However, by the s, The Walt Disney Company was back on its feet and thinking of new ways to target its core family oriented consumers as well as expand into new areas that would reach an older audience. These products of Disney, unlike its earlier consumer products do not have the cartoon characters of Disney printed on them.
Despite its presence in various segments, its business suffered due to the economic recession. Today, Disney is comprised of five business segments: All the efforts of Disney highlight the merits and demerits of brand extension. Contrast this with Healthy Choice or Atkins which offered a common thread in all of their products of low fat or low carb.
It, being a synonym for family entertainment across the globe has its presence in varied segments such as theme parks, television, merchandising, etc. By then the company had expanded the Disney brand into film, television, consumer products, and Disneyland in southern California, its first theme park, where families could experience the magic of Disney in real life.
It will create customer dissatisfaction that will reduce customer base, revenues, profits and sustainability. Can a brand be all things to all people? Disney also uses emerging technologies to connect with its consumers in innovative ways.
Risks of Brand Extensions Much has been written as scare tactics about the negatives and risks of brand extension. When Walt Disney died inhe was considered the best-known person in the world.
On the other hand, the expansion of business in the new ways will help the management to present the Due to this, the organization has made a strong relationship with its customers. Those few that have succeeded with broad based extensions have a benefit thread running through their products that customers of the respective categories want.
While they have not lost their awareness as household words, the strong associations they once had to specific products and related qualities e. A consumer who is new to the product and who does not want to take the risk of spending money on a product that is new would opt to go for such a brand that the person knows.
There are many companies which failed very badly being unable to understand the limit to which they can stretch their brand.
Note how the Olay brand entered the soap business: It can be used to critically debate on how too much of stretching a brand can dilute the brand instead of its value being enhanced. Brands that are not legally generic but are used that way such as Kleenex, Scotch Tapeand Band-Aid should not be extended broadly or they risk losing this valuable quality.
Help us make our solutions better Rate this solution on a scale of below We want to correct this solution.Answer to What are the risks and benefits of expanding the Disney brand in new ways?
Explain in detail %(1). List of benefits and risks of brand extension. Risks of Brand Extensions: Much has been written as scare tactics about the negatives and risks of brand extension.
In reality, if a brand extension is so off target or lacks fit and or leverage, it likely will fail and do little damage. Most of these misfires die in limited test market anyway.
What are the risks and benefits of expanding the Disney brand in new ways? HOW OUR WEBSITE WORKS Our website has a team of professional writers who can help you write any of your homework.
Read more. 2. What are the risks and benefits of expanding the Disney brand in new ways? When it comes to expanding the Disney brand the biggest risks they face is staying relevant and up-to-date with consumers while also staying true to its legacy.
Disney has moved slow and cautious with expansion through the years. They made it a point not to tarnish the %(5). 2) What are the risks and benefits of expanding the Disney brand in new ways? It is Disney policy to always seeking for exploring and expanding its markets. Its expansion strategy is applied not only for development in new countries besides United State but also new products and services as well.
2. What are the risks and benefits of expanding the Disney brand in new ways? While always seeking ways of expanding Disney’s image is a great initiative, the company is faced with multiple risks in the process.
The greatest risk faced by Disney as it pertains to expansion is staying true to its legacy while also keeping it pertinent and up-to-date %(15).Download