Professional Documents
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Walt Disney Case Study Analysis
Walt Disney Case Study Analysis
2004
TABLE OF CONTENTS
TOPICS:
PAGE NO:
Acknowledgements ...03
Introduction...04
History of the case.04
SWOT Analysis.06
Strategic Marketing Goals...08
Consumer Behavior Strategy..09
Targeting Strategy...11
Product Strategy..12
Positioning Strategy14
Pricing Strategy..15
Channel Strategy....16
Promotional Strategy.17
Recommendations.18
Appendix...19
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ACKNOWLEDGEMENTS
First of all I am grateful to Almighty Allah most Beneficial and the most Merciful who has
made me capable of making this report and has given me various opportunities for
development in every walk of life.
I would also like to show gratitude towards my course instructor Sir M.A Butt for teaching
and making me capable enough to work on this report and providing me with great
opportunity to learn how Case Study Analysis is done in the corporate world.
Without his complete guidance and support I would not have been able to complete this
endeavor. I hope this report meets his standards and expectations.
Sincerely,
SHABBIR ALI
2004
INTRODUCTION:
I am appointed by Walt Disney Company as their marketing consultant to solve the case
study given and make the case study analysis. In order to do so, I have conducted research
and in depth interviews of Walt Disney professionals. While conducting the research and
going through the case I came up with some important findings and recommendations which
have been discussed in the pages to come.
Walt Disney is a $ 27 billion dollar entertainment giant. It was started by a person named
Walter Disney in collaboration with his brother called Roy O Disney in 1923. Since then
Disney has come a long way. Disney has been a leader in 4 consumer markets which are Walt
Disney studios and motion pictures, Disney Theme parks and resorts, Disney T.V channels
and media networks and Disney consumer (merchandising) products. Likewise all
companies, Disney too has some Strength and weaknesses and being a giant has some threats
and opportunities as well which are also discussed in the following pages. I was asked to
make the SWOT analysis and also discuss Disneys strategic marketing Goals. I have made
Disneys consumer behavior strategy related to its famous character Kim possible. I have
made its targeting strategy, positioning strategy, product strategy, pricing strategy, channel
strategy and promotional strategy. I have also made some findings related to new consumer
markets and segmentation. In the end I have made some important recommendations so that
Walt Disney improves on its weaknesses and also prepares for the threats to be faced in years
to come.
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In 2003, Walt Disney came up with a movie called Pirates of the Caribbean which was a
block buster hit at the box office. The movie was targeted for all the members of a family. In
addition to the movie, Disney created a theme park ride, merchandising program, video
game, TV series and comic books. In 2004, Disney presented the movie called Home on the
range which was again a hit. Apart from the movie Disney created an accompanying sound
track album, a line of toys for kids, clothing featuring the heroine, a theme park ride and a
series of books. So Disney more often or not supports and promotes its movies with a host of
secondary products attached to it.
Disneys strategy is to build consumer markets for each of its characters, from classics like
Mickey Mouse to snow white to new hits like Kim Possible. Each brand is created for a
special age group and distribution channel. Disney has a large distribution channel. Baby
Mickey Mouse and Disney babies target infants. Mickey Mouse is sold through the
department and specially gift stores while Baby Mickey Mouse is a lower price option sold
through mass-market channels. Disneys Mickeys stuff for kids targets boys and girls while
Mickey unlimited targets teens and adults.
When it comes to TV channels, Disney has its own channel called the Disney channel which
is the top prime time destination for kids age b/w 6 to 14. Disney has a pre school program
called the play house which is targeted to small kids age b/w 2 to 6. Disney offers a Cobranded visa cards to adults. Card holders earn one dollar for every $100 charged to the card
and the card holders can charge the card up to $75000 annually and then they can redeem the
earnings for Disney merchandise or services, including Disneys theme parks and resorts,
Disney stores, Disney studios and Disney stage products. Disney has also been in Home
depot offering a line of licensed kids room paint colors with paint swatches in the signature
mouse and ears shape.
Disney also has licensed food products with its characters on its brands. For example, Disney
provides a Yogurt called Yo-Pals yogurt which feature Winnie the Pooh and its friends. The
four ounce yogurts are targeted to preschoolers who have an illustrated short story under each
lid of the yogurt that encourages reading and discovery. Disney also has some imprinted
cookies in vanilla and other flavors have impressions of its famous characters like Mickey
Mouse, Donald Duck etc.
Disney has come up with a recent TV program character called KIM POSSIBLE, which is an
integration of all of its consumer product lines. Kim possible is a typical high school going
girl who in her spare time saves the world from evil villains. It is the number one rated cable
program in its time slot and has spawned a variety of merchandise offered by the seven
Disney consumer product divisions. The merchandise includes:
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The success of Kim Possible is driven by action packed storylines which translate well into
merchandise products in many categories. Today, the pervasiveness of Disney product
offerings is staggering and all in all, there are over 3 billion entertainment-based impressions
of Mickey Mouse received by children every year.
