Download as pdf or txt
Download as pdf or txt
You are on page 1of 4

SHS Web of Conferences 188, 03011 (2024) https://doi.org/10.

1051/shsconf/202418803011
ICDDE 2024

Decoding Disney’s Marketing Mastery: A Strategic Analysis


Wanying Zhu1,*
1
Urban Culture and Communication College, Suzhou City University, Jiangsu, 215000, China

Abstract. Nowdays, the Walt Disney Company is one of the most influential entertainment companies in
the world, which is famous for its creativity and unique marketing strategy.Disney used to be just a small
animation studio but now it has influence all over the world. To investigate the key factors which made
Disney’s successful global expansion and development,this paper did this following reserach.This research
is mainly about Disney’s core business and the marketing strategy used by Disney.The study was conducted
through a meticulous analysis of Disney's primary business segments, its overarching business strategies,
and its management practices. Furthermore, it examines Disney's brand positioning, market penetration
tactics, and customer engagement techniques that collectively forge its competitive advantage. By dissecting
the synergy between Disney's content creation and its promotional tactics, this research aims to unravel the
intricacies of Disney's approach in nurturing a loyal consumer base and securing its status as an indomitable
force in the entertainment industry.

1 Introduction To begin with, the typical structure of Disney knowledge


is distinguished by the preponderance of the cinema
The Walt Disney Company was created by Walt Disney media [2]. At present, Disney's content landscape has six
and his business partner in 1923. It was first named as parts: Disney, Pixar, Marvel, Star Wars, 20th Century
Disney Brothers Cartoon Studio in Hollywood. At that Pictures and National Geographic. Each segment has a
time, it began to make animated films and short films. In large number of audio and video entertainment content
1937, Disney released its first animated film called Snow and IP, expanding the scope of product coverage from
White, which not only set box-office records, but also children and teenagers to more diverse audiences.
established Disney’s position in the field of animation.In Disney invests most of its time and capital in creating
the following decades, Disney produced a series of well- high-quality content, while at the same time maximizing
known animated classics, such as Dumbo, Cinderella, its embrace of technology, first using technology to
and The Lion King.In 1955, Disney opened its first create conditions for high quality products and using
Disneyland in California,which started the era of the more advanced and precise ways to reach more
Disney theme park kingdom. Since then, Disney has consumers. Creation is a key factor in the success of
opened several theme parks around the world. In the Disney animation. The rise of various animation
1990s, Disney began acquiring large media companies industries has made the audience's vision more
and gradually expanded into television shows, movies, demanding than the past, only continuous innovation can
and music. In the early 2000s, Disney began to focus on attract people. Disney is aware of this point, so it
digital entertainment with the launch of Disney Online constantly increases the cost of technological innovation.
and Disney Games. Since 2005, Disney has made a Consumer demand is an important aspect in the
series of acquisitions. First Marvel, then Lucas film, and development of businesses. Disney not only constantly
after that, a majority stake in 21st Century Fox [1]. In responds to market needs, but it also prioritizes the
2019, Disney became one of the biggest entertainment development of new markets. Disney broadens the
corporations in the world, further expanding its reach consuming style and audience for animated films,
into new areas including film, TV, streaming media. ensuring that its animations are not only liked by
Now Disney is a multinational company integrating children, but also reflect the aesthetic and depth of the
entertainment production, theme parks and media younger generation. Disney has created wonderful,
networks. animated films that are liked by people of all ages. For
example, many people like the animated film "COCO”,
particularly the family values it included [3]. As a truly
2 The core business of Disney global enterprise, Disney also pay attention to the values
of globalization in content creation. Disney has put a lot
2.1 Disney’s animation and films of emphasis on international sourcing in its animated
films. In Disney, people can see all kinds of different
stories by people from different regions.

