Market Segmentation Memo For Disney+ Streaming Service

Market Segmentation Memo for Disney+ Streaming Service

To Tiffany Morrow Vice President Of Marketingfrom Moesha Moncrieffe

TO: Tiffany Morrow, Vice President of Marketing FROM: Moesha Moncrieffe, Marketing Analyst DATE: January 2, 2024 SUBJECT: Market Segmentation Memo for Disney+ Streaming Service

1. Market Segment Analysis Disney+ targets a diverse audience by offering captivating content on its website. The main target market comprises individuals of various age groups who possess the ability to utilize computer devices, smartphones, tablets, and the Internet. Effective market segmentation involves categorizing customers into groups based on their behavior, demographics, location, and psychology, among other factors. These groups are commonly referred to as segmentation bases.

The current market segmentation of Disney+ and the characteristics of each segment are examined to enhance the user experience of the primary target audience. Further research from reputable sources and market insights have revealed potential new market segments for Disney+ to increase customer loyalty, attract new users, and maintain its competitive edge in the streaming industry.

Current Primary Segment: Families and Adventure Enthusiasts Disney+ has established itself as a prominent participant within the streaming market by capitalizing on its robust brand, extensive content library, and original programming, catering to families and individuals who are drawn to a diverse array of family-oriented entertainment.

This platform is widely regarded as an all-encompassing streaming service that takes into account different target audience segments, offering a blend of entertainment, nostalgia, and educational content. Description of Primary Segment: The primary demographic for Disney+ consists of individuals and households who savor and value superior quality family entertainment. Disney+ caters to a varied and inclusive audience, comprising children, adolescents, and adults, who are enthusiasts of Disney, Pixar, Marvel, Star Wars, and National Geographic content. By providing a vast selection of content, Disney+ aspires to be an all-encompassing destination for captivating and enjoyable entertainment, delivering happiness, exhilaration, and imagination to its viewers.

Characteristics of the Primary Segment: · Behavioral: This segment consists of frequent users who regularly access the platform on a specific device and are loyal to the company due to the specialized content and customer service. The consistent usage patterns of Disney+ subscribers suggest a preference for a dependable and entertaining streaming experience. · Demographic: The majority of the demographic segment consists of teenagers and individuals in their late 30s. Disney+ has data that enables market segmentation based on factors such as the package form acquired, registration details, account number, and devices used with a single account. Teenagers extensively use the Disney+ streaming services to watch a wide range of foreign films (Jia, 2022). · Psychographic: This segment seeks to understand consumers' routines and habits outside of their interactions with the product, and how this influences their decision-making and usage of knowledge. Disney+ has the capability to utilize technology to categorize its members and determine their preferences regarding the shows they watch and the frequency at which specific genre-based shows are supported. This enables the personalization of the Disney+ experience for each user . Appropriate Name for the Segment: Family Entertainment Enthusiasts The label "Family Entertainment Enthusiasts" signifies the emphasis on delivering wholesome and family-oriented content that appeals to both parents and children. It encapsulates the primary target audience of Disney+ and underscores the streaming service's commitment to creating a delightful and inclusive entertainment experience for families. VALS Type Classification In terms of VALS Type Classification, millennials are distinguished by their characteristics as experiencers, who are known for their sociability, receptiveness to new habits, and impulsiveness (particularly in response to visual cues). They are also highly driven by the need for self-expression. Disney+ imbues high-definition entertainment with a sense of creativity and genuineness, which serves to encourage loyalty among experiencers and other psychographic segmentation groups. (Bhasin, 2020). Disney+ has strategically positioned itself to capture the affection and attention of families and entertainment enthusiasts, carving out a unique niche for itself in the streaming industry by focusing on the values, attitudes, and lifestyles of its target demographic.