SWOT ANALYSIS:
STRENGTHS:
Walt Disney is capable of producing new Products and Services in a short span of
time.
WEAKNESSES:
Walt Disney needs more rigorous analysis in understanding the consumer behavior.
Walt Disney also does need strategic improvement in conducting the segmentation
and applying the more soft techniques namely psychographic and lifestyle.
The mission of the company strategic directions and long term objectives needs
improvement.
H.R needs improvement. Training and development programs should be done and
hiring and selection criteria should also be taken into account of rectification.
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OPPORTUNITIES:
Walt Disney is implementing all the related laws concerning entertainment industry.
The company is reasonably proactive in both sensing & implementing the new
technology.
International components for Walt Disney apparently seem favorable. Therefore new
markets should be searched and taken into consideration in foreign developed
countries like Malaysia, Singapore, and Thailand etc.
THREATS:
The entertainment is experiencing social shift whereby members of the society are
seeking out value, more leisure activities and have become savvy also.
The formal policies of USA are not based on objective analysis and judgment.
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Walt Disney should search and look for new market segments. Apparently, Walt
Disney has carried segmentation on the basis of Demographics that is Age basis.
These days marketers do prefer to involve psychographics and do market
segmentation on the basis of Life style patterns of the consumers. Also volume and
benefit segmentation methods can be taken into considerations.
Walt Disney has recently presented its huge hit character called KIM POSSIBLE. I
would want Walt Disney to expand its product line by introducing new products and
services as Kim possible is the number one rated show on Disney Channel targeting
teens and kids. Apparently Disney has made segments for products related Kim
possible on the basis of demographic. But here I would like to use Psychographics
and lifestyle methods for making segmentation for products to increase the Product
line of Kim Possible. I would be explaining how Walt Disney should plan and
implement the expansion of Kim possible line of products by explaining the following
strategies:
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Disney is a very popular brand amongst American and also world wide. It has a huge
customer base and fan following as well. There are a number of people who are very
loyal to Disney and have been its consumers since many years. Yet there are many
other individuals and families who for certain reasons have either shift to other brands
or have stopped purchasing Disney products and using Disneys services. Also the
fact that Kim Possible is targeted to kids and teens age among 6 to 14 years is
avoiding kids which are smaller than 6 and teens above 14 and so on.
Therefore in the light of above mentioned facts I would recommend Disney to expand
Kim Possible products line in such a way that it not only brings its old customers back
but also attracts new customers and retain its current brand loyal consumers. In this
regard should make a full length Animated or Actors based movie which attracts the
attention of people age 17 and above. Also Disney should introduced junior Kim
Possible along with its team of characters targeting the kids age less than 6. In this
way not only Kim Possibles Product line would be expanded but Disney would be
able to cater people from all age groups, attract new customers, bring back the older
customers and Gain the lost market share and hence gaining huge profits.
TARGETTING STRATEGY:
As per the discussion posted before this section, it is evident that Kim Possible product line
should be expanded and it can be done by finding new markets or segments through
segmentation through using Psychographic and life style segmentation as Basis. New
segments would be targeting people having the changing social shifts, mindsets and life
styles. It would also be targeting consumers of all age groups thus involving the
demographics as well. After the segmentation is done Walt Disney should be introducing new
characters as partner, friends, class mates or neighbors of Kim Possible which belong to
different Sub-cultures, thus targeting the people of different Sub-cultures as well.
Here, I would recommend Disney, after the introduction of new characters, should bring in a
series of merchandising products for Kim Possible and its related characters such as t-shirts,
jeans, sportswear, sleepwear, animated video games, Board games, stationary products,
Dummy cell phones, school bags, joggers, snickers, caps and hats, belts, stickers etc. Apart
from this Kim Possible Junior series or Baby Kim possible series should also be made, thus
catering the school going children age between 3 till 14 years.
I would also like to recommend Walt Disney to introduce new theme park rides based on the
character Kim Possible and its team of characters with it. Apart from the rides, Walt Disney
should make an Animated movie like batman or superman with the same theme of Adventure
CONSUMER BEHAVIOR | SIR M.A BUTT
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in which Kim Possible along with its team of characters including her friends, family, class
mates etc are featured in that movie. In this way, Walt Disney would be targeting and
catering the entertainment needs of adult age group as well.
By following the above mentioned targeting strategy, Walt Disney would not only be
targeting all groups and fulfilling the needs of American people but will also be able to regain a healthy chunk of market share and thus generating huge revenues and profits.
