Focus on entertainment thru experiences based on creativity

1
The Walt Disney Company Presented by Shanna
Baumgarten
Erin Clark Becca Crossen
2
I Company Overview

• Founded in 1923 by Walter Elias Disney, he and
  his brother Roy created the short film Alices
  Wonderland
  
• Focus on entertainment thru experiences based on
  creativity and memorable storytelling
  
• Grown to be a vital competitor in the
  Broadcasting Entertainment industry
  
• Separates business into four segments (1) Studio
  Entertainment, (2) Parks and Resorts, (3)
  Consumer Products, and (4) Media Networks

3
II Business Mission

• Strong commitment to using quality and creative
  content in all aspects of its entertainment
  experiences and storytelling production
  
• The four sections, Studio Entertainment, Parks
  and Resorts, Consumer Products, and Media
  Networks each focus on operating in a manner to
  maximize exposure and experience long-term,
  worldwide growth

4
II Business Mission

• Focus of the Studio Entertainment Segment To
  continue creating animated features and
  live-action motion pictures that provide quality
  entertainment for the whole family
• Focus of the Parks Resort Segment To provide
  consumers with a unique experience with Disney
  cast members ensuring the encounter will long be
  remembered. The goal of making dreams come true
  every day is a key element in the global growth
  strategy

5
II Business Mission

• Focus of the Consumer Product Segment To uphold
  the Disney high standard of quality and
  innovation
  
• Focus of the Media Segment To provide quality
  content, updated platforms, and have the ability
  to change to meet consumer demands

6
II Business Mission

• Environmentality program
• The program is a fundamental ethic that blends
  business growth with the conservation of natural
  resources
  
• Part of long-term, sustainable growth, and cost
  savings
  
• Efforts in this program go beyond that of just
  compliance with regulations and environmental
  law
  
• Disney purchases recycled products and practices
  waste minimization and resource conservation
  
• Disney also commits to research and development
  on behalf of environmental awareness, is involved
  in community activities, and provides and
  education regarding the environment to help
  ensure success of the program

7
III Marketing Objective

• In 2005 Disneys CEO, Robert Iger, identified
  three strategic priorities
  
• 1) To foster an environment of creative
  innovation in all aspects of the business.

8
III Marketing Objective

• 2) Global expansion, meaning to grow the
  business, particularly internationally in the
  growing markets of China and India, while
  ensuring long-term, sustainable growth.
• 3) A strong application of technology. Disney
  must remain on a platform that can meet changing
  consumer demands in a well-priced and
  well- timed manner.

9
IV Situation AnalysisStudio Entertainment

• Studio Entertainment Segment Description
• The Studio Entertainment unit is the foundation
  on which The Walt Disney Company was built.
  
• This segment of Disney is responsible for
  producing animated features, both traditional
  hand-drawn and computer-generated films, and
  live-action motion pictures.

10
IV Situation AnalysisStudio Entertainment

• Industry Analysis
• Disney, along with their top three competitors,
  are all set to release blockbusters within a few
  months of each other in mid 2007.
  
• Sony Pictures Entertainment Spider-Man 3
• Disney Pirates of the Caribbean At Worlds
  End
  
• Dreamworks Shrek 3
• Warner Bros Harry Potter and the Order of the
  Phoenix

11
IV Situation AnalysisStudio Entertainment

• SWOT Analysis Strengths
• The 2006 acquisition of Pixar allows Disney to
  incorporate their ideas and innovation, while
  reducing the threat from a competitor.
  
• The technology utilized by Disney has given
  movie-goers a level of quality and anything less
  is noticed.
  
• Well established company and strong financial
  backing. To reduce production costs the second
  and third Pirates movie were filmed together.

12
IV Situation AnalysisStudio Entertainment

• SWOT Analysis Strengths
• The Pirates of the Caribbean Dead Mans Chest
  was the number one movie of 2006, and it is
  likely the third Pirates will claim the 2007
  title.
• As the FTC and the public criticize Broadcasters
  for TV violence and language. Disney will likely
  avoid much of the negative attention due to their
  current standard of family entertainment quality.
  
• Disney is a trusted and known image in the public
  eye.
  

13
IV Situation AnalysisStudio Entertainment

• SWOT Analysis Weaknesses
• Movies based on Marvel comics have grown in
  popularity and number in the past few years. Most
  comic movies are family oriented and very
  successful, Spider-man being a prime example of
  this.
• Consumers may assume Disney products or
  experiences are geared towards children. This is
  not true in all cases, but the Disney image may
  prevent potential customers from trying a Disney
  product due to the association to child-related
  entertainment.

14
IV Situation AnalysisStudio Entertainment

• SWOT Analysis Opportunities
• The third installment of the Pirates of the
  Caribbean movie series. The third movie has the
  potential to break the record for opening weekend
  sales.
• As Disney pursues the global expansion goal, the
  opportunity to reach new demographics with their
  motion pictures may open new markets. This
  expansion may also provide new storylines to the
  creators of Disney films.

