Brand Audit Kelsey Morrison

Table of Contents 2 Company Overview Subsidiaries Brand History Annual report Key Personnel Recent news Financial Data Category & competition – 16 Products Brand Analysis Disney Consumer Profile –29 Consumer Profile Survey –30 Advertising Marketing Communications Disney Media spending Promotions Internet and New Media---41 Other Info and Recommendation Brand Exploratory Consumer Brand Equity Pyramid Works Cited

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Company Headquarters located in Burbank, California Activities include Family Entertainment and Media Enterprises Disney is organized into 5 Major Segments – Media Networks – Parks and Resorts – Walt Disney Studios – Disney Consumer Products – Disney Interactive 4

Disney Subsidiaries 5

Brand History Walt Disney signed a contract to produce his first comedy series and is known to be the start of the Disney brand, Disney Brothers Studio 1928 – Release of very first Mickey Mouse Cartoon Steamboat Willie and appearance of Minnie Mouse 1934 – Release of The Wise Little Hen, and first appearance of Donald Duck 6

Brand History Snow White and the Seven Dwarfs, Disney’s first feature-length animated film 1949 – Walt Disney Music Company is formed – Disneyland television airs on ABC (Emmy Award Winning) 1955 – First Disney Park Disneyland is opened in Anaheim, California. – Mickey Mouse club debuts on television. 7

Brand History 1966 – Walt Disney dies at age – Walt Disney World Resort opens with the Magic Kingdom and two hotels in Orlando, Florida 1975 – Walt Disney World Village opens (outdoor mall with specialty shops) 1982 – Epcot Center opens 1983 – First International Disney theme park, Tokyo Disneyland opens - Disney Channel begins broadcasting with 18 hours of programming a day 8

Brand History 1987 – First Disney store opens First book, Amazing Grace, is released by Hyperion Books, a Disney publishing company – Disneyland Paris opens 1994 – First Disney Broadway show, Beauty and the Beast, opens in New York 1994 – Disney Interactive is formed Division of Disney Interactive Disney Online is developed, forming an online presence. Disney Online launches Disney.com 9

Brand History 1996 – Radio Disney debuts 1998 – Disney Cruise Line sets sail with first ship 2001 – Acquires Fox Family Channel, renames it ABC Family 2006 – Disney Acquires Pixar Animation Studios 2009 – Disney XD, new cable network, launches D23: Official Disney Fan Club launches – Acquire Marvel Entertainment 10

Annual Report Can be found at: /files/reports/10k-wrap-2013.pdf 11

Key Personnel CEO Robert A. Iger Corporate Jayne Parker Chief Human Resources Officer Jay Rasulo CFO Brent Woodford Senior VP Planning and Control Andy Bird Chairman Walt Disney International Christine McCarthy Exec VP Corporate Real Estate Zenia Mucha Exec VP and Chief Communications Officer Kevin Mayer Exec VP Corporate Strategy, Business Development Alan Braveman Senior Executive VP General Counsel and Secretary Ronald Iden Senior VP Global Security Business Unit Bob Chapek President Disney Consumer Products Thomas Staggs Chairman Walt Disney Parks and Resorts Anne Sweeney Co-Chairman Disney Media Networks President Disney/ABC Television Group John Skipper President, ESPN Co-chairman Disney Media Networks Alan Horn Chairman Walt Disney Studios James Pitaro President Disney Interactive 12

Recent News October 14, 2014 – Disney Accelerator showcases 10 Start ups at Demo Day October 14, 2014 – Walt Disney World Resort joined in celebrating Southwest’s first non-stop flight to Orlando, Florida by providing the Dapper Dan’s Quartet as in-flight entertainment. Dec. 4, 2014 – Disney’s Moana, First Polynesian Cultured Animated feature announces voice actors Dec. 5, 2014 – Disney releases new innovative approach to childhood learning with Disney Imagicademy December 10, 2014 – Disney Tops Facebook’s most checked in places

Financial Data 2014 Net Income $7.5 Billion (up 22%) Revenues – Media Networks $21.1bil – Parks and Resorts $15.1 bil – Studio Entertainment $7.2 bil – Consumer Products $3.9 bil – Interactive $1.3 bil – Cable Networks $15.1 bil – Broadcasting $6 bil 14

