College of Management

Learning Activity 3.2

Name: EMY ROSE DIOSANA Course/Yr/Sec: BSBA 3D

Subject: HE 311- Marketing Management Period: 1st Sem, AY 2021-2022

Learning Target: Analysis of Consumer and Business Markets

Few companies have been able to connect with a specific audience as well as Disney has. From
its founding in 1923, the Disney brand has always been synonymous with quality entertainment
for the entire family. The company, originally founded by brothers Walt Disney and Roy Disney,
stretched the boundaries of entertainment during the 20th century to bring classic and memorable
family entertainment around the world. Beginning with simple black and-white animated
cartoons, the company grew into the worldwide phenomenon that today includes theme parks,
feature films, television networks, theatre productions, consumer products, and a growing online
presence.

In its first two decades, Walt Disney Productions was a struggling cartoon studio that introduced
the world to its most famous character ever, Mickey Mouse. Few believed in Disney’s vision at
the time, but the smashing success of cartoons with sound and the first-ever full-length animated
film, Snow White and the Seven Dwarfs, in 1937 led, over the next three decades, to other
animated classics including Pinocchio, Bambi, Cinderella, and Peter Pan, live action films such
as Mary Poppins and The Love Bug, and television series like Davy Crockett.

When Walt Disney died in 1966, he was considered the best-known person in the world. By then
the company had expanded the Disney brand into film, television, consumer products, and
Disneyland in southern California, its first theme park, where families could experience the
magic of Disney in real life. After Walt’s death, Roy Disney took over as CEO and realized
Walt’s dream of opening the 24,000 acre Walt Disney World theme park in Florida.

By the time of Roy’s death in 1971, the two brothers had created a brand that stood for trust, fun,
and entertainment that resonated with children, families, and adults through some of the most
moving and iconic characters, stories, and memories of all time.
The company stumbled for a few years without the leadership of its two founding brothers.
However, by the 1980s, The Walt Disney Company was back on its feet and thinking of new
ways to target its core family oriented consumers as well as expand into new areas that would
reach an older audience. It launched the Disney Channel, Touchstone Pictures, and Touchstone
Television. In addition, Disney featured classic films during The Disney Sunday Night Movie and
sold classic Disney films on video at extremely low prices in order to reach a whole new
generation of children. The brand continued to expand in the 1990s as Disney tapped into
publishing, international theme parks, and theatrical productions that reached a variety of
audiences around the world.

Today, Disney is 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’s greatest challenge today 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. Disney’s CEO Bob Iger
explained, “As a brand that people seek out and trust, it opens doors to new platforms and
markets, and hence to new consumers. When you deal with a company that has a great legacy,
you deal with decisions and conflicts that arise from the clash of heritage versus innovation
versus relevance. I’m a big believer in respect for heritage, but I’m also a big believer in the need
to innovate and the need to balance that respect for heritage with a need to be relevant.”

Internally, Disney has focused on the Disney Difference—“a value-creation dynamic based on
high standards of quality and recognition that set Disney apart from its competitors.” Disney
leverages all aspects of its businesses and abilities to touch its audience in multiple ways,
efficiently and economically. Disney’s Hannah Montana provides an excellent example of how
the company took a tween-targeted television show and moved it across its various creative
divisions to become a significant franchise for the company, including millions of

CD sales, video games, popular consumer products, box office movies, concerts around the
world, and ongoing live performances at international Disneyland resorts like Hong Kong, India,
and Russia. Disney also uses emerging technologies to connect with its consumers in innovative
ways. It was one of the first companies to begin regular podcasts of its television shows as well
as release ongoing news about its products and interviews with Disney’s employees, staff, and
park officials. Disney’s Web site provides insight into movie trailers, television clips, Broadway
shows, virtual theme park experiences, and much more. And the company continues to explore
ways to make Mickey Mouse and his peers more text-friendly and virtually exciting.

According to internal studies, Disney estimates that consumers spend 13 billion hours
“immersed” with the Disney brand each year. Consumers around the world spend 10 billion
hours watching programs on the Disney Channel, 800 million hours at Disney’s resorts and
theme parks, and 1.2 billion hours watching a Disney movie—at home, in the theatre, or on their
computer. Today, Disney is the 63rd largest company in the world with revenues reaching nearly
$38 billion in 2008.

Case Questions:

1. What does Disney do best to connect with its core consumers?

- In my opinion, Disney has developed numerous methods for targeting its core customers.
To begin, Disney begins to involve new businesses in order to pique the interest of clients.
Snow White and the Seven Dwarfs, Disney's first full-length animated feature, was
released in 1937, and was followed by numerous animated classics, live-action films, and
television programs like Pinocchio, Mary Poppins and The Love Bug, and Davy Crockett.
Disney Channel, Touchstone Pictures, and Touchstone Television are launched as soon as
Disney recognizes their needs. Many films, such as Splash, have been released under the
Touchstone Pictures banner. Its releases are usually more adult-oriented than Disney's.
Furthermore, Disney's pricing model has successfully reached an entirely new generation
of children. Classic movies on video, for example, are marketed at incredibly low prices,
making them accessible to the vast majority of families. Second, Disney has focused on
the Disney Difference in order to achieve quality and recognition. By leveraging Disney
Difference, consumers will be able to easily distinguish Disney from its competitors,
giving Disney a competitive advantage. Studio Entertainment, Parks and Resorts,
Consumer Product, Media Networks, and Interactive are the five business sectors that
make up Disney today. The diversification of its strengths increases the opportunities for
various types of customers to select services and goods, resulting in customer loyalty.
When Disney captures the interest of those consumers, they will become customers sooner
or later. Hannah Montana, for example, is an outstanding example. It is transformed into a
variety of products, including popular consumer goods, millions of CD sales, video games,
box office hits, international concerts, and live performances at Disneyland resorts around
the world. And lastly, Disney adopts the latest technologies. With the development of new
technologies, Disney also upgrades its techniques to connect with its core consumers.
Disney is one of the first companies to begin regular podcasts of its television shows as
well as to post news about its products and interviews with Disney’s employees, staff, and
 park officials. Web site provides insight into its movie trailers, television clips, Broadway
shows, and virtual theme park experiences. This would make their journey to Disney more
special and joyful. This also help customers to be served more easily and entertainingly.

2. What are the risks and benefits of expanding the Disney brand in new ways?
- Every business, whether well-established or newly established, faces a risk challenge.
The risk of a product's success, as well as the risk of remaining stable in the market.
Disney is a well-known firm that faces both risks and rewards when introducing new
products. Disney is always looking for new talent to help them expand their market.
Disney not only grows its stores, but it also tries to offer new items and services all of
the time. Apart from functioning in the entertainment industry, the organization should
maintain a brand that people seek out and trust. Mass coverage, a strong brand image,
and increased profit margins are all important advantages of brand expansion. One of
the challenges that Disney faces in expanding its brand in new ways is that it must
maintain its core business, as CEO Bob Iger stated, "Disney's greatest challenge today
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." It is a fact that making decisions to resolve
these situations is never easy.