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In 2005, Bob Iger took over from Michael Eisner as the CEO of Disney. He has revitalized Disney animation business to a top priority. In 2006, Disney’s pixer realized a $426million profit from the release of the hit movie cars. There has been over $2billion sales in car merchandise every year after the release. There is a variety of production brands in Disney such as Jonas brothers. Bob has led to success in Disney by focusing on franchise as theme parks, consumer product business, and TV channels like espn, abc and Disney channel, among other franchise. Many of Disney’s latest TV shows, Disneyland rides and merchandise was based on pixer characters which led to greater achievements in Disney. Disney begun pushing franchise to capture the rapidly growing market and it continues to grow (Wilson,Gilligan,2005).
As the company grew there was a need to expand the market for the franchise, thus the priority was to find a market to push for the franchise. When Disney was majorly focused on younger children stuffs, it missed some opportunities that would have led to their success due to the narrow market available. But due to its current wide variety of franchise and dealing with shows like pirates of Caribbean there is the need to improve and increase the market of Disney (McDaniel, Gate 1998).
The problem of the market which was a major challenge had various components. These include, Disney brand was growing flat, and Disney had narrow market missing out on other opportunities since it was based on young children. Disney was trying to capture the tween market. It was hosting a variety of shows which included high school musical, Hannah Montana Jonas brothers, and a series of franchise juggernauts in the tween-girl market. Disney was involving broader market with a film of pg 13 rating, pirates of Caribbean and other shows that appealed older kids and adults (McDaniel, Gate 1998).
There are ways steps that Disney was take in order counter the problem of obtaining market for its vast products in the market. Disney had to devise the marketing strategies they could use to market their products. For instance, Disney ensured it offered quality goods and services to its customers. More so, Disney advised their franchises to win the fast growing related market. Regarding the technology implementation, Disney had to continue investing in technology so us to keep up the world’s completion. More so, there was need for the company to acquire top talents so as to ensure that the company continued to offer quality products. The companies that were emerging in its fields had to be captured by the company to boost its market image. Finally, a lot of research was to be carried out to identify the taste and preferences of their customers. This would help in maintaining and expanding of the company’s products. Some of the products the company produced were suitable for both old and young people and hence his helped to expand their market avenue (Stevens , 2006).
The major market that Disney has expanded to be television broadcasts platforms like the Disney channel, abc and espn, theme parks, the consumer products business, Disney’s publishing arm in Hyperion and Disney’s Hollywood records music label. For instance, Disney is planning to leverage espn channel to make sports-based programs. The channel will comprise of Disney xd website, which will promote the espn programs. It will also offer games, social networking, and online community opportunities (Stevens,2006 ).
- Due to the increased variety of franchise offered by Disney there has been an increased market opportunity. The company has now generated juggernauts in the tween-girl market. Despite remaining on family friendly fair, the company is looking for a wider market that can fit the Disney brand. It has expanded to a wide level offering shows like pirates of Caribbean, a film with pg 13 rating. It has now an appeal to older kids and even adults (Wilson, Gilligan, 2005).
- Disney cross-platform franchising help create sustainable competitive advantage since it deals with a variety of brands, one can be able to obtain any kind of brand from Disney, which range from cars franchise, jonas brothers, Hannah Montana, high school musical, the Disney princess, pirates of the Caribbean and many more. This has made Disney more competitive.
- Using Disney car franchise it had the following strategies used for marketing mix, promotion where these types of cars were involved in the Disney’s shows thus marketing it. Using the shows it portrayed the possible cost and price of cars which were later shown to have revenue of over $2billion each year after pixer’s hit movie cars. The place is also important in the marketing mix of car franchise which provided a place for the selling of the cars this place was offered by Disney (Wrenn, Loudon, Stevens, 2002).
- The major components of bob iger’s strategic plan when he first became CEO, involved the revitalization of the Disney brand by shifting Disney’s focus around its stable of franchise. He revitalized animation business by purchasing Pixar which brought many positive outcomes since many brands are made of pixer character. The growth led to the expansion in the market and this has seen the continuous growth of Disney (Wrenn, Loudon, Stevens, 2002 ).