Kate Dai's Blog

Taking comm296, we have learned that determining market segments are essential for companies to develop marketing strategies. Finding the way to reach these segments effectively and efficiently is a crucial factor of a company’s success. The Walt Disney Company is a great example that uses value-based marketing to be successful. 

Disney land, for example, target people of all ages through charging different age groups different prices for entry. Differentiating among the customers is smart because Disney has a broad target market. This strategy matches with Disney land’s vision: make everyone happy and improve the world. Disneyland provides all its customers with unique and entertaining experiences. In addition, having affective family theme related advertisements on TV and magazines are another approach of value-based marketing.  

Recently, Disney has partnered with MasterCard by signing a six-year contract; European MasterCard holders can get discounts in Disney stores, in Disneyland Paris and on Disney films. This new deal shows the segment that Disney focuses on right now is adult. By cooperating with MasterCard, Disney will be able to gain new customers and maintain old customers. This is also value-based marketing because Disney tries to convert new customers to advocates, and it tries to build a stronger network and business adventage by having MasterCard as a partner.  
 
The Walt Disney Company has expanded its existing operations by diversifying into live-action film production, television, travel and online media. Nowadays, it owns and operates the ABC broadcast television network, cable television networks, merchandising division, and eleven theme parks all over the world. Without a doubt, Disney has established itself as a leader of the family entertainment industry proven by an average annual revenue of 36,370 millions for the past five years.