Disney’s Consumer Connection Strategy

Disney 1. What does Disney do best to connect with its core consumers? It can be seen from the text that by the 1970s Disney concentrated on customers consisting of children, families and adults. From the 1980s, it adopted a strategy to reach an older audience. Now its market consists of all ages, cultures. Today, it is one of the leading diversified international entertainment companies which comprises five segments: The Walt Disney Studios, Parks and Resorts, Disney Consumer Products, Media Networks and Interactive Media. This diversification provides sufficient chances for all kinds of customers to select services. Besides, they used emerging technologies to connect with customers. This helps customers to be served more conveniently and entertainingly. Disney core value, as committed by its CEO in saying Disney’s greatest challenge today is to keep a 90-year-old brand relevant and current to its core audience while staying true to its heritage and core brand values. 2. What are the risks and benefits of expanding the Disney brand in new ways? The risk Disney faces when expanding its brand in new ways is to keep a 90-year-old brand relevant and current to its core audience while staying true to its heritage and core brand values. There needs to be a balance between the respect for heritage and a need to be relevant, as there often exists decisions and conflicts that arise when dealing with a company that has a great legacy such as Disney. Disney is also faced with the risk of constant upgrading and excessive research and development as it needs to constantly find new initiatives and strategies In order to expand its brand and stay above its competition. Continuously expanding the Disney brand involves a high investment and high risk factor. Thus, Disney has to Invest quite a bit of finance when expanding Its brand and Is never guaranteed as to whether or not this expansion will be successful. By having more consumers, Disney is able to earn greater. IKEA 1. What are some of the things IKEA is doing right to reach consumers in different markets? What else could it be doing? ● IKEA’s everyday vision is “to create a better life for the many people.” Its mission of providing value is predicated on founder Kamprad’s statement that “People have very thin wallets. We should take care of their interests.” ● Offered leading edge design and functional home furnishings at low costs ● Updated the products regularly to stay in demand ● IKEA achieves this level of success by offering a unique value proposition to consumers: leading-edge Scandinavian design at extremely low prices. Reduce their prices 2% to 3% and then 10% margin annually. ● They have source materials from different countries. This ensures the lowest price possible, and savings that are passed on to the consumer. Their location of outlets that lower rental costs. ● Many IKEA products are sold uniformly throughout the world, but the company also caters to local tastes. IKEA employees recognize why U.S.shopper buy vases as drinking glasses or that IKEA managers have visited European and American consumers and even visited Hispanic households in California to understand more about their consumption trends. That's what makes IKEA have grown into the largest furniture retailer in the world. IKEA can expand its market in South Asia and African countries. IKEA has no more stores in South Asian countries. In South Asia, some countries like Pakistan, India, Bangladesh, Sri Lanka, and the Philippines have huge markets for furniture, so IKEA should expand its market in these countries. ● Start an online retail business. IKEA should increase online sales and internet presence. ● Make use of social media to get customer feedback and to increase awareness of products worldwide. ● IKEA can go for environmentally friendly products and technology. ● IKEA can use catalogues for easy look out of products and customers convenience. ● IKEA should focus more on advertising so that it can be more appealing to the target market, especially millennials. 2. IKEA has essentially changed the way people shop for furniture. Discuss the pros and cons of this strategy. Pros: ● Unique marketing initiatives that generate excitement and exposure for the company's goods. ● IKEA's low-cost strategy keeps it on top of the furniture retail market when compared to its competitors. ● IKEA is a low-cost, high-quality retailer. ● Provide items that are in line with market and consumer demands. ● This is a family-friendly establishment. ● IKEA labels its products with unusual names so that customers can easily recognize them. ● Displaying a diverse range of products and designing the shop layout in a one-way style so that buyers can see everything in one spot. ● Provide a flat packing technique to make it easier for customers to move their goods. ● Its products are accessible to anyone. ● IKEA’s stores are located a good distance from most city centers, which helps keep land costs down and taxes low. Cons: ● There is a scarcity of new products. ● Customers may be overwhelmed by the shop's design since they are unsure where to begin. ● Because there is a lack of appropriate technologies for marketing and advertising, customers may choose to shop elsewhere. ● IKEA's sales may be hampered by changing social trends.