FALL 2015

[CASE STUDY ON THE WALT

DISNEY]

Prepared for:
Dr. S.M. Rafiul Huque (SRF)
Course Instructor
BUS620: Marketing Management
Sec: 03

Prepared by:
SM Mohiuddin 142 1213 060
Zulker Nayem 152 1019 660
Joy Chakraborty 151 3005 660
Md. Jahidul Islam 152 1792 660

BUS620: Marketing Management

Section 03
North South University
Date of Submission:04 November, 2015

COMPANY BACKGROUND of THE WALT DISNEY

The Walt Disney Company is a diversified international family entertainment and media enterprise
operating in five business segments: media networks, parks and resorts, studio entertainment, consumer products,
and interactive media.
Disney was founded on October 16, 1923, by Walt Disney and Roy O. Disney as the Disney Brothers
Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into liveaction film production, television, and theme parks. When brothers Walt and Roy Disney moved to Los Angeles in
1923, they went there to sell their cartoons and animated shorts. One could only dream that their name would one
day be synonymous with entertainment worldwide.
The company also operated under the names The Walt Disney Studio, then Walt Disney Productions.
Taking on its current name in 1986, it expanded its existing operations and also started divisions focused upon
theater, radio, music, publishing, and online media.
Today it is one of the largest Hollywood studios and also owns eleven theme parks, two water parks and
several television networks, including the American Broadcasting Company (ABC). Disney's corporate headquarters
and primary production facilities are located at the Walt Disney Studios in Burbank, California, USA.

The WALT DISNEY At a glance:

Motto/Tagline

We make the magic

Type

Public Limited Company

Industry

Mass Media and Entertainment

Founded

1923

Founder

Walt Disney and Roy O. Disney

Headquarter

500 South Buena Vista Street,

Burbank, California, United States

Key People

Bob Iger (Chairman and CEO)

Area Served

Worldwide

Products

Cable television, publishing, films, music, video games,

theme parks, broadcasting, radio, web portals
180,000

Employees
Financial Information

Website

Revenue
US$ 48.813 billion (2014)
Operating income
US$ 12.246 billion (2014)
Net income
US$ 8.004 billion (2014)
Total assets
US$ 84.186 billion (2014)
Total equity
US$ 44.958 billion (2014)
www.thewaltdisneycompany.com

COMPANY HISTORY
The Walt Disney Company has a prestigious history in the entertainment industry, stretching over 90 years. It started
on October 16, 1923 as the Disney Brothers Cartoon Studio, a joint venture of Walt Disney and his brother, Roy.
Three years later the company had produced two movies and purchased a studio in Hollywood, California.
Pitfalls in distribution rights nearly sank Walt and his company, but the creation of Mickey Mouse saved a sinking
ship. By 1932, the Disney Company won its first Academy Award for Best Cartoon, for the Silly Symphony. 1934
marked the production of Disney's first full-length feature film, Snow White and the Seven Dwarfs, which released
in 1937 and became the highest grossing film of its time..
After the war it was difficult for the company to pick up where it had left off, but 1950 proved a turning point with
the production of its first live-action film, Treasure Island and another animated film, Cinderella. In that time
period, Disney also began several television series; in 1955, The Mickey Mouse Club also made its debut.
1955 also provided another landmark moment: the opening of the first California Disney theme park, Disneyland.
Disney continued its rise in popularity, and survived even the death of its founder in 1966. His brother Roy took
over supervision at that time, and then was succeeded by an executive team in 1971. Several more projects, from
merchandising to the continuing production of animated and live-action films to the construction of more theme
parks filled the years; in 1983, Disney went international with the opening of Tokyo Disneyland.
In the past few decades, Disney has moved into a wider market, beginning The Disney Channel on cable and
establishing subdivisions such as Touchstone Pictures to produce films other than the usual family-oriented fare,
gaining a firmer footing on a broader range. In the 1970s and 1980s, the company suffered from takeover attempts,
but eventually recovered; the recruiting of the current chairman, Michael D. Eisner, was crucial to that. Eisner and
executive partner Frank Wells have been a successful team, leading Disney to continue its tradition of excellence
into a new century.

