Brands & Branding and Private Labels Case Study

Walt Disney's Brand Extension Strategies: Is the Brand Overstretched?

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Abstract:
This case study was written primarily to trigger an interesting discussion on the merits and demerits of brand extension. Written in the backdrop of Walt Disney’s (Disney) brand extensions, this case study can also be used effectively to highlight the differences between the brand extensions of a manufacturer’s products with that of a service provider.

Recognised as a synonym for family entertainment across the globe, Disney has its presence in various segments like theme parks, television, merchandising, etc. However, its multiple businesses have been affected by the receding global economic conditions. In order to survive, the company in 2006, extended its brand into its consumer products division by launching ‘non-character’ products. In doing so, Disney faces the risk of severe competition from well-established brands in those product categories. Analysts opine that the brand extension of Disney might result in dilution of the brand. Hence, to what extent can a brand be stretched? Will a brand fade away or lose its charm due to brand extension?

Pedagogical Objectives:

• To understand the importance of branding and how it helps in differentiating a product/service from its competitors
• To study and analyse the evolution of the branding strategy of Disney
• To debate on whether the company’s brand extension through selling of ‘non-character’ products would retain or damage its brand image.

Keywords : Brand Extension, Brands and Branding, Brand Building, Brand Dilution, Brand Extension Strategies, Licensing, Franchisees, Differentiation, Differentiating Services and Products, Branding Strategies