walt disney analysis

1. Group 1:
Ade Liana Fajrin 105030201121001
Ade Rizal Winanda 105030201121010
Dhea Kumalasari A 105030201121004
Fitria Intan A 105030200121014
Lina Andriyanti 105030200121006
Nanik Sunarni 105030213111011
Noor Firliana R 105030201121019
Okyana Nur S 105030207121001
Rizky Januarsyah 105030200121023

2. The Walt Disney Company
Background
• Founded in October 16th, 1923
• Walter Elias Disney and his brother Roy Oliver
Disney
• The Walt Disney Company is an entertainment
conglomerate with branches in film, radio,
television, animation, merchandising/retail,
theme parks & resorts, publishing, interactive
media/games, and theater.
• Right now, its the largest entertainment
business in terms of revenue

3. Company Overview
• The Walt Disney Company, together with its subsidiaries
and affiliates, is a leading diversified international
family entertainment and media enterprise with five
business segments :
Media Networks
Parks and Resorts
Studio Entertainment
Consumer Products
Interactive Media

4. Media Network
• Media Networks comprise a vast array of broadcast, cable,
radio, publishing and digital businesses across two divisions –
the Disney/ABC Television Group and ESPN Inc. In addition
to content development and distribution functions, the
segment includes supporting headquarters, communications,
digital media, distribution, marketing, research and sales
groups.

5. Parks and Resorts
• When Walt Disney opened Disneyland on July 17, 1955,
he created a unique destination built around storytelling
and immersive experiences, ushering in a new era of
family entertainment.

6. Studio Entertainment
• For more than 85 years, The Walt Disney Studios has
been the foundation on which The Walt Disney Company
was built. Today, the Studio brings quality movies, music
and stage plays to consumers throughout the world.

7. Interactive Media
• Founded in 2008, Disney Interactive entertains kids,
families and Disney enthusiasts everywhere with world
class products that push the boundaries of technology
and imagination.

8. Disney
Business Services

9. Business to business
Advertise with Us
Travel Agents Only
Disney Meeting & Conventions
Disney Institute
contains comprehensive, up-to-date information to
help Travel Agents and their clients plan magical
Disney vacations
A complete resource guide to planning
meetings, conventions or group events
can design professional development programs tailored to the needs and
objectives of your organization

10. Studio Operation
The
Prospect
Studios
Golden Oak
Ranch
KABC7
Studio B
The Walt
Disney
Studios

11. Competitor &
Strategic
Differentiation

13. • Disney continues to differentiate itself as a
classic entertainment company built on
tradition with a clear vision of the future.
• This strategy is one that Porter recommends
as profitable for a company facing
competition, and is enhanced by the
company’s continued partnerships with
digital technology leaders – such as Apple,
Facebook, Hulu (of which it is part owner),
and Sprint – and desire to sustain expansion
in high-growth international markets like
China, India, and Latin America.
Strategic Differentiation

15. Disney Marketing
Strategies

16. Disney Marketing Strategies
Segmenting and
targeting
• Disney uses geographic, demographic and psychographic
segmentation. In other words, it uses multi-segment targeting.
Although it may seem like Disney targets only kids, Disney’s
target market is the whole family. Walt Disney had once said,
“You’re dead if you aim only for kids. Adults are only kids grown
up, anyway.” Disney’s core constituency is the urban, median-
income family who wants to have fun.
Understanding
the target
market
• Disney understands its target market inside out. The
company uses this deep knowledge of its target market to
sell all kinds of products and services. It serves the infant
category with as much ease as it does the teen or adult
category. It creates products and services for its core
constituency.