COMPANY OVERVIEW
The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family
entertainment and media enterprise with five business segments: media networks, parks and resorts, studio
entertainment, consumer products and interactive media.

DISNEY
INTERACTI
VE
DISNEY
CONSUMER
PORDUCTS

THE WALT
DISNEY
STUDIOS
WALT
DISNEY
PARK AND
RESORTS
DISNEY
MEDIA
NETWORK

Media Networks
Media Networks comprise a vast array of broadcast, cable, radio, publishing and digital businesses across two
divisions the Disney/ABC Television Group and ESPN Inc. In addition to content development and distribution
functions, the segment includes supporting headquarters, communications, digital media, distribution, marketing,
research and sales groups.
The Disney/ABC Television Group is composed of The Walt Disney Companys global entertainment and news
television properties, owned television stations group, and radio business. This includes the ABC Television
Network, ABC Owned Television Stations Group, ABC Entertainment Group, Disney Channels Worldwide, ABC
Family as well as Disney/ABC Domestic Television and Disney Media Distribution. The Companys equity interest
in A&E Television Networks, Hulu, and Fusion round out the Groups portfolio of media businesses.
Parks and Resorts
When Walt Disney opened Disneyland on July 17, 1955, he created a unique destination built around storytelling
and immersive experiences, ushering in a new era of family entertainment. Sixty years later, Walt Disney Parks and
Resorts (WDP&R) has grown into one of the worlds leading providers of family travel and leisure experiences,
providing millions of guests each year with the chance to spend time with their families and friends making
memories that will last forever.
At the heart of WDP&R are five world-class vacation destinations with 11 theme parks and 47 resorts in North
America, Europe and Asia, with a sixth destination currently under construction in Shanghai.

 The Walt Disney Studios

For over 90 years, The Walt Disney Studios has been the foundation on which The Walt Disney Company was built.
Today, the Studio brings quality movies, music and stage plays to consumers throughout the world. Feature films
are released under the following banners: Disney, including Walt Disney Animation Studios and Pixar Animation
Studios; Disneynature; Marvel Studios; Lucasfilm; and Touchstone Pictures, the banner under which live-action
films from DreamWorks Studios are distributed. The Disney Music Group encompasses the Walt Disney Records
and Hollywood Records labels, as well as Disney Music Publishing. The Disney Theatrical Group produces and
licenses live events, including Disney on Broadway, Disney On Ice and Disney Live!.
Disney Consumer Products
Disney Consumer Products (DCP) is the business segment of The Walt Disney Company (NYSE:DIS) and its
affiliates that delivers innovative and engaging product experiences across thousands of categories from toys and
apparel to books and fine art. As the world's largest licensor, DCP inspires the imaginations of people around the
world by bringing the magic of Disney into consumers' homes with products they can enjoy year-round. DCP is
comprised of three business units: Licensing, Publishing and Disney Store. The Licensing business is aligned around
five strategic brand priorities: Disney Media, Classics & Entertainment, Disney & Pixar Animation Studios, Disney
Princess & Disney Fairies, Lucasfilm and Marvel. Disney Publishing Worldwide (DPW) is the world's largest
publisher of children's books, magazines, and digital products and also includes an English language learning
business, consisting of over 40 Disney English learning centers across China and a supplemental learning book
program. DPW's growing library of digital products includes best-selling eBook titles and original apps that leverage
Disney content in innovative ways. The Disney Store retail chain operates across North America, Europe and Japan
with more than 350 stores worldwide and is known for providing consumers with high-quality, unique products.
Disney Interactive
Disney Interactive is one of the worlds largest creators of high-quality interactive entertainment across all current
and emerging digital media platforms. Products and content released and operated by Disney Interactive include
blockbuster mobile and console games, online virtual worlds, and No. 1-ranked web destinations Disney.com and
the Moms and Family network of websites.
Internal and External Factors that are affecting in the Case:
The case study on Disney is a study on their strategic development, brand establishment and being reputed in the all
over the world. Its a long time the Walt Disney is doing their business successfully in the world market. They are
doing their business for last 90 years with pride. There are someinternal and external factors those are helping them
to doing the business successfully in these days.
Internal factors:
Internal factors are the inner strengths and weaknesses that an organizationexhibits. Internal factors can strongly
affect how well a company meets its objectives. There are some internal factors which are affecting Disneys
operation.
Creativity and Innovation:Walt Disney is very successful at turning fantasies into reality. Walt Disney's
ability to connect with his innovative creativity with successful business strategy avails him as a genius in
the field of entertainment
Creating Higher values:
Disney has focused on the values creating activities through its work activities. Disney Difference a valuecreation dynamic based on high standards of quality and recognition that set Disney apart from its
competitors.
Resource Management: Resource management is very import for any kind of company. The Walt Disney
is management their resource very well in the overtime. And this management has allow them to become a
successful and market leader in their industry. Here we are telling for research of tangible and intangible as
well. Which usage Walt Disney has done very efficiently.
Dependence Upon Rapidly Changing Technology
In addition, the companys success is highly dependent upon technology, which changes rapidly. The
success of the Disney Company largely depends on the company expands, exploits, acquires, develops, and
adopts these new technologies to distinguish the Disney products from their competitors

