Chapter 8: Segmenting & Targeting Markets

“There are three kinds of companies: those that make things happen, those that watch things happen, and the rest who wonder what happened.” - Anonymous     Now it is obvious which kind the Walt Disney Company is, this is due to their market segmentation. Market segmentation helps marketers define customer needs and wants more precisely. Disney uses geographic, demographic, and psychographic segmentation to locate their target market. Geographic segmentation refers to a region of a country or the world, market size, market density, or climate; this is used for the location of Disney's theme parks such as Disneyland and Disney World which are strategically located in the world's most visited places: Europe, Japan, India, and of course the United States. Demographic segmentation refers to age, gender, income, ethnic background, and family life cycle; this is used to help determine where to place their chain stores called the Disney Store, where to distribute their movies, and even determines what kind of movie they should create next. Psychographic segmentation is based on personality, motives, lifestyles and geodemographics; this is also used to help Disney determine who is going to buy more of their products.      Disney mainly targets children and their families, it uses the multisegment targeting strategy which is when a firm chooses to serve two or more well-defined market segments. Disney intrigues people of all ages; whether it is a child, teen, or parent. For small children, it has its animation films, toys and other goods from their consumer products division, a segment on their channel called "Playhouse Disney," and many more. For older kids such as tweens and teens, it has the Disney Channel, Radio Disney, their live-action films, and much more. Disney's live-action films such as Pirates of the Caribbean attracts adults as well, in order to target adults Disney uses a "family approach." Disney theme parks were built for the whole family to enjoy and they do a fine job stressing that. If you pay close attention to their advertisements you will see that they are not always aimed for children, in fact they are aimed at the parents most of the time with little phrases such as "Let the Memories Begin" and "This is Where the Magic Happens." Even the animation films are made to please the parents, with their good morals and some jokes that are meant for the child not to understand. In addition, the Disney Store has its own Home Decor department which is intended to satisfy the parents' wants as well as their children's, while the child is browsing through the toys, the parent is browsing through the Home Decor section.     As you can see Disney does not have one specific target market, it focuses on each member of the family. It mainly targets average income families, who live in urban areas. Almost all of the Disney Stores are located in large super-centers and malls; their theme park in the United States is located in Orlando, Florida; and their films as well as consumer products are conveniently priced for the average person. Walt Disney himself said it all when he stated:

"Your dead if you aim only for kids. Adults are only kids grown up, anyway." - Walt Disney

Chapter 11: Developing & Managing Products

Walt Disney Company is known as the most prestigious family brand in the world. The company has been around since the 1920s, and it has proven to be one of the top innovative firms. Due to its long and enduring history, Disney has basically done it all: from animation, to theme parks, to consumer products, to having their own network - you name it and I can assure you that the Walt Disney Company has done it. Since Disney is such a large conglomerate, I will only be focusing on its animation line.     The Walt Disney Studios' profits mainly come from additions to existing product lines. In other words, their profits come from new products that supplement the firm's established line. The new products being new movies and the established line being the animation line. On Movies | Disney.Go you can clearly see what I am talking about, the site consists of a "Coming Soon To Theaters" section and a "Coming Soon On Blu-Ray & DVD" section as well. Some of the new and upcoming theatrical releases are The Muppets, The Beauty and the Beast 3D, and The Secret World of Arrietty.

Disney's Consumer Products division also affects the animation line's profits. The DCP goes hand in hand with the Walt Disney Studios division because as soon as a new movie is created, the DCP creates consumer products based on these new characters. These products are usually clothing, play sets, plush toys, dolls, action figures, and costumes which can all be found in the Disney Store. This is considered adding new products to a product line extension.      In regards to the animation aspect of the Walt Disney Company, adding new products to existing product lines is the only innovation they do. They may not always have "new-to-the-world" products, but they always put their creativity to the test and make sure they develop new products whether they are for a new product line, or simply an addition to an existing one. As their mission statement clearly states "Creativity + Innovation = Profits."

