Monday, May 2, 2016

Success of Disney Company under Bob Iger as the CEO in 2006-2012


MEMO

Date: December 9, 2014
To:  Tom Welling, Marketing Manager of Movie Insights
From: Amber Pearson, Marketing Associate Movie Insights
Subject: Success of Disney Company under Bob Iger as the CEO in 2006-2012.
Dear Sir,
It is with great pleasure to report to you that after conducting a wide range of research on the Disney Company under the CEO Bob Iger in 2006-2011, I found out that the marketing strategies used by Pixar, which is one of Disney’s franchises, included the following (McGrath, 2013). To start with, Iger being the CEO at that time broadened the viewership of Disney through moving the channels of Disney from premium to cables that were basic and launched in key global markets local versions of it. In addition to that, in order to capture the tween market, which was growing rapidly, Disney started pushing franchises. Under Iger, Disney through the franchise of Pixar continued to remain on a fair that is family friendly hence broadening Disney’s market.
Iger focused on the strategy of family and as Steve Jobs said, family is a source that is renewable. Disney achieved this strategy under Iger as the CEO by garnering support behind family shows like Hannah Montana which helped expand Disney’s appeal to children who were older as well as adults. Through the franchise of Pixar, Disney was able to crack both the tween- girl and tween-boy market, which proved to be Medias of difficulty traditionally. Revitalizing the animation business of Disney business was a top priority for Iger and it was also a good market strategy since at that time many merchandises and television shows were based on characters of Pixar (Hitt & Hoskisson, 2007).
The target market strategy used by Iger included cracking the tween market, which was growing rapidly. For instance through supporting channels like High School Musical, the Jonas Brothers among others, Disney was able to crack down the tween-girl market (McGrath, 2013). In addition to that, it also used the franchises of Pirates and Cars as a target market strategy to crack the tween-boy market. Iger has long used the family based television programs as a target strategy of marketing and from the research conducted; he is even willing to look into new and broad markets as long as they fit the brand of Disney.
The components of marketing mix can also be referred to as the 4Ps of marketing which are the different choices available to the organizations in order for them to bring to market products and services. They include the following;
  • Product; this is concerned with the best product or service for the target market. Disney for instance focuses on family series that target a wider market.
  • Place; it involves getting the right kind of products and services to the target market for instance Disney’s ability to come up with shows that target the place of both boys and girls.
  • Promotion; this involves educating the target market of the right kind of products. Disney achieves this through it advertisements
  • Price; marketing managers need to come up with the best kind of market price. Here, they must consider the target market competition before settling for the price as well as the marketing mix cost as a whole. In addition to that, customer reaction estimate must be done against possible costs. Disney considers all this before setting prices for its shows (Hitt & Hoskisson, 2007).
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2007). Strategic management: Competitiveness and globalization; [concepts and classes]. Mason, Ohio [u.a.: Thomson South-Western.
McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Boston, Massachusetts: Harvard Business Review Press.

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