Target Oriented Approaches:

Target oriented approaches means ho organization target the market. Disney is doing this very well.
Demonstrating their leadership in marketing they are targeting Kids and families. They always target on
this specific products and specific target market for their market segmentation.

The WALT
DISNEY
Target
Market

Kids
Families

External factors:
No business operates in a vacuum. The business with essentially needs to pay attention to factors outside the
organization that are beyond their control. These factors impact each business and industry differently, which only
increases the importance of managers understanding these external factors.
Buying Behavior and Preferences:
Disneys basic products are their Cartoon Characters. Cartoon characters associated with brands have a great
influence in making the brand attractive to kids. Brand promotion strategies involving prominent cartoon
characters can create wonders for brands. The kids preferences for brands were in sync with which of their
favorites cartoon character was associated with the brand. Disney these activities very well.
Market Pattern
Here market pattern means what is expecting by the market. The Consumer Products segment engages with
licensees, publishers, and retailers throughout the world to design, develop, publish, promote, and sell a wide
variety of products based on the companys intellectual property.
Sales Turnover:
Sales turnover is the total amount of revenue generated by a business during the calculation period. Disneys
Turnover is always increasing. For their operational excellence it is growing. This Sales turnover makes Disney
more successful in the years.

The WALT DISNEY

YEAR 2014

Sales $
49.78B

Net income
$8.004 B

Customer Satisfaction:
Nurturing relationships with customers is a crucial part of growing a successful business. In this age of
automation and innovation, caring for customers has never been more important. Disney does this with
very efficiently and it leads them to success very well.

Main Issues Regarding the Case Study and Situation faced by decision maker:
For more than nine decades, the name Walt Disney has been preeminent in the field of family entertainment. From
humble beginnings as a cartoon studio in the 1920s to today's global corporation.
After studying the case we have sorted out that - Disneys greatest challenge today is to keep a 90 yearold brand relevant and current to its core audience while staying true to its heritage and core brand
values.Hence, Disney has to take extreme caution when expanding its brand in order to avoid any form of