Financial Data in summation Statista Graphs 15

Category and Competition Media and Entertainment Conglomerate – There are many competitors because of the various segments in the Walt Disney Company. – Comcast is a huge competitor to Disney due to its theme park chain as well as its network that competes with ESPN. – Variables that contribute to highs and lows in each industry include consumer behaviors, seasonal trends, consumer preferences, pop culture releases, pricing, etc. – There are many legal considerations with controversy over Disney’s power conglomerate and their equity over motion picture studios and publishing power. They take many precautions in the safety of their parks and resorts as well as the licensing of their Interactive Media. – Seasonal Factors in Media and Consumer products go hand in hand. When a new movie or program is released, advertising and marketing for those are dually associated. – These products are distributed via major promotions through other channels and segments. They are symbiotic and interrelated when considering promotion for each segment. Television channels help promote major motion films. Products receive more popularity when major films and media are associated with those products. 16

Category Competitors Media Networks -Disney Media category includes -Disney ABC Television Group, Walt Disney Television, ABC Television Network, 50% A&E Networks, Disney Channels, Hyperion Books, ESPN Inc. » Most competition is with major television and media networks that compete with ESPN and sports programming. Major Movie companies are not quite competitive compared to Disney’s market share for major motion films. 21 st Century Fox, Inc. Time Warner Inc. NBC Universal Media, LLC CBS Comcast Viacom 17

Category Competitors Disney Interactive -Disney Interactive Category includes: -Disney Online, Disney Games, Disney Interactive Studio, Disney Mobile » Competitors include other companies involved in video game industry, websites that attract children to child pop culture online games. » Other video game software and publishers are main competitors. Take-Two Interactive Ubisoft Electronic Arts Nintendo 18

Category Competitors Parks and Resorts Category includes: - Disney Imagineering, Adventures by Disney, Disney Land Resort, Walt Disney World Resort, Tokyo Disney Resort, Disney Land Paris, Hong Kong Disney Land Resort, Disney Cruise Line, Disney Vacation Club, » Includes most other Amusement and Theme parks that are priced competitively and based on location. Because there are only 2 main Disney Parks in the US, they will have to compete with amusement parks that are more local to consumers in other states. » Comcast Amusement Park Chains Six Flags Entertainment Cedar Fair Universal Studios 19

Category Competitors Walt Disney Studios - Category includes: - Marvel Entertainment, Walt Disney Studios Home Entertainment, Walt Disney Motion Pictures Group, Walt Disney Animation Studios, Disney Music Group, Disney Theatrical Group, Disney Studio Services, Radio Disney » Companies that produce theatrical and television » Home entertainment market » Disney competes with studios owned by Time Warner Sony 21 st Century Fox Viacom 20

Category Competitors Disney Consumer Products - Category includes: - D23, Disney Store, Disney Magazine, Disney Press, Disney World-Wide Publishing, etc. » Disney’s competitors are companies that take part in merchandise licensing, publishing, retail, etc. » Disney is the largest world- wide licensor of consumer products. » Competition is highly correlated with seasonal purchasing behavior and consumer preferences. 21

Products within Media Networks Products within Media Networks 19.8% market share – ESPN – ABC ABC Family – Walt Disney Television – 50% A&E Networks – Disney Channel Disney Cinemagic Disney Junior Disney XD – 3 New Series! Radio Disney 22

Products within Walt Disney Studios 16.6% Market Share Walt Disney Studios Home Entertainment Touchstone Home Entertainment Hollywood Pictures Home Entertainment Walt Disney Studios Motion Pictures Pixar Animation Walt Disney Animation Studios Disney Music Group – Walt Disney Records – Hollywood Records Disney Theatrical Group – Disney Live – Disney on Ice NEW! Frozen on Ice Disney Studio Services – Disney Radio 23

Consumer Products % Market Share Products include: – D23, Disney Store, DisneStore.com, world of Disney store, Disney Apparel, Disney Food, Disney Publishing Worldwide, Marvel Comics, Baby Einstein, Disney Toys, Disney Electronics 4 New Products coming from animated Planes: Fire & Rescue, The Amazing Spiderman 2, Guardians of the Galaxy – These will benefit to advertise for these new release movies as well – These movies improve the brand by introducing more male targeted films. 24

Disney Consumer Products 25 Cross Promotion is a benefit of owning multiple products in various segments, Cars, the Pixar film is a big hit for young males and contributes to the Consumer Products segment.

