Chapter 17: Advertising & Public Relations

     The Walt Disney Company is very strong in entertainment and animation, the two areas do fairly well in the global market, but just because a company has its strengths doesn't mean its going to successfully sell its product without advertising. Advertising is essential because let's face it, without advertising we wouldn't know about half the products we use. In this case we are talking about Disney's animated films, therefore Disney uses product advertising which is a form of advertisement that touts the benefits of a specific good or service.

     In order to advertise a product, a company must first select an advertising appeal which identifies a reason for a person to buy a product. Disney uses the "Fun and Pleasure" appeal to advertise their animated films. Next, the company must choose a style to execute their message. Disney uses the "Mood or Image" executional style for advertising which builds a mood or image around the product such as love, happiness, or inspiration. For example, whenever you feel a certain emotion after watching a Disney movie trailer, that's their "Mood or Image" tactics working on you. 


     After the company has established how they are going to advertise, they must determine which types of media will best communicate the benefits of their product or service to the target audience and when and for how long the advertisement will run, this is called media planning. Disney advertises through newspapers, their own radio station - 1560 AM ©Radio Disney, television, internet, and outdoor media. Of course each media type has its advantages and disadvantages, but because Disney has such a powerful brand name and history, they end up having more benefits than losses. 

     Due to this powerful image, Disney can sell almost anything by just putting one of their famous animated characters on the product. For example, because Disney had teamed up with McDonald's and Mattel toy makers many years ago, each time it comes out with a new film they simply let Mattel make toys out of their characters of the upcoming film who distribute the toys to McDonald's who advertises them with their Happy Meal for kids, which brings Disney more fame and customers. As a result, the child begs the parent to take him or her to the movie theater to watch the new Disney film the child now knows of just by eating McDonald's. 

Chapter 15: Retailing

     The Walt Disney Company's retailing aspect consists of strategically located chain stores - 216 in North America, 107 in Europe, and 48 in Japan. The Disney Store is a specialty store, where you can find disney consumer products such as toys, clothing, games, costumes, DVD's, books, art & collectibles, home decorations, and electronic accessories.

     I happened to take the time to visit a local Disney Store myself, its located in Queens, New York at the Queens Center Mall. The lighting in the store was very bright, and the ambiance gave off a very exciting and youthful feeling. There is a big screen in the center of the store, which is the theater area and you can control what it plays. Of course, the control pad only has certain options of videos and music for you to play which are Disney animated movie trailers and Disney Radio music.

     The store is split up into many different sections which attract both girls and boys. For the girls, there's a huge Disney Princess section which is broken up into smaller sections of each princess which consists of costumes, shoes, dolls, accessories, and toys. For the boys, there is a Cars (the animated movie) section which consists of toys based on the main characters of the movie, video games, board games, and clothing. There is also a Pirates of the Caribbean section for the boys, it includes costumes; toys such as plastic swords, pirate ships, action figures, etc.;  and video games, along with board games as well.

     Another section, being the mutual one, is filled with plush toys based on almost every Disney animated character ever created. Varying from the original characters: Mickey Mouse, Donald Duck, Goofy, Minnie, and Daisy to major and minor characters from the animated movies. In addition, there is also a section that's more likely for adults, it consists of items used for home decorations: such as bedding, towels, throw blankets, photo frames, etc.; books; DVDs; electronic accessories: such as clocks and wrist watches, iPod, iPad, and mobile phone covers; and art & collectible items such as snow globes, mugs, figurines, and portraits.

     The customer service was very friendly, as my little sister and I browsed throughout the entire store the employees asked if we needed any help. One particular employee had a brief conversation with my little sister about her favorite Disney character and then recommended me with which toy would satisfy her the most. To test out how "friendly" they really are, I purposely kept denying every recommendation and stated that I was "just looking." I was hoping to aggravate the employee in order to see her fail to stay calm and friendly, instead she surprised me with a good sense of humor and ultimate patience. In the end, we left empty handed because I was there as a marketer not as a consumer.

     My overall experience at the Disney Store was surprisingly fun, and satisfying. I was impressed by the way the store was laid out, how they had each section to satisfy each target market including parents. Customer service, in my opinion, was excellent and I can see why many children like to go there not for any main purposes but just for pure entertainment.
   

Chapter 6: Consumer Decision Making

     Everyone follows the "Consumer Decision-Making Process" whether they're aware of it or not; it may not be in order but it is still followed. In fact, the consumer may end the process at any time or may not even make a purchase at all. Throughout this blog, I will be using The Lion King 3D which was released in theaters on September 16, 2011 for only two weeks as the product to demonstrate how a Disney consumer will typically use the Consumer Decision-Making Process without even knowing it.

