A Business Memo on the success of Disney Company

A Business Memo on the success of Disney Company

TO: Marketing Manager

Cc: Chief Executive Officer

FROM: Marketing Associate

DATE: October 25, 2015

SUBJECT: Success of Disney Company

A marketing strategy will help a business or company to focus and identify different ways to communicate with the customers (Lamb, Hair, & McDaniel, 2013). Therefore, the marketing team of the company will concentrate on ways that will create most sales. One of Disney’s franchises we shall look at is Cars Franchise. Disney’s CEO Bob Iger employed a marketing strategy of creating high-quality content for the family. Due to the use of the strategy, the Cars franchise generated more than $ 2 billion revenue in sales each year.

Therefore, the Cars franchise has been financially significant since the release of the Cars movie in the year 2006. Besides, the movie is a popular choice for the whole family. In 2011, Disney released a Cars sequel to help generate revenue. Similarly, a 12- acre Cars Land attraction was opened in 2012 by Disney’s California Adventure theme park (Siklos, 2009). The theme park provides an environment conducive to the family with children. The CEO (Bob Iger) revitalized Disney’s animation business and improved it by purchasing Pixar. The strategy made Disney move forward since the target markets are now operating more digital.

Bob Iger developed a strategy of finding a new market and made it priority as well. Therefore, he expanded the existing markets and identified new markets for the company. The strategy employed was to target young adult audience. Some of the markets that Disney franchise expanded into are music that consisted of Jonas Brother, Hannah Montana and movies (Cars, Pirates of the Caribbean, and High School Musical). The other major market included television (ABC, the Disney Channel, and ESPN).

The development of the Disney channel and expansion of movies made the company reach out to the younger and even adult audience. Disney broadened its viewership by moving the channels from premium to basic cable. Also, it launched local versions in the global strategic market. At first, the market was expanded to target the tween-girl markets that are of the age between 6 and 14 years (Siklos, 2009). The company added and offered newer products to attract the young audience. Also, Disney franchise targeted the tween-boy markets of the age ranging from 6 to 14 years. For this case, the company introduced PG-13 rated films and television that appealed to both the young and older audience (Siklos, 2009). Disney has proved to the world that it has the capability to succeed in these markets.

A marketing mix entails tactics or actions that a company employs to promote its brand or products. The company will make different kinds of choices to bring the product or service to the market (Lamb, Hair, & McDaniel, 2013). The first marketing mix is the product. Disney has had a vast experience for many years, and it has continuously taken advantage of the market knowledge to offer high-quality products and services to its customers. Some of the well-known products offered by Disney include movies, music and television shows. If the movie shows signs of success, Disney will produce another line of complementary products such as house video games and action figures based on the characters in the movie. Disney theme parks include Disneyland parks across the globe and Walt Disney World.

The second marketing mix is the price. In some years back, Walt Disney World’s ticket prices were low so that the travelers can be attracted to make a repeat visit to the theme park. At the moment, the company’s pricing strategy aims at making a profit. The prices for the tickets to the Disney theme parks are not low; therefore, the company builds the expectation of the visit by making it difficult to access. However, the company’s prices relative to the theme parks are based on the seasons. The company would also like to attract middle-income families.

The third marketing mix is promotion. The company does not only promote itself but every aspect surrounding it. Most people know of the existence of Disney theme parks and the many opportunities provided; therefore, they hardly need any promotion. However, the company owns media networks and this makes it ideal for it to market its brand, promote free tickets during low peaks, and promote discounts on theme parks and low priced rooms. Other than using the traditional advertising such as radio commercials, TV adverts and leaflets, the company employed social media marketing strategy.

Lastly, the place was the fourth marketing mix employed by the company. Disney developed a good number of park businesses around the world to capture the customers. The company’s stores are located in places with a high number of people such as theme parks, shopping malls, and urban areas. For example, Disney theme parks are located all around the world, and they include places like Paris, Tokyo, California, Florida, Hong Kong and Shanghai.



Lamb, C. W., Hair, J. F., & McDaniel, C. (2013). Marketing. Mason, OH: South-Western/Cengage Learning.

Siklos, R. (February 3, 2009). Bob Iger rocks Disney. Fortune. Retrieved from http://archive.fortune.com/2009/01/02/news/newsmakers/siklos_eisner.fortune/index.htm

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