Products of Disney Interactive Media % Market Share Disney Online – Disneybaby.com – Babyzone.com – Babble.com – Family.com – Spoonful.com – Disney Mobile Web – Abc.com – Espn.com – Muppets.com – 27% Hulu.com Disney Games – Club Penguin – Pixie Hollow – Playdom Disney Interactive Studios Disney Mobile 26

Products within Disney Parks and Resorts % Market Share Disneyland Resort – Disneyland Hotel Walt Disney World Resort (receives most product share) – Magic Kingdom – Epcot – Various Resorts Tokyo Disney Resort Disneyland Paris Hong Kong Disneyland Resort Disney Cruise Line – 6 Cruises Disney Vacation Club – Resorts and Spas – Lodges 27

Brand Analysis Top brands by dollar or unit sales, growth trends of top brands, category share by country and by region, pricing trends, recent news about competitor brands 28

Disney Consumer Profile Primary Target Market – 4-12 Year olds Male and Female both Daily use of Disney Networks, Interactive Media, Consumer Products, Disney Studios Daily to Weekly Use – Females (Disney Studios) – Monthly to yearly use Males (Marvel) – Yearly (whenever movie releases) – ESPN - Daily – Parents and Families Age Parks and Resorts – Yearly Use – High Loyalty in right seasons Studios and Consumer products – Depends on Child preferences and gender – High loyalty, when movie releases, purchases products in holiday and gifting season 29

Consumer Profile Survey 30

Consumer Profile Survey 31

Consumer Profile Survey 32

Consumer Word Association of Disney 33

Advertising/Marketing Communications Utilizing all segments to enhance marketing for another. Partnerships with other travel companies to help promote Disney vacations (Southwest Airlines) Constantly creating and innovating – Disney never stops creating new ideas for their next Disney channel series, park ride, next princess movie. They diversify all of their products so no two are ever the same and this is how they keep it unique. – Constant expansion and product extensions gives more for these consumers to love Disney themes and magic is what makes Disney so unique, they grab their audience’s attention quickly and know how to keep it. 34

Disney Advertising Disney uses social media to deepen the emotional ties with the Disney name They have kept up and always one of the first companies to enter into new markets and innovative strategies even when first growing in 1930’s. Constantly growing their characters and feeding the demand for compelling stories and addictive comedy. They have popularity among many individual Disney characters alone. The more characters they put out, the more Facebook likes they have the more brand awareness they’ll receive. – Each App, character, book, movie, show, song and post they create, they are furthering their brand equity and resonance with their consumers. 35

Disney Advertising and Communication Competitors don’t have nearly as many products or brand equity as does Disney. It stands out in the consumers mind and has a positive judgment ingrained in the mind. Six Flags, CBS, Twenty-First Century Fox.. These companies don’t have nearly as much social media influence or communication outreach as does Disney, which is what makes their brand so powerful therefore more valuable. 36

Disney Media and Spending 37

Media Spending for Disney Brand Category and brand spending – Most spending goes to Media Networks (ESPN, ABC, Disney Channels) – Spending for this segment is generally the same throughout the year. » ESPN requires a lot of financial up keep for constant live programming and personnel for being on top of consumer needs. – Disney tends to spend more money on television and movies, not so much on their online presence as that has a way of maintaining and building on itself without much funding. – Disney spends about 30% more than any other company in any segment except for Disney Interactive. » Competitors spend much less as they also have a smaller market share for revenue. 38

Market Statistics Consumer Products 39

Promotions Promotions used in category, major brand promotion types and examples, success rates of promotions; competitor promotions Disney makes good use of their ability to cross-promote thus enhancing their promotion leverage through inter-company synergy. Disney often promotes its own movies and other television shows with their channels and studio advertising. They are able to also promote character appeal by maintaining in constant presence among other segments. These promotions are highly successful as most consumers see these promotions multiple times in various forms Competitor Comcast promotes their channel MSNBC and NBC in its amusement parks such as Six Flags. No Contract or partnership is needed when they own the park. Their outreach is not as wide as Disney’s, however. 40

