Contents
I) INTRODUCTION 3
1. General Introduction 3
2. Market 3
II) MARKETING ENVIRONMENT 4
1. Micro – Environment 4
2. Macro – environment 4
2.1 The Economic Environment 4
2.2 The Cultural Environment 5
2.3 The Natural Environment 6
2.4 The Demographic Environment 7
III) MARKETING MIX 7
1. Target Market 7
2. Price 8
3. Product 8
4. Distribution 9
5. Promotion 10
IV) LESSON 13
I) INTRODUCTION
1. General Introduction
Type: Public (NYSE: DIS)
Year of establishment: 16/10/1923
Industry: Media and Entertainment
Field of activity: The Walt Disney Studios, Studio Entertainment, Disney Consumer Products, Media Networks. Headquarters: City Burbank, Califorlia, United States.
The head of: Brother Walt Disney and Roy Disney.
Employees:
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Reduced advertising revenue, fare in the complex theme park and revenue from the DVD release reduce the negative impact to profitability. Cable television division revenue decreased 8%.
2.2 The Cultural Environment
- Through this environment, we can know the cultural values and social attitudes of the people. Each environment may be an opportunity but also a threat for any company. These are intangible factors but have a large role, especially as it affects the psychology and buying behavior of customers. Particularly the sustainability of the core cultural values and specific cultural factors will greatly affect marketing decisions, therefore, not only as marketing staff that any company taking customer focus needs to be addressed.
- Disneyland is one of the pride of the American people, the success in California, USA and Tokyo - Japan has confirmed more prestigious and competitive position of Disney. But to our surprise that it was this giant failure on the "battlefield" in Europe.
When vaguely intend to open another theme park of Disney, more than 200 localities worldwide has proposed Disney park at their hometown. Paris was chosen because more than 17 million Europeans live within a radius of two hours by car to Paris, 310 million people could fly there in that time or less. Moreover, the French government has drawn Disney with all kinds of
Since people and customers to be specific come from different cultural backgrounds, considering and understanding the cultural background and practices of every market niche. In ensuring that the organizational activities do not conflict with the cultures of clients and that they suit the needs of the cultures, the following would be done by the organization;
The case “Euro Disney: First 100 days” talks about the issues faced by the Walt Disney Company when expanding to international borders. The case begins with the history of Disneyland and then describes the reasons behind its success and expansion to various states across the country. It then describes the success of Tokyo Disneyland, first Disney theme park outside America and the factors affecting it.
However, the opportunity should have not been ‘taken for granted’. Other cultural factors should have been analyzed to decide the positioning of Theme Park. Their prevalent mistake has been the failure to recognize the cultural differences between Americans and French people. Locating the Theme Park near Paris and acquiring agricultural land as well as imposing the U.S spirit undeniably negatively affects french citizens. The French peoples’ lifestyle deeply depends on the gratitude to their traditional agriculture. Thus, the land takeover by an American Company mainly does not provide pleasure to them.
Recent years have seen a major growth in the Walt Disney Company "enterprise" as one would call it. Growing from movies, TV, theme parks, stores to Broadway shows, Disney Company has set a benchmark for other companies. Early in 1996, Disney completed its acquisition of Capital/ABC. The $19 Billion deal brought the country's top television network to the Disney, in addition to 10 TV Stations, 21 radio stations, 7 daily newspapers, and ownership positions in 4 cable networks.
The Walt Disney Company has seen their share of success in taking their parks and resorts into global markets. “60 years ago, the first Disney theme park opened, in California and was the brainchild of Walt Disney himself, who was motivated by the lack of entertainment options available to him and his two young daughters.” (Forbes, 2016). Disneyland California penetrated the market rapidly, and its popularity led to the opening of Disney World in Florida, followed by global expansion in Tokyo, Paris, and Hong Kong. Their latest expansion came in June 2016, on a 963 acres’ site in Shanghai, China (Xu, 2012). After one year in operation, Shanghai Disneyland is outpacing their most optimistic projections, and the park’s
As the structure of the media network division is not traditional in terms of applying the value chain to an organization’s functions, some of the most important components are intangible. When looking at the breakdown of industry costs found in Appendix E, one can see that procurement (33% of revenue), wages (7%), and marketing (4.1%) are key in understanding the industry’s profit structure (IBISWorld).