*
Corresponding author: [email protected]
© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons Attribution
License 4.0 (https://creativecommons.org/licenses/by/4.0/).
SHS Web of Conferences 188, 03011 (2024) https://doi.org/10.1051/shsconf/202418803011
ICDDE 2024

2.2 Disney theme park For example, projection-based augmented reality (AR)
remains an important technology in Imagineering's
According to Smith, travel and tourism is the world's toolbox, helping to bring structures to life in theme park
largest industry in terms of employment, and it ranks in entertainment shows.
the top two or three industries in nearly every country on
practically every measure [4]. The Walt Disney
Company operates theme parks in addition to its media 2.3 The streaming media of Disney
company [5]. In the eyes of many people, Disney Park is
During the COVID-19 epidemic, streaming video
the best tourist attraction. Disney parks and products
became a part of many people's daily life at home, and
include park tickets, meals, hotel accommodations, and
consumption is still growing [6]. Disney deeply
surrounding areas, among other things. There are
integrates the internal resources of the group, upgrades
currently six Disney parks in the world, located in
online communication channels by acquiring media and
California, Orlando, Tokyo, Paris, Hong Kong, and
building streaming media platforms. Disney+, Hulu and
Shanghai. These six Disney parks are summarized in
ESPN+ are the online media streaming platforms
table 1.
launched by Disney Streaming Services. In 2019Disney
Table 1: Disney resorts in the world formally acquired 21st Century Fox to enhance its
Area Theme content. Since then, Disney, Pixar, Marvel, Lucasfilm,
City Year
(Acre) parks Fox, and National Geographic have all joined the content
Disneyland
California 1955 512 2
system. This differentiated content makes Disney+ the
resort second largest streaming platform in the world by
Walt Disney subscribers, with its three streaming platforms, Disney+,
Orlando 1971 30500 4
World Hulu and ESPN+, reaching a combined 221 million
Tokyo subscribers.
Disney - 1983 494 2
resort
Tokyo
- 2001 - - 3 Disney’s IP
Disney Sea
Disneyland Currently, Disney has six content divisions: 20th
- 1992 4800 2
Resort Paris Century Pictures, Pixar, Marvel, Star Wars, Disney, and
Hong Kong National Geographic. Each part contains a significant
- 2005 310 1
Disneyland
amount of intellectual property (IP) and audio-visual
Shanghai
Disney
- 2016 287 8 entertainment content, broadening the product coverage
beyond kids and teens to include a wider range of
Disney holds a significant position and has an edge in audiences.
the worldwide theme park industry. There were 501 Disney's primary competency is strong IP. Disney
million visitors to the top 10 theme park groups in the can strengthen its intellectual property through
world in 2018, with 31.39% of those visitors coming acquisitions and mergers as well as independent research
from the Disney Group, which had 157 million more and development. The company's autonomous
visitors than the second-ranked Merlin Entertainment intellectual property is primarily founded on thorough
Group. Disney has a significant impact on the global market segment study, with a particular emphasis on the
theme park industry and has a much larger market share topic of love and family, as well as a precise
than any other company, having been the industry understanding of the demands of the female and child
pioneer and explorer. markets. For example, The Disney Princess line was
Disney theme park can always bring the most launched in 2001 as an advertising and marketing effort
interesting experience for visitors. Disneyland’s theme aimed at young girls [7]. Simultaneously, the firm sought
changes throughout the year. It consistently provides a to address the gap in the male intellectual property
fresh experience and is a major lure for return tourists. demand market by acquiring Marvel and Lucasfilm. This
For instance, fans of Elsa are the target audience for the move served to elevate the status of heroes, accentuate
Frozen theme. After the popularity of the Frozen movie the allure of men, and bolster Disney's brand recognition.
faded, the theme was quickly replaced by a new trend Disney developed a comprehensive IP segmentation
theme. Disney Parks implement a business strategy of strategy and progressively widened its consumer base
continuously adding new services, facilities and through in-depth market segment analysis.
attractions to attract repeat customers. Disney devotes the great majority of its resources
In recent years, the development and industrialization including time and money to producing branded content
of information technology has prompted the theme park of the highest caliber. At the same time, it makes the
industry to gradually form its own development trend. most of technology, first utilizing it to establish the
Science and technology are becoming more and more framework for superior products and then employing
significant. With the acceleration of science and increasingly sophisticated and focused methods of
technology and the increasing popularity of information reaching more audience.
technology and virtual technology, Disney continues to
improve the technological content of products and
4 Disney’s 4P marketing strategy
enhance the interaction between technology and tourists.