15
IV Situation AnalysisStudio Entertainment

• SWOT Analysis Threats
• The three greatest threats to the Studio
  Entertainment segment of Disney are the other
  summer blockbusters Spider-man 3, Shrek 3, and
  Harry Potter and the Order of the Phoenix. The
  threat is not only these movies, but also future
  movies in each of the series. Spider-man will
  likely have at least a fourth, Shrek will have
  five movies in total, and Harry Potter will
  likely have at least one more movie.
• Movie ticket prices
• Piracy issues

16
IV Situation AnalysisParks Resorts

• Parks Resorts Segment Description
• The place where dreams come true and the
  memorable Disney characters come to life!
  
• Disneyland resort in Anaheim, CA opened in 1955.
• Grown to develop
• Disney Cruise Line
• Adventures By Disney
• 7 Disney Club Vacation Resorts
• 5 resort locations encompassing
• 11 theme parks on 3 continents

17
IV Situation AnalysisParks Resorts

• Industry Analysis
• Holds leading position in the primary industry of
  Amusement Parks, Arcades, and Attractions.
  
• Competing with Six Flags, Universal Parks
• Secondary industry is resorts.
• Top competition with Hyatt
• Disney holds the power in their industries by the
  motivation to keep their primary focus on
  fulfilling each customers needs of each park and
  resort being a magical escape where they can
  experience a world of fantasy and imagination.

18
IV Situation AnalysisParks Resorts

• SWOT Analysis
• Strengths
• Grow and benefit from the resurgence of tourism
  and travel
  
• 50 years of experience in the industry
• 10 sales growth in 2006
• Weaknesses
• Parks and Resorts segment has gotten so large
  that management may have trouble covering each
  specific issue

19
IV Situation AnalysisParks Resorts

• SWOT Analysis
• Opportunities
• Advancement in technology
• Use life-like computer-animation technology
  created by Imagineering
  
• Engage audience in a conversation with either sea
  turtle from Finding Nemo or the fiesty blue
  alien from Lilo And Stitch
  
• The fiesty blue alien is located in the Hong
  Kong Disneyland and allows audience to interact
  in either Cantonese, English or Putonghua
  
• Threats
• Parks and Resorts segment so wide that
  competition can be more specific in their
  individual industry
  
• Six Flags can focus on primary target of the
  Amusement Park industry
  
• Rising gas prices will decrease the amount of
  travel to each Disney destination
  
• Terrorism

20
IV Situation AnalysisConsumer Products

• Consumer Product Segment Description

21
IV Situation AnalysisConsumer Products

• Industry Analysis
• Trends
• how the food industry is affecting Disney
• technology
• Competitors toys, clothes, books, and games for
  babies, children, and adults
  
• Profile Disney Consumer Products (DPC) is the
  worlds largest licensor with global retail sales
  of 23 million in 2006.
  
• Technology toys with electronics

22
IV Situation AnalysisConsumer Products

• SWOT Analysis
• Strengths
• Strength in numbers
• direct-to-retail
• International markets
• Weakness
• Weakness in numbers?
• Consumers
• Retailers
• Contracts
• Confusing

23
IV Situation AnalysisConsumer Products

• SWOT Analysis
• Opportunities
• Endless
• Threats
• Consumer income
• Family structure
• Gas prices
• Divorce rates
• Food regulations
• Terrorism

24
V Marketing StrategyTarget Market Strategy

• Families!! (entertainment and experiences for
  every member of the family.)
  
• Domestic and Global
• Cross Cultural
• Basically, every person on the earth (just about)
  can find a Disney product that satisfies a want
  or need.

25
V Marketing StrategyMarketing Mix

• Product Place
• Studio Entertainment Animated and live-action
  films (in theater and on home format, such as DVD
  or iPod), available in theaters or at retail
  locations
• Parks and Resorts The experience from each
  memorable attraction, available at the various
  locations of theme parks, cruises, vacations,
  etc.
• Consumer products A massive variety of
  products available at retail locations along with
  other sources

26
V Marketing StrategyMarketing Mix

• Promotion
• Studio Entertainment Posters, movie trailers,
  tv commercials, fast food chains (toys/games with
  characters from new movies), the internet
  
• Parks and Resorts Disney website, magazine
  ads, tv commercials, the internet, Disney Store
  
• Consumer products TV commercials, magazine
  ads, food/drink products, retail flyers
  (limitless)

27
V Marketing StrategyMarketing Mix

• Price
• Studio Entertainment Average U.S. price of a
  movie ticket 6.55, or purchase of DVD is 20
  
• Parks and Resorts Varies by package
• Consumer products Varies by product

28
VI Implementation, Evaluation, and
ControlFinancial Projections
Past Revenues 2002 25,329 2003 27,061 200
4 30,752
2005 31,844 2006 34,285
Future Revenue Predictions 2007 36,713 2008
38,992
2009 41,272 2010 43,551
29
The End