[The Walt Disney Company]

Analysis on Marketing Practice

In Respect of Consumer Behavior
Guk-hyun Kang Gun-young Ko Byung-hwi Ko Kwang-min No Dong-chul Lim
Jin-seok Kim

CONTENTS
. Introduction
. Theoretical Concepts
& Real Application
. Suggestion
&Conclusion

Introduction

Introduction

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

About
Disney

Parks
And
Resorts

Studio
Entertainment

1
Media
networks

Consumer
products

Interactive
media

The Walt Disney

Company is a
leading diversified
international
family
entertainment
and media
enterprise with
five business
segments.

Introduction

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

One Source Multi

Use

Character Products

Parks and Resorts

Game

Introduction

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Disneys Brand Power

The best brand consulting company :

Interbrand Choose Diseny
as the best global brand ranked at 11th
(1st among the media sector)

Introduction

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Consumer Behavior &

Disney

Disney Research Center

for Behavioral Sciences

One of the Largest corporations

Practicing CSR

Introduction

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Disneys
Sales

Disneys Quarterly profit

$2.50 billion
2.0
10% Increasing 2014 Net profits
is higher than 2013 by 10% ($2100
million)
=\2,300,000,000,000

1.5
1.0
0.5
0
09

10

11

12

13

14

Conclusio
n

Introduction

Recent
Performanc
e

Intro

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Specific Financial
Statement
Former term

This term

% change

4,297,310,98
9

6,983,592,21
4

+62

Royalty revenue

9,146,474,26
9

17,282,441,3
31

+89

Contents revenue

7,925,170,72
9

24,578,838,5
10

+210

2,183,292,96
0

5,240,724,98
3

+140

Earned surplus
Operating revenue

Operating profit

Former term12.10.1 ~ 13.9.30

This term 13.10.1 ~ 14.9.30
(Unit : Korean
won)

Introduction

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Success in South
Korea

11th

10,424,241

12th

10,296,101

Recent Performance

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Interview
Interview with Kim Dasom,
Disney consumer products administrator, Walt Disney Company Korea

Conclusio
n

Theoretical Concepts
Real Application
Consumer Culture

Social Influences

Intro

Recent
Performanc
e

Word of Mouth

Walt Disney(19011966)
Do what you do so well,
that people cant resist
telling others about
you.

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Social Influences

Intro

Concepts
&
Applicatio
n

Recent
Performanc
e

Suggestio
n

Word of Mouth
Definition
Word of Mouth is the passing of information from person to person by oral
communication

Effect
Brand Awareness

Interest
& Desire

Buying
Action

TV AD

83%

51%

30%

Word of Mouth

46%

58%

59%

Newspaper AD

26%

16%

7%

Experience
Message in
internet

29%

31%

37%

Banner AD
In online

13%

8%

3%

AML Research Center, November 2004, N=2,386, Married women

over 20

Conclusio
n

Social Influences

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Word of Mouth
Social Media and Word of Mouth
Social media such as Twitter, YouTube, and Facebook are truly social,
disseminating word of mouth through public messages

Present Situation
Twitter
4 Million Followers
Ranked 22th out of all brand

YouTube

Facebook

2.3 Million Subscribers

Ranked 11th out of
Film & Animation category

45,000 Followers
Ranked 3rd out of all brand

Social Influences

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Brand Community
Brand Community
A brand community is a community formed on the basis of attachment to a product or a brand,
where its members have a strong brand loyalty

Online Community
With the success of Disneys <FROZEN>,
around 3,500 people started to formed a
online fan community

Social Influences

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Brand Community
Influence of Brand Community
1. High repurchase rate
- Affiliated members watch the same movie for several times
(3 times on average)
- <Frozen> Sing-a-long version

2. A base for success of upcoming contents

- Brand Loyalty leads to the high tendency of purchase
with upcoming products related to the Frozen

