characters coming to life in each resort, the
entertainment, and the memorable, breathtaking attractions.
Customer Profile: The wonderful aspect of the Disney Parks and Resorts is their strive to
create a special experience for each specific customer. The Walt Disney Company’s
website distinctively emphasizes, “regardless of boundaries or cultures, families
everywhere share the belief that Disney parks are a magical escape where they can
experience a world of fantasy and imagination.” This is reflecting in their current 10%
gain in sales over the past year of 2006. Each customer has the opportunity to create his or
her own personal journey while still going through the well-known and trusted Disney
Company. If an individual would like to have their trip mapped out for them then they
have several options to choose from including a vacation to a resort, a Disney cruise, or a
“a story-based guided group vacation experience, featuring small group activities in
authentic settings highlighted by Disney’s uncompromising attention to detail” through
Adventures By Disney. This is the most recent addition to the Parks and Resorts line of the
company and has had major success with their customers. The Disney Vacation Club was
created in 2006 due to the demand from Disney customers for such unforgettable vacations.
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This allows the members of this club to choose from the seven “Home Resorts (five at Walt
Disney World Resort, one on Florida’s Atlantic Coast, and one on South Carolina’s Hilton
Head Island)” and then customize their vacation, choose travel dates, accommodation type
and length of stay as said by the Disney website.
Technology: The Walt Disney Company implements the usage of technology to their
fullest in the Parks and Resorts area. The interactive scheduling located at
Disneyparks.com emphasizes the online “Dreamtrack” that “[gives] our Guests the freedom
and flexibility to customize and personalize their vacation experiences.” Hong Kong’s
Disneyland and Disney’s California Adventure enables guests to have a conversation using
their life-like computer-animation technology created by Imagineering. There are two
characters to talk with, either the 152-year-old sea turtle from Finding Nemo or the blue
alien from the 2002 hit comedy Lilo & Stitch. The new generation of Disney fans is
targeted through the use of technology by implementing electronic adventures that match
real-world activities at both Disneyland and Walt Disney World’s Magic Kingdom. Virtual
Magic Kingdom hopes to create an online, interactive world that establishes a lifelong
relationship that will eventually get the players to the Disney parks to continue their
experiences with real-world quests.
Situation Analysis: SWOT Analysis of Disney Parks and Resorts
Strengths: Disney stands to grow and benefit from the resurgence of tourism and travel,
they have 50 years of experience, and experienced a 10% sales growth in 2006.
Weaknesses: With the expansion of the Parks and Resorts segment, management may
not be able to acknowledge each specific issue. Also, their marketing structure is lacking
in the teen/young adult area.
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Opportunities: Disney can utilize technology for advancement, help more people search
for travel opportunities, and they have the possibility of expanding their options for Parks
and Resorts. Also, Disney is becoming more of a prominent travel company for not only
within the United States, but also around the world
Threats: Competitors has increased due to Disney’s expansion into entertainment,
amusement parks, arcades, attractions and resorts. Also, competition is becoming target
specific in their primary area of the industry. Finally, with rising gas prices, consumers are
traveling less due to the increased expense.
Situation Analysis: Description of Disney Consumer Products
The consumer products Disney sell is limitless. Disney has resources spanning the globe
and anything Disney can be bought just about anywhere. The major categories of the
Disney Consumer Products include: Disney Hardlines (any material that is not included in
the other categories), Disney Softlines (clothes, pajamas, material items, and footwear),
Disney toys, Disney publishing, Disney Interactive Studios, The Baby Einstein Company,
DisneyStore.com, and The Disney Catalog (http://dcpcareers.disney.go.com/
dcpcareers/business).