contradiction with its heritage and core brand values. Thus, as Disneys CEO Bob lger stated, there needs to be a
balance between the respect for heritage and a need to be relevant, as there often exists decisions and conflicts that
arise when dealing with a company that has a great legacy such as Disney. Though its tough to establish and remain
the brand for such a long time. The Walt Disney has done these by such activities. They will be like:
Ethical Conduct: Conduct business with honesty, integrity, and in compliance with the law everywhere
we operate
Responsible Content: Create and market responsible, high-quality products and content
Environmental Stewardship: Use resources wisely and protect the planet as we operate and grow our
business
Civic Engagement: Create lasting, positive change in the communities in which we live, work, and play
Respectful Workplaces: Foster safe, respectful, and inclusive workplaces wherever we do business
Responsible Supply Chain: Support the ethical production of Disney-branded merchandise through
programs focused on safety, labor, and the environment
The strengthening of Disneys creative engines remains a priority. They give Disney its competitive
advantage and build brand and shareholder value. The Disney Difference drove decision to focus more on making
Disney-branded movies at our Studios and on developing Disney-branded video games at Consumer Products, and it
will continue to drive our creative and strategic focus across numerous other businesses. Disneys Hannah Montana
provides an excellent example for it.
Disneys commitment to high-quality creative work, a persistent focus on new technologies and intelligent
investment in international markets are the strategies. It is continuing to carry us forward. 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. The following initiatives below are just the beginning of how Disney isconnecting
with consumers to spread the Disney experience beyond the borders of its theme parks.
Video-on-Demand
Airing of Original Content:
Virtual Park Experience
Podcasts
Buzz Light year Online
Pal Mickey.
CASE Questions:
1. What does Disney do best to connect with its core consumers?
It can be seen from the text that by the 1970s Disney concentrated on customers comprising of children, families and
adults. From 1980s, it adopted strategy to reach older audience. Now its market consists of all ages, cultures.
Today, it is one of the leading diversified international entertainment company which comprises of five segments:
The Walt Disney Studios, Parks and Resorts, Disney Consumer Products, Media Networks a d Interactive Media.
This diversification provides sufficient chances for all kinds of customers to select services. Besides, they used
emerging technologies to connect with customers. This help customers to be served more conveniently and
entertainingly.
Disney core value, as committed by its CEO in saying Disneys 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.
2. What are the risks and benefits of expanding the Disney brand in new ways?
It is Disney policy to always seeking for exploring and expanding its markets. Its expansion strategy is applied not
only for development in new countries besides United State but also new products and services as well. They
themselves invest in foreign countries or take acquisition in the areas such as theme parks, movies,this helps the
company to bring more revenues and profits. Besides, working in entertainment areas, the company should
continuously work on brand that people seek out and trust.
In order to do so one of the most difficulty that the company has to face in expanding brand in new ways is that
Disney has to keep its core business as evidenced by CEO saying Disneys greatest challenge today is to keep a 90year-old brand relevant and current to its core audience while staying to its heritage and core brand values. It is the
fact that it is always not easy in making decision to settle issues which is interlinked.

Summary of the Case:

For expanding market to the competitive market place, strategic plan is needed. Opening theme park is
one of the company strategies. Extremely low prices are another strategy in some products for reaching the whole
new generation and competing with existing company. Theme park in Florida attracted children, families and adults
though entertainment. Disney brand expanded into five segments for connecting all ages of people which are
included with several services and entertainment. For customerising all these segments vast propaganda through
social media is important. After the death of Disney brothers, company stumbled for several periods. By introducing
low cost in products and gathering media, slow period overcome. But the great challenge of Disney is to convey the
heritage as they are always tried to give their best services to the consumers in innovative ways. For overcome this
challenge innovative idea, research and development on product are necessary. Surveying over kids, questionnaire
about lacking with their parents, as well as gathering information all consumers data, help to find out innovative
idea and new products development. Using technology, information about several factors can be revealed. This
existing challenge can overcome by providing service all over the consumer equally, regular podcasts in television
about its products, interviews with Disneys employees, staff and park officials as well as informative website
regulation are essential.
From above discussion, Disneys greatest challenge is to keep a 90 year-old heritage and core brand values. For
meet that challenge, below point should be implemented for greater benefit of the company.
Creativity and innovation management
Strategic planned for marketing products
Research and development
Resource management
Media advertising over all segments
Intense use of technological device and system
Achieving trust and customer satisfaction