Market segmentation is essential in precisely determining customer needs and wants to establish strategies to use in the distribution of products and services. Segmentation enables a firm to divide its market into subgroups with similar characteristics and demand patterns. As a result, this helps to determine the target market and appropriate marketing strategies such as pricing, promotion, and place of distribution. Brazil is a suitable market for Disney Company because of its population and favorable market environment. Market segmentation in Brazil is an essential and integral part of the marketing strategy for Disney Company to ensure its success, considering the target market.
Brazil is the target market because of its market density and market size, enabling use of demographic and psychographic characteristics of market segmentation. Disney will use demographic and psychographic forms of market segmentation in its marketing (Gunter & Furnham, 2014). Demographic segmentation in the form of age, income, and family life cycle will enable the company to determine the location of its Disney chain stores. As a result, it will allow the firm to know where to distribute their movies and what kind of movies to create next. Psychographic segmentation in the form of motives, lifestyle, and personality enable Disney to determine the individuals who will purchase the firm’s movies. Disney mainly targets children and their families because of its animated cartoons, products, and theme parks. Therefore, Disney market targets all market segments in Brazil because of the diversity of its products and homogeneous characteristics.
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Market segmentation enables the realization that Disney’s product is appropriately designed for the target group. Mostly, parents are willing to spend more on their children; hence are eager to purchase the company’s products. The pricing strategy that the company uses depends on the type of product that the company sells because the firm does not have a specific target market (Nagle & Müller, 2017). The company’s products are affordable since prices are low as they target average income families residing in urban areas. Most of the company’s stores will be located in large supercenters and malls within Brazil for convenience purposes as customers will complete their shopping and pass by the firm’s stores for its products. Therefore, Disney’s films and consumer products are conveniently priced so that an average person affords to purchase them.
Marketing Strategies
Market segmentation enables determination of strategies for advertising. Disney Company should create awareness regarding the availability of its products and remind customers to purchase its products regularly. There is a need for promotion strategies that align with the company’s vision, mission, and policy. The most common forms of promotion that the firm will use are digital marketing and social media (Tiago & Veríssimo, 2014). Brazil is a technologically advanced nation and has increased internet use. Disney will use its company websites and social media pages such as Facebook, twitter, instagram, and others to advertise its products. The company will also use media marketing through advertisements on television and radio. Disney will primarily carry out intensive media marketing using television because most individuals watch TV.
Disney will also use print media such as magazines and newspapers to advertise its products because they are cheaper and target working customers who prefer reading. Other promotion strategies are circulating printed brochures, postcards, and posters because it is cheaper to print and distribute (Andrews & Shimp, 2017). Furthermore, Disney will use billboards, launch events, and celebrity endorsements to attract the attention of potential and existing workers. Finally, the cheapest form of advertising is individual contact with friends and business associates during various events, and this is essential because it is a free form of advertising. In this case, promotional strategies go beyond the use of the internet to physical types of marketing strategies because of daily social interactions.
| Disney Company Marketing Budget for Brazil | |
| Website and social media |
$6500 |
| Posters, brochures, and postcards |
$250 |
| Media marketing |
$2000 |
| Billboards |
$800 |
| Print media |
$900 |
| Launch Event |
$200 |
| Celebrity Endorsement |
$1500 |
| TOTAL |
$12,150 |
The pricing for Disney’s movies is $15.99, and this price covers the current marketing structure. The price is also fiscally responsible and affordable for customers. Adjusting the product price to the highest-priced competitor will mean that there will be a need to increase the budget. Additionally, if the price is fixed to the lowest-priced product competitor, the company will reduce budget expenses. Therefore, any changes in the price of the products will more likely affect the budget either positively or negatively.
In conclusion, market segmentation is an essential component in determining a company’s marketing strategy. Knowing the target market enables Disney Company to establish the firm’s marketing activities in Brazil. The company is aware of the effects that the market has on its promotion, place or distribution, and pricing strategies. Therefore, Disney Company accurately places itself in Brazil because it understands its market.
References
Andrews, J. C., & Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated
marketing communications . Nelson Education.
Gunter, B., & Furnham, A. (2014). Consumer Profiles (RLE Consumer Behaviour): An
Introduction to Psychographics . Routledge.
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more
profitably . Routledge.
Tiago, M. T. P. M. B., & Veríssimo, J. M. C. (2014). Digital marketing and social media: Why
bother?. Business Horizons , 57 (6), 703-708.
