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Florida State University

Main Disney’s Marketing Trends Throughout History

Valeria Chaluja, Eugenia Constantino, Rodrigo Moreno

MAR3023 Basic Marketing Concepts
Professor Donaldo Fong
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Presentation page …………………………………………………………………1

Index…………………………………………………………………………………2

Introduction………………………………………………………………………….3

Mission, Vision and History………………………………………………………..3

Current Business Operation Strategies………………………………………….6

Historical Changes in The Company’s Marketing Evolution…………………..8

Prevalent Marketing Trends……………………………………………………..10

Conclusion…………………………………………………………………………11

Bibliography………………………………………………………………………..12
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Introduction:
One of the biggest companies from the entertainment and information industries
is the Walt Disney Company. Commonly known as just Disney, it is a media
conglomerate that comprises a group of tributary companies to the Walt Disney
Company. These companies include television channels such Disney Channel, FX,
National Geographic, ESPN and ABC. They also comprise other movie studio
entertainments such as Marvel, Lucasfilm, Pixar, Walt Disney Studios and Blue Sky,
among others. Other tributary companies of the conglomerate include all of Disney’s
theme parks and recently added streaming services such as Hulu or Disney+. With
many theme parks around the world, many business establishments, a world-class
animation studio, and one of the greatest motion picture studios on the planet, Disney
has one of the biggest media brands ever. According to Hoffower, GOBankingRates
estimated the net value of the company as $130billion in 2019. Taking into
consideration the prevalent influence of Disney in America’s —and the whole world’s—
culture, as well as its huge influence on the media market, it is worth asking what is the
key to its remarkable success. After nearly a century from its humble beginnings, the
Disney company has grown to be a super conglomerate thanks to its effective
marketing strategies. The Disney company has been able to effectively identify its target
audience, as well to adapt to the constant changes of the entertainment industry.
Throughout this discussion we will analyze Disney’s current marketing trends and the
strategies that the company has used to adapt to the changing dynamics of the media
market.

Mission, Vision and History:

The corporate mission statement can be very insightful about what Disney’s
goals are, and what marketing targets do they have. The official mission and vision
statement, as found in their website, “…is to entertain, inform and inspire people around
the globe through the power of unparalleled storytelling, reflecting the iconic brands,
creative minds and innovative technologies that make ours the world’s premier
entertainment company” (The Walt Disney Company). As we can see, their mission
statements seem to be a combination between a mission and a vision statement. Their
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mission is to provide the most creative, innovative and profitable entertainment