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Disney+ has established a significant presence in the streaming industry, driven by its strategic approach to market segmentation. Its primary focus on families and adventure enthusiasts underscores its commitment to providing diverse, high-quality content tailored to a wide-ranging audience. Effective segmentation allows Disney+ to tailor its marketing strategies, content offerings, and user experiences to meet the specific needs of its core demographics, thus fostering customer loyalty and attracting new users.

At the heart of Disney+’s segmentation strategy lies its primary target—the "Family Entertainment Enthusiasts." This segment includes households and individuals who prioritize wholesome, family-friendly content. Characterized by frequent and loyal engagement, this group spans children, teenagers, and adults, all of whom view Disney+ as a trusted source of entertaining, educational, and nostalgic media. The behavioral traits of this segment show consistent usage patterns, with members accessing the platform regularly via multiple devices, indicating a stable base of customers who seek dependable and engaging entertainment experiences (Jia, 2022). Demographically, the primary segment consists largely of teenagers and individuals in their late 30s, a demographic attractive to Disney+ given their affinity for Disney, Pixar, Marvel, and Star Wars franchises. Psychographically, Disney+ leverages technological tools to gather insights into consumers' routines and preferences, enabling highly personalized content delivery. Such personalization enhances user engagement and satisfaction, transforming casual viewers into loyal customers.

Furthermore, Disney+ recognizes the importance of VALS classification in refining its segmentation approach. Millennials, for instance, are often classified as experiencers—individuals who are sociable, impulsive, and driven by the desire for self-expression (Bhasin, 2020). Targeting this psychographic group aligns with Disney+’s strategy to deliver high-definition, creative content that resonates emotionally and reinforces brand loyalty. The use of vibrant, emotionally engaging content helps Disney+ cultivate a strong connection with audiences that seek more than just passive viewing; they look for content that reflects their lifestyles and values.

While Disney+ has solidified its position with its primary segment, it recognizes the need to diversify and develop new markets. Among these, the "Nostalgic Viewers" over the age of forty represent a niche segment that values familiar classics and sentimental narratives (Week, 2021). This group appreciates authenticity, history, and comfort in entertainment choices, often seeking content that evokes fond memories of their childhood or earlier decades. Disney+ can capitalize on this segment by offering curated collections of vintage Disney shows, films, and nostalgic content that foster emotional bonds and reinforce brand loyalty among mature audiences.

In addition to targeting nostalgia, Disney+ is also exploring the "Diversified Consumer" segment—particularly indie content lovers. These are young adults, primarily between 18 and 34 years old, who crave unique, independent, and thought-provoking content. They are characterized by their desire for originality, community engagement, and support for independent creators (McCarthy, 2022). To effectively target this segment, Disney+ could introduce a dedicated section for indie productions, partner with indie filmmakers, and develop interactive features such as forums and recommendation systems. This approach would not only attract this highly engaged and culturally conscious demographic but also position Disney+ as a leader in supporting independent film and television (McArthur, 2022).

Implementing these segmentation strategies will allow Disney+ to expand its reach, diversify its content portfolio, and reinforce its competitive edge in the crowded streaming marketplace. By understanding and catering to the distinct needs of its core and emerging segments, Disney+ can foster deeper customer relationships, increase retention, and drive sustained growth. As it continues to innovate in content delivery and personalization, Disney+ will remain a prominent player capable of adapting to evolving consumer preferences and market dynamics.

References

• Barnes, B., & Koblin, J. (2019, April 11). Disney plus streaming service is unveiled to Hollywood fanfare. The New York Times.
• Bhasin, H. (2020, January 30). Vals - Values Attitude Lifestyle. Marketing91.
• Jia, Y. (2022). The streaming service under pandemic with the example of performance of Disney+. Advances in Social Science, Education and Humanities Research.
• McArthur, A. (2022, April 23). How Disney+ maximized their user’s overall experience to build their customer base. Taplytics.
• McCarthy, J. (2022, April 19). Covid-19’s impact on the competitiveness of streaming services: Comparative analysis of Netflix, Disney+, and Peacock. Home.
• Week, A. (2021, February 3). Advertising week. Advertising Week.