Walt disney case study analysis

1. MARKETING NUTRITION TO CHILDREN

3. Some historical clues…
 Founded by Walt Disney
 Established in 1923
 Headquartered in California, USA
 Currently world’s largest conglomerate in terms of
revenue.

4. Walt Disney Vision
“To make people happy ”

5. 1950
Expand beyond
film and
television

6. Walt Disney Mission Statement
“The Walt Disney Company's objective is to be one of the
world's leading producers and providers of entertainment and
information, using its portfolio of brands to differentiate its
content, services and consumer products. The company's
primary financial goals are to maximize earnings and cash flow,
and to allocate capital toward growth initiatives that will drive
long-term shareholder value.”

7. Walt Disney
Mission Statement’s Evaluation
 Product oriented
statement
 Focus on what
products to sell and
what services to
offer rather than on
how to satisfy
customer needs
Lack of 5 essential
components:
1. Customers
2. Technology
3. Philosophy
4. Concern for
public image
5. Employees

8. Walt Disney
Recommended Vision
“To make entertainment the wheel of life”

9. Problem Definition
Could Disney use it “magic” to switch children
from sugary to more nutritious diet ? Could
they sustain ?

10. Alternatives

11. Disney Nutritional Guidelines
Nutrition control
1. Control levels of added sugar
2. Contain no trans or hydrogenated fats
3. Promote fiber and calcium
4. Minimized the use of additives
5. Prefer to use whole foods that intrinsically
dense in nutrients
Reformulating some products,
shrinking portions for others
and phase out some products.

12. DCP’sThree Models
Traditional Licensing Model
Sourcing
(Designed and create products by Disney but
manufactured and marketed by license )
Direct-to-retail (DTR)
(Entailed partnering directly with
retailers)

13. Disney - contribution of segments to
revenues
Media Networks 45%
Parks & Resorts 31%
Studio Entertainment 13%
Consumer Products 8%
Interactive 3%

14. • HUMAN
RESOURCES
• RESEARCH &
DEVELOPMENT
• MARKETING• FINANCIAL
20% annual
growth in
earnings per
share
Family
orientation :
appeal to kids
and bring the
family together
Foster an
engaged and
collaborative
company culture
Expand the
portfolio of
characters and
drive the
company into
the e-world
Walt Disney Objectives

15. Market penetration
• Targeted market segmentation
through acquisitions
New products
• Related
Diversification
• Diversification in
branding
• Vertical & Horizontal
integration
Market development
• Foreign Outsourcing
• Direct Investment
• Licensing
Conglomerate
diversification
-
Existing
New
Existing New
PRODUCTS
MARKETS
Walt Disney
Corporate Strategies

16. RAPID MARKET GROWTH
SLOW MARKET GROWTH
Walt Disney
Grand Strategy
STRONG COMPETITIVE POSITIONWEAK COMPETITIVE POSITION
 Market development
 Related Diversification
 Vertical Integration
 Horizontal Integration
 Market penetration

17. Walt Disney
PEST Analysis
POLITICAL
 The animation industry enjoys tax benefits.
 Political differences are an obstacle to International Trade.
 Tighter regulations regarding products safety.
ECONOMIC
 Global financial crisis slows down growth.
 Emerging markets such as India offer a cost advantage in terms of salaries
and the overall cost of production.
 Economic growth, per capita income and stage of economic development
among different countries needs to be considered.

18. SOCIAL
 Recent social trend in smartphones, tablets and apps.
 Different local cultures, as well as stories and history of the host place.
 Changes in customers preferences for entertainment.
 Significant role of kid’s and family’s entertainment.
TECHNOLOGICAL
 Technological advancements are having a profound effect on the
world’s media.
 Changes in technology affect demand for entertainment products as
well as the cost of production.
Walt Disney
PEST Analysis

19. Brand Reputation
•Highly Diversified Portfolio
•Strategic & Tactical
Acquisitions
•Global Expansion & Alliances
•Economies of Scope
•Top Management
•Loyal Customers
•Strong Financial Position
•High Cost of Operations
•Concentration of Revenues In
North America
•Approaches Antitrust Law
Limits
•Benefits From IT Advances &
Mobile Gaming
•Build A More Eco-Friendly Image
• Further expansion in new
emerging economies
•Release of New Successful
Stories & Characters
•Financial Récession
•Increasing Piracy
•Strong Competition
•Continous Need For
Technological Update
•Change in Consumers
Preferences & Tastes
•Negative Publicity Due to
Unexpected Event
S W
TO
Walt Disney
SWOT Analysis

20. 5CCompany
(Disney , DCP)
Customer
(Children and
parent)
Collaborator
(Imaginator Farm,
Kroger) Context
(Increasing
Obesity in
Children &
Adults)
Competitor
(Nickelodeon,
Warner, etc.)

22. Market Share on
Studio Entertainment Industry
Globally
$ 5,03 billion
Overseas
$ 3,14 billion
U.S.
$ 1,89 billion
Globally
$ 4,68 billion
Overseas
$ 3 billion
U.S.
$ 1,68 billion
Globally
$ 3,68 billion
Overseas
$ 2,26 billion
U.S.
$ 1,42 billion

23. Mobile Games Industry
Descriptive Statistics

24. Preparation of the appropriate budget.
Allocation of personnel.
Communication of the strategic vision, the strategic
themes and their role to the employees.
Use of presentations, workshops, meetings, frequent
updates.
Implementing Strategy

25. Evaluation of Strategy
• Mobile/online games could grow to ~$60B revenue (23.6%
CAGR 11-17F)
• Mobile/online games could take 60% games software market
share by 2017
• Total global games software revenue could grow to ~$100B
revenue by 2017
Mobile could drive total games software industry
revenue to $100B by 2017 .
• Games took 32% of 2013 mobile app usage (blended
iOS/Android tablet/smartphone) - 67% of tablet usage
• Games took 72% of 2013 mobile app revenue and ~40% of
mobile app downloads
Games dominate mobile app usage and revenue.

26. Not easy for Disney to change the market
taste, because it would take a long time to
replace the old habit into a new one
There must be coordination between Disney
and its stakeholder to get the objectives that
Disney wants

27. Disney Resorts:
California
Florida
Tokyo
Hong Kong
Paris

29. • These slides were created by rama sagar as
part of an internship done under the guidance
of Prof. Sameer Mathur IIM Lunknow.