experiences of the world while differentiating their market brand. In other words, through
their subsidiaries such as Pixar or Lucasfilm, they seek to create entertainment products
distinguishable as Disney products. Such products must be iconic, creative and
innovative. Additionally, they seek to market such products all over the globe, so their
market target is the whole world (Williams).
Their corporate vision statement, on the other hand, is to be one of the world’s
leading producers and providers of entertainment and information. Their vision
statement, even though it is not explicitly differentiated in their corporate mission
statement, is a specification of their market scope, which is global. Moreover, as we just
explicitly put it, they seek to be one of the leading entertainment and information
industries of the global market. Such goal requires effective leadership strategies and
competition management on a global scale. Thus, Disney is a global competitive
industry whose outputs are entertainment and information, which requires effective use
of resources in order identify the global market’s changing demands and adapt to such
demands in order to gain a place of global leadership in the entertainment and
information industries (Williams).
According to Disney’s official history account, The Disney Company started as a
project between Walt Disney and his sibling, Roy. The business, which at this point in
time was called the Disney Brothers Cartoon Studio, began on October 16, 1923. Their
first project was a series of cartoons called Alice Comedies. However, Disney did not
own the cartoon’s rights but the distributor. Three years after the opening, the
organization had delivered two films and bought a studio in Hollywood, however
distribution rights almost made the company go broke. Since Disney did not won the
rights to its first character, Oswald the Lucky Rabbit, they had to come up with a brand-
new character. Such original character was Mickey Mouse, which was first drawn in
1928. That year was a turning point for the company, since they were able to create
their first sound-synchronized short film: Steamboat Willie, starring Mickey Mouse,
Disney’s brand-new cartoon star. Around that time, Disney was able to make more
characters that quickly became as popular as Mickey Mouse, for example, Minnie
Mouse and Donald Duck, which together turned into the base of what the company
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would become. Nowadays, the company has been able to branch out and diversify into
different areas other than just animation. Today they have numerous studios, TV
stations, and scholarly properties, including Marvel Entertainment, Lucasfilm, ABC,
Pixar Animation Studios, and ESPN, fall under Disney.
By 1932, the Disney Company had won its very first Academy Award for Best
Cartoon (the first time that such award was offered) with Silly Symphony, a progression
of vivified short movies. Throughout the following decade, they won the same award
every year. In 1934, Disney began creating their first full-length film, Snow White and
the Seven Dwarves. It was released in 1937 and became the highest-grossing film up to
that time. Nevertheless, the production costs made challenges for Disney's next
animated movies, such as Pinocchio and Fantasia, Dumbo and even Bambi. World War
II stopped the creation of Disney motion pictures as the company helped during the war
by making propaganda videos for the government and training videos for the military.
When World War II ended, the company thought that it would be difficult to get
back on track and regain the market targets that they lost because of the war. However,
in 1950 Disney directed its first live-action movie, Fortune Island, and another film,
Cinderella. Disney also set in motion a few TV arrangements during this decade. In
1950 they held their first Christmas show special, and in 1955 The Mickey Mouse Club
made its presentation to a national TV crowd. That year also had another milestone
minute for Disney: the opening of the principal Disney amusement park, Disneyland in
California, which opened on July 17. It was the first amusement park of its kind, and it
originated the term “theme park.” The company kept on growing in fame and had to
endure the passing of its creator, Walt, in 1966. Following Walt's passing, Roy Disney
took over the supervision of the company and created an executive board in 1971. In
the next decade, the company made the most of delivering highlight films and
developed extra amusement parks, including Disney's first global amusement park,
Tokyo Disneyland in 1983. During this time, the company suffered takeover problems,
however it in the end recouped and got back on its feet when Michael D. Eisner turned
into its director in 1984.
Since the 1980s, Disney has extended its impact over a more extensive market,
starting with the presentation of the Disney Channel on satellite TV. The company built
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up a few subdivisions and studios, for example, Touchstone Pictures, to deliver films
outside its standard family-situated charge and a considerably more extensive balance
in media outlets. Eisner and executive board member Frank Wells ended up being an
effective duo to lead Disney into the new century. In 2005, Bob Iger assumed control
over the CEO job from Eisner. In 2006, Disney acquired Pixar as it concentrated on
advanced animation. Pixar had recently delivered film hits, for example, Toy Story,
Finding Nemo, and The Incredibles. Pixar Animation Studios has kept receiving awards
for movies like Moana. When he first became executive in 2009, Iger directed the
company's concentration back to more family-arranged items, as it sold Miramax
Studios and cut back Touchstone Pictures. Roy Disney, the last individual from the
Disney family in the organization, passed away on December 16, 2009. Additionally in
2009, the organization procured Marvel Entertainment, which gave Disney the rights to
many hero establishments, for example, Iron Man and Deadpool. In late 2012, Disney
started its securing of Lucasfilm, which included the rights to the Star Wars franchise.

Current Business Operation Strategies:

According to Disney’s official Marketing Strategic organizations, the company
has adapted in order to capitalize on today’s rapidly changing media landscape and
align more closely with the Company’s priorities for future growth. The company
included the creation of high-quality content, technological innovation, global expansion
and direct-to-consumer distribution. The Walt Disney Company announced the strategic
reorganization of its businesses into four segments: the newly-formed Direct-to-
Consumer and International, Experiences and Consumer Products, Media Networks,
and Studio Entertainment.
The newly created Direct-to-Consumer and International segment serve as a
global, multiplatform media, technology and distribution organization for world-class
content created by Disney’s Studio Entertainment and Media Networks groups. This
segment comprises Disney’s international media businesses and the Company’s direct-
to-consumer businesses globally–including the upcoming Disney-branded direct-to-
consumer streaming service, the Company’s ownership stake in Hulu, and its soon-to-
be-launched ESPN+ streaming service, programmed in partnership with ESPN.
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This newly created branch serves like an adaptation to the rapid changes in the
entertainment industry introduced by the creation of other streaming services. Platforms
like Disney+ and Hulu allow the Disney company to have a share in the streaming
services industry while competing with other mainstream streaming services such as
Netflix (Gupta). In its first day upon release, Disney+ gained over 10 million subscribers.
The key to such success, according to Trainer, seems to be the offering of “quality over
quantity.” In other words, Disney+ offers better content than other streaming services
such as Netflix and allows users to avoid going through the hassle of choosing through
a seemingly endless list of titles. Particularly, a key factor that contributed to the
success of the Disney+ platform was the release of the live-action Star Wars show The
Mandalorian. That same year, 2019, Disney had huge success upon the release of
high-grossing films such as Star Wars: Episode IX, Avengers Endgame and Frozen 2,
which gave Disney a comparative advantage as the streaming service is tied to the
success of those big franchises (Trainer). To put it in a nutshell, Disney+ offers shows
such as The Mandalorian with which audiences are already familiar with because of
other large franchises such as Star Wars. Thus, consumers tend to be attracted more to
those entertainment products that they are already familiar with, awarding Disney+ a
comparative advantage (quality over quantity) over other streaming services that are
filled with too many different options.
The new Parks, Experiences and Consumer Products segment became the
hub of amusement parks and merchandise products in which Disney’s stories,
characters and franchises come to life. Disney’s worldwide consumer products business
is now merged with Walt Disney Parks and Resorts. Disney’s global consumer products
operations include the world’s leading licensing business across toys, apparel, home
goods, and digital games and apps; the world’s largest children’s publisher; Disney
store locations around the world; and the shopDisney e-commerce platform. By uniting
Disney’s consumer products business and Disney Parks’ robust retail and e-commerce
operations, the Company will be able to share resources and best practices to provide
consumers with incomparable branded products and retail experiences that only Disney
can create.
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The key of Disney’s family-oriented storytelling techniques and amusement parks