17. Product strategy
•Disney’s product strategy is based on delighting the customer. It believes in
continually improving its products and service offerings. For example, in its
theme parks, Disney constantly updates and modernizes its rides so as to please
regular customers while attracting newer ones. Disney is also constantly
creating new products. For example, Disney recently forayed into digital
publishing, launching children’s book apps for iOS and the Android market.
Marketing and
promotion
strategy
•Disney believes more in building a community of dedicated, loyal fans. It has
used the social media route in a big way. According to a Disney official, “Social
media lets you uniquely connect with fans. The tone and the content is more
casual and insight-based and insider-based, especially for the most ardent fans of
the franchises”. It believes in constant advertising – both online and offline, so as
to be always in its customers’ minds. Disney uses direct mail and sales
promotions.
Expansion
strategy
•Disney is always working toward exploring and expanding its markets. For example, Disney
has developed theme parks in major international cities outside of the U.S., like Hong Kong,
Paris and Tokyo.
•Disney’s expansion strategy is not just limited to new geographies but also encompasses new
products and services. For example, with Disney’s acquisition of Marvel Entertainment, the
animation giant acquired rights of around 5,000 fantasy characters, including Spider-Man, X-
Men, Iron Man and the Incredible Hulk. This acquisition expanded Disney’s licensing and
merchandising business in a major way.

18. Advertising and
Promotional
Strategies
•Disney's ownership of media networks such as "ABC," "Disney Channel," and "ESPN" is
a strategy the company is using to market its brand to Americans. This includes a
systematic approach to television advertising, as well as radio commercials, print,
outdoor advertising, and mobile initiatives, promoting discounts on resorts, and family
packages. To reach teenagers, Disney launched "advergaming," which puts ad messages
in online and video games. The goal is to reach kids directly and encourage them to urge
their parents to visit a Disney park for a family experience.
International
Outreach
Strategies
•According to "DEMC," a small-business strategist, Disney recognizes that many
people do not have the opportunity to travel to the U.S. to visit Walt Disney World
or Disneyland. As a result, Disney developed theme parks around the globe to
capture the market, adapting them to local cultures. They include Disneyland
Paris, Tokyo Disney, and Hong Kong Disneyland. With worldwide expansion,
Disney aims to increase its marketplace and expand its brand
Innovation as a
Marketing
Strategy
•As part of its marketing strategy, Disney believes in innovation to stay ahead of
the competition and build business. With rapid advances in technology, the
traditional passive television audience is in transition, no longer captive to prime-
time scheduling on major networks. According to "eMarketer," by 2011, 86 percent
of Internet users in the U.S. will be downloading video content. Disney's strategy
is to connect with kids directly via storytelling utilizing multiple technologies.

19. Social Media for Disney’s
Marketing
• Every day, The Walt Disney Company connects with
millions of people around the world through its more than
1,000 social media accounts. In addition to the accounts
listed in this online directory, a variety of TV personalities
and talent at Disney, ABC, ESPN and Marvel engage with
fans through social media. The Walt Disney Company is
committed to providing our fans and social communities
with exciting new content and experiences, allowing them
to connect with their favorite brands, characters and
stories anywhere, at any time, on every platform.
• Disney has more than 200 million likes on
Facebook and 25 official account on twitter
• Disney used Facebook, Twitter, Youtube, Pinterest, and
also Instagram to reach their world-wide consumer.

20. The Exceptional Marketing
Strategies
Sell More to Existing Customers - While at the Walt Disney World theme parks you are
continuously offered other products / services to purchase. Disney knows that current
customers are the easiest customers to up-sell. As a result, they take every opportunity
to sell you more.
•Upon exiting attractions, you enter a store themed to that attraction with gifts.
•During travel on trams, monorails, trains, boats, etc. there are always marketing
announcements. These recordings inform you of ways to upgrade your ticket, to stay longer, to
visit other parks, to dine at restaurants, to stay at resorts or to go to other attractions.
•Booths in the parks have representatives selling Disney vacation packages for future visits.
•Stores with gifts and restaurants with food are on every corner for your convenience.
Continuous Promotion - Walt Disney World is always advertising. They do not start,
stop and then start again. They have a marketing budget and plan that’s designed to
keep their message in front of audiences. Disney also continually sends direct mail
pieces to past customers with varying offers. Disney’s promotions are designed to
keep them in your mind. So when it’s time for vacationing, you think of going to
Disney World or perhaps another (undefined) destination. But as Disney has kept
itself in your awareness it is always a consideration. Other vacation destination have
not established themselves nearly as well!