     The first stage in this process is the need recognition which is always a desired need when it comes to Disney products. This "need" can be triggered by external stimuli through immense advertising or positive reviews. The second stage is information search which in this case it's internal because of all the good memories consumers have of the original film "The Lion King" released seventeen years ago. The information source is nonmarketing-controlled due to personal experiences. Most Disney consumers are the parents, not the actual kids who want to watch these films. Therefore these parents end up considering watching these films because Disney never failed them as a child.

     The next stage is evaluation of alternatives which helps the consumer ultimately make their decision in whether they are going to buy the product or not. The Walt Disney Company's biggest competition is The Warner Bros. In this case, consumers compared Disney's "The Lion King 3D" to the Warner Bros' "Dolphin Tale" before making their final decision. The fourth stage is purchasing. Most of Disney's films are unplanned purchases due to the consumer not knowing about the upcoming film until seeing a preview or advertisement - therefore the consumer buys on impulse.

     The final stage of this process is the postpurchase behavior which is the certain outcome these consumers expect from their purchase. According to the Box Office Report The Lion King 3D ruled the box office for the second weekend in a row with $22.1 million coming in first place, followed by Moneyball - $20.6 million, and Dolphin Tale - $20.3 million. It appears that four new movie releases were no match for the Disney classic and because of this success Disney is planning on extending what was originally intended to be just a two week release. It is quite clear that Disney consumers are more than satisfied with the film and their expectations were beyond exceeded.

Chapter 5: Developing A Global Vision

        The Walt Disney Company has contiuously expanded their global market. Through their films, parks and resorts, consumer products, and media networks they have gained international recognisability. According to Walt Disney International the Company’s focus has been on establishing the foundations for long-term growth in the emerging markets of Latin America, Russia, India and China. More recently a renewed focus has been brought first to Japan and to Europe, the Middle East and Africa (EMEA), where their businesses are more developed, and where they believe they can grow substantially and better serve their consumers.

     The most visible international presence of Disney is their parks - currently in Tokyo Japan, Paris France, and Hong Kong China. Each park has specific cultural attributes, but the parks do share similarities. Disney also attempts to underplay each culture and make sure the Disney “feel” is consistent between all parks. The Walt Disney Company is planning on expanding their California Adventure park over the next several years. By 2012 the park will have a new Cars Land, light and water show, new entrance in 1920’s theme, and redone boardwalk rides.

     Disney markets their films and digital content very aggressively internationally. Through ESPN, they distributed to more than 190 countries, and a special agreement between in the Asian market for sports programming. Through a strategic partnership with Disney ABC International Television for the distribution of Disney-branded blocks of kids' programming across the globe, Disney Channels Worldwide reachs more than 600 million viewers in over 100 countries in the U.S., Europe, the Middle East, Asia Pacific, Latin America and South Africa. Disney Channel properties continue to rapidly expand into new markets across the world, playing a key role in introducing the Disney brand to new consumers.

     In addition, Disney’s theatrical shows continue to record successes throughout Europe, with The Lion King celebrating 10 years on stage in London and still enjoying popularity in Hamburg and Paris. Tarzan continues to perform strongly in Hamburg while Beauty and the Beast recently opened in Milan.

    However, the Walt Disney Company is know for it's job outsourcing which isn't necessarily a positive aspect. The company reports factors of production overseas with mixed results. The most prominent example is animation work, which can be produced for $25 per hour compared to $125 per hour in the United States. The production of consumer goods, both hardline and softline are mainly done in Southeast Asia, which has caused complications for the company. The outsourcing of producing goods overseas has lowered Disney’s overhead cost. This benefits the company due to decreased cost and the consumer for decreased prices of goods.

     Due to this outsourcing, the companies that produce the goods for Disney (which Disney "claims" they were unaware of) usually violate international labor laws. In recent years, the Company has changed their code of conduct for all businesses partners. These changes mainly came due to a 2000 report by the Hong Kong Christian Industrial Committee that examined the current company’s code of conduct and their business partner’s actual working conditions. Currently, Disney works with Verite, a non-profit group, to assess and correct labor conditions with their Asian business partners. Lastly, the company has been included in the FTSE4 Good, Dow Jones Sustainability Index and KLD Index.

Chapter 4: The Marketing Environment

      Disney's target market may appear to be just children, but the fact of the matter is that their main focus is on the whole family. Disney's target market varies from children, to tweens, to teenagers and even adults - practically anyone who is young at heart. As Walt Disney himself once quoted "Your dead if you aim only for kids. Adults are only kids grown up, anyway."  You can see the multi-generational focus if you watch the commercials for their theme parks or by simply watching one of their animated movies; some are aimed at parents, some are aimed at children, and most have something that appeals to both.

