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Walt Disney: Banking on Brand Extension

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Submitted By yasin65
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Branding plays a vital role in attracting customers and turning them into loyal customers. Products that do not have a strong brand might be good in quality and therefore, may be able to achieve market share just through word of mouth and other publicity modes. However, this is not the case for all the products. 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.

The concept of branding is all the more significant in services as it is for products. Also, companies should concentrate on the aspect of brand extension and to what extent they can stretch the brand so that the brand does not get diluted.

The aspect can be discussed more elaborately using Walt Disney (Disney) as an example. Disney is one such entertainment company which has successfully utilised the concept of branding in establishing itself and in attracting customers. It, being a synonym for family entertainment across the globe has its presence in varied segments such as theme parks, television, merchandising, etc. Despite its presence in various segments, its business suffered due to the 2008 economic recession. However, the company has decided to stretch its brand further by entering into high-end consumer products through its ‘non-character’ products. These products of Disney, unlike its earlier consumer products do not have the cartoon characters of Disney printed on them. They can be identified as a product of Disney only from the label. By extending into high-end consumer products, Disney has to face the threat from other well-established players such as Zara, Louis Vuitton (LVMH), IKEA, etc., in those product categories.

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