Disney’s has different characters that have proven successful in different market segments and as such, cross-platform franchising has enabled the company to create a sustainable competitive advantage (Russell 2012). For example, the company targets children and young teens with its princess and Cars franchises.
In addition, Disney’s uses music labels such as Hanna Montana or Jonas Brothers to reach out to a diversified consumer group. On the other hand, the Pirates of Caribbean targets the adults and older teens’ markets. Through product differentiation, Disney has managed to reach out to multiple markets, and this has helped to promote the Disney brand as a whole (Russell 2012).
Disney has also adopted product differentiation through its Pirates franchise. This is aimed at gaining sustainable competitive advantage. The Pirates franchise comprises of a series of products such as DVDS, movies, figurines/ships and toys, customers, and Disney world ride. All these products have been integrated into a single franchise that targets different consumer markets.
The movie Car is among the major brands that has created a competitive advantage for the company. After the hit movie Cars, Disney went ahead to produce a series under the brand name Cars. To reach out to customers, Disney used DVDs in addition to launching the Disney TV channel. As a result, the company has managed to reach out to different consumers of different age groups and locations.
The Cars brand is also available through an online virtual gaming world which targets teens and children. All these practices are part of the company’s product differentiation strategies which the company has adopted in an attempt at reaching out to different customers, thereby creating a competitive advantage.
Disney has developed a strong brand which differentiates the company from other competitors in the industry. For example, the brand name, “Pirates” is used on Disney’s products to appeal to target customers from different segments of the market. Product appeal results in consumer loyalty among the targeted consumer markets thus giving the company an upper hand over its competitors.
As noted by Bob Iger, the company has manaed to create multiple experiences through product appeal thus generating consumer enthusiasm (Disney Institute 2012). This has enabled Disney to give its consumers a reason to come back and share the same experience.
The application of market diversification has also given Disney competitive advantage in the market. For example, Disney has been moving its franchises with the objective of capturing the growing teens’ market. In addition, the company has broadened its viewership on its Disney Channel franchise in a bid to capture new markets.
Under the leadership of Bob Iger, the company has moved Disney Channel from premium channels to basic channels. In addition, it has also focused on launching local versions its major key markets around the globe. All these activities have led to a sustainable market share of the company.
Marketing mix entails the 4ps that is, product, price, place/distribution, and promotion. Disney’s Cars franchise is one of the company’s leading franchises. According to Disney (2012), the Car franchise has helped the company to achieve huge success in the film industry. As part of its marketing mix, Disney produced the hit movie Cars, which was followed by series of Cars in the form of animations available to targeted markets.
The company also produced Cars 2 which promoted the Cars franchise. Other accessories associated with the Disney Cars franchise include personal care, food, apparel, home décor, electronics and toys (Disney 2012). Different products of the Car franchise are promoted through the Disney Channel, personal selling, displays, and advertisements.
For instance, Cars was introduced to the movie theaters and to the public by designing cartoon car characters which were later displayed in merchandise stores along with the real Car movie as part of its promotion exercise. The Cars franchise is currently promoted through Cars e-magazine, internet platform and other mobile phone applications such as Cars’ Lightning Was Here (Disney 2012).
The products are found in movie theaters’, online platforms, and leading merchandise stores. Disney has adopted a strong distribution network in order to ensure that the products are available to consumers within the stipulated timeframe.
Disney uses premium prices as part of its pricing strategy (Garcia 2011). The prices offered by Disney are modest and affordable given the high level of competition in the entertainment industry.
Considering that the company’s executives constantly under pressure to increase profit margins the company has adopted aggressive pricing. This strategy is intended to increase sales. Since Disney has already gained its market share, it uses competitive pricing. Competitive pricing is associated with quality products such as the products associated with Cars franchise.
Based on the case study, Disney’s major focus has been on family-friendly fairs with a major emphasis on teens and young children. However, due to increased competition in the industry, Disney should consider choosing another market segment. A good example of a new market segment for Disney to target would be young girls in Middle East.
Through the Disney Princess franchise (Walt Disney 2012) the company could target an untapped market in the Middle East. Jasmine as portrayed in the film Aladdin is a girl who was later captured and treated like a slave (Walt Disney 2012).
Middle East is an emerging economy with a fast growing population of women. The Middle East market is promising especially the female segment (Krupnick 2011). Therefore, targeting girls in Middle East is appropriate because the population has an increasing purchasing power.
Krupnick (2011) add that the Middle East market is composed of oil-rich nations whose purchasing power has been on rise. For instance, Middle East has a purchasing power of more than 8% (Newman 2006). Therefore, it is important to note that the targeted market will afford Disney branded dolls and other feminine related accessories.
Some products such as body and hair perfumes for girls which are a reflection of Jasmine would be highly marketable. Furthermore, Middle East Women inclusive of girls have larger influence on products because of their family spending.
Arab females have been categorized as an attractive market target group because they form the largest group of media consumers (Carter 1997). In addition, they have a higher buying power just like other buyers in Western markets. The population of females of ages below 30 years is higher compared to that of men.
This means that there is a ready population which can be targeted (Carter 1997). Advertising through the media and magazines are the most appropriate methods of reaching the target market. This is because traditionally, magazines and media have been the key advertising medium for existing and emerging brands (Carter 1997).
If at all Disney is to reposition itself in the Middle East market, the management should take in to consideration market changes and market trends. Products diversification would be a viable option as it would ensure that the target market gets to enjoy a variety of Disney’s products.
For example, Jasmine diversified fragrances, perfumes, dolls, t-shirts, and clothing have the capacity to evoke various feelings among the target market. Perfumes with different scents and sizes have different effects on different people and are thus recommended. Jasmine dolls should be of different sizes, color, and be clothed differently in order to meet new market trends and customers’ preferences.
Also, Disney needs to invest heavily on TV commercials and magazines because females from the Middle East are heavy consumers of TV commercials (Carter 1997). In addition, Disney could upgrade its products and give them a youthful look which create memorable experiences and brand image in the minds of the consumers. Finally, the company should improve its current products by adding new features as a way of making them more appealing to the target customers.
Works Cited
Carter, Meg. “The Buying Power of Arab women. (Latest Developments in Advertising in the Middle East). ” Campaign. 6 Jun. 1997: 1. Print.
Disney. Disney Consumer Products: Disney-Pixar Cars. 2011. Web.
Disney Institute. Disney’s approach to Brand Loyalty. 2012. Web.
Garcia, Jason. “Disney Pricing Strategy: Seeking More Profits out of Long-Term visitors.” Orlando Sentinel. 20 Jun. 2011: 1. Print.
Krupnick, Ellie. Arab Women The Majority Of Couture Clients, Executives Say. 2011. Web.
Newman, Mark. Purchasing Power. 2006. Web.
Russell, Christina. The Walt Disney Company. 2012. Web.
Walt Disney. Disney Consumer Products: Disney Princess. 2011. Web.