Situation Analysis: Industry Analysis of Disney Consumer Products
Trends: Disney is working to stay on top of their consumer products industry by
constantly changing and innovating new ways to get their products to consumers more
effectively. According to Disney’s Consumer Products Careers website, in 2006, the
Disney toys and Disney electronics merged together to meet the need for electronics
becoming toys. Disney needed to blend traditional toys with consumer electronics in order
to meet with the changing, challenging market. Disney publishing takes on a global market
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by introducing most of its books internationally before they are introduced to the United
States. In addition, there has been growing concern over the health of kids today, and
Disney has teamed up with the Kroger Company to offer healthy food with limits on
calories, fat, saturated fat, sugar and no trans-fats. Beyond 2008, any food that has a
Disney or Pixar character on the label will be a healthier option than before. Disney is also
introducing all their new healthy foods at their theme parks. Disney has also noticed how
well they can do outside of their characters. They have many lines that do not offer
character symbols. One is their office décor section that offers upscale office furniture.
The way Disney is starting to distribute their consumer products is catchy. Disney is
getting together with the direct retailer and the two of them are creating Disney items to fit
the retailer’s customer base. The “direct-to-retail,” (http://dcpcareers.disney.go.com/
dcpcareers/business) in essence, eliminates the middleman, which benefits the consumer
with lower prices. It benefits the retailer and Disney to have direct control over the
merchandise they produce and sell. It benefits Disney because they produce goods
specifically for a certain, not wasting money on producing merchandise a store will not
buy, and the store benefits because of Disney is working with them directly to cater to their
customers. Consumers at Nordstrom can buy infant Disney clothes made out of cashmere
and less expensive Disney shoes from Payless (http://dcpcareers.disney.go.com/
dcpcareers/business).
Competitors: Disney’s toy competitors are most distinguishable. The a few well known
companies are Mattel, Fisher-Price, and Lego Group. There are dozens of other
companies, small and large. Disney is considered the third largest toy company based upon
their retail sales and that is significant seeing as how many toy manufactures are out there
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(http://dcpcareers.disney.go.com/dcpcareers/business). As far as other Disney competitors
for consumer products, there would be too many to mention. As listed earlier, Disney sells
clothes, with many competitors, electronics, more numerous competitors, and upscale
office décor, more but different group of competitors, and books, which as we all know,
has limitless competitors.
Consumer Profile: The consumer products for Disney attract people of all ages, sizes,
and incomes. The Disney website discussed all about how Disney created the Baby
Einstein Company which sells educational videos and learning toys for newborns. Clothes
for babies can be made from cashmere and sold at Saks Fifth Avenue, or made out of
cotton for adults and sold at Wal-Mart. Clothes can be bought from about any store, made
out of any fabric, for any age, and in almost any size. Movies can be rented or bought for
adults, children, or the whole family. A top executive could purchase non-character office
furniture from Walt Disney Signature or an office assistant can buy a stapler from Disney
Office on DisneyStore.com with Mickey Mouse’s hands. Disney Publishing is largest
publisher worldwide and sells books written in 55 languages in 75 different countries
(http://dcpcareers.disney.go.com/dcpcareers/business). Everyone needs to eat food and
Disney is trying to help people eat healthier and take vitamins. Disney also has over 400
employees in 12 different countries researching video games for all ages
(http://corporate.disney.go.com). Kristie Kelly, a famous designer, recently contracted
with Disney to produce wedding dresses that resemble “The Princesses” dresses (Marr
2007). With the array of products that Disney manufactures and produces, Disney’s
consumer profile is almost every person on Earth
(http://dcpcareers.disney.go.com/dcpcareers/business).
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Technology: The Disney Consumer Products career website also stated that Disney is
currently in the process of expanding its electronics department to include cameras,
portable DVD players, and various computer appliances. Several devices during the last
holiday season could not stay of the self. The Disney Mix Stick MP3 player and the
Disney Mix Max Media Player, which played movies, cds, and jpeg pictures, were
constantly sold out of stores last Christmas and helped Disney’s hardlines generate over 7
billion dollars. Disney Pixlines sold over 150,000 units and Disney DVDs have generated
over 27 million dollars in revenues to date. The merger in 2006 between Disney toys and
Disney electronics, as talked about earlier, happened specifically for “fostering creativity
through new technology.”
