The Walt Disney Company’s Brand Resonance Plummet: Can Your Brand Avoid a Similar Fate?
The reputation of The Walt Disney Company has experienced a significant decline in recent years, with no signs of improvement on the horizon. In 2019, Disney was ranked as the fifth most reputable brand in the Axios Harris Poll 100 rankings, but by 2023, it had plummeted to number 77. This drastic drop can be attributed to several factors, but what can other brands learn from Disney’s misfortune?
Taking a closer look at Disney’s resonance, it is revealed that the company is now the fifth most polarizing brand out of 100. This puts Disney in a position one place higher than Pfizer and two places higher than Meta in terms of polarization. One of the events that caused this polarization was Disney’s public opposition to Florida Governor Ron DeSantis’ controversial Don’t Say Gay bill. While this move garnered support from Democrats, it resulted in a significant reputation hit with Republicans, causing Disney’s overall reputation score to drop several spots between 2022 and 2023.
The ongoing dispute between Disney and DeSantis has taken a new turn, as the company recently announced the cancellation of its plans for a nearly $1 billion employee campus in Orlando. The campus was expected to bring over 2,000 jobs to the area with average salaries of $120,000. This decision begs the question: Is Disney truly standing by its LGBTQ+ employees, fans, and supporters, or is it merely trying to recover lost revenue amidst its declining market cap and stock price?
Optimistically, it can be argued that Disney is genuinely embracing its values of inclusivity by showing support for the LGBTQ+ community. As early as 1995, Disney became one of the first corporations to offer health benefits to same-sex partners of its employees, a move that stirred controversy among right-wing groups. Additionally, the company has taken steps towards on-screen representation, with Pixar generating headlines in 2021 for seeking a voice actor to portray a transgender character in an upcoming project.
Furthermore, while not officially organized by the company, Disney World Gay Days serve as events where LGBTQ+ individuals, their families, friends, and supporters visit Walt Disney World on and around the first Saturday in June. These events attract upwards of 150,000 LGBTQ+ tourists to the parks each summer.
Contrary to these positive actions, one could argue that Disney’s recent decision to cancel the Orlando campus is simply a strategic move to distance itself from DeSantis supporters, knowing that attempting to reconcile with them would be futile given its strong opposition to anti-LGBTQ+ legislation.
It is no secret that Disney has always balanced its support for the LGBTQ+ community with its appeal to a more conservative-leaning audience. In 2020, the company donated almost $1 million to the Floridian Republican party and an additional $100,000 directly to the DeSantis board between 2019 and 2021.
Alongside the controversy surrounding its stance on LGBTQ+ issues, Disney is also facing financial challenges. The company is in the process of cutting 7,000 jobs due to mounting operating losses from its streaming service, Disney+. In the last quarter of 2022 alone, Disney+ reported an operational loss of $1.5 billion. The job cuts are part of a broader strategy to reduce costs by $5.5 billion. One may wonder whether the cancellation of the Orlando campus is simply another cost-cutting measure in line with the company’s overall restructure.
Disney’s lack of loyalty in either direction, as well as its seemingly insincere actions towards supporting LGBTQ+ employees, fans, and supporters, have the potential to alienate consumers. It is crucial for businesses to recognize that 78% of consumers make purchasing decisions based on their values. As the global population becomes more diverse, businesses must engage in inclusive marketing practices that reflect a range of backgrounds and experiences in order to effectively connect with future customers.
The right approach for other brands to adopt may not be straightforward, as there is no one-size-fits-all solution. However, businesses must prioritize consistency in brand messaging and a strong commitment to progressive values to reduce the likelihood of confusing their audience and sparking controversy. The case of Disney serves as a example, as the company lacked a track record of speaking out on LGBTQ+ issues, came to the issue late, and appeared inconsistent in its stance.
While it may be impossible to please every single person, brands that adhere to consistent messaging and strong progressive values stand the best chance of attracting customer loyalty and spending power.
In conclusion, The Walt Disney Company’s decline in brand resonance serves as a cautionary tale for other brands. By practicing inclusive marketing and staying true to brand values, businesses can navigate sensitive social issues while maintaining a positive reputation and attracting loyal customers.
