Reference no: EM133017363

Disney Makes a Comeback

For decades Walt Disney reigned as king family entertainment. with well-loved animated classics, family movies. a TV show and Disneyland and Walt Disney world -fantasy come to life. But his empire faded after his death in 1966. The movie studio turned-out box-office duds. The TV show disappeared. Only the theme parks were profitable. By 1984 the Magic kingdom had had years of declining earnings and faced threats by raiders.

Then Michael Eisner became chairman and chief executive officer of the Walt Disney Company. and Frank G. Wells became president. These former Hollywood executives developed a marketing strategy to take Disney to the forefront of modern entertainment.

They brought the '"Disney Sunday Movie" back to network TV and developed new children's cartoon series and new adult shows such as "Golden Girls." The Disney Channel became available to cable subscribers. Disney reissued classics such as Snow While and 'he Seven Dwarfs and Bambi for a new generation of children 10 see in theaters. The movie studio created new children's movies. such as the critically acclaimed The Little Mermaid. It also started producing films for new audiences-teens and adults. Box Office hits like Down and out in Beverly hills, Three Men and Baby. Good morning. Vietnam, and Dick Tracy also became big video hits. Disney began releasing its classics on cassettes for the huge home video market, (One million copies of Sleeping Beauly sold in one yearn Disney moved into international broadcasting. too, Mickey Mouse and Donald Duck are prime-lime stars on Chinese television. "Adventures of the Gummi Bears," "Ducktails," and "The Disney Club" air weekly in seven European countries. Videocassette sales are high in Britain. Spain. and Israel.

Disney expanded the merchandising of its famous mouse and his pals, with 8.000 products now sold in 'O countries. Besides stuffed toys. books. and cloths Tans can find skis. a S175 Seiko Mickey Mouse watch. or a $3,200 diamond-studded Dumbo brooch. Disney sells its products through 8 million catalogs mailed each year or in new mall stores that Offer a touch Of Disneyland coast to coast.

At the theme parks. the company raised admission prices and added new attractions. including a "Star Tours" spaceship ride and Indiana Jones adventure at Disneyland. Big Thunder Mountain at Tokyo Disneyland. and the MGM movie studio in Florida. To keep visitors pouring into the parks, Disney launched big advertising campaigns. Disney's goal is to make every customer feel like a guest. The company makes sure il knows Who its customers are and what they expect from a family vacation, then tries to exceed their expectations. Employees attend Disney University to learn how 10 provide superior service. such as solving customer problems on the spot. The Disney to satisfying customers is successful that the company holds seminars % executives in other industries. Since 1986 more than 3,000 executives from 1,200 companies have attended three-day seminars.

Eisner firmly believes in the Disney tradition of providing high-quality entertainment. "I must maintain the company. the quality. the image." He says, Effective marketing contributed to a dramatic turnaround for the company. Disney profits increased 35 percent for the year ending September 30, 1989, on revenues of $4,6 billion.

Still, some people believe Disney's growth years in U.S. markets Executives are looking to Europe for growth in the 1990s. Their largest new venture is the $2.6 billion Euro Disneyland on 4,500 acres near Paris. The Park is within two hours' driving distance for 17 million people and two hours' flying time for 310 million. Disney also plans to open a $I billion studio tours next to the theme park in 1996. (MCA. Inc. plans to build a similar studio two years sooner and only 20 miles away.)

Tokyo Disneyland is a big hit With the Japanese. who are enjoying new affluence and who seem to love American culture? the Disney characters, and the park's cleanliness. order. outstanding service. and technology. But Disney may face problems in Europe. with its diverse languages and tastes as France's chilly winter weather. Many French see Disney as the height of foreign arrogance and are critical because their government has spent $350 million on park-related infrastructure (roads. utilities. etc.) and has condemned farmers' land for sale to Disney.

Question. for Discussion

l. Identify the marketing activities of Disney company? Would you say that the Walt Disney Company practices the marketing concept? Why or why not? Give the proper justification.

2. Which approach to selecting a target market has Disney' taken? Name some of the market segments Disney wants to reach and how they will do it?

3. Do you think, some factors of the marketing environment that have-an influence on Disney's marketing decisions? What are the factors? Explain.