1、The Disney Store Japan“Disney Magic in Towngetting much, much closer to You”22 April 1999OgilvyOne worldwideJapanAgenda Where are we and why? - Current Situation Where do we want to be? - Objective How do we get there? - Program Where do we start? - Test How far can we go? - BenchmarkWhere are we an

2、d why?Key Discoveries Market (category) Consumer (category) Communications (category) Disney Brand and TDSJMarket New entrants such as Snoopy Town and WBSS creatingnoise with strong entertainment factor Sanrio moving tactically to capture various target segments Disney goods available in various typ

3、es of placesIs TDSJ entertaining the guests, giving more thana place-to-shop?ConsumerMale and female, of mainly 20s, have interest incharacter and character goods (34% male and 42% female in all: 47% male and 61% female in 20s)73% of those who have interest dont mind spending a little more to enjoy

4、their life (50% of those who have no interest)Avg. spend 24,000 yen per year: 12,000for oneself and 17,000 yen for gift and familyConsumer has wider choice in terms of character, item and place to enjoy and shopAvg. spend 7,500 yen of TDSJ is lower than the category avg.Opportunity for TDSJ to incre

5、ase share ofcustomerCommunicationsMost competitors do not have active masscommunications except for occasional PR, and they rely on the store and the charactersTDSJ also rely on characters and synergy partners WB has CC with minimal membership privilegeSanrio has newsletter sold in-store and will st

6、art membership club in May-JuneNo active or one-to-one communications withcustomers now, but the competitive environment is changingTDSJ & BrandDisney: “Experience the Disney Magic” Stores motto: Entertainment ShoppingVery high awareness80 stores in Japan; 82 stores by Sep. 99 About 75% of items are

7、 only available in TDSJ Friendly castHave more guests than TDL (24 vs 15mil)A place near your home where you can enjoy and havethe feel of TDL, things related to new movies and exclusive Disney itemsDoes it satisfy guests with the magical experience and entertainment?TDSJ Survey ResultsGuest Segment

8、ation Vs. Sales10011.89035.8807041.560504051.93046.7201012.30Sample%Sales% of TotalLow MiddleHigh“All consumers areNOTcreated equal and should NOT BEtreated equally”Differential MarketingProfit SegmentsSales & ProfitHighMediumLowNo- ProfitTotal HouseholdsThe DFM Communications ModelHighMediumLowNo-P

9、rofitAn Universal Phenomenon75%Sales33%BuyersTargeting the Right Customers How do we define high-profit customers? By their buying behavior! Not only by their demographics.Key Marketing Issues of TDSJ TDSJ must enhance its core value to stand out in themarket place TDSJ must retain those guests who

10、already value TDSJ and foster them - give them more value We know that there is a group of mania/collectors and a group of fans (mainly aged 20-34 female), but dont know who they are and dont communicate directly/one-to-one with them and value them (except for the communications each store has with

11、minimal no. of guests)Where do we want to be?ObjectiveEstablish stronger Loyalty in guests togenerate stable growth in sales and profitSpecifically:Increase the high yield guests from 12% to 20%Assumption of 3 ClustersCollectors Great FansSemi FansOccasionalNeverMaintainIncrease Share of Guest Loyal

12、ty Maintain Increase Frequency of Purchase Maintain Sales & Profit Maintain Competitive Brand Store Presence & Visit Prevent DecreaseHow do we get there?What can guest benefit from TDSJ? 75% of item is only available in TDSJ Items are limited/exclusive, imported, etc. New item is sold faster than an

13、y other place Experience: Entertaining, just as a show, as if in a world full with Disney magic2 Differentiators Exclusivity of products Guests come to TDSJ for Disney goods only available in the store Experience Guests come to TDSJ near their home or office for the entertainment, to feel/see/hear t

14、he Disney magicCore value of TDSJOur MissionWhatever we do. We must focus on core brand value to differentiate us from the competition360 degrees Brand StewardshipOne-to-One individual communication more benefit driven track response & test brand imageAdvertising mass communication brand imageStore

15、in-store communicationBUILD BRAND brand experience cast brand imageInternet individual communication more benefit driven track response QUICKLY brand imagePR mass communication builds brand credibility brand imageThe Disney StoreWith one step in the store,youll find a world of MagicWow! Youre left s

16、tanding with your mouth open.Everyone believes in Magic somewhere in theheart.The Disney Store brings out such belief.It is an exciting space that is close to you, where you can feel, touch and bring back home Disney Magic that has transformed into an object.Flagship StoreYou can experience the real

17、 Disney Magic in town (yourneighborhood)To emphasize the experience factorCreate a flagship store in each key region to provideguests with outstanding experience of entertainment and Disney magic Outside city-centre, e.g. Daikanyama, Jiyugaoka in TokyoMore Entertainment (in the limited space) In-sto

18、re show every other hour during the weekendand holiday Simply turn the lights off every other hour for a light and sound show Big screen or more monitors into the floor Human size characters welcoming guestsMake the guests experience the Disney magicwith a step in the TDSJBuilding Guest Loyalty“Cust

19、omer Loyalty is not about how customers demonstrate their loyalty to us, it is about how we demonstrate our loyalty to them”Sir Ian MacLaurinChairman, Tesco PlcDemonstrating Guest our LoyaltyBy recognizing themBy rewarding themBy going beyond the usualBy providing valuable information By involving t

20、hemGuest Loyalty ProgramInvite GUESTS to become much, muchCLOSER to the storeStrategy Capture existing high yield guests and retainthem Increase share of guest, high yield and potentially high yieldMembership Club More than a storeCloser IntimacyStoreGuestI.e.Deeper Relationshipby understanding each guest.Disney“Club WOW!”You can have e