21. Always Improve and Add to your Offerings - Disney is never complacent. They are always
growing, building, expanding and improving. With their existing theme parks they
continuously work to add in new attractions and shows. The most well known of their
products are their movies. Disney studios is always working to create new motion pictures.
Constantly making and releasing movies to the marketplace brings in consistent profits
for Disney. In addition, Disney further leverages their movies by creating products – dolls,
toys, games, etc -. as well as incorporating them into their theme park attractions. The
synergy Disney has developed between their theme parks and their movies, helps drive
movie sales in theaters as well as on dvds, leads to increased sales of their dolls, toys,
games, etc, and continues to bring visitors to the parks.
Tracking Business - Disney knows the times of year which are busy and those that
are slow. They track attendance at their parks and resorts and plan accordingly.
Rather than simply accepting the slow times, Disney runs promotions to improve
sales. At Disney resort prices, each time of the year has a different rate. Disney
entices school age children during the year by offering school bands, cheerleading
squads and other student groups opportunities to come to the parks and perform.
These packages work to boost attendance as well as improve Disney’s reputation.
Disney’s determination to bring in customers year round has worked. If you examine
crowd attendance levels over the years, their theme parks attendance overall has
increased and slower times are not nearly as slow as they once were.

22. Disney Media
Network

23. Categories
• ABC Television Network • Cable Networks
• ESPN
• Disney Channel
• Disney Channel
International
• E! Entertainment
• Lifetime
• Toon Disney
• SoapNet
Broadcasting Cable Network

24. Media Network
• The company acquired Fox Family channel, which become
ABC Family, in 2001 ($2.9 Billion in cash, plus $2.3 billion
in debt). This acquisition is expected to increase the
revenues in $600 million in 2003 (EBIAT close to $150
million).

25. Hyperion
• Hyperion Books publishes general-interest fiction and non-
fiction hardcover, trade, and mass-market paperback books
for adults and includes the Voice, Hyperion eBook and
Hyperion Audio imprints. Hyperion publishes more than
100 hardcover and paperback books a year, and offers many
of its titles as e-books and as audio books through its
Hyperion Audio division.

26. • SOAPnet owns the world of character-driven soapy drama,
from daytime and primetime dramas to reality shows and
movies. The network features same-day episodes of popular
daytime dramas including “All My Children,” “Days of our
Lives,” “One Life to Live,” “General Hospital” and “The
Young and the Restless”; favorite primetime series
“Gilmore Girls,” “The O.C.,” “One Tree Hill” and “Beverly
Hills 90210”;

27. ESPN
• From an inauspicious debut as a television network reaching
1.4 million homes, ESPN is a true business success
story. Today, it is the leading multinational, multimedia
sports entertainment company featuring the broadest
portfolio of multimedia sports assets with over 50 business
entities. With a passionate fan base and the powerful nature
of live and unscripted action, ESPN continues to grow.

28. Media Network
• Disney international channels are now in 14 countries,
with a strong distribution growth (expected to
breakeven in 2003).

29. Market
Development

30. Expanding Movie Market
Big Entertainment Company
Enter the new Advertising
Corporation
Conglomeracy of Entertainment
Business

31. Expanding Movie Market
• The way for disney to enter the new movie
market which increasing the quality of movie

32. Big Entertainment Company
• Disney enter the new level of big entertainment
company and the result is famous and popular
brand of disney

33. Enter the new Advertising
Corporation
• Become the target from the other company to
advertise

34. Conglomeracy of
Entertainment Business
• Disney become the great company with the
nature of conglomeracy to many business field
in entertainment world

35. Marketing strategy in Disney
Target Market Strategies
International Outreach Strategies
Advertising and Promotional Strategies
Innovation as a Marketing Strategy

37. Customer Segment
• Disney Target 3 segment
Kids People Family

38. Value Proposition
• Great experience
• Product Diversity
• One of the biggest Entertainment company

39. Customer Relationship
• Using familiar actor and actrees can
build more emotional relationship
• Involving customer in many event in
Park
• Build ethical messages through their
own product

40. Channel
TV
Movie
Internet
Theater

41. Key activities
• Branding
• Movie Producer
• Entertaining Park

42. Key Resources
• Brand itself
• Creative people

43. Key Partner
ABC PIXAR HYPERION MARVEL TOUCHSTONE

44. Cost Structure
• Cost structure is very general since disney are
focused in entertaining world with so many
business channel. A few cost structure like :
– Salary
– Design
– Infrastructure
– Legal & Rights
– Operational Movie Cost