According to Robert Iger, CEO of The Walt Disney Company, Disney’s corporate strategy for diversification is a combination of three objectives that are to be achieved through the fundamental alignment of the Company’s core business units. The three objectives to be achieved by The Walt Disney Company are (1) creating high-quality family content, (2) exploiting technological innovations to make entertainment experiences more memorable, and (3) expanding internationally. The Walt Disney Company’s three objectives that make up the Company’s corporate strategy are to be achieved through each of the Company’s core business units that are split up in to five divisions (1) media networks, (2) parks and resorts, (3) studio entertainment, (4) consumer product, and (5) interactive media.
As we know, Disneyland is very success in U.S. when the first Disneyland built in Anaheim, California on 17 July, 1995. After some debate about the site for a European theme park, Michael Eisner and Jacques Chirac signed a contract for the building of s Disney theme park at Marne-la-Vallee, a region of sunflower and sugar-beet farmland and small villages located twenty miles east of Paris (Janis, F., 1998, P.247). However, the European Disneyland was not as such success as they expected. This essay going to regards the main issues in opening the Euro Disneyland and compare the French cultural with American cultural by using Hofstede’s cultural Dimensions and Trompenaars ‘s cultural dimensions. This essay will then end by
The very first park, Disneyland, had start out over 60 years ago as an Apple Orchard, but when Walt look at it, he visioned a theme park where a family of all ages can come and enjoy time with each other and have fun. Construction for Disneyland had begun in July 21st of 1954, which was a meager 12 months before the park was scheduled to open. From that day forward, Walt’s life would never be the same again. Disneyland had then opened publicly on JUly 17th, 1957 Walt didn’t know if Disneyland would be a huge success so he didn’t used his infamous character, Mickey Mouse, as expected. But what are the odds, Disneyland had gotten more success than what Walt had ever expected. Disneyland was so successful, in fact, he wanted to expand the territory to Central Florida, where Walt Disney World would soon come to be.
Walt Disney once said, “All our dreams can come true, if we have the courage to pursue them.” Walt Disney was one of the most successful entrepreneurs of all time, a man who took a dream and pursued it, making a worldwide famous company, Walt Disney World. This paper will look at the history, financial situations, and marketing strategy of Walt Disney World. As Walt would say, “Sit back and enjoy!”
Disney parks are known for their clean and well designed atmosphere. However, they felt short in providing the same experiences to Euro Disney customers. Euro Disney failed to deliver the high level of customer service standard to Disney theme parks are known for their, as well as failing to provide the service needs that were unique to the European market.
3. Lack of theme parks and the large population that lived in and around Paris had to be targeted and offered a unique, fun filled and mystical theme park. A Disney park in Paris was poised to be a sure shot winner.
Cultural issues different customers in the global market have different culture and this calls for a different strategy to handle their needs
Mickey, a major promotion tool of Disney management did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an “over-rated” promotion of American culture and lifestyle, contrary to what
The main problem of the Euro Disney was that all calculations made by Walt Disney Company were based on parks in the USA and Japan considering Europe as a mass of people rather than many countries with different languages and cultures. Americans see theme parks as a destination where you can stay between 4 and 6 days. In Europe, Euro Disney was seen as a part of the experience when traveling to Paris. The cost was also a problem for the park. A night in a hotel inside the park costs as much as a high quality hotel in the French capital. So, given that the park was located 40 minutes by car from Paris, visitors preferred to spend a night in the romantic city of Paris.