is that they offer something different to each of the audiences’ generations. A visit to
one of Disney’s amusement parks tends to be a family-trip visit. Children get to see their
all-time cartoon heroes. Their parents not only live through their children’s amusement
and happiness, but they also get to re-live the iconic cartoons that they saw when they
were children. A visit to a Disney’s theme park represents a vacation, and sometimes
even a popular destination-must among tourists. These theme parks do not only offer
rides and attractions, but they also offer multicultural exchange. They offer cuisine from
different countries all over the world and help bring together people from different
nationalities, ages and backgrounds (Noyes). In other words, Disney’s amusement
parks offer a service-oriented product that can be enjoyed by all family members in a
relieving, vacation-like experience.
In the Disney Market, the Media Networks segment remain virtually the same,
with the exception of the international Disney Channel operations that are moving to the
Direct-to-Consumer and International business segment along with the management of
global advertising sales/technology. The Studio Entertainment segment includes Walt
Disney Animation Studios, Disney Live Action, Pixar Animation Studios, Marvel Studios
and Lucasfilm, as well as Disney Theatrical Group and Disney Music Group.

Historical Changes In The Company’s Marketing Evolution:

The Disney marketing evolution has passed over some changes for many factors
but the most important one in matters of marketing is the ongoing technology.
Nonetheless, Disney has remained more or less the same in terms of merchandising its
products. Since the day the Company started, they included social, cultural and
personal factors that affect adults and children’s behavior, in order to emotionally
engage all ages with their family-oriented productions. Throughout the last few decades,
with the technological improvements that have come with the new century, the Disney
Company has changed how they display to sell their products. For example, when
Disney produced its first movie, Snow White, it would be publicly announced the
premiere via flyers and on the theatre. The first movie that required advertisement
before Snow White was Steamboat Willie; however, it did not have the chance of any
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advertisement or marketing in any way. Snow White, on the other hand, had flyers on
the streets, sold toys, games, hats and more because by that time, Disney had grew in
size, fame and learned to take effective advantage of the marketing resources at hand.
Nowadays, the advertisement of a movie would be through social media primarily. Now,
with the release of every movie, the Disney company would strategically release action
figures at the Disney stores, open new attractions at their theme parks, release
soundtracks of the film on music platforms, and so on. Which remains relatively similar
to what they did 70 years ago upon the release of movies such as Snow White. There is
a strategic advertisement campaign that would be done months before the release of
the movie to create intrigue and excitement to the audience.
In the last few years, Disney bought Star Wars’ rights, one of their many
acquisitions, to increase the value of the company. Disney created another trilogy to the
Star Wars saga, they also built an entire section on one of their theme parks at
Disneyland California, this theme park encompasses nothing more and nothing less
than 16 acres. A very clever marketing strategy is that a person cannot finish the park in
one day so they would need a two or three-day trip to finish and enjoy each attraction
due to the amount of waiting time that can be up to three hours. On the other side of the
parks, there are all the products that they sell, like hats, mugs, swords, among others.
This is not happening only with Star Wars, but Toy Story is also a target that people
come to the Magic Kingdom at Disney park at Orlando, Florida to visit at least on a 2-
day trip for one park to cover most of the attractions.
Additionally, The Disney Company have had some changes in their distribution
strategies in order to do this, it has paid special attention as they rearrange their
business operations. As mentioned above, the company is going to launch an exclusive
streaming service, a reference can be the app in used in Panama, Cable Onda Go. By
doing this the company is making more interactive, attractive and interesting their
products, to access to it, its needed a monthly paid subscription that creates profit for
the company. Also, making it exclusive for Disney movies and series in welcoming
people of all ages. It is a smart way to market all their products in one place.
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Prevalent Marketing Trends:

