>> Disney

Few companies have been able to connect with their audience as well as Disney has. From its founding by brothers Walt and Roy Disney in 1923, the Disney brand has always been synonymous with trust, fun, and qual- ity entertainment for the entire family. Walt Disney once stated, "I am interested in entertaining people, in bringing pleasure, particularly laughter, to others, rather than being concerned with 'expressing' myself with obscure creative impressions."

The Walt Disney Company has grown into the world- wide phenomenon that today includes theme parks, feature films, television networks, theatre productions, consumer products, and a growing online presence. In its first two decades, however, it was a struggling cartoon studio that introduced the world to Mickey Mouse, who went on to become its most famous character.

Few believed in Disney's vision at the time, but the smashing success of cartoons with sound and of the first full-length animated film, Snow White and the Seven Dwarfs, in 1937 led to other animated classics through- out the 1940s, 1950s, and 1960s, including Pinocchio, Bambi, Cinderella, and Peter Pan, live-action films such as Mary Poppins and The Love Bug, and television series like Davy Crockett.

When Walt Disney died in 1966, he was considered the best-known person in the world. He had expanded the Disney brand into film, television, consumer products, and Disneyland in southern California, the company's first theme park. After Walt's death, Roy Disney took over as CEO and realized his brother's dream of opening the 24,000-acre WaltDisneyWorldthemeparkinFlorida.Roydiedin1971, and the company stumbled for several years without the leadership of its two founding brothers. It wasn't until the late 1980s that the company reconnected with its audience and restored trust and interest in the Disney brand.

It all started with the release of The Little Mermaid, which turned an old fairy tale into a magical animated Broadway-style movie that won two Oscars. Between the late 1980s and 2000, Disney entered an era known as the Disney Renaissance as it released groundbreaking animated films such as Beauty and the Beast (1991),

Aladdin (1992), The Lion King (1994), Toy Story (with Pixar, 1995), and Mulan (1998). In addition, the company thought of creative new ways to target its core family- oriented consumers as well as expand into new areas to reach an older audience. It launched the Disney Channel, Touchstone Pictures, and Touchstone Television. Disney featured classic films during The Disney Sunday Night Movie and sold its classic films on video at extremely low prices, reaching a whole new generation of children. It tapped into publishing, international theme parks, and theatrical productions that helped reach a variety of audi- ences around the world.

Today, Disney consists of five business segments: Studio Entertainment, which creates films, recording la- bels, and theatrical performances; Parks and Resorts, which focuses on Disney's 11 theme parks, cruise lines, and other travel-related assets; Consumer Products, which sells all Disney-branded products; Media Networks, which includes Disney's television networks such as ESPN, ABC, and the Disney Channel; and Interactive.

Disney's greatest challenge today is keeping a 90-year-old brand relevant and current with its core au- dience while staying true to its heritage and core brand values. Disney's CEO Bob Iger explained, "As a brand that people seek out and trust, it opens doors to new platforms and markets, and hence to new consumers. When you deal with a company that has a great legacy, you deal with decisions and conflicts that arise from the clash of heritage versus innovation versus relevance. I'm a big believer in respect for heritage, but I'm also a big believer in the need to innovate and the need to balance that respect for heritage with a need to be relevant."

Internally, to achieve quality and recognition, Disney has focused on the Disney Difference, which stems from one of Walt Disney's most recognizable quotes: "Whatever you do, do it well. Do it so well that when peo- ple see you do it they will want to come back and see you do it again and they will want to bring others and show them how well you do what you do."

Disney works hard to connect with its customers on many levels and through every single detail. For ex- ample, at Disney World, "cast members" or employees are trained to be "assertively friendly" and greet visitors by waving big Mickey Mouse hands, hand out maps to adults and stickers to kids, and clean up the park

so diligently that it's difficult to find a piece of garbage anywhere.

Every detail matters, right down to the behavior of custodial workers who are trained by Disney's anima- tors to take their simple broom and bucket of water and quietly "paint" a Goofy or Mickey Mouse in water on the pavement. It's a moment of magic for guests that lasts just a minute before it evaporates in the hot sun.