Internet and New Media Disney has had 15 consecutive quarters of loss in Online Disney and Interactive Media segment. Have changed and remodeled the website 5 times within the past 3 years attempting to find the perfect balance between simple and creative and fun (Barnes, NY Times) is first year to turn a profit for Interactive Media Segment. Purpose is to provide fun way for kids to tie stronger connection with the Disney brand, allowing them to use characters to problem solve in a video-game environment. There is also a lot of e-commerce but it competes with amazon. – Many consumers first go to amazon or Zappos instead of turning to DisneyStore.com for initial purchase. – Struggles with online conversion rates with products being sold online – However, doesn’t struggle with social media presence and getting people to click the link to the Disney online stores. Disney social Media outlets allow for different activities which include: – Facebook – news and information, promotion – Twitter – Microblogging, brand awareness, association and interaction with customers – Youtube – entertainment, promotion of new films and television releases – Pinterest – used to sell products 41

Internet and New Media Executions very much support the Disney Brand. All posts and responses parallel the loving family focused brand that consumers know and love. The Disney.com brand is very clean and mature, however constant change affects the image and makes consumers uncomfortable. – Successful games and learning focused Code Studio helps kids learn to code while playing with their favorite Disney characters and allows them to step into the Disney World Environment. 42

Other Info and Recommendation Robert A. Iger (CEO) stated that new media is not a primary driver for Disney Although struggle with online conversion rates and getting kids to join in on online fun, they are beginning to use online presence as the front door to their brand. Disney does struggle with agility in its brand. They will not have as much leeway for change since it’s such a huge company with many different segments it would need to change and promote. Company Culture is one of it’s strengths but definitely has a lot of opportunity in keeping their culture one that continues to grow and problem solve. There’s always more to learn in order to stay the most innovative and profitable multimedia and entertainment conglomerate. Disney would be most successful in increasing their Television and Parks Brand as it is 2 nd and 3 rd in association with the Disney Brand as a whole. – Consumersmost recognize Disney for their Studio Films however, this is statistically the middle ranks of revenue for the company. 43

Brand Value Disney Brand has increased tremendously, not only because their stock value has increased over $20 in the past year and over $63 in the past 5 years has increased in profit in all segments since last year 2014 first profitable year for Interactive Media, breaking a record and showing they finally found the secret formula to thriving online and keeping consumer online interest. This online presence shall only grow as more young consumers will be using technology more to interact with the Disney Brand in their free time. As more movies, characters and studio programs are released, the Disney brand continues to grow. This is in large due to the variety of characters, diversifying in race, region, age, and personalities. Products in the brand is ever-changing while fascination and majesty of Disney remains constant. 44

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Brand Exploratory 20 respondents Ages

Brand Exploratory Survey Monkey – Distributed via Facebook – Questions focused on brand judgment, loyalty, brand recall – Demographics, Salience, imagery and resonance 47

Consumer Brand Equity Pyramid Model The Disney Brand 48

Works Cited Barnes, Brooks. "Disney, Struggling to Find Its Digital Footing, Overhauls Disney.com." The New York Times. The New York Times, 21 Oct Web. 15 Dec DIS's Competition by Segment and Its Market Share." Walt Disney Competition Market Share by Company's Segment. N.p., n.d. Web. 14 Dec Gavin, Bradley. "Social Media Case Study: How Does Disney Use It?"Giraffe Social Media. N.p., n.d. Web. 15 Dec "Google." Google. N.p., n.d. Web. 15 Dec The Walt Disney Company Names of Competitors." The Walt Disney Company Names of Competitors. Hoovers Business, n.d. Web. 15 Dec "The Walt Disney Company." The Walt Disney Company. The Walt Disney Company, n.d. Web. 13 Dec Southwest Airlines and Walt Disney World Resort Create an Unforgettable ‘Disney Side’ Flight from Dallas’ Love Field." Disney Parks Blog RSS. N.p., n.d. Web. 15 Dec Statista. The Walt Disney Company - Revenue by Region 2013 | Statistic." Statista. N.p., n.d. Web. 15 Dec