Walt Disney Case Analysis

927 Words 4 Pages
Disney is in the process of revamping its annual pass price structure for annual passes at its theme parks. The cost for an annual pass will be determined by the dates requested. Disney claims this is to prevent overcrowding, but the timing of this new price structure appears to be linked to a specific marketing strategy. With the arrival of new attractions like “Star Wars Land” in 2016 and “Pandora – World of Avatar” in 2017, Disney is looking to maximize profits that are already above annual revenue of $15 billion. However, the new price structure could affect brand loyalty due to price discrimination for families and individuals alike. So is raising ticket prices a good or bad move by Disney? Here’s what I discovered.
Despite continued
…show more content…
For example, in Disney World, the “platinum pass” option rose from $529 to $649 and $750 for out-of-state resident. The average yearly income for a family in Orlando is $42,000. A platinum pass for a family of four costs $3,200. With this increase, the new price amounts to 7.5 percent of total income. That makes up over 7.5 percent of their yearly income. The “platinum plus pass” is an extra $600 for a family of four - all the while an individual ticket for a one-day pass costs $105. But even for one-day ticket goers, the price is raised depending on when you go. If you go on a day when crowd turnout is low, prices aren’t dropped, but rewards are offered in discounts on merchandise or dining. At Disneyland, it’s even higher with a family of four costing $3,396 for the “signature pass” and $4,196 for the “signature plus pass.” While these passes include special offers, including hotel and merchandise discounts as well as no block out dates, the Orlando Sentinel still makes the case that Disney is only appealing to the 20 percent of Americans that can afford it. While Walt Disney Parks and Resorts Chairman Bob Chapek sees the raise in prices as a means to prevent overcrowding, which is partially true, this new price structure can still have consumers feeling like they are …show more content…
Firstly, Disney as a whole has been great at maintaining their brand’s reputation and image over the years among its target audiences. Among other titles, the company was ranked No. 6 on Forbes, “World’s Most Admired Companies” and was named “The World’s Most Loved Company,“ by global P.R. firm APCO Worldwide. The company also has a prominent catalog of movies and television networks, which directly influence its target market made up primarily of children aged 4-12. However, despite their young age, children can have influence over a marketplace through their parents. According to consumer analysis done by Walt Disney Parks and Resorts in 2011, one in four parents say they buy their children what they ask for most of the time and 75 percent of parents say they do so only some of the time. Along with being one of the most recognized brands by kids and adults, we see that the primary market of children have more control over purchasing decisions that can effect the entire family as well as the

Related Documents