The first prevalent marketing strategy throughout Disney’s history is the use of
effective storytelling techniques targeted to both children and adults. As noted by
Bolton, many of Walt Disney’s quotes illustrate the fact that he identified his target
audience from the earliest stages of company’s development. Quotes such as
“[a]nimation offers a medium of storytelling and visual entertainment which can bring
pleasure and information to people of all ages everywhere in the world”; “[y]ou’re dead if
you aim only for kids. Adults are only kids grown up, anyway”; “[w]e believed in our idea
– a family park where parents and children could have fun together” (qtd. in Bolton)
show that fact. In other words, Disney’s principal achievement is the use of storytelling
techniques that can be enjoyed by children and appreciated by adults as well. Such
characteristic allows Disney to expand its target audience. Moreover, it allows a greater
product differentiation by giving a unique characteristic to their entertainment products
(Williams).
A second prevalent marketing trend is the use of merchandise and advertising in
order to promote their movies. The company allows more growth within its existing
markets by the release of corresponding merchandise to generate more profits
worldwide. Prior and during the release of a new movie they would release related
merchandise such as toys so they can persuade more people to watch their movies and
increase their sales’ size. Such intensive growth strategy is often accompanied by
aggressive advertising techniques in order to increase market’s penetration. Basically,
whenever they release a movie, they accompany its release with merchandise and
other advertisements so they can increase revenue from its release (Williams). Much of
the merchandise is often targeted to children, given their tendency to feel more excited
over Disney’s animated movies, such as Frozen; and over their action films, such as
Star Wars or Avengers.
A third marketing tool used by Disney is the use of nostalgy in order to attract
broader audiences. Since it was founded on 1923, Disney has tended to leave an
emotional footprint in every person that grew watching their animated films. A way in
which Disney attracts again those old audiences is by releasing modern remakes of its
old movies. It’s the case of films such as The Jungle Book, whose original movie was
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released on 1967. Disney has made two different remakes of it, one live-action in 1994
and another CGI film in 2016. Another is the case of The Sleeping Beauty, originally
released in 1959, which has had two remake spin-offs called Maleficent and Maleficent
2 (Geter). With the use of this strategy, Disney attracts old audiences once again and
invites new ones to explore the stories from old-time classics. Additionally, they also
create expectancy of these remakes. Audiences expect the remakes to have better
animation techniques than the original ones along with more modern directing and
storytelling techniques. Thus, both old and new audiences tend to feel more excited
upon the release of such remakes and want to watch them more.
A final marketing strategy used by Disney is its diversification and cross-brand
collaboration. Disney has prevalently acquired or developed new businesses such as
theme parks, live entertainment, cruise lines, resorts, planned residential communities,
TV broadcasting and retailing by buying or developing the strategic assets it needed
along the way. The Disney company uses diversification as a tool to support its
intensive marketing strategy for business growth. It allows Disney to increase its
competitiveness by simultaneously promoting their business brand and taking
advantage of its brand image to promote other diversified products (Williams). Thus, by
diversification, Disney obtains a greater share in the international market and increases
its brand presence. Moreover, Disney tends to cross-brand with other companies in
collaborations to increase revenues and market presence. For example, their cross-
promotional relationships with McDonald’s and Mattel (Markides).

Conclusion:
Throughout this discussion, we have analyzed one of the biggest media
conglomerates nowadays, The Walt Disney Company. It is a company with a global
market that has diversified into many different branches in order to increase its
corporate value and its comparative competitiveness. It was first an animation study
which later grew enough in size to acquire its first iconic theme park. After that, it has
bought many other iconic franchises and made remakes of its old movies. It mainly
creates family-oriented products that can be enjoyed by people from different cultural
backgrounds and ages. It has arranged its corporate structure in order to properly
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manage all of its revenue sources and has adapted to the uprising prevalence of
internet streaming services. It releases merchandise and heavy advertising as
marketing techniques to promote their movies and increase revenues; and they also
appeal to nostalgy in order to attract old audiences again. As we have seen, Disney’s
marketing techniques have been successful because Walt Disney identified its target
audience from the very beginning of the company, and his legacy remains as Disney
positions as the biggest media corporate of the XI century.

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