45. Revenue Stream
• Revenue Stream is so high since disney have so
many business channel, here is a few revenue
source of disney company :
– Park Ticket
– Movie Income
– Merchandise
– Advertising

46. S W O T
Analysis

47. SWOT ANALYSIS
Internal Audit
Strength
• A Vast and Diverse
Portfolio
• Diversification
• Incredible Customer
Service
• Acquisition of Pixar
Animation Studios
Weakness
• The Constant Need of
Successful Creative
Material
• High (and increasing)
Cost of Operation
• Lack of Developmental
Property
• Lagging Consumer
Products Revenue

48. SWOT ANALYSIS
External Audit
Opportunity
•Increasing impact in the
music industry
•Expansion into untapped
•Geographical areas
•Expand Radio Operations
• Reuse of Past Portfolio
Threats
•Struggling Global Economy
•Rapid Pace of changing
Media and Technology
•Competition with Universal
Orlando
•Unionized work force

49. Financial
Analysis

50. FINANCIAL ANALYSIS
Overall success due to success of five business segments
Media Networks
Interactive
Media
Consumer
Products
Studio
Entertainment
Parks and
Resorts
Each piece contributes to the Disney empire by forging new
and additional paths to market that together ensure Disney
fulfills its mission.

51. PERFORMANCE and REVENUES
2009 2008 2007 2006 2005
Revenues
Media net $ 16,209 $ 15,857 $ 14,913 $ 14,039 $ 12,566
Parks and
resorts
10,667 11,504 10,626 9,925 9,023
Studio Ent. 6,136 7,348 7,491 7,529 7,587
Consumer Prod. 2,425 2,415 1,990 1,869 1,914
Interactive 712 719 490 385 284
$ 36,149 $ 37,843 $ 35,510 $ 33,747 $ 31,374

52. 2012 2011 2010 2009 2008
Gross
Profit
9.05 B 7.97 B 6.73 B 5.7 B 7.4 B
KEY FINANCIAL INDICATORS
Gross Profit
Operating Income
2009 2008 2007 2006 2005
Segment Operating Income $ 6,672 $ 8,484 $ 7,837 $ 6,382 $ 4,957

53. NET INCOME

54. Financial Analysis

55. Company Performance
Profitability Ratio
X (March 31,
2013) II
Quarter
(Dec. 31,
2012) I
Quarter
(Sep. 30
2012) IV
Quarter
(June 30
2012) III
Quarter
(March 31,
2012) II
Quarter
Return On
Investment
9,97 % 9,56 % 9,91 % 9,77 % 9,39 %
High ROI  High Performance for investment
X (March 31,
2013) II
Quarter
(Dec. 31,
2012) I
Quarter
(Sep. 30
2012) IV
Quarter
(June 30
2012) III
Quarter
(March 31,
2012) II
Quarter
Return On
Equity
15,93 % 15,34 % 15,92 % 15,81 % 14,93 %
High ROE  High performance for investment

56. X (March 31,
2013) II
Quarter
(Dec. 31,
2012) I
Quarter
(Sep. 30
2012) IV
Quarter
(June 30
2012) III
Quarter
(March 31,
2012) II
Quarter
Return On
Asset
8,31 % 7,96 % 8,25 % 8,14 % 7,75 %
High ROA  High performance for investment
X (March 31,
2013) II
Quarter
(Dec. 31,
2012) I
Quarter
(Sep. 30
2012) IV
Quarter
(June 30
2012) III
Quarter
(March 31,
2012) II
Quarter
Earning
Per Share
0,84 % 0,78 % 0,69 % 1,02 % 0,64 %
High EPS  High Profit

57. The ratios encourage managers to focus on
improving the company’s profitability by
improving sales, controlling costs, and
using assets efficiently .
Knowing the company;s ability to generate earnings
for a certain period and provides an overview of the
effectiveness of management in carrying out its
operations
Importance of Measuring Company
Performance