WALT DISNEY

Presented By:Nor Zawani Arifin Nabihah Jurij Fauziah Jamil Yap Eng Chuan

► Founded by Disney brothers Walter Elias & Roy in 1923

► Evolution on family entertainment► Multiplane Camera in 1936 (US Patent US2201689)

► Walter Elias Disney

▲Collection of Academy Award won by Walt Disney

OVERVIEW

1923 Alice’s Wonderland

New York distributor, M. J. Winkler

1927 Oswald the Lucky Rabbit

M. J. Winkler, who own the rights to Oswald signed up most of Disney animators and setup studio for Oswald cartoons.

18 November 1928 Mickey Mouse

HOW IT STARTED

1930Mickey Merchandising

1955Disney Theme Park

1943Der Fuehrer's Face

1998Disney Cruise Line

2006Acquired Pixar Animation

BUSINESS DIVERSIFICATION

1996Acquired American Broadcasting Company (ABC)

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Walt Disney Revenue and Net Income Versus Year

Revenue Net Income

Millions (USD)

Revenue increase > 7x in 20 years

GROWTH RATE

• Targeting the Right Market• Choosing the Right Marketing Tools• Focusing on International Growth• Introduction of Product Tie-ins• Product Innovation & Technical Advancement

DISNEY’S KEY SUCCESS FACTORS

• Identify “Tween Market” i.e. children at the age of 8 to 14 years old, as their targeted market.

• In line with their main product i.e. animated films.

• Understanding the children’s needs and wants will facilitate their business growth.

TARGETING THE RIGHT MARKET

• Main marketing tool is Television.• At the age of 2 years old, children can often

recognize characters, logos and specific brands.• “Disney Channel” is the most watched pay-TV

kids channel in Asia.• Others - Cinemas, Theme Parks and Internet.

CHOOSING THE RIGHT MARKET

• General understanding that children from all over the world love animated films.

• Blend with local cultures.• Create new characters using local values.

FOCUSING ON THE INTERNATIONAL GROWTH

• Introduced after Disney moved into licensing characters for merchandized goods.

• Carried out through collaboration with reputable brand name like Giordano (apparel).

INTRODUCTION OF PRODUCTTIE-INS

• Continuous updating its technology.• Disney’s Animation Studios are using Open

Source Software, which is adaptable to the changes in the technology within the industry.

PRODUCT INNOVATIONS &TECHNICAL ADVANCEMENT

Move into different segment Reduction in operating cost Continuous innovative ideas are

required to retain the attention of the customer

RECOMMENDATION

MOVE INTO DIFFERENT SEGMENT

- Disney should consider and concentrate their segmentation to adults as well not only focus on the kids. In the event, Disney need to change their strategy in order to persuade the parents and other adults.

REDUCTION IN OPERATING COST

• Knowing that the cost of building up and expand of Disney will involve a huge amount of money, the more Disney need to do research and analysis before they expand for Disney growth. As a result, by implementing research and analysis they able to reduce the operational cost.

CONTINUOUS INNOVATIVE IDEAS ARE REQUIRED TO RETAIN THE ATTENTION OF THE CUSTOMER

• As we all know, Disney is very famous in all over the world. Therefore, in order to retain the customer Disney need to find an innovative way to bring up a new ideas to help in improving the Disney growth. For example, create a Disney music channel.

• In order to attract more target market, Disney perhaps need to create their own music channel whether in radio station or in the website itself. So that, all the customer able to listen to any of the Disney musical online.

High pressure and demand in terms of sales, creativity, and innovation while maintaining its quality status

Kiddie stigma attached to the Disney brand which deter the adult segment

Internet presence – cannot compete with Disney’s top competitors Google.com, Youtube.com, and Facebook.com, which are either owned or have lucrative deals with Disney’s top competitors Time Warner, CBS Corporation, and News Corporation (Hoover’s).

>70% of revenue still generated from US. International growth is required.

CHALLENGES