2
SHS Web of Conferences 188, 03011 (2024) https://doi.org/10.1051/shsconf/202418803011
ICDDE 2024

4.1 Products 4.4 Place

Disney uses many sales strategies based on the audience


When people talk about Disney, the first thing that and the product, such as: advertising sales (open screen
springs to mind are movies, but Disney has expanded to advertising, outdoor advertising, etc.), direct sales (store
offer a wider range of products, such as: entertainment direct sales, APP direct sales, official website direct sales)
and music product line (including films, music, theater sponsorship(Increase brand exposure through
plays, etc.),media networks (including TV interviews, sponsorship) and discount sales (such as Ole stores,
programs, radio broadcasts, etc.),theme parks and resort through box sets). As to public relations marketing such
hotels (such as Disneyland and Disney-themed hotels), as holding activities, celebrity endorsement, public
publications (including comics, games, etc.), accessories opinion and event marketing, is the most successful part
(such as keychains, hairpins, clothing, candies, etc. of Disney’s marketing strategy. Disney's many public
Entertainment and music product line is the most well- relations marketing has become a classic case of
known form of Disney products, with its rich story marketing. With the popularity of Disney princess
content and beautiful pictures deeply loved by the culture, Disney launched an activity quickly called
audience. As an offline theme park, Disneyland offers witness the power of princesses. This event invited 19
interactive entertainment experiences that bring audience female photographers from 15 different countries to use
face to face with animated characters. Games, great women as role models to create a positive image,
derivatives, hotels, parks and software applications built such as the youngest woman to address the United
around IP, toys and other merchandise based on movies Nations and the surfing World champion from Brazil.For
and TV shows all make up a significant portion of every photo shared online, Disney donated $1 to Girl Up.
Disney's revenue. In 2016, Disney released the trailer: Reboot from The
Book of the Forest, and simultaneously released stills of
4.2 Price the actors voicing the characters and a few seconds of
film clips. The nostalgic movie immediately appealed to
parents, helping it stay at the top of the box-office for
Disney adopts market-responsive pricing and perceived- three consecutive weeks. In 2018, to celebrate Mickey
value pricing models for its offerings. Disney Cinematic Mouse's 90th birthday, Disney opened a stunning
and Broadcast: Competitive pricing approach - aligning immersive art exhibition - held at the Museum in New
prices with the prevailing market norms. Disney York, which in addition to introducing Disney's history,
Recreation and Lodging: Experiential pricing model - mainly showcases Mickey-themed artwork by
setting rates based on the visitors' appraised value of the contemporary artists. Interactive activities are also
overall experience. arranged: ice cream making and steamboat parade. In
addition, Disney also took the opportunity to co-
4.3 Promotion branding with fashion brand Vans and Forever 21,
expanding Disney's visibility in the fashion field.
Disney's promotional strategies extend beyond
traditional outlets like Disney Stores and movie theaters
to embrace digital platforms, including its official 5 Disney’s marketing strategy
website, accessible through popular e-commerce giants
like Taobao and Jingdong. Additionally, Disney 5.1 Brand management strategy
leverages technology through apps and mini-programs,
enhancing consumer engagement. Crucially, Disney's Brilliant brand images are becoming increasingly
success is amplified by licensing its intellectual important in today's marketplace for the longevity and
properties (IPs). It owns five of the top 10 global IPs, success of items [7-9]. The Walt Disney Company is at
underscoring its supremacy in the IP licensing arena. the cutting edge of multinational entertainment branding.
With over 3,000 licensees globally, Disney licenses out First of all, the Disneyland brand is instantly associated
its beloved characters for a multitude of products, with happiness, creates a positive perception of the
generating significant revenue. To feature Disney company and its products, and builds a solid
characters, groups must secure authorization, a process international reputation—all of which contribute to a
that has proven lucrative for Disney. In fiscal 2022, broad variety of customer aggregation effects. Second,
while revenue from Disney's derivatives business brand management creates the benefit of industrial
slightly dipped by 1.1% to $5.28 billions, operating aggregation by quickening the group's growth. One of
profit saw a healthy increase of 4.7%, reaching $2.81 the key and efficient ways to hasten Disneyland's growth
billions. This strategic approach to promotions and is through brand management, which can eliminate
licensing illustrates Disney's adaptive and profitable geographic constraints, increase the enterprise's counter-
business model in the ever-evolving entertainment exhibition space, and grow the brand's market share in
industry.This strategic approach to promotions and order to support the company's quick growth and start
licensing illustrates Disney's adaptive and profitable down the path to scale management.
business model in the ever-evolving entertainment
industry.
5.2 Service winning strategy

