The Walt Disney Company is one of the biggest media and entertainment corporations worldwide. It was founded by Walt Disney in October 1923 starting with the production of a series of Alice Comedies. The first Mickey Mouse cartoon was then released in 1928 (The Walt Disney Company, 2013a).
Today the company operates in five business segments: media networks, studio entertainment, consumer products, interactive media and parks and resorts (The Walt Disney Company, 2013b): the Media Networks comprise broadcast, cable, radio, publishing and digital businesses across two divisions – the Disney/ABC Television Group and ESPN Inc. Disney Studios include Walt Disney Animation Studios and Pixar Animation Studios, Disneynature, Marvel Studios, Lucasfilm and Touchstone Pictures. They also own two music labels and theatrical groups producing Broadway shows like ‘The Lion King’ or ‘Disney on Ice’. Disney Consumer Products is the world largest licensor and delivers toys, apparel and books. They operate 350 Disney retail stores worldwide. The business segment Interactive Media creates entertainment for digital media platforms like games. Finally, the segment parks and resorts comprises five vacation destinations with 11 theme parks and 44 resorts in North America, Europe and Asia, with a sixth destination currently under construction in Shanghai. They also have four Disney Cruise Line ships; 12 Disney Vacation Clubs approaching a total of 200,000 member families; and Adventures by Disney, which provides guided family vacation experiences to global destinations.
In 2013, Disney earned revenues of $45,041 million which represents an increase of 7% compared to 2012. The net income gained 8% to $6,136 million and the earnings per share for the year 2013 increased 8% to $3.38 (The Walt Disney Company, 2013c, p.1). Its profits amount to $5.6 billion and the market cap is $103.96 billion which makes the company very valuable. At the moment Disney has approximately 166,000 employees around the world (Forbes, 2013). The parks and resorts segment was one of the main growth drivers in 2013: they contributed more than 31% ($14.1 billion) to the overall company revenues and 21% to the segment operating income. (...) Therefore, the parks and resorts play a very important role in the company's brand portfolio. The paper will therefore focus on this business segment.
Table of Contents
1. Company Overview
1.1. The Walt Disney Company
1.2. The amusement park industry
2. Marketing Environment Analysis
2.1. Microenvironment
2.2. Macroenvironment
3. Competitive Analysis
4. Market Analysis
5. Basis for Sustainable Competitive Advantage
6. Marketing Strategy
6.1. Product Line Strategy
6.2. Branding & Positioning
6.3. Pricing Strategy
6.4. Marketing Communication Strategy
6.5. Customer Service
7. Overall Assessment of Marketing Strategy
Objectives & Core Topics
This paper provides a strategic marketing analysis of The Walt Disney Company’s "Parks and Resorts" business segment, examining how the company maintains a sustainable competitive advantage in the global theme park industry through branding, product positioning, and superior customer experience.
- Analysis of the amusement park industry and competitive landscape.
- Evaluation of Disney's micro- and macro-marketing environment.
- Detailed breakdown of product line, branding, and pricing strategies.
- Assessment of marketing communication and customer service initiatives.
- Strategic recommendations for maintaining brand relevance and growth.
Excerpt from the Book
1.1 The Walt Disney Company
The Walt Disney Company is one of the biggest media and entertainment corporations worldwide. It was founded by Walt Disney in October 1923 starting with the production of a series of Alice Comedies. The first Mickey Mouse cartoon was then released in 1928 (The Walt Disney Company, 2013a).
Today the company operates in five business segments: media networks, studio entertainment, consumer products, interactive media and parks and resorts (The Walt Disney Company, 2013b): the Media Networks comprise broadcast, cable, radio, publishing and digital businesses across two divisions – the Disney/ABC Television Group and ESPN Inc. Disney Studios include Walt Disney Animation Studios and Pixar Animation Studios, Disneynature, Marvel Studios, Lucasfilm and Touchstone Pictures. They also own two music labels and theatrical groups producing Broadway shows like ‘The Lion King’ or ‘Disney on Ice’. Disney Consumer Products is the world largest licensor and delivers toys, apparel and books. They operate 350 Disney retail stores worldwide. The business segment Interactive Media creates entertainment for digital media platforms like games. Finally, the segment parks and resorts comprises five vacation destinations with 11 theme parks and 44 resorts in North America, Europe and Asia, with a sixth destination currently under construction in Shanghai. They also have four Disney Cruise Line ships; 12 Disney Vacation Clubs approaching a total of 200,000 member families; and Adventures by Disney, which provides guided family vacation experiences to global destinations.
Summary of Chapters
1. Company Overview: Provides a historical background of the organization and identifies the "Parks and Resorts" segment as a key growth driver.
2. Marketing Environment Analysis: Evaluates external factors using Porter’s 5 Forces and PESTLE to identify threats and opportunities in the industry.
3. Competitive Analysis: Compares Disney against major competitors like Universal Studios, Six Flags, and SeaWorld regarding attendance, branding, and market positioning.
4. Market Analysis: Examines industry growth trends and Disney's multi-segment targeting approach focusing on families and children.
5. Basis for Sustainable Competitive Advantage: Analyzes how Disney creates unique emotional benefits and storytelling to maintain a competitive lead.
6. Marketing Strategy: Details Disney's specific approaches to product lines, brand mantras, premium pricing, communication, and service excellence.
7. Overall Assessment of Marketing Strategy: Offers a final synthesis of Disney's current market position and strategic recommendations for future challenges.
Keywords
Walt Disney, Parks and Resorts, Marketing Strategy, Brand Equity, Competitive Advantage, Amusement Park Industry, Consumer Behavior, Brand Positioning, Customer Service, Storytelling, Market Segmentation, Pricing Strategy, Social Media Marketing, Entertainment Industry, Brand Mantra.
Frequently Asked Questions
What is the primary focus of this work?
This report focuses on the strategic marketing initiatives of Walt Disney’s "Parks and Resorts" business segment, analyzing how it achieves dominance in the global theme park market.
What are the central themes of the analysis?
The central themes include competitive positioning, brand equity management, customer experience design, and strategic adaptation to changing demographic and digital trends.
What is the core research objective?
The objective is to identify how Disney creates and sustains a competitive advantage through its unique product offerings and emotional brand resonance.
Which scientific methods are applied?
The paper utilizes established marketing frameworks such as Porter’s 5 Forces, PESTLE analysis, brand mantra development, and competitive frame of reference assessment.
What does the main body cover?
The main body covers a comprehensive review of the company's business environment, a comparison with key competitors, an analysis of target markets, and an in-depth breakdown of marketing mix elements like pricing and communication.
Which keywords best characterize this work?
Keywords include Disney, competitive advantage, brand equity, positioning, amusement park industry, and marketing strategy.
How does Disney differentiate itself from competitors like Six Flags?
While Six Flags relies on thrill-factors and rational benefits, Disney differentiates itself through emotional storytelling, attention to detail, and a focus on "magical" family entertainment.
What role does the "brand mantra" play for Disney?
The mantra "Fun Family Entertainment" serves as a guiding device for employees and partners, ensuring all actions and licensing ventures remain consistent with the brand's core values.
How is Disney addressing the threat of the $100 price point?
Disney carefully manages its value proposition to justify premium pricing while avoiding price-sensitive backlash by segmenting through bundle packages rather than direct ticket discounts.
- Quote paper
- Isabelle Köhler (Author), 2013, Strategic marketing analysis of Walt Disney’s Parks and Resorts, Munich, GRIN Verlag, https://www.grin.com/document/271362