PRODUCT STRATEGY:
In the light of above mentioned targeting strategy which targets people of all age groups and
also people from all the different cultures prevailing in America, I would like to propose the
following line of Products and services in order to expand the product line of Kim Possible.
LIST OF PRODUCTS:
Following are the products that I would recommend Walt Disney should introduce to
expand product line of Kim Possible.
Kim Possible Stationery.
Kim Possible Outfits and clothing.
Kim Possible Skate boards.
Kim Possible Video Games.
Kim Possible Board Games.
Kim Possible playing cards.
Kim Possible Dummy cell phones.
Kim Possible Funky Hair sprays.
Kim Possible Cosmetics.
Kim Possible Bags and Valets.
Kim Possible Accessories (belts, stickers, stamps etc).
Kim Possible impression Paints.
Kim Possible Laptop covers, Wallpapers, screensavers.
Kim Possible ice creams with different flavors.
Kim Possible funky wrist watches for kids.
Kim Possible comic book series.
Kim Possible DVDs and E-games.
Kim Possible album of fresh new sound tracks featuring popular American
Singers.
Kim Possible food items such as Yogurts, Cakes, Pastries and other bakery
items with its characters impression on them.
Kim Possible bed sheets for kids.
Kim Possible carpets and rugs for kids rooms.
Kim Possible kids and adult shampoos, soaps, hand washing liquids etc.
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LIST OF SERVICES:
Following are the services that I would recommend Walt Disney should introduce to
expand product line of Kim Possible.
Theme park rides for Kim Possible and its team of new characters.
Decorated rooms on the theme of Kim Possible in Walt Disney resorts.
A full length animated movie of Kim possible.
Specialty stores exclusively for Kim Possible merchandise goods.
Baby Kim Possible T.V series.
Live Shows and mimicry items at theme parks and resorts.
Kim Possible Radio promotion campaign.
As mentioned in SWOT analysis that Walt Disney is financially strong, therefore Disney can
introduce all or majority of the products and service that I have mentioned above. It is up to
Walt Disney to decide which ones to take action on and which ones to drop. I would
recommend Disney to introduce all the Products and Services in order to expand the product
line of Kim possible.
POSITIONING STRATEGY:
For the products and services mentioned above, I would like Disney to Position them in such
a way that it captures the minds of its targeted consumers which are people of every age
group and belonging to different cultures as mentioned in the targeting strategy.
Hence for making the positioning strategy I would like to use a mix of different basis of
Positioning. They are as follows:
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POSITION ON USER:
In this approach Walt Disney can associate the users or the consumers of Kim
Possible with its expanded product line. There are different user classes which are
Kim Possible consumers. So the new Products of Kim Possible can also be positioned
according to their user classes.
PRICING STRATEGY:
As I have mentioned in the consumer behavior and targeting strategy the Walt Disney should
be targeting people of all age groups and not only this but it should also be targeting People
of every Social class and Sub-cultures. Therefore the pricing strategy should be made in
accordance with this fact. Prices should be set in a way that caters the needs of all the Social
classes that means that it is affordable for the Lower and Middle Americans as well as for the
Upper Americans.
In the Light of the above recommendation, and after conducting the research and calculating
the Analysis of cost and benefits of each product and service, I propose the following prices
for the Products and Services that I have mentioned in the product strategy for the expanded
product line of Kim Possible.
LIST OF PRODUCTS:
Following are the products and their respective prices that I would recommend Walt
Disney should introduce to expand product line of Kim Possible.
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Theme park rides for Kim Possible and its team of new characters.
(Range: $15 -$100)
Decorated rooms on the theme of Kim Possible in Walt Disney resorts.
(Range: $135 -$400)
A full length animated movie of Kim possible. (Range: $35 -$60)
Specialty stores exclusively for Kim Possible merchandise goods.
(Range: $5 -$600)
Baby Kim Possible T.V series. (Range: $ 100 -$500)
Live Shows and mimicry items at theme parks and resorts. (Range: $15 -$40)
Kim Possible Radio promotion campaign. (Range: $35 -$400)
CHANNEL STRATEGY:
In this section there are various options available at Disneys disposal. Disney can have its
own distribution channel and can provide logistics to its customers as well. OR Disney can do
franchising of its specialty stores. OR It can open up exclusive Stores dedicated just for Kim
Possible product lines. Therefore there are different options available.
CONSUMER BEHAVIOR | SIR M.A BUTT
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As I have mentioned amongst the services that Disney should provide to its consumer is that
Disney should open Specialty stores for Kim Possible products only, therefore I would
recommend Disney to initially setup its own Specialty stores exclusive for just Kim Possible
product line where all the Products that are mentioned above will be available at one shop.
