Marketing is a function of business management through which an organisation designs, promotes and facilities the exchange of its goods and services (Armstrong, 2012). Therefore, management of marketing activity is of great importance to a company.
The Walt Disney Company, popularly known as Disney, is a leading American multinational company dealing in the entertainment and mass media industry (Walt Disney Company, 2017). The headquarters of the company is in Burbank, California. It is a public limited company and was founded in 1923 by Walt and Roy Disney (Walt Disney Company, 2017). The company set up a cartoon studio and established itself as a leader in cartoon animation. The company also has other diversified products like television media channels, film production, action films and theme parks (Cline & Clark, 2016). The company has created many memorable cartoon characters through its studios such as Mickey Mouse and Donald duck. Moreover, the company has now also diversified into games, books, accessories and consumer goods (Latshaw, 2012). Therefore, the company needs extensive marketing plans to market all these diverse products.
Mission of Disney is to be the world’s largest producer and entertainment provider (Walt Disney Company, 2017). The firm aims to develop creative, innovative and profitable content. The current purpose of Disney is to reduce pressure on environment. Another purpose of the company is to inspire children through their stories. Company also aims to maximise cash flow and reinvest into future growth (Walt Disney Company, 2017). The company has various slogans for its diverse products; however, the main slogan is “Where dreams come true” (Latshaw, 2012). Therefore, the company tries to create stories which have an inspirational effect on children so that they can chase their dreams.
The five C’s analysis is a marketing tool which helps in analysis of five key decision making areas in marketing (Baines, 2013). Following is a five C’s analysis of Disney
The company- The major strengths of Disney is its strong product portfolio and huge brand image (Kapferer, 2012). Major resource of the company is its goodwill and huge financial and marketing strength. The company’s major weakness is that as an entertainment company there is over dependency on customer tastes and preferences which may change any time (Wasko, 2013). Emerging markets are a major growth opportunity for Disney and piracy and counterfeiting of the company’s products is major threat which may hamper its sales growth (Krippendorff, 2011). Disney needs to find ways to eliminate the threats so that it can augment its strengths and use the opportunities fully.
Customer- Majorly Disney’s customers are children who watch Disney movies and shows, purchase Disney consumer products and visit the Disney theme parks along with their parents. Disney makes products keeping in mind children of all age groups (Stein, 2011). However, the theme parks are more family oriented and have activities for all age groups.
Collaborators- Most companies work successfully because they have suppliers and distributers who help them in production and exchange of the goods (Bamford & West, 2012). Major suppliers of Disney are companies who provide post production services (Walt Disney Company, 2017). Major distributers are the film distributers, retailers and the television channels that help in telecasting of Disney movies and selling of Disney products.
Competitors- Disney has a diverse empire therefore; it has different types of competitors. (Wasko, 2013). In the television and film sector it operates through ABC channel, ESPN and Disney network where it faces competition from 21st Century Fox, CBS etc. Six Flags Entertainment is the major competitor in theme park segment (Wasko, 2013). The new competition that Disney is facing is a rise in cheaper substitutes which may affect company growth.
Context-A company gets affected by various external factors like political, technical and social factors (Bamford & West, 2012). Technical factors which affect Disney are change in animation technology, filmography technology and film production methods (Wasko, 2013). The company has to take into account all legal regulations pertaining to content which can be shown to children. Political stability is essential for the company to function properly. Political factors like political unrests influence the revenue generation of the company (Wasko, 2013). Trends in society also affect the company as change in tastes and preferences can affect the demand patterns of the Company.
Therefore, an assessment of the five C’s can help Disney in taking adequate marketing decisions.
What customers want- Customers are extremely importance for the company because they are the ones for whom goods and services are created(Stevens, 2012). Disney conducts market research and customer surveys to determine the trends in the society. Market research tools like questionnaire survey and trend projection techniques are also used to forecast demand levels of the company products(Lamb, 2017). The company also changes its movies, and other commercial products depending on children demand and aspiration (Latshaw, 2012). The company undertakes consumer profiling in various countries and comes up with products suitable to various age groups of children. The firm also undertakes children and parent survey to determine what the customers want and what type of product innovation they desire (Wasko, 2013). For example, star wars series came about after an analysis which pointed towards a growing demand in teenage children for more suitable content.
Which competitors pose a threat- Disney is a huge conglomerate with diversified products operating across the globe(Walt Disney Company, 2017). Therefore, it has to keep an eye on all its competitors in different product areas. It finds out about the competitor actions through marketing intelligence. Marketing intelligence is the gathering of information pertaining to competitors, customers and other stakeholders on a continuous basis(Hughes, et al., 2013). The company keeps track of demand and revenue patterns of the competitors and also monitors the preference of customers towards the competitor. Through market intelligence and competitor analysis, Disney finds out which competitor poses a threat (Wasko, 2013). The firm also keeps an eye on pricing strategies of competitors to find out if competitor is penetrating into its market through lowering of prices.