3
SHS Web of Conferences 188, 03011 (2024) https://doi.org/10.1051/shsconf/202418803011
ICDDE 2024

Disneyland is well-known for its high degree of service 6 Conclusion


excellence, and its service concept and standard have
become a model for all types of businesses to emulate. In As to the part of global marketing, it is necessary to
any event, guests' safety is Disneyland's fundamental make appropriate adjustments to each marketing element
value proposition. During holidays, when an increase in according to the special factor of the market environment.
tourists flow causes congestion and disruption, personnel Trying to use some localization decisions will be very
will take steps such as reducing the number of visitors important. For example, Europe Disney theme park’s
and tourist mobility to ensure that visitors receive sale is much lower than other Disney theme parks in
adequate service standards and for safety reasons. terms of food and drink because it does not conform to
Disneyland is fastidious when it comes to employee the living habits of European people.
courtesy. Disney expects its employees to be friendly, Disney is now the world's biggest producer of live-
polite, and considerate when they serve their guests. In action and animated films. Disney is also widely
short, Disney has polished every detail of the service. regarded as the most powerful film company in
Hollywood. The total number of Disney films that have
broken 1 billion dollars worldwide is now 25, which is
5.3 Product innovation strategy
more than three times that of Warner and Universal,
Disney makes updates and changes all the time. which rank second and third. Currently, Warner is
Disneyland parks have been following the "three-three Disney’s main competitor in the North American market.
system" for a long time, which involves replacing one- As a veteran film production company, Warner also
third of the hardware equipment annually, starting one- entered the field of animation at an early age. What’s
third of new projects, and continuously bringing in new more, Warner still owns the rights to the once-popular
employees. Disney parks actively integrate their own fantasy film Harry Potter. Although Harry Potter has
intellectual property (IP) with regional features and ended, Warner can use its prequel and other stories to
cultures, updating their entertainment offerings and shoot another animation, which will undoubtedly
facilities annually to maintain their allure and offer enhance the status of Warner Company in the field of
visitors a novel experience. This bolsters the company's animation production.
tagline, "the Disneyland that will never be built" [10]. What’s more, Disney also had to contend with a
number of rivals in the amusement park industry such as
Universal Studios, which has grown in popularity
5.4 Flexible pricing strategy recently. There are numerous offline theme parks under
the Universal Studios umbrella. Maybe they will be
A low pricing is appropriate for theme parks near the
more exciting than Disney in the future.
resort region. Disneyland's pricing model is quite
adaptable. The park uses differential pricing, regional
pricing, and price adjustment strategies depending on References
multiple factorise such product sort, sales times, and
location to make sure that the ticket price is reasonable 1. J. Shen, M. Xu, S. Yang, AP,203,764-770, (2021)
for target customers. This strategy ensures that prices 2. W. Disney, AoS, 8(2002).
remain attractive and competitive, catering to different
3. D.Dan, W.Putri, N A. Sophia, M. B.Simanjuntak,
segments of the market. For example, during peak
W.Ridwan, EDUCATIONAL VALUE OF DISNEY
seasons or for exclusive attractions, prices might be
FILM “COCO” BY WALT DISNEY PICTURES, in
higher to reflect the increased demand. Conversely,
Proceedings of Undergraduate Students’National
during off-peak times or for less popular attractions,
Seminar, USNS,219
prices might be reduced to encourage attendance.
Additionally, residents of the region where the park is 4. B.Francoeur, JOUR, 4(1),1-8, (2004)
located might enjoy special discounted rates, fostering 5. W Y.Li, BP,3(1),12-21, (2022)
local patronage and community goodwill. 6. D.E.England, L.Descartes, M. A. Collier-Meek, S. S.
64, 555-567(2011)
5.5 Marketing management strategy 7. M. Mine, D. Rose,B. Yang,J. Van Baar,
A.Grundhofer,IEEE, 45(7): 32-40.(2012)
Disney has a distinctive approach to marketing
management, emphasizing "external marketing" to 8. M.Braun, NEURUS, November 21,1-121, (2001)
consumers after stressing "internal marketing" to staff. 9. M.J. Robbins, TRACE,5,1-31, (2014)
Disney tries to use internal marketing management to 10. A.Bohas ,GS, 29(1): 23-41, (2015)
create a wonderful workplace where employees "enjoy
work and work happily" in order to motivate them to
provide exceptional customer service. Disney Park
spends a fortune on traditional media like radio,
television, and newspapers for external marketing, which
is then supplemented by a range of marketing methods.

You might also like