Disney's broad range of businesses allows the com- pany to connect with its audience in multiple ways, ef- ficiently and economically. Hannah Montana provides an excellent example. The company took a tween-targeted television show and moved it across several divisions to become a significant franchise for the company, includ- ing millions of CD sales, video games, popular consumer products, box office movies, concerts around the world, and ongoing live performances at international Disneyland resorts in Hong Kong, India, and Russia.

Recently, Disney acquired three huge brands: Pixar, Marvel, and LucasFilms. The company has started to leverage these properties, which include the Star Wars brand and superheroes such as Spiderman, Iron Man, and the Hulk, across many of its businesses in order to create sustainable character brands and new growth op- portunities for the company.

Perhaps the most anticipated new product of 2013 was the Disney Infinity gaming platform, which crossed all Disney boundaries. Disney Infinity allowed consumers to play with many of the Disney characters at the same time, interacting and working together on different adventures. For example, Andy from Toy Story might join forces with Captain Jack Sparrow from Pirates of the Caribbean and several monsters from Monsters, Inc. to fight villains from outer space.

With so many brands, characters, and businesses, Disney uses technology to ensure that a customer's ex- perience is consistent across every platform. The com- pany connects with its consumers in innovative ways through e-mail, blogs, and its Web site. It was one of the first companies to begin regular podcasts of its television

shows as well as to post news about its products and interviews with Disney's employees, staff, and park of- ficials. Disney's Web site provides insight into its movie trailers, television clips, Broadway shows, and virtual theme park experiences.

Disney's marketing campaign in recent years has focused on how it helps make unforgettable family mem- ories. The campaign, "Let the Memories Begin," fea- tures real guests throughout Disney enjoying different rides and magical experiences. Leslie Ferraro, executive vice president of global marketing, Disney Destinations, elaborated, "The inspiration for this effort came from our guests. Each and every day people are making memories at our parks, posting them online and sharing them with friends and family."

According to internal studies, Disney estimates that consumers spend 13 billion hours "immersed" with the Disney brand each year. Consumers around the world spend 10 billion hours watching programs on the Disney Channel, 800 million hours at Disney's resorts and theme parks, and 1.2 billion hours watching a Disney movieat home, in the theater, or on their computer. Today, Disney is the 13th most powerful brand in the world, and its rev- enues topped $45 billion in 2013.

1.Write the position statement for Disney? Write the purchase of parity ? write the Write the purchase of parity ?

2.Into which consumer product classification dose the Disney belongs to and write the implication 4ps marketing strategy?

3.What is the branding strategy of Disney ? what is the product line ?

4.Write five product level ?

5.Which pricing strategy is appropriate for this case ?

6.Draw and explain the channel flow and which distribution strategy is used?

7.Develop a promotional campaign steps in developing effective communication ?

Positioning

-The act of designing a company's offering and image to occupy a

distinctive place in the minds of the target market

-The goal is to maximize the potential benefit to the firm.

Points-of-difference (PODs)

-Attributes/benefits that consumers strongly associate with a

brand, positively evaluate, and believe they could not find to the same extent

with a competitive brand

Points-of-parity (POPs)

- Attribute/benefit associations that are not necessarily unique

to the brand but may in fact be shared with other brands

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-To communicate a company or brand positioning, marketing plans

often include a positioning statement.

The statement should follow the form: To (target group and

need) , our (Brand), is (the concept) that (what the POD is or does).

Ex : to young, active soft-drink consumers who have little time

for sleep , Mountain Dewis the soft drink that gives

you more energy than any other brand because it has the highest level of

caffeine.With Mountain Dew, you can stay alert and keep going even

when you haven't been able to get a good night's sleep"

Market pricing strategy :

Market penetration : to get large market share

this pricing strategy where price start low to drive higher sales volume from

price sensitive customers

Market development involves identifying and

developing new markets for its current products.

Product development involves offering modified

or new products to current markets such as by moving into new product

categories.

Diversification involves starting up or

buying businesses beyond its current products and markets. For example, the

company could acquire a company that operates in different market segments with

a different product mix.

Setting price:

1.Selecting the Pricing Objective:

-Survival :the price should cover the variable cost and

some of fixed cost to staying business

-Maximum current profit : choose the price that produce the

maximum current profit , cash flow and rates on investment.

