Case 7
Summary
Disney was founded in 1923 by two brothers, Walt and Roy. It started as an animation company making black and white cartoons of their most famous character, Mickey Mouse. The company grew an eventually introduced the world to “Snow White and the Seven Dwarves”, a color feature length animated movie with sound. It soon expanded and is now comprised of five business segments: The Walt Disney Studios, which creates films, recording labels, and theatrical performances; Parks and Resorts, which focuses on Disney’s 11 theme parks, cruise lines, and other travel-related assets; Disney Consumer products, which sells all Disney-branded products; Media Networks, which includes Disney’s television networks such as ESPN, ABC, and the Disney Channel; and Interactive Media. Disney has done a phenomenal job branding itself as family centered entertainment company.
Questions
1. In order to effectively connect with its core consumers, Disney has proven itself effective in segmenting its market, which are not only children, but people of all ages and from all walks of life. It tailors different products and services to various segments and therefore uses different marketing strategies to appeal to these different groups. For example, ESPN is tailored to adults and to more sports-oriented individuals whilst the Disney Channel appeals to children. In contrast, Disney’s Parks and Resorts cater to both adults and children as they both enjoy them as a great form of entertainment. Secondly, in order to best connect with its core consumers, Disney uses emerging technologies to connect with them in innovative ways. For example, it was one of the first companies to begin regular podcasts of its television shows.
2. The risk Disney faces when expanding its brand in new ways is to keep a 90-year-old brand relevant and current to its core audience while staying true to its heritage and core brand values. There needs to be a balance between the respect for