Channing context of business- the world is becoming more and more global. Rules, regulations and social trends are changing. Online children gaming and animations are becoming more and more popular. At the same time regulations about children related content is becoming more and more stringent across the globe. (Boone, 2011). Disney collects information about these social trends and changing legal impact through underusing of legal frame works and cultural and social outlooks in different regions. Government policies are given importance and understood thoroughly before formulating any marketing plan. This helps the firm to adapt to legal and socio cultural framework of different countries(Wasko, 2013). Therefore, staying in touch with changing global context through research and information gathering helps Disney in staying on top of the market.
Role of collaborators in the process Collaborators are very important for any company(Baines, 2013). Disney has pre and post production partners who help in service delivery of the company. Disney keeps track of the collaborator’s role in service delivery by periodically checking the quality of supplies and distribution networks(Stein, 2011). Customer survey is also done to generate information about customer’s perception of distribution networks (Wasko, 2013). Customer survey helps the company in gathering information about effectiveness of television channels and retailers involved and service and goods distribution.
Segmentation is a process of grouping the market into units of similar customers based on demographics like age, income etc. or behaviour and life style (Kotler & Lane, 2013). Disney uses demographic segmentation and has programmes and movies for children of varied categories like small children and teenagers (Walt Disney Company, 2017). Based on this analyse potential new target market segments can be suggested to Disney.
The basic challenge of selecting a new target market is pinpointing the groups for segmentation (Armstrong, 2012). Segment or target market should be selected based on certain criteria. Various thinkers believe that target market selected should be substantial. That is there should be considerable number of people who belong to this target market (Kotler & Lane, 2013). Target market should be accessible that is the product should reach the market without delay. The segment should also be measurable. Demand should be stable and the target market should be actionable (Baines, 2013). That is, the company should be able to design a proper marketing mix strategy for this market.
Based on these attributes a new segment of young adults has been chosen for Disney. Disney has its movies and TV shows mostly for children and teenagers (Wasko, 2013). However, it can start youth shows for young boys and girls in the age group of 18 to 22. As Disney has a big brand name, the market size will be substantial and easily measurable. Once the brand establishes as a young adults brand it can remain stable because the company has customer loyalty (Baker, 2012). Disney can easily access this market through television and online media. This market is also actionable because Disney has huge size and it can plan product development and market mix strategies for specifically this market.
Value proposition is an innovation or a product feature which can attract the customer (Ferrell & Hartine, 2012). Disney is a huge brand name and is recognised throughout the world; therefore, it can create a unique value proportion for its endeavour to make youth based movies and TV shows (Ferrell & Hartine, 2012). A good value preposition can be created for youth based shows in order to attract customers by promoting the youth bases initiative as the next big thing by Disney. It should explain that entertainment is for everybody and Disney can provide healthy entertainment for the youth. The company should also talk about various shows it intends to launch like youth dramas, youth games, youth based contests etc. This will attract youth towards Disney as they may feel that Disney can provide them quality entertainment (Ireland & Hoskisson, 2011). A value proposition can only be complete if the company emphasises the unique selling points which should differentiate from the competitor. For example, light, entertaining and informative youth shows can be a USP of the company for the new target market.
Brand positioning is the image which the product has in the minds of the customer (Scholz, 2014). Positioning is a reflection of the customer’s perception of the brand. Positioning strategy can help in creating a positive brand image for a new product. Firms use various types of positioning strategies (Scholz, 2014). For example, they create an image for the product based on product characteristics. This is known as product or service based positioning. Positioning strategy can also be undertaken by using product applications or process as the feature to attract the customer (Armstrong, 2012). This is known as process based positioning.
Disney can use the product or service based positioning where it can sell youth entertainment. It can highlight the features of the service by saying that the shows are unique, innovative entertaining and inspirational. This will help in image creation and interest generation in the show (Baines, 2013). Therefore, through publicity of the features of the TV shows for youth, Disney can create a favourable positioning in the customer’s mind. Hence, through a careful assessment of target market, Disney can create value proposition and proper positioning of the product.
Marketing mix is a set of tools which are used by a company to attain its goals and objectives (Baines, 2013). For tangible products there are four major decision areas which help to attain these goals. These are product, place, price and promotion (Armstrong, 2012). However, services do not have very strong tangibility; hence, additional three sets of decision making are considered for services. These are people, physical evidence and process (Wirtz, 2012). Following are recommendations for marketing mix strategy for Disney for the launch of new youth shows through service based positioning strategy.
Product- Product is the most important aspect of marketing activity as it is the basic offer of the form to the customer (Looy, 2013). Service product is different from normal product because during service purchase, only the experience is transferred to the customer and the ownership of the product remain of the service provider (Wirtz, 2012). The product offered in this scenario is the youth shows via television and film media. This product is justified as the company has a huge brand name and it should try to develop additional target markets. Therefore, youth shows can be offered as a new product.
Place- Place is the space through which goods and services are exchanges. Place can be physical or virtual (Stevens, 2012). Disney can provide youth entertainment by initially using time slots in its existing television channels like Disney network and ABC channel. Later it can also launch a new television channel for youth shows. This is justified because it will initially reduce the cost of service delivery for Disney.
Price- Pricing creates perception of genuineness for a product (Armstrong, 2012). Therefore, pricing should be kept so that the customer feels it is justified. Initially the company can use penetrative pricing strategy and keep subscription costs low so as to appeal to a larger number of youth (Baines, 2013). Price can be increased once the youth starts watching the shows.
Promotion – Promotions are ways of communication and informing the customer about the product (Wirtz, 2012). As Disney is mostly associated with children, the company has to use extensive promotions to get the message across that it is coming up with youth based shows. For this purpose the company can use television advertisements, print media, publicity, and social media. This will help to create mass awareness about the product (Looy, 2013). These methods will increase awareness about the product.
Process- Process is the procedure followed during service delivery (Wirtz, 2012). The process followed while producing youth shows would be in-house production and relay of the programme in own channels of Disney. Consumers will be asked to buy subscription the channel. The subscription fees would be payable at the end of a billing cycle like one month. This process is justified because it will keep production costs low.
Physical evidence- this constitutes the tangible elements associated with the service delivery and the environment in which the service is delivered (Looy, 2013). The tagline and the slogans are part of the physical evidence. The subscription is a major physical evidence of service delivery in case of the youth programmes. The slogans and taglines which promise and assure the youth that they are getting quality, is also another major physical evidence which the firm can use. Firm can have a tagline like ‘magic for youth begins here’ for the youth shows. This will give credibility to service delivery hence it is justified.
People- People constitute of the human resource which help in service delivery (Wirtz, 2012) . All the technicians, designers and artists involved in creation of the TV show are the people involved in the service delivery (Wirtz, 2012). People should be expert in their field. For this purpose trained workforce should be undertaken. This will help in quality service delivery hence it is justified.
Therefore, Disney can use marketing mix strategy to position itself as a youth entertainment brand.
Conclusion
Marketing tools like the Five C’s analysis or the marketing mix strategies help an organisation in creating value proposition for new and existing target market. With the help of marketing management tools, a company can build a well-known brand and create a favourable impression on the customer.
References
Armstrong, G., (2012) Marketing: An Introduction. New Delhi: Pearson Education.
Baines, P., (2013) Essentials of Marketing. Oxford: Oxford University Press .
Baker, M., (2012) The Marketing Book. New Jersy: Routledge.
Bamford, C. E. & West, P. G., (2012) Strategic Management : value creation, sustaínability, and performance. New York: Cengage Learning.
Boone, L., (2011) Contemporary Marketing. New York: Cengage Learning.
Cline, R. & Clark, S., (2016) The Walt Disney Studios: A Lot to Remember. Glendale, Califorina: Disney Publishing Worldwide.
Ferrell, O. & Hartine, N., (2012) Strategic Marketing. London: Cengage Learning.
Hughes, D., Bon, J. & Rapp, A., (2013) Gaining and leveraging customer-based competitive intelligence: the pivotal role of social capital and salesperson adaptive selling skills. Journal of the Academy of marketing Science, 41(1), pp. 91-110.
Ireland, D. R. & Hoskisson, (2011) Understanding Business Strategy Concepts Plus. London: Cengage Learning.
Kapferer, J.-N., (2012) The New Strategic Brand Management: Advanced Insights and Strategic Thinking. London: Kogan Page Publishers.
Kotler, P. & Lane, K., (2013) A Framework for Marketing Managemen. Harlow: Pearson Prentice Hall.
Krippendorff, K., (2011) Outthink the Competition: How a New Generation of Strategists Sees Options Others Ignore. New Jersey: John Wiley & Sons.
Lamb, C. W., (2017) MKTG. New York: Cengage Learning.
Latshaw, M., (2012) The Walt Disney Company : an IMC Plan: Integrated Marketing Communications Campaign. New York: St. Bonaventure University.
Looy, P. E. L. V., (2013) Service Management: An integrated approach. Harlow: Pearson Education Limited.
Scholz, L., (2014) Brand Management and Marketing of Luxury Goods. Humburg: Anchor Academic Publishing.
Stein, A., (2011) Why We Love Disney: The Power of the Disney Brand. Pieterlen: Peter Lang.
Stevens, R., (2012) Marketing Management: Text and Cases. New Jersy: Routledge.
Walt Disney Company, (2017) About Us. [Online]
Available at: https://thewaltdisneycompany.com
[Accessed 20 July 2017].
Wasko, J., (2013) Understanding Disney: The Manufacture of Fantasy. New Jersey: John Wiley & Son.
Wirtz, J., (2012) Essentials of Services Marketing. New Jersey: FT Press.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download