Walt Disney should setup these stores initially starting from the Major cities of America
where their targeted consumers are greater in number and gradually after studying the
progress of Kim Possible new Expansion in product line, then go on to open these stores all
over America and then in other cities of the World. In this way Walt Disney should opt for the
later option.
The reason for having its own Specialty stores is basically reducing its risk. If Walt Disney
decides to License or franchise its stores from the very beginning and for instance, the
expansion plan does not work then it will create a bad name amongst the franchisee and its
audience and consumers as well. Another reason for opting this option is that Disney has the
strength to make its products at lower cost so if they setup their own stores, they can earn
revenue directly from the end user and thus getting higher profit margins.
Therefore, I would recommend Disney to have its own distribution channel by opening its
own specialty stores of Kim Possible products and providing logistics to its end users for
delivering of the goods.
PROMOTION STRATEGY:
In the light of the above mentioned strategies of Targeting, Product, Positioning, Pricing and
channel, my recommendation to Walt Disney is to expand product line of Kim Possible and
to promote them with a huge Promotional campaign. Walt Disney is financially able to have a
large budget promotional campaign. Also Disney has its own Channel to promote what ever
its wants so this saves its costs of running ads on Electronic Media. The promotional
campaign should have the following elements:
On Disney channel Soap opera ads should be made for its new characters as well as
for its Baby Kim Possible series.
On other Music channels such as MTV, Soundtracks of its fresh new album of Walt
Disney should be put on air in the time slots where its targeted audience would watch
in a large number.
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Radio advertisement campaign should be made and run on the famous Radio channels
of America.
In the Print Media, Magazines such as Famous Times Magazine should be the one in
which Advertisement and news should be put on related to Kim Possible animated
Movie featuring the biggest stars of Hollywood. Apart from that Weekly kids
magazines of America and newspapers such as New York Times magazines should be
the ones in which half or full page advertisement should be printed about the New
theme park rides, Specialty stores, Movies, Junior or Baby Kim Possible series,
merchandising and other products of expanded line of products of Kim Possible.
Apart from the advertisements, Puzzles, Word problems, Cross words, Jumble etc
should be made related to Kim Possible, its new characters, new products and
services.
Billboards of Kim Possible with its team of characters should be made and displayed
in each city of America where their target audiences are large in number.
RECOMMENDATIONS:
In the light of the above mentioned SWOT analysis of Walt Disney, Strategic Marketing
Goals, Consumer Behavior strategy of Kim Possible, Its Targeting strategy, Product strategy,
Positioning strategy, Pricing Strategy, Channel strategy and Promotion Strategy, I would like
to make the following recommendations by which Walt Disney would be benefited in terms
of increased Market share, Higher Revenues and Profits and improved Goodwill.
My First Recommendation is to find new market segments for Kim Possible by doing
market segmentation on the basis of Psychographic and Life style characteristic.
Then I would recommend expanding the Product line of Kim Possible as mentioned
earlier in the Strategic Marketing Goal section of this report.
I would recommend Walt Disney to cater the needs of people belonging to different
Social Classes, Sub-cultures and Age groups. Therefore following the consumer behavior
and targeting strategy mentioned earlier in this report.
I would recommend Walt Disney to follow the product strategy mentioned in this report
in order to expand the product line of Kim Possible by the introduction of Products and
services mentioned in the Product strategy.
Then I would recommend Walt Disney to Position the expanded line of Products using
the Life style positioning method by conducting research to know the Activities, Interest
CONSUMER BEHAVIOR | SIR M.A BUTT
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and opinions (AIO) of the targeted consumers and then by using the perceptual mapping
software, positioning the Products appropriately.
After Positioning, I would Recommend Walt Disney to Price the expanded line of
Products correctly. Prices should be set in a way that caters the needs of all the Social
classes that means that it is affordable for the Lower and Middle Americans as well as for
the Upper Americans. In this regard my recommendation is to follow the Pricing strategy
mentioned earlier in the Pricing strategy section of this report.
When it comes to delivering the produced products and services to the consumers,
Channel and distribution strategy is very important. Therefore, I would recommend
Disney to have its own distribution channel by opening its own specialty stores of Kim
Possible products and providing logistics to its end users for delivering of the goods. Thus
following the Channel Strategy mentioned earlier.
Walt Disney should expand product line of Kim Possible and to promote them with a
huge Promotional campaign. Therefore following the promotional campaign elements
mentioned in the Promotion strategy.
APPENDIX
THESE ARE SOME OF THE PRODUCTS AND LOGOS
RELATED TO KIM POSSIBLE AND OTHER FAMOUS
CHARACTERS OF WALT DISNEY
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