Customer-DrivenMarketing: TheWalt Disney Company
WaltDisney Company is an American-based multinational mass media andEntertainment Company. The company’s mission is to become theworld’s largest information and entertainment provider (Bohas,2014). In a business environment characterized by high rates ofcompetition, the company should focus on the needs of its clients sothat it can prevail over its competitors. Therefore, Walt DisneyCompany should draw a marketing strategy that aims at benefitingtheir customers and at the same time boosting its sales.
Accordingto Schögel (2011), a customer-driven product promotion strategy isonly useful when there is knowledge of the existence of a targetgroup and enough information on the group’s needs. The plan shouldhighlight ways of increasing consumer loyalty and using thatopportunity to boost the company’s sales capacity. Acustomer-driven marketing initiative targets a particular marketsegment. There are three kinds of distinct business groups thosefirms that make things happen, those that watch things happening andthose who remain in wonder of what happened. Disney Company is aperformer (Peppers & Rogers, 2011).
Thecompany has done market segmentation. This action aids them to definecustomer needs and wants with higher precision. The company uses athree-way approach to locating its customers. The company appliesgeographic, psychographic and demographic segmentations to find theirtargeted buyers. Through the geographic segment, the companyinvestigates some aspects such as region, market size, and marketclimate and market density among other aspects to locate clients. Thecompany uses this method to establish theme parks like the Disneylandand Disney World that are placed in strategic areas exhibiting highlevels of human traffic. Some of the locations of these theme parksinclude Europe, India, USA, and Japan.
Thedemographic subdivision is a tool that a company can employ todetermine the location of their clients and the preferred type ofactivity to provide in that market area (Kotler & Armstrong,2012). Demographic segmentation considers the age groups, gender,income segments, social origins and family life processes. Thepsychographic component is comprised of the types of personalities,individual motives and the types of lifestyles. Disney uses theseelements to categorize the potential buyers of their products in agiven market segment. When the company learns their potentialclients’ characteristics, they can determine the best types ofproducts to supply in the locality.
Accordingto Kerin, Hartley & Rudelius (2011), Disney’s primary target isthe youngsters and their kin. The multi-segment targeting strategy isthe most applied approach in the company. This method involves afirm choosing to serve more than one well-defined market segments.For Disney, all categories of people make up the potential marketsegments.
DisneyCompany strives to satisfy the people of all age brackets, whetherthey are the children, teens or adults. The company aims at providingdifferent products to serve different market segments. For instance,Disney has animation films, toys, playhouse and other productssuitable for smaller children. For the teens, Disney has a televisionand radio channel, live-action movies and various other productsappropriate for the teens. Some Disney live action films are meantfor the adults such as “Pirates of the Caribbean.” Disney themeparks serve the whole family. Adults, as well as kids, get to enjoythe various features in the parks. Theme parks serve as a good familyrecreation medium (Peppers & Rogers, 2011).
Disneyuses advertisements that target all population groups. Their ads arenot meant for the children only. They capture the adults’attention, by incorporating some phrases such as “let the memoriesbegin.” Some of their products such as animations are alsopleasing to the adults. Animations contain good morals and heartfeltjokes. Disney store hosts a decoration branch meant to fulfill allfamily members’ home decoration needs. Disney mainly targets themiddle-income families residing in urban areas.
TheWalt Disney Company is built on an excellent reputation for supplyingtheir clients with quality consumer products to both individualcustomers and big corporation (Schögel, 2011). Disney conductsbusiness marketing activities openly and has its business-to-businesspage on its website that indicates the collaborative methodsapplicable when transacting with other firms. Most of the activitiesthe company engages in are majorly the selling of their products suchas their toys. Disney Company is popular for its marketing skillsthat help it establish healthy relationships with its clients(Peppers & Rogers, 2011). The company has a skilled marketingforce that creates strong long-term relationships with customers.This quality facilitates the continuous growth of the firm becausemore clients will establish good and long-term relationships with thecompany.
Disneyhas formed many strategic alliances with Prospect Studios. Otheraffiliations include the Golden Oak Ranch and Studio B of KABC7.These studios develop settings for a variety of the company’sproducts such as videos, live television programs, andadvertisements. According to Bohas (2014), Disney bought most of itsprevious allies such as Pixar. The company also bought the HollywoodPictures, and another film producer, Touchstone Pictures. These threewere Disney’s former principal collaborators. They were deeplyinvolved in Disney film productions such that the company resolved tobuy all of them.
Theprior marketing techniques involved describing a product andcomparing its best features against the weaknesses of the competingbrands (Kerin, Hartley & Rudelius, 2011). The customer-centeredapproach requires a different technique and organizational structure.Customers prefer dealing with people than with organizations. Thosebrands that give their clients efficient solutions by supplyingrelevant products thrive in the contemporary markets. Disney startedto embrace the commercial opportunities accessible via the Internetthe company has commenced its participation in thebusiness-to-business electronic commerce and has established apartnership with Hulu, a popular streaming website. So far, DisneyCompany has made a lot of progress in the online commerce businesssuch that Disney’s ABC television branch owns an equivalent 27% ofthe shares in Hulu.
