Strategic Analysis of Disney's Brand Portfolio: Recommendations

This report provides a comprehensive analysis of The Walt Disney Company's brand portfolio, focusing on its structure, strategy, and future recommendations. It begins by applying the Kapferer Brand Identity Prism Model to define the Disney brand, examining its physique, personality, culture, relationship, reflection, and self-image. The report then conducts a brand portfolio audit, outlining Disney's objectives, roles, and brand scope across its various segments, including media networks, parks and resorts, and consumer products. The analysis further explores Disney's portfolio structure and brand architecture, highlighting its hybrid approach to manage brands and sub-brands. External factors impacting Disney are assessed using PESTEL analysis and perceptual mapping. The report reviews Disney's brands and sub-brands segmentation, identifies divergences from its principal strategy, and addresses potential issues within the brand portfolio. Finally, it proposes a new brand strategy, identifies opportunities, and recommends solutions, including methods for evaluation and measurement, to enhance Disney's brand portfolio management and ensure continued success.

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MARKETING AND MANAGEMENT
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Executive summary
The purpose of this report is to identify the Kapferer Brand Identity Prism Model for the
chosen brand Disney. It analysis the brand portfolio audit analysis, the portfolio objectives
portfolio roles and analyzes the brand scope of the company. it identifies the portfolio structure
of the company and analysis the brand architecture structure of the company, ways of managing
its brands and the drivers for it. It identifies the external factors impacting the organization with
the help of PESTEL model analysis and Perceptual map. Further, it reviews the brands and sub
brands segmentation and the reasons for following the strategy. It analyzes the divergences from
its principle strategy and the reasons. It identifies the potential pressures and causes of concern of
the brand portfolio. Lastly, it identifies the issues and opportunity and recommends solution and
methods of evaluation and measurement of the recommendations.

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Table of Contents
1. Introduction..................................................................................................................................3
2. a) Analysis..................................................................................................................................4
Kapferer Brand Identity Prism Model for Disney......................................................................4
Brand Portfolio Audit analysis....................................................................................................5
Portfolio objectives......................................................................................................................5
Portfolio roles..............................................................................................................................6
Brand scope.................................................................................................................................6
Portfolio structure of Disney.......................................................................................................7
Graphics and architecture............................................................................................................8
External factors impacting Disney...............................................................................................8
Perceptual mapping of Disney brand...........................................................................................9
Review of brands/sub brands segmentation of Disney..............................................................10
Divergence of principal strategy of Disney...............................................................................10
Issues in the brand portfolio......................................................................................................11
b) Proposed brand strategy............................................................................................................12
Issues and opportunities of Disney............................................................................................12
Recommendation.......................................................................................................................12
Rational and supporting arguments...........................................................................................13
Methods for evaluation and measurement.................................................................................13
3. Conclusion.................................................................................................................................13
References......................................................................................................................................15
Appendices....................................................................................................................................18

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1. Introduction
The Disney Company is an American multinational mass media and entertainment
company. The headquarters of this company is located in Burbank California. The company was
originally founded in the year 1923, by the brothers Walt and Roy O. Disney. The company was
also operated by the names of The Walt Disney Company 1986. The company was established as
a leader of American animation industry, later it was diversified into live action film production,
the television and the theme parks. The company was known for its film studio division, which
includes the pictures, Disney nature. The other divisions of the company include Disney parks,
experiences and products (Galvez 2018). The company continued its digital expansion in the
year 2014. It acquired the contents in YouTube. Recently, the company plans to launch its own
digital streaming network, it enables the users of the channel to subscribe in order to watch the
shows and the movies and access to them as a when required.
The company Disney since its year of establishment has ballooned into one of the most
powerful brands. It uses the most powerful marketing strategies. The company mainly uses
nostalgia in order to maintain the loyalty of the customers. The company has been making an
emotional connection with the people since it was founded (Fang et al. 2013). The company
harnesses the emotions of the customers by reviving the old classics. The company features the
same stories, songs and uses characters in the movies to establish a strong sense of nostalgia
among the viewers and the customers; it is the strategy of the company to entice the views
especially the children in the movie. The company strategically engages with different audiences
and creating content for its segment customers (Abdin, Fajardo and Prudencio 2016). The
company strategically keeps its viewers and audiences engaged with its video contents, recopies
and other fun facts. It is the part of the company’s strategies to establish the Disney world and

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other amusement parks as a destination brand of Disney. The dynamic and ever changing themes
of the Disneyland and other amusements part have become a popular trend among the younger
generation. Disney has been creating unique experiences for the visitors and ensures new and
innovative content for its promotion. The company has strategically mastered the art of
storytelling that resonates and inspires the modern era young generation (Galvez 2018).
2. a) Analysis
Kapferer Brand Identity Prism Model for Disney
Brand physique: It implies the brand’s foremost qualities and the physical specifications of the
Disney brand. It can be defined as the combination of the salient features of the brand. The
physical qualities of the brand include the famous castle of Cinderella with an arching line
overhead. It clearly indicated a sense of imagination and a world of fantasy (Grünig and Kühn
2015). The castle in the logo of the brand is eye-catching; it is a part of the brand physique.
Brand personality: the brand of the company has a personality, it builds up characters and figures
that are glistering and inspirational. The company builds up characters of the famous cartoon to
enhance its brand personality. It is a wholesome firm for every age.
Brand culture: the culture of Disney is associated with excellent entertainment with American
culture. It consists of set of values and traditions that influences the audiences and the
employees’ motivation and behavior. Accoridng to Brook and Pagnanelli (2014), the main
characteristics of the Disney culture involve innovation, decency, storytelling and optimism.

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Relationship: the brand purpose is to crux communication and exchanges among the people.
Disney is a great storyteller, the company is involved in imparting values and values to the target
audience. It revolves around the concept of nostalgia of the childhood.
Reflection: the brand is but a customer reflection. The company brings out the child in every one.
The contents of the shows are mainly for children and the young generation.
Self image: the brand speaks mainly of its self image. It targets the internal reflection of the
target audience and the viewers. The content of the brand reflect the feeling of the awesome
childhood (Grünig and Kühn 2015).
Brand Portfolio Audit analysis
Portfