Running Head: MARKET POSITION ANALYSIS
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MARKET POSITION ANALYSIS
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Describe the target customer for the product/service in terms of relevant characteristics
that impact the marketing strategy, including location (how it is reached) and buying
habits.
The company Disneyland Paris provides entertainment, relaxation joints and dining places for its
customers. Its target customers are from all over the world and of all age groups but due to the
high price of the tickets as per their standards, the firm has used the niche strategy of
segmentation whereby only individuals of a certain class can have access to certain services;
those of high social status. Those of middle level incomes can also access some of these services
as the pricing strategy used allows for this; revenue centered pricing strategy. This strategy has
also been used whereby the charges for customers of French origin are much lower compared to
those of other customers such as British customers. The use of several languages in booking the
tickets to access the services of the firm is also a way of attracting a wide range of clientele from
different regions of the world (Clavé, 2006).
Additionally, the location of the firm is one that portrays the perception of a high society range
of clientele; Paris is known to be a prestigious city especially for it fashion and high celebrity
composition and this makes it expensive, therefore, the targeted customers for Disneyland Paris
are mostly high people in all societies of the world although the average person can also access
some services and products. In terms of the buying habits, the firm can be said to be targeting
customers of French origin more as the prices charged to them seem to be considerably lower.
This can also be a strategy to attract more customers of French origin to use their services
through the high discounts as the firm is in their country; France (Aaker & McLoughlin, 2010).
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Identify each customer segment’s specific wants and needs. Explain why they buy your
company’s product or service, or a competing product or service.
There are several customer segments in Disneyland Paris and these vary according to the levels
of income, age group and social status. There are those who visit the theme parks and expect to
get a lot of amusement and entertainment through visiting popular thematic parks such as the
Santa Claus Land; this is for all age groups and the all level of income earners (Doole & Lowe,
2005).Those who visit retail centers expect to get the commodities that they are looking for and
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at fair prices; this is mostly for the high society as they are quite expensive; those who visit
dining places expect high quality and delicious dishes and cuisines; those who visit hotels expect
quality services and finally, those who visit the entertainment center expect a lot of interesting
and entertaining features or films. The main reason why these customers buy the products or
services of Disneyland Paris is to get original entertainment at the most popular city and to have
a taste of entertainment at the source. That is why these customers pay such high prices to get
these services and products (Aaker & McLoughlin, 2010).
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Justify how well your product/service satisfies customer wants and needs. Identify any
wants and needs that are not met by your product/service.
By visiting the theme parks at Disneyland Paris, the customers get first hand entertainment
whereby children can play and older people can interact and get entertained by visiting the places
that are iconic for famous movies such as the sleeping Beauty castle. Through the hotels and fine
dining places, customers’ dining needs are satisfied and fulfilled through the fine cuisines.
Finally, customers also get to have a taste of glamour and elegance that is associated with Paris
through visiting the retail store at Disneyland Paris (Doole & Lowe, 2005).
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Analyze your product’s position in relation to the competition. Identify 3–5 main
competitors. Explain how your product differs in terms features, function, quality, price,
availability, brand image, etc. Explain why this differentiation is important to your
customers.
Disneyland Paris has a high market position compared to its competitors. This is mainly because
of its brand name and its diversification strategy. Its main competitors are; Time Warner Inc.,
AOL Inc., CBS Corporation and also DreamWorks. Compared to the other competitor firms,
Disneyland Paris offers first class services that have special features such as the popular
Cinderella castle which is behind the popular short stories and films of Cinderella. In terms of
the brand image, Disneyland is definitely known for its strong brand image. Additionally, the
firm offers high quality services through its high quality hotel services, and friendly booking
services that seek to serve a wide range of clientele in many different languages. This
differentiation is important in helping the customers to learn about the various products and
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services offered by the firm and in providing information about the convenience of Disneyland
Paris for all customers who seek high quality services and entertainment (Munos, 2003).
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Describe the source of competitive advantage for your product. Evaluate sustainability of
this source of advantage.
The main source of competitive advantage for Disneyland is its strong brand name. The
sustainability of this firm’s brand name lies in continuously providing quality and worthy
services and products to customers. Consistency is a very hard thing to maintain in a business but
when it comes to protecting the firm’s main source of competitive advantage, it is very crucial to
do everything to keep the firm at the top of its competitors (Duron, 2009).
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Assess the long-term sustainability of the source of differentiation and competitive
advantage.
In terms of the long term sustainability of Disneyland’s source of differentiation and competitive
advantage, a lot can be said. The firm needs to come up with strategies to continually protect its
brand image, to protect the various products and services offered by the firm and to continually
improve them in terms of quality and fair prices to suit all customer segments. Therefore, how
long these differentiation strategy stays on top and the how long the firm will have competitive
advantage over other firms will depend on how it will continually be strategic to retain the
current customers and to attract more (Doole & Lowe, 2005).
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Apply the five “P’s” of marketing to your product analysis.
In terms of the product, the firm offers a wide range of products and services ranging from theme
parks, hotel services, dining services and hotel services. These products and services target all
customer segments including the different age groups and people of different income levels. The
price charged by Disneyland covers all customer segments as there are products and services for
the high income earners and also for the average customers (Duron, 2009). The price set is also
appropriate to cover the operating costs of the firm and to ensure that it can still continue
operating with some level of profits. As for the place, the firm is centrally situated in Paris at a
convenient place that is easily accessible. The firm uses the promotion factor of the marketing
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mix to create awareness of their products to the customers through massive advertising over the
internet and billboards. As for people, this P explains how the knowledge and skills of the firm’s
employees can help it to achieve the set goals and help it obtain a big market share (Duermyer,
2012).
Conclusion
Disneyland Paris can be said to a firm that has improved overtime due to application of relevant
strategies to protect its market share. The differentiation strategy is the most utilized strategy in
this firm and therefore if other firms place their focus on crafting practicable strategies, their
firms can prosper as well. A firm’s strategy and continuous improvement is therefore very
crucial to the success of any firm.
After interviewing the three managers on their views concerning Disneyland’s value proposition,
market position, and competitive advantage, two of them agreed that the firm is a market leader
especially in the entertainment industry, but not in terms of the other products such as the hotel
business as there are other market leaders in that field. The other manager was of the view that
Time Warner Inc. was the market leader. In terms of the value proposition, two managers were
of the view that the firm appeals to most of its clients because of its commitment to providing
quality entertainment and its diversification strategy of offering a wide range of products and
service. The other manager was of the view that the firm’s value proposition lies only in its
strong and popular brand name. In terms of the competitive advantage, the three managers
agreed that Disneyland Paris gets its competitive advantage through its strong brand name which
has helped it to make a lot of sales and to attract and retain many customers and thus staying
ahead of its competitors.
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References
Munos, T. (2003). Decline of the Masterbrand. President and CEO Magazine. New York:
Marriot.
Duron, M. (2009). The 5P’s of marketing.
Duermyer, R. (2012). Marketing Mix. New York: The New York Times Company.
Doole, I., & Lowe, R. (2005). Strategic marketing decisions in global markets. London:
Thomson Learning.
Clavé, S. A. (2006). The global theme park industry. Wallingford, Oxfordshire: CABI.
Aaker, D. A., & McLoughlin, D. (2010). Strategic market management: Global perspectives.
Chichester: Wiley.