Disney Company’s International Pricing and Branding

Describe how Disney conducts market research and how it helps them with new product launches or expansion into new countries

Disney considers innovation as one of the most important factors in its marketing processes. Consequently, the firm undertakes market research periodically to understand the prevailing market challenges and opportunities. Additionally, market research is also aimed at improving the firm’s market position within the entertainment industry. Disney has established a network of market research laboratory dubbed ‘Enter Disney Research’. The research entails collaborating with various leading academic institutions such as the Swiss Federal Institute of Technology (ETH) and Carnegie Mellon University (CMU). The firm’s research laboratories are located in Los Angeles, Zurich, Pittsburgh, and Boston.

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By conducting market research, the firm gains sufficient market intelligence that enables it to develop products that not only appeal to the target customers but also enhance the firm’s competitiveness. One of the aspects that the firm focuses on in its market research is technology. The firm evaluates the technological changes occurring in the market about entertainment products to ensure that the new product developed is not outdated. The firm is credited as the pioneer of some technological innovations such as the Circle-Vision 3600, Fantasound, and Audio-Animatronics (Smith par. 1).

The firm has a strong market research team that enables the firm to continuously explore various entertainment aspects such as animations, advanced design, robotics, special effects, new business initiatives, and next-generation interactivity (Smith par. 2). This has over the years enabled the firm to take advantage of growth opportunities in the global market. By conducting market research, the firm can identify new market trends. In summary, market research enables the firm to develop new products that appeal to the international market taste and preferences hence attaining growth.

Describe Disney’s export pricing and how they adapt products or services for the overseas market

Before entering the international market, marketers need to develop a comprehensive understanding of the target customers’ purchasing power. This will ensure that the price set reflects both the customers and the marketers’ value. The entertainment industry has over the past decades become very competitive. As a result, the firm has incorporated internationalization as one of its strategies. The firm has ventured into several foreign countries to maximize the shareholders’ wealth and level of profitability. In its international market; the firm has adopted a differential pricing strategy. The firm achieves this by exploiting price differences prevailing across countries (Kelleher par. 2). Before setting the price of its products and services in the international market, the firm undertakes comprehensive market research. The research is aimed at determining the prevailing price differentials amongst competitors in the host country.

Additionally, the firm also uses a penetration pricing strategy in the international market. The decision to use a penetration pricing strategy is motivated by the need to promote the effectiveness with which the firm gains adequate market share in the foreign market. Some of the markets that the firm enters are characterized by intense competition. Therefore, the firm experiences price wars. However, by adopting a penetration pricing strategy, the firm has been able to develop customer loyalty. Moreover, penetration pricing strategy enables the firm to competitively position its products.

The incorporation of differential and penetration pricing strategies has significantly promoted the effectiveness with which the firm adapts its products and services in the international market. For example, differential pricing has enabled customers in less developed economies to derive high value from the various entertainment products provided by Disney.

Describe Disney’s international communications efforts and how they help the company grow

To maximize profitability, Disney has ventured into the international market by establishing outlets in various parts of the world such as China and Tokyo amongst others. The firm’s management team is cognizant of the fact that creating adequate market awareness is the first step in generating sales. Consequently, Disney has incorporated an effective marketing communication strategy. The firm has achieved this by adopting Integrated Marketing Communication [IMC]. The firm uses various marketing communication methods which include advertising, public relations, and sales promotion (Darr par. 5)

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In its advertising strategy, the firm has integrated both traditional and emerging marketing communication mediums. Some of the traditional mediums that the firm uses include radio, television, print media, direct mail, and print media such as entertainment magazines. The firm has also integrated social media into its advertising strategy. Some of the social mediums that the firm uses include Facebook, MySpace, YouTube, and Twitter. These mediums have enabled the firm to reach a large number of customers hence improving the effectiveness with which the firm maximizes its profit. Moreover, integrating social media in its external communication has enabled the firm to develop an online community that is loyal to the firm and its products. Concerning sales promotion, the firm occasionally offers price discounts to customers who purchase its products at a specific period.

