Question

What are the risks and benefits of expanding the Disney brand in new ways, such as video games or superheroes?

Answer 1

It is the policy of Disney that it is always eager to absorb the new blood and so it looks for expansion of its market, Disney not only develops its outlets but it always try to add on new products and services. But brand expansion brings both lots of benefits as well as setbacks for the company. The major benefits of expansion are mass coverage, strong brand image and increase in profit margins. It has always seen that core customers of Disney are children’s and families, but company has nothing new to target older audience as the people of this age group has both purchasing power as well as leisure time to spend so ignoring this audience group will be a great future loss for the company. Although Disney has already gain trust of its customers in the field of entertainment now it should move ahead and expand in the new sectors like clothing, cups and decoration. Disney has already established its own channels and movies

Answer 2

Branding is a process through which a company tries to attract more consumers to maximize their sales. Nowadays this is a new trend that superheroes or video games branding is there.

Risks of Branding:

• It is an expensive process and makes the cost per product more.
• The children become more emotional about the particular cartoon.
• It is a time consuming process.
• People becomes confused about choosing between two brands.

• Benefits of Branding:

• It helps to acquire wider customer base.
• It helps to face competition.
• It makes children more happier.
• It helps to increase business opportunities.
• It enhances the business value.

• It helps to make recognition of products more easier.

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