-Maximum market share : the company believes can be

done with high sales volume that will lead to lower cost and higher long run

-Maximum market skimming : when company interduce a new

technology that start with higher price and slowly over time

-Product quality leadership: providing affordable luxuries

product or services with high level perceived quality , taste and status with

just high enough price

- so we will apply the market penetration pricing strategy .

Because ( write the benefit of I choose it )

2 . Determining Demand :

- Price sensitivity : understand what affect price

sensitivity. Because this product convinces product and customer buy product

frequently so customers are most price sensitive to products.

-Estimating demand curves: the

demand curve of ( product ) should use by several methods such as survey and

price experiments.

-Price elasticity of demand: this consider as (

elastic or non elastic ) demand . If there are elastic write

there are more number of substitutes products and competitors.

3. Estimating costs :

We will need fixed cost ( rent , salaries , depreciation ,

overhead cost) and variable cost include direct materials )

Total costs consist of the sum of the fixed and variable costs

for any given level of production. Average cost is the cost per unit at that

level of production; it equals total costs divided by production. Management

wants to charge a price that will at least cover the total production costs at

a given level of production.

4. Analyzing Competitors' Prices

Firm must take competitors' costs, prices, & reactions into

account

5. Selecting a Pricing Method

Ceiling price , floor price and competitors price

5. Selecting the final price

- Line extensions occur when a company extends

existing brand names to new forms, colors, sizes, ingredients, or flavors of an

existing product category

- Brand extensions extend a brand name to a new

or modified product in a new category

- Multibrands are additional brands in the

same category

- New brands are used when existing brands

are inappropriate for new products in new product categories or markets

Product line is a group of products that

are closely related because they function in a similar manner, are sold to the same

customer groups, are marketed through the same types of outlets, or fall within

given price ranges

Product line length : number of the product

into product line

Line stretching: increase or add new product

to our product line

- Down- market stretch : the company want to

add but it will add to satisfy with introduce lower price line like sub - brand

name , different product to satisfy different segment

- Up-market stretch : the company want to grow more

and have a higher margins and sells all type of product.

Line filling: adding more items within the

product range such as ...

Product system : group of divers but related

items that function in a compatible manner

Product mix : set of all product and items

as particular seller offer for sale

Product Width : number of different product

lines carries by the company (type of product ex personal care: soap, shampoo,

cream, toothpaste )

Product Length :total number of items in

product line

Product Depth: number of versions of

each product (ex : soap include : lux, dove, lifebuoy)

Consistency: yes (firm name) has closely

consistency related with various product line

Marketing channels :Sets of interdependent

organizations participating in the process of making a product or service

available for use or consumption

push strategy (indirect distribution): uses

the manufacturer's sales force, trade promotion money, or other means to induce

intermediaries to carry, promote, and sell the product to end users.

pull strategy (direct distribution): the

manufacturer uses advertising, promotion, and other forms of communication to

persuade consumers to demand the product from intermediaries

In order to make the order in many place and reach different

segments physical store on other hand I will choose the online to reach each

segment

multiChannel levels

-Zero-level channel (direct)

-One/two/three-level channels (intermediaries)

Number of intermediaries in the selling area (distribution

intensity)

-Exclusive distribution - limits

the number of intermediaries one or two intermediaries in selling area ( only

for specialty product )

-Selective distribution - only

some of the intermediaries willing to carry a particular product ( few

intermediaries in selling area suitable for shopping product )

-Intensive distribution - places

the goods or services in as many outlets as possible.Many intermediaries

in selling area . Suitable for convenance product (available every where)

Marketing communications: The means by which

firms attempt to inform, persuade, and remind consumers about the products and

brands they sell

Steps of making communication:

1.Identify the target audience : the insider will be (

who is target ) . So when designing the product the promotional campaign would

be insiders.

2.Set the communications objectives: create

campaign (name of product )and educate how and when to use the

product

3.Design the Communications: we need to design the

communication with the message strategy (what to say) , creative strategy (how

to say) such as problem soling ads for skins , Communicators use positive or

negative appeals , product comparison ads. Message source (who should say it)

the expertise, trustworthiness, and likability

4.Select the communications channels

-Personal channel - identify expert, and social communications

channels

-Nonpersonal channels - is most appropriate include advertising,

sales promotions, events and experiences, and public relations.

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