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Segmentation - Disney
Transcript of Segmentation - Disney
Geographic segmentation refers to a region of a country or the world; this is used for the location of Disney's theme parks such as Disneyland and Disney World which are strategically located in the world's most visited places: Europe, Japan, Hong Kong, Australia, and of course the United States. They ensure that their theme parks are ubiquitous and are easily accessible by all. Aside from these areas being tourist hot spots, California and Florida are known for their warm climates increasing their vacation rates.
Market segmentation is the process of dividing a total market into sub-groups consisting of people who have relatively similar product needs. Segmentation helps to make expenditure cost effective by producing products which closely meet the customer needs, thus allowing for higher sales and profit for the business.
There are four main types of Segmentation:
It mainly targets average income families, who live in urban areas. They have different categories of hotels to cater to different income levels.Their Disney cruises are targeted for upper class families. Their films as well as consumer products are conveniently priced for the average person. Disney uses emotional motives, striving to bring out the happiness and kid inside everyone through their entertainment.
It was said by Walt
"You're dead if you
aim only for
kids. Adults are only
The company is best known for the products of its film studio, the Walt Disney Studios, which is today one of the largest and best-known studios in Hollywood. It is also known for it's theme parks- Disneyland and Disney World.
Disney mainly uses geographic, demographic, and psychographic segmentation to locate their target market- it thus practices multi-segment marketing.
For small children, it has its animation films, toys and other goods from their consumer products division and a segment on their channel called "Playhouse Disney," which teaches toddlers skills such as counting and spelling. For older kids such as tweens and teens, it has the Disney Channel, Radio Disney, their live-action films, and much more. Disney's live-action films such as Pirates of the Caribbean attracts adults as well, in order to target adults Disney uses a "family approach." Disney theme parks were built for the whole family to enjoy. In fact, most of the time, advertisements are aimed at families with little phrases such as "Let the memories begin" or "This is where the magic happens".
Demographic Segmentation is segmenting markets by age, gender, income, ethnic background and family life cycle. Disney recognizes that their audience range in age so they have distributed entertainment accordingly. Most people associate Disney with kids, but that is not always the case.
Disney has good strategies to segment their market and cater to different types of people. By targeting different segments, they are able to greatly maximize their revenue potential. It is today one of the largest and best-known studios in Hollywood.