DisneyCompany is probably the largest celebrated family cast today(Schögel, 2011). The business has operated back from the 1920s. Thecompany has spread its impact to many other fields such as theproduction of animations, building of theme parks, production ofconsumer commodities, establishing their unique network, filmproductions among many other activities. The company has accomplisheda lot since its formation. The Walt Disney Company generates profitsmainly through the addition of new product lines (Schögel, 2011).The Disney consumer products department influences the company’sprofit sources. Their influence sets in because they create consumergoods through collaborating with the Walt Disney studio staff. Someof the consumer unit’s products include play set, expensive toys,clothes, character statues, dolls, and outfit. They are sold from theproduct stores.
Thecompany’s popularity is not enough to facilitate good sales.Therefore, the company must raise the levels of awareness about theirproducts among the clients. All businesses must advertise theirproducts efficiently to enhance the realization of the targeted salesvolume (Bohas, 2014). To facilitate the sales process, theinstitution needs to adopt the advertisement mix, which comprises ofadvertising, creating good relations with the clients and the public,enhancing high sales and one-on-one business transactions. The aim ofthe publication is to gather as many consumers of a product aspossible. Disney attracts most of its consumer through publicrelations ranging from educational training to environmental care andpublic welfare matters. Disney promotes its product’s image bycreating consumer desire, for instance through film trailers.Disney’s live action movies are thrilling while the animationsgenerate heart-warming family feeling (Kerin, Hartley & Rudelius,2011).
TheCompany utilizes the mass media to advocate an idea or statement tothe public. Consumers have a tendency of buying products when theyhear positive views from other users than from the producer (Peppers& Rogers, 2011). Having noted this, Walt Disney Companyincorporated the clients’ personal feedback into theiradvertisements to sway more people to buy their products. The companyalso practices repositioning. This concept means alternatingconsumers’ perceptions about a brand. For instance, the companyrevived the general view 1951 animation titled “Alice inWonderland” and then adjusted the animation through collaboratingwith Tim Burton in 2001, changing the animation into an adventurouslive staging with a dark twist. The new development targeted ten totwenty-two year Olds.
Disney’sbrand equity is relatively high with well-established global tastes(Peppers & Rogers, 2011). Development of the global brandoccurred through certified Disney Princess product sales and therecent launching of the company’s fairy patent. Disney observesgood practices of listening to its clients’ views, which it uses toreinforce its products’ quality. Disney produces good movies forchildren that are approved by the parents before releasing them intothe market. These films contain sound moral principles and lessonsfor the children.
Growingevidence connects a brand performance to employee engagement (Kotler& Armstrong, 2012). Disney engages its employees in itspromotional activities. This approach allows the employees to providea differentiating customer experience. Engaging the employees equipsthem with skills to act as advocates for the clients in a variety ofways and not just acting friendly to users only when having a directinteraction. Employee engagement directly affects the consumersatisfaction (Kerin, Hartley & Rudelius, 2011).
Customerexperience is becoming the new business benchmark Disney’s aim isto create raving fans instead of satisfied customers. The companyimplements this strategy through facilitating increased customerrelationships by providing the right type of product at the requiredtime and via the proper channels. While many other competing brandsview the use of a social business model as a risk, the companyreadily takes advantage of the design to increase the levels of itscustomer loyalty. This approach allows the clients to run theirbusinesses efficiently while still using the company’s products.
Accordingto Bohas (2014), the formation of a culture in which the stakeholdersare engaged in an enterprise’s activities requires an investment ofmany resources. However, there is increasing customer awareness thatengaged employees are a key to providing a differentiatingexperience, and hence consumers are more likely to invest theirresources in the companies where employees are engaged. Thisorganizational structure spreads over time to the externalstakeholders such as the retailers.
Disneyregards the customers’ feedback with much emphasis. User feedbackhas a direct correlation with the employee engagement. The WaltDisney Company receives loads and loads of feedback from theirclients who either advise or enquire and others commend the company’sservices. The company realized that consumer feedback is a crucialsource of ideas, and hence it created proper channels to receive andassess the user feedback. Customer feedback is a roadmap to productperfection (Peppers & Rogers, 2011). The entertainment industryis a sensitive business that strives to provide the best qualityproducts to appeal to the customers as well as display thesuperiority of their product to that of the competitors.
WaltDisney is indeed one of every family’s favorite casts. Thecompany’s success and history have facilitated the achievement ofhigh levels of consumer loyalty. Many people recount the excitingexperiences and childhood memories, especially the heart-warminganimations. These animations had morals that guided many people asthey grew up. Even as adults, the company entertains with its variousthrilling films and it is still producing animations. Disney’sproduct lines sell costumes worn by the characters we like in themovies, which make the entertainment experiences more thrilling. Thistheater culture is lovely, and hence we are sure that our childrenwill experience such quality experience or even a better one as theygrow up (Kerin, Hartley & Rudelius, 2011).
Bohas,A. (2014). Transnational Firms and the Knowledge Structure: The Caseof the Walt Disney Company. GlobalSociety, 29(1),23-41. http://dx.doi.org/10.1080/13600826.2014.961126
Kerin,R., Hartley, S., & Rudelius, W. (2011). Marketing.Boston: McGraw-Hill/Irwin.
Kotler,P. & Armstrong, G. (2012). Principlesof marketing.Boston: Pearson Prentice Hall.
Peppers,D. & Rogers, M. (2011). Managingcustomer relationships.Hoboken, N.J.: Wiley.
Schögel,M. (2011). Customer Centric Company. MarkRev St. Gallen, 28(1),1-1. http://dx.doi.org/10.1007/s11621-011-0001-9