Situation Analysis: SWOT Analysis of Disney Consumer Products
Strengths: Disney’s ability to work so well with the retailers puts everyone, consumer
and manufacturer alike, at such an advantage. The “direct-to-retailer” emphasis will help
Disney distribute inexpensive and expensive goods to a specific store to get a specific
consumer. Another strength of Disney, is definitely the extensively of their consumer
products. If one aspect of the consumer products does not do so well, Disney has many
other resources to fall back on (http://dcpcareers.disney.go.com/dcpcareers/business).
Weaknesses: Diversity of Disney’s consumer products is a strength, but it could also be a
weakness. Mickey Mouse can be anywhere and everywhere. How long will it take for
consumers to get sick of Mickey Mouse or other characters? That is a hard question to
answer. People have weird habits and consumer decisions change all the time.
Opportunities: The opportunities for Disney are endless. If Disney keeps their eyes open
to new ideas and is willing to change to adapt to those changes, plus keeps their employees
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in different countries investigating different consumer choices, Disney should stay on tract.
It takes money and resources to stay on top. If Disney remains universal and continues to
support current and new ventures with retailers and manufactures, Disney has limitless
opportunities.
Threats: The basic common threat to any consumer product is income, gas prices, and
housing prices. People will spend less money on entertainment products when their budget
gets slimmed because they need to buy essentials for life. As income decreases, gas prices
go up, and housing expenses increase, entertainment expenditures would decrease. Piracy
is also a growing concern for the movie industry and Disney Publishing should be worried
also. It takes all most no effort to download a book off of the internet, just like the movies.
It is revenues that could have been made, but were stolen instead.
Consumer trends are constantly changing and if Disney were to “sleep” during a major
change, they could miss out many possibilities. Disney’s consumer products are so vast
and numerous that it would be very easy get lost in. If Disney gets too preoccupied with
current affairs, they might miss something big.
Situation Analysis: Disney Media Networks
The Disney Media Networks arena is just as diverse and extravagant as Disney Studio
Entertainment, Parks and Resorts, and Consumer Products. After careful consideration, the
Media Networks were not given the attention as the other categories of The Disney
Company because of the extreme diversity, and paper constraints. The Disney Media
Network is yet another way for Disney to reach the massive amounts of consumers it
strives to attain.
V
Marketing Strategy
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Target Market Strategy: The Studio Entertainment segment of Disney has both
domestic and international target markets. Because their films emphasize quality
entertainment for the entire family, their target market also focuses on families.
The Parks and Resorts segment of Disney attempts to seek out as many people as
possible so that families can see the benefits for each of their family members in using their
vacation resources. Disney pushes all boundaries and cultural differences to the side and
focuses on their consumers and how they can have a magical experience in this world of
fantasy as stated by the Walt Disney Company’s website. This steady relationship that has
been built over the past 50 years was apparent in 2005 with the 50th anniversary of
Disneyland in Anaheim, CA which led to driving impressive gains in attendance, revenue,
and operating income. The cruise line also offers a great deal of opportunities for both the
children and parents to enjoy what they consider a true vacation. Each day is filled with
wonderful programs for children to attend while the parents can have some time for
themselves or can choose to attend an activity designed for the older ages to take pleasure
in and share some quality time. The Adventures by Disney concentrates on the family that
is ready to travel somewhere such as Costa Rica, London, Paris, or Italy. The Adventure
Guides piece together all of the details so that the guests can have their time to reconnect
and build lasting memories with one another during their vacation.
The Consumer Product segment of Disney is very diverse in their target market. Because
there are so many products that Disney is involved, technically, their target market is
everyone. The Baby Einstein Company markets parents for the infants and toddlers. Boys
and girls of all childhood ages are both in the Disney toys market with Disney Princesses
and Power Rangers. Clothes are made for inexpensive or expensive retailers and can be
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purchased with or without Disney characters for babies, children, teens, men and women.