     For years the Walt Disney Company has attracted young girls through their Disney Princess Sector. Now Disney is expanding their market by targeting even younger girls, girls still in the crib! To accomplish this Disney will be making products such as cribs and various infant products picturing the Disney Princesses Snow White, Sleeping Beauty, Cinderella, Belle, Ariel, Jasmine, Pocahontas, Mulan, Tiana, and Rapunzel.

     As far as Disney's theatrical productions, they're mainly sold in stores located in malls and super centers. These malls and super centers are usually located in urban areas in order for them to be visible to median income families. After all, median income families are their main audience.

Chapter 3: Ethics & Social Responsibility

   

      According to Business Ethics|The Magazine of Corporate Responsibility, The Walt Disney Company is at the top of the Corporate Social Responsibility List as of 2009. Throughout Disney's corporate website, there are plenty of pages concerning their ethical behavior and social responsibility:

•  Business Standards & Ethics
• Standards of Business Conduct
• The International Labor Standards
• Code of Conduct for Manufacturers
• Environment & Conservation

      The Walt Disney Company has become so social responsible that it has even expanded to Green Marketing which is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment. They have many pages on their website dealing with "Going Green" varying from giving children and adults helpful tips on how to help the environment, to fun and exciting projects that are competitive and rewarding.

1. Get Involved in Conservation - Protecting the planet and conserving nature takes everyone to get involved. Join with Disney to make a difference.
2. Disney Friends for Change: Project Green - An innovative multi-platform on Disney Channel, Radio Disney, and Disney.com that invites young people to join together to help the planet.
3. Disney Planet Challenge - A project-based learning competition designed for 4th - 6th grade classrooms enabling teachers to engage and empower their students in environmental stewardship.
4. Disney Worldwide Conservation Fund - Supports the important work of both local and global nonprofit organizations to positively impact wildlife, ecosystems and the communities so closely linked to their survival.
5. Recycle Plastic Bags - Disney's eco-friendly shopping bag program designed to reduce plastic bag waste.
6. The Green Standard - Aimed at reducing the company's operational impact on the environment, the Green Standard asks that every Cast Member and employee make simple environmentally minded changes in four key areas: work space, meetings and events, travel and dining. 

Chapter 2: Strategic Planning for Competitive Advantage

   
      The Walt Disney Company is a market oriented corporation, meaning they assume that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product. These are usually the parents that take their kids to the movies and buy the merchandise. Disney knows that it's one thing to make a great movie that kids are excited about but the efforts often fall short if parents don't approve of it.

The driving force of the entire company is the motion pictures and animated cartoons which are managed by Touchstone, Pixar, Walt Disney Pictures, Buena Vista, and Miramax. Disney Imagineering does all of the strategic planning for The Walt Disney Company as well as the marketing planning. According to http://corporate.disney.go.com, the goal of the Disney Imagineering section is to continuously design and implement new, fun and exciting products for the Disney Company that will attract, amaze, and excite their customers. By doing so, the company uses its product/service differentiation competitive advantage.

The company clearly has developed a very strong and well known "brand-name and image" over many years. In addition, Disney has one the most recognized and powerful brand names in the entertainment industry according to Datamonitor 2007. Because of this, selling all of their movies are almost never a problem. Yes, a lot has to do with advertising but the Disney name has so much history that it has given them an advantage of instinct and familiarity when it comes to selling their products.



As you all may know, the term marketing mix refers to a unique blend of product, place, promotion, and pricing strategies (often referred to as the "four Ps") designed to produce mutually satisfying exchanges with the target market.

The Walt Disney Company is very good at the product and placing aspects of the four Ps. Again, because of their brand name they have the ability to sell their products easily. As new theatrical productions are released, it allows for new product lines based off the feature’s characters to be made and sold in strategically placed stores throughout the United States. The stores are located in malls and super centers, in urban locations in order to for them to be visible by the public eye.

The next two Ps are promotion and pricing. The Walt Disney Company promotes their films in almost every way possible varying from McDonald's toys to Billboards and posters all over buses and trains. Disney wastes so much money on advertising, that you see their upcoming previews all over TV as well as the internet. Movie ads are displayed on various websites like YouTube, Facebook, and Twitter and many more. As for pricing, new DVD releases are usually relatively cheap due to the fact that Disney is a family oriented company that wants to be able to attract families of median incomes.

The most basic goal of The Walt Disney Company other than profit is, “To Make People Happy”. Their ability to make children as well as parents feel warm-hearted and full of joy after just one animated movie is what truly makes them successful. Disney is always advertising with key words such as "Love", "Magic", and "Happiness" because that's what their films are all about. Their unique ability to capture their audiences hearts is what separates them from other companies in the film industry. I believe that this is Disney's secret to success and true competitive advantage.