Saturday, December 7, 2013

Chapter 7: Business Marketing

Disney has witnessed the dramatic change in technology and how most of their consumers have stopped purchasing DVD’s. Instead people watch movies online and subscribe to such companies as Netflix where they are able to view many films online. As a result of this Disney has modified itself and now engages in business-to-business (B2B) e-commerce in order to advance their Internet marketing. Recently they have signed a deal with Netflix, sort of like a joint venture that allows, Netflix to stream all animated and live action films that Disney releases this deal starts early 2014, although Netflix has started streaming classical Disneys animations.

A strategic alliance is a cooperative agreement between business firms.

Disney has formed an alliance with Chase, which allows them to offer Disney-Rewards Visa and Credit Cards. This alliance will create Disney Cards therefore Disney can reward customers who purchase Disney merchandise/products in order to earn reward points creating more relationship marketing and loyal customers base who keep purchasing products to earn reward points in order to gain a reward.  Also this alliance will provide Chase with joint marketing opportunities across Disney's various business units. This Card would be issued by Chase’s credit card subsidiary. The benefits that came with this card allow consumers to earn rewards, which include: Disney Park vacations, videos and other Disney related merchandise.


Another one of Disney alliance would have to be with McDonalds. This alliance allows Disney to advertise upcoming movies by having McDonalds offer free Disney character toys with their happy meals. Disney knows that McDonalds is a world recognized brand and is very popular among young children, which happen to be one of Disney’s main target market. Consequently Disney has made this alliance enabling them to advertise to their target market, through McDonalds happy meal children are constantly reminded of the upcoming Disney movie.  On the other hand Disney allow McDonalds to exclusively open up their fast food chain restaurant’s in the many different Disney theme parks which earns Disney profit since while Disney visitors travel around the park they purchase their food at McDonalds.