Market Segmentation and Targeting
Disney informs, inspires and entertains people through production of cartoons and other films as well as user consumer products.
Disney’s total market comprises mainly of the film studio. It also has the Disneyland theme park and Disney World (resorts)
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Disney used a multi-segmented marketing approach involving psychographic segmentation, geographic segmentation, and demographic segmentation.
Demographic segments: Disney targets middle families residing in cities and towns. Their various hotels provide for different income levels. Their products are moderately priced for the average customer. Also notably, the cruises only target upper class families for revenue maximization.
Geographic segmentation: Both Disney World and Disneyland are tactically positioned in the worlds frequently visited areas including USA, Australia, Hong Kong, Japan, and Europe. All the Disney theme parks are also strategically located so that everyone can access them. The company specifically chose California and Florida because they are tourist spots and receive warm climates which are often associated with family vacations.
Psychographic segmentation: Under this segment, Disney’s consumers are small children, older children 9tween and teens), and adults. The company has toys and animation films for their c on the “Playhouse Disney” channel meant to tech toddlers on early developmental skills such as counting and spelling. For the older children such as tween and teens, the organization has Disney Channel, Radio Disney and parental guide action films for entertainment. Films such as the pirates of Caribbean are aired through a ‘family approach’ to attract the adults.
Behavioral segmentation: the company is aware that consumers vary in age, gender and ethnicity. For this reason, it seeks to distribute entertainment accordingly. This will eliminate the stereotype of associating Disney with kids only ( Business Strategy Hub, 2019) .
SWOT ANALYSIS
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Strengths |
Weaknesses |
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It is a strong and popular brand ( Walt Disney Company, 2018) Properly identified business segments A growing portfolio of popular products ( Walt Disney Company, 2018) Highly proficient management team full of creativity and ambition. Large financial flows that allows it to invest in other areas of the firm Reliable suppliers provide high quality raw materials Unique products due to creativity Great co-operation with customers |
Limited innovation Limited diversification Amusement parks are not diversified High attrition rate Vulnerability to competition due to minimal advertising. |
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Opportunities |
Threats |
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Technological innovation Diversifying to other market niches ( Business Strategy Hub, 2019) . Partnerships with other companies Increasing market demands among children Developing the Disney online streaming service (Disney +) |
Competition from firms offering similar content. These include Comcast, 21st Century Fox , CBS and Time Warner Other competitors are like Marvel technologically advanced, posing a threat to their brand valuation Digital content piracy especially reduces potential revenue Online entertainment delivery companies such as Netflix disrupt normal content delivery ( Business Strategy Hub, 2019) . Customer stereotyping the Disney products to kids. The pressure to isolate in America as many of its foreign manufacturers are pulling out of international territories |
Mission, Objectives, and Strategies
Mission: To take the lead in producing and providing entertainment and information by developing the most profitable entertainment experiences to the world.
Vision: To distinguish our services and content from the rest of the industry actors by spearheading creativity and innovativeness in our products and related services.
Goal: To strengthen our financial base by maximizing share-holder value, and allocate the capitals to the growth initiatives that will drive us towards our mission and vision.
References
Business Strategy Hub. (2019, April 4). Disney SWOT analysis 2019 | SWOT Analysis of Disney. Retrieved from https://bstrategyhub.com/swot-analysis-of-disney-2019-disney-swot-analysis/
Walt Disney Company. (2018, February 6). Disney Ranks High on List of 'The World's Most Reputable Companies? Retrieved from https://www.thewaltdisneycompany.com/disney-ranks-high-list-worlds-reputable-companies/