Integrated Marketing Communication strategy has played a significant role in Disney’s global market growth. For example, IMC has contributed towards the growth in the firm’s brand value. Additionally, adopting the IMC strategy has enabled the firm to remain transparent to its customers. Consequently, the firm has been able to dominate the entertainment industry (Darr par. 5).

Describe Disney’s international product management and branding strategies

Effective product management is one of the essential components in a firm’s effort to develop and sustain its competitiveness. In the course of its operation, Disney is committed to developing its products and brand within the international market. To achieve this, the firm has integrated the concept of product extension. The decision to adopt this strategy has been motivated by the need to meet diverse customer needs. According to Hitt (par. 4), one of the challenges that the firm experiences in product management is that children’s brands are relatively limited concerning the target demographic. This limits the size of the product portfolio that a firm can develop. However, Disney has managed to diversify its products. One of the factors that have stimulated the firm’s effectiveness in managing its products is the adoption of horizontal and vertical product expansion strategies.

About branding strategy, Disney has adopted the globalization strategy. This is attained by ensuring that its products are marketed under the same brand name in the international market. The firm uses Mickey Mouse as its popular character to promote its brand globally. The firm has also incorporated the concept of extension in its branding strategy. For example, Walt Disney Motion Picture Group functions as an independent brand with various brand extensions such as Pixar Animations Studios, Walt Disney Pictures, and Television and Marimax Films. The incorporation of product extension has significantly contributed to the firm’s effectiveness in marketing its products in the international market. This arises from the fact that customers can access a wide range of product categories by their needs. On the other hand, brand extension strategies have enabled the firm to maximize its profits by providing customers with a wide range of brands to select from.

Describe Disney’s pricing strategy overseas and how they promote their product or services

Price is one of the most important factors that consumers take into account in their purchasing process. Thus, firms’ management teams need to ensure that the price of their products and services are effectively set. Disney has adopted a combination of pricing strategies in determining the price of its products and services. The strategies adopted include premium pricing, volume pricing, and psychological pricing. The firm redesigned its pricing strategy to influence customers to stay for a long duration within its theme parks and restaurants. About premium pricing, the firm appreciates the fact that low prices may be an indication of poor quality. Consequently, the firm has integrated a premium pricing strategy. The strategy has enabled the firm to effectively communicate the value of its products to its target customers.

The firm uses volume pricing to appreciate the volume purchased by customers and the number of days that customers stay within its resort. The higher the volume purchased, the lower the customer pays. In 2011, the firm integrated premium pricing in its volume pricing. Currently, the firm has integrated several ticket options which include 5, 6, and 7-day passes. For example, a 1-day pass in the firm’s theme park is charged $75. However, the price reduces drastically after 3 days (Garcia par.1).

By incorporating such price differentials, the firm can maximize its profitability. The firm uses psychological pricing strategy to appeal to customers’ emotions in their decision-making process. Moreover, integrating various pricing strategies has significantly promoted the firm’s perceived image amongst its customers. In summary, the pricing strategies adopted by the firm have played a fundamental role in promoting its products and services in the international market.

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Works Cited

Darr, Mandy. Communication strategies and the Walt Disney Company. 2011. Web.

Garcia, Jason. Disney pricing strategy: seeking more profits out of long term visitors. 2011. Web.

Hitt, Jaimelynn. How Disney uses branding. 2009. Web.

Kelleher, Suzzanne. Disney World on the cheap: less money, more mouse. 2012. Web.

Smith, Sarah. D23’s how we do it: Disney research. 2012. Web.

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StudyCorgi. 2021. "Disney Company's International Pricing and Branding." January 24, 2021. https://studycorgi.com/disney-companys-international-pricing-and-branding/.


StudyCorgi. (2021) 'Disney Company's International Pricing and Branding'. 24 January.

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