Chapter 16: Integrated Marketing Communications

     Every single corporation must promote their product or service efficiently in order to capitalize themselves. In order to do so, the company must use the "promotional mix" which is a combination of advertising, public relations, sales promotion, and personal selling. After all of that promotion, the company's foremost and primary goal is to have as many consumers possible. What helps reach this goal is the AIDA concept, which stands for the stages of consumer involvement with a promotional message. These stages being: attention, interest, desire, and actions.     Now, the Walt Disney Company has no trouble grabbing the consumers attention due to their vigorous brand name, and excessive advertising through traditional media such as television; radio; newspapers; magazines; billboards; transit cards; and of course we couldn't forget - the internet.   Although Disney attracts plenty of consumers, this simple awareness isn't enough to make a sale, they must create an interest in the product. Through various public relations, Disney captures many of its consumers interests. These relations range from environmental issues, to public health and safety issues, to even educational issues. They are currently running two educational campaigns called the "Disney's Leadership Experience: The Inside Track" and "Disney Dreamers and Doers Program."     Now that company has captured the consumer's attention and interest, Disney must entice a desire for the product. For Disney's animation films, desire is mostly brought upon by the emotion the movie trailer gives off. This "emotion" depends on what genre the movie is, and makes the consumer feel as if they "have" to watch the film. For instance, Disney's live-action films give off an exciting, want-to-know-what-happens-next kind of feeling. Animation films on the other hand, give off a heart-warming, family enriched sort of feeling. These feelings encourage the consumer's desire to purchase tickets for the film.   In regards to action, the Walt Disney Company uses "mass communication" which involves communicating a concept or message to large audiences. Studies have shown that consumers usually buy products if they hear or read positive reviews on the product by other consumers as opposed to the actual company. Disney has taken note of this and on it's website it has a section specifically designed for new movie releases, and feedback on these new releases - this section is called Movies | New & Classic Disney Films. Not only does Disney incorporate personal feedback through it's website, but it also has a Facebook, Youtube, and Twitter page. Indeed, the Walt Disney Company has completely convinced many consumers to take action. According to the Letter to Shareholders in The Walt Disney Company's Annual Report 2010, the "Net income attributable to Disney for the year increased 20 percent to $3.96 billion on a 5 percent rise in revenue to $38 billion. Diluted earnings per share for the year increased 15 percent to $2.03 from $1.76." The company has definitely used the AIDA concept wisely in 2010.

Chapter 10- Product Concepts

    Walt Disney is such a large assorted company that they had to set up their own division for their consumer products. Disney Consumer Products (DCP) is a division of the company that engages in merchandising of the Disney brand and Disney properties, includig Disney movies and The Disney television shows.   Disney movies and other products that affiliated with the animation department can be considered specialty products due to the company's exclusive image. Affiliated products are the Disney branded merchandise that is inspired by characters from Disney's beloved animated films ranging from apparel, toy, home decor, books, and magazines.

The DCP division has also introduced product lines inspired by Toy Story 3, The Princess and the Frog, The Prince of Pesia: The Sands of Time, Tim Burton's Alice in Wonderland, Tangled, Cars, Captain America, Bolt and Tron. All of these factor in to the company's product mix width. Walt Disney also participates in repositioning which involve changing consumers' perceptions of a brand. The most recent example of this is when Disney brought back 1951 family friendly animation Alice in Wonderland and repositioned it by teaming up with Tim Burton in 2010 transforming the film to a "dark and liely action adventure." The new look targeted 12 to 22 year old's in addition with their merchandise being sold in Hot Topic, a gothic retain store has been developed through sales of licensed Disney Princess merchandise and the newly launched Disney Fairies franchise.

The Disney Princess products have boosted from $300 million since its 2000 launch at the Disney Stores to above the $4 billion mark with being available worldwide. The Disney Fairies have also taken flight and is on track to become a powerful lifestyle brand for 6 to 8 year old girls. The Walt Disney company is a family brand because of it's history and success it has proudly achieved brand loyalty. CHildren who praise Disney and beg their parents to see these heartwarmming films along with purchasing other affiliated products are being gladly rewarded because their parents were once in their child's shoes. Due to parent's positive memories towards Disney, they let their child experiance the jo as well, resulting in Walt Disney's success in being one of the world's largest assorted like it is today.