What are the risks and benefits of expanding the Disney bran

What are the risks and benefits of expanding the Disney brand in new ways? Explain in detail

Solution

Solution :

Businesses are always anxious for new ways to make money . Some companies try to reinvent themselves when they look for new revenues . Brand extension is the application of a brand to another category or genre different from the original brand . Recognizing the power of branding , Disney is one brand that has been expanding into home videos , TV programming and cable channels etc . Disney has also extended its brand to a variety of related enterprises including theme parks , hotels , merchandise , and cable stations - all of which strive to be consistent with the quality of wholesome family entertainment brand image .

The benefits of brand expansion include a lower perceived risk by customers , easier access to distribution channels , lower cost of the introductory marketing program , and contribution to the parent brand image and equity . Expanding the disney brand will strengthen the Disney\'s parent brand . However brand expansion bear the risk of damaging or diluting the brand equity .

Thus the risks and benefits of expanding the disney brand can be summarized as follows :

Benefits :

Risks