Non-character furniture is being sold for either office or home décor. The average
bookworm can be satisfied with Disney Publishing for years. Books and magazines for
children and adults can also be bought with or without Disney characters. Gamers are
increasing in popularity and Disney Interactive Studios is doing its best to stay up with the
new games and consoles. To sum things up, Disney’s Consumer Products are so diverse,
that they have every person on this Earth in their target market (http://dcpcareers.disney.go
.com/dcpcareers/business).
Marketing Mix:
Product: The products offered by the Studio Entertainment segment of Disney are
motion pictures, animated and live-action, that are available in both live in theaters and also
on personal formats for consumers, such as DVDS or on iPods. The Walt Disney
Company Parks and Resorts product is the experience from each memorable attraction.
The vast amount of options can go as far as riding a roller coaster through the Pirates of
Caribbean set in Disneyland, sailing across the Caribbean to visit Costa Maya, Cozumel
and two visits to Disney’s private island, Castaway Cay or even a personally designed trip
to Costa Rica to explore such an exotic land while still being influenced by Disney. The
consumer product segment of Disney encompasses a massive variety placed into two
categories: softlines and hardlines.
Place: Studio Entertainment sells their product in the theater and via retail locations,
including their own Disney website. Consumers also have the option to rent Disney films
using companies such as Blockbuster, Hollywood Video, and Netflix. The headquarters for
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the Parks and Resorts segment are located in Lake Buena Vista, Florida. The expansion of
this form of entertainment for Disney has led for locations across the United States and
worldwide. The five resort locations include California, Florida, Chiba, France and Lantau
Island. The Disney cruise line offers destinations to the Caribbean, Bahamas,
Mediterranean, and Mexican Riviera with length of stay ranging from 3 to 15 days. If
these places do not fulfill the traveling guru then the Adventures by Disney will arrange an
exploratory destination to locations such as Austria, Ireland, Costa Rica, Wyoming and
various countries in Southern Europe.
Promotion: Disney strongly promotes their films on television commercials, movie
trailers played in theaters, and in posters placed in every location feasible. Disney also uses
the characters from their films to promote them. McDonalds or other fast food restaurants
will put toys or games of the characters with their products and in their store locations.
The Walt Disney Company always has some type of promotion occurring for their Parks
and Resorts market. According to the Walt Disney Company’s website, the current
promotions for each segment are: 1) Adventures By Disney: Purchase an adult package at
a regular rate and a child can come for free, 2) Disney’s Vacation Club: Purchase a real
estate interest in Disney’s Saratoga Springs Resort and you can receive up to $1,600 or
more toward the cost of your membership, 3) Disney Cruise Line: Book online and
receive a $25 onboard credit per stateroom, 4) Disney Land (Anaheim, CA): Buy a
Deluxe Annual Passport for 315 pre-selected days for both Disneyland Park and California
Adventure, 5) Disney World: $1,600 for 7-day and 6-night stay for a family of four at a
Disney Value Resort.
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There are a variety of ways that Disney promotes their consumer products. They have
their own media network to advertise their products, and they work with many different
companies/distributors just to get their name out. For example, I recently received a step
counter with Mickey Mouse on the front out of a box of Rice Krispies. Plus, stationary,
that travels from person to person, can be personalized for personal use or business use
(http://disneyshopping.go.com). A big promotion for Disney was their launch into healthy
foods. The media ate it up instantly, and Disney received worldwide attention for their
efforts. Instead of Pop-Tarts, there will be apples and with Disney’s Mousekercise
program, Disney is trying to curb the growth of childhood obesity (http://dcpcareers.disney
.go.com/dcpcareers/business). Environment concerns are also a good promotion for
Disney. Disney has created and enviroport for the company, which resembles an annual
report but it represents the environment instead of finances (2007 Annual Report). Most
people are today are concerned for the environment and Disney is raising awareness and
encouraging other companies to participate also. Global is a goal of Disney. They make
an extensive effort to make sure that their products are everywhere. In fact, most of Disney
Publishing books start in international markets and then move into the United States market
(http://dcpcareers.disney.go.com/dcpcareers/business).