Suggestio
n

Conclusio
n

Theoretical Concepts

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Consumer
Diversity

Consumer segmentation

Age

Gender

Regional

Ethnic

Influences

Influences

- General image of animation in South Korea

Childish Contents for kids
- Most animation companies in Korea focused on kids
Disney Also focused on 20s~30s

Kidult Market

Theoretical Concepts

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Kidult
An adult who participates in youth
culture and activities traditionally
intended for children
Main consumers segmentation
- 20s~30s men / women

Existing characters
not appropriate to attract adults
Rapidly growing Market in Korea
- One of the most popular kidult product
Drone
299% sales increased compared to last
year

Huge purchasing power

- Market size : \500 billion (2014)

Theoretical Concepts

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Kidult
Established in 1939, M&A with Disney
in 2009
Huge success in South Korea with hero
movies
Avengers (2012)
- Total attendance : 7,074,891
Avengers 2 (2015)
- Total attendance : 10,424,241 (5/29)
- On first day, 79.8% of audiences were
20s~30s

Successfully appealed
to 20s~30s

Theoretical Concepts

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Household & Social Class

Influences
Delayed
Marriage
&
Cohabitation

People Living

Divorces
Longer

Changing Trends in
Household Structure

A Lower
Same-Sex Couples
Birth Rate

Dual-Career

Smaller

Families

Families

Theoretical Concepts

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Household & Social Class

Influences

Delayed Marriage

&

Cohabitation

Dual-Careers Family

Rapid Increase of Delayed Marriage &

Cohabitation Households

Dual-Career Family Has Important

Implications in Consumer Behavior

Higher Discretionary Income &

Self-Oriented Consumption Pattern

Spending A Lot Based on

the High Discretionary Income

Spending More on
Entertainment & Cultural Services

Comprising A Large Proportion

of S.Korean Society

Similar Trend is Observable in S.Korea

Spending
2014 A lot for Their Kids
Compared to Other Households

2014)

This Type of Household Will Be An

Important Consumer in S.Korea Market

DINK (Double Income, No Kids)

Theoretical Concepts

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Household & Social Class

Influences

Smaller Familes
Rapid Increase of Smaller Family &
Single household in both U.S. & S.Korea

People Living Longer

& A Lower Birth Rate
Populations of Disneys primary market
countries are rapidly aging

The birth rates of these countries

are also getting lower
These households tend to spend more
On Recreation & Entertainment
Existing customers aging &
Decrease of new customers (Children)
Single households consumption of
Disney needed new content & marketing
cultural service is 33% higher than others
based on the market situations

Theoretical Concepts

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Household & Social Class

Influences

1
Popularizing Subcultures

Popularization

Grown-Up
Customers
(2012)

Parents
Strong Buying Power

Subcultures

New
Customers

Past
Customers

Children, Teenagers
Potential to be
Loyal Customers
(2009)

Theoretical Concepts

Intro

Recent
Performanc
e

2
Designing Various Consumer Goods
For Grown-Up Consumers

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

Theoretical Concepts

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

Conclusio
n

3
Producing Contents Which
Parents & Children Could Enjoy Together

Contents for Parents & Children

Parents

Children

Coming
the
Advanced
Consumer
Be Across
Performed
Enjoying their
Familiar Behaviors Could
New Cultural Contents
Cultural
Contents
Through these Contents & Marketing Activities
Could Teach their own
Consumer Behavior
Habits to their Children

Becoming New Loyal

Customers of Disney

Conclusion &
Suggestion

Conclusion&Suggestio
n

Intro

Recent
Performanc
e

Concepts
&
Applicatio
n

Suggestio
n

DisneyCON Korea
Disneys official event held annually for increased brand loyalty
New Products
Launching
Events

Experiential
Marketing

Costume Play
Events

Movie Stars
Invitation
events

Playground for
Consumers

Conclusio
n

Q&A

Thank you!
Consumer Behavior Group #7
Guk-hyun Kang Gun-young Ko Byung-hwi Ko Kwang-min No Dong-chul Lim Jinseok Kim