Price: Disney movies watched in the theater account for one type of price. According to
the National Association of Theater Owners, the average cost of a movie ticket in 2006 was
$6.55. The other price associated with Disney movies are rental fees or retail purchases.
Movies purchased on DVD (or other) format range from $12 - $20, with special or limited
edition copies costing more.
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The Parks and Resort’s segment generate revenues from the sale of admissions to the
theme parks, room nights at the hotels and rentals at the resort properties (CNN Money).
The CNN Money website mentions that the Parks and Resorts “costs consist primarily of
the fixed cost for physical properties and base level staffing necessary to operate the theme
park and resort properties”.
Park and Resort Prices
Disney World Tickets
5-Day Base Ticket
4-Day Base Ticket
3-Day Base Ticket
2-Day Base Ticket
1-Day Base Ticket
2007 Disney Land Tickets
5-Day Park Hopper® Bonus
Ticket
Save 40 dollars!
4-Day Park Hopper® Bonus
Ticket
Save 30 dollars!
3-Day Park Hopper® Bonus
Ticket
Save 20 dollars!
2-Day Park Hopper® Bonus
Ticket
Ages 3-9
$169.00
$168.00
$160.00
$110.00
$56.00
Ages 3-9
$199.00
Ages 10+
$206.00
$202.00
$192.00
$132.00
$67.00
Ages 10+
$229.00
$159.00
$179.00
$189.00
$209.00
$149.00
$149.00
$179.00
$179.00
$129.00
$102.00
$159.00
$122.00
1-Day Park Hopper® Bonus
Ticket
$73.00
$83.00
Single-Day Theme Park
Ticket
Bahamian Cruise Rates
(per person)
3-Night
4-Night
7-Night
$53.00
$63.00
Standard Inside Stateroom
Deluxe Inside Stateroom
$429 - $999
$499 - $1099
$939 - $1,999
$529 - $1,199
$559 - $1,299
$1,019 - $2,199
Disney consumer products can be purchased at many different prices. They do try to
decrease some of the costs by implementing different company practices. The “direct-toretailer” program reduces costs for the consumer. Kirstie Kelly, a famous wedding dress
designer, is working with Disney to decrease prices for the consumer also. All of the fabric
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of the wedding dress that is visible is made out of expensive products, but all the materials
of the dress that is not visible, is made out of less expensive fabrics in order to cut costs
(Marr 2007). Disney, like any other company wants to continue to make money, but they
also realized that in order to make money, they must spend money.
VI
Implementation, Evaluation, and Control
Marketing Research: Information on marketing research was not available. However,
Disney recently lost a member of their research team. Paul Pressler was “the best
marketing person” known to Meg Whitman. Meg Whitman was a new board member of
The Gap, and in their movement to make the company prosper again, they recruited Paul
Pressler to their team (Reingold 2007). Hopefully Disney will be able to overcome their
loss.
Organizational Structure and Plan: Disney is a publicly traded company with a Board
of Directors and a management team. Disney’s corporate website reports the following
information: The CEO and President of Walt Disney Company since 2005 is Robert Iger.
Andy Bird is the President of Walt Disney, International, and George W. Bodenheimer is
the President of Disney Media Networks. There are no immediate plans noted to change
the organizational structure of Disney.
Financial Projections:
2002 = $25,329
2003 = $27,061
2004 = $30,752
2005 = $31,844
2006 = $34,285
Future Revenue
Predictions:
2007 = $36,713
2008 = $38,992
2009 = $41,272
2010 = $43,551
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The graph above is a regressional analysis of The Disney Company’s revenues. It shows
their revenues from 2001 to 2006. From their past revenue data, their estimated future
revenues were calculated. The Disney company looks to headed into the right direction.
A potential problem for Disney could be one of their newest board members, Steve Jobs.
In the Wall Street Journal, Steve Jobs name has been mentioned two times concerning
backdating stock options. He was involved in backdating options before Disney aquired
the Pixar Animation Studios (Stecklow, Forelle & Marr 2007), and involved with
backdating options at Apple Inc. also (Wingfield & Stecklow 2007). Steve Jobs will be a
name to look out for. I am sure that Disney does not want the bad press like Martha
Stewart got for her alleged insider trading incident.
Implementation Timetable:
Disney’s Studio Entertainment has plans to release Pirates of the Caribbean: At World’s
End on May 25, 2007, then on June 29, 2007 they plan to release Ratatouille in theaters.
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The Parks and Resorts section has the following plans and implementations: Changes to
Adventures By Disney: In 2007, additional destinations will include France, England, Spain,
Ireland, Austria and the Czech Republic will be added. Changes to the Disney Vacation
Club: In 2007, Disney’s Animal Kingdom Villas will be added as the eighth resort to choose
from, and changes to the Disney Cruise Line: In 2007, the first European itinerary will be
offered.
Summary: Disney’s Studio Entertainment continues to offer blockbuster entertainment
that can be enjoyed by parents and children alike. With their popular Pirates series, Disney
is certain to enjoy market success. Also, by utilizing incremental releases of DVD remakes
of old Disney films, as well as new movie remakes of old Disney pictures, Disney will
keep consumers interested and involved.
As stated by the Disney website, the Parks and Resorts segment has an ongoing passion
for “making dreams come true every day” for their global growth strategy. The 10%
increase in sales over the past fiscal year came from the vast new concepts that this section
of The Walt Disney Company has created (Schein). The focus on appealing to each
consumer so that everyone will walk away with their own experience of a world of fantasy
and imagination is what has pushed this segment to the top of the industry. The Parks and
Resorts as an entity bring about a luxurious and utmost unique vacation “through the
attractions, entertainment and, most importantly, Disney Cast Members, who are raising
Disney’s already high levels of guest service to even greater heights” according to the Walt
Disney Company’s website.
Disney’s consumer products range from small to large, from inexpensive costs to large
dollar amounts, from soft and cuddly merchandise to hard and breakable commodities, and
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from any Disney or Pixar characters available on anything to other merchandise with no
characters. The Walt Disney Company seems to know no bounds when it comes to
creating new ideas in creating, distributing, and selling their products. Disney Consumer
Products continues to be the “world’s largest licensor with global retail sales of $23 billion
for 2006” (http://dcpcareers. disney.go.com/dcpcareers/business/). If Disney continues to
make enduring relationships with their retailers and customers, there will never be an end
to their products or The Walt Disney Company.
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Works Cited
Marr, M. (2007, February 22). Fairy-Tale Wedding? Disney Can Supply the Gown. The Wall
Street Journal. p. B1.
Reingold, J. (2007, April 03). Gap: Design of a Denim Dynasty. Fortune, 155, 97-102.
Schein, A. Walt Disney Parks and Resorts. Hoovers, Retrieved May 5, 2007, from
http://www.hoovers.com/disney-parks-&-resorts/--ID__104368--/free-co-factsheet.xhtml
Stecklow, S., Forelle, C.& Marr, M. (2007, March 17-18). Disney Says Pixar Options Were
Backdated. The Wall Street Journal. p.A3.
Walt Disney Company. CNN Money, Retrieved May 1, 2007, from
http://money.cnn.com/quote/snapshot/snapshot.html?symb=DIS1.
Wingfield, N., & Stecklow, S., (2007, April 25). Ex-Finance Chief Says Jobs Misled Him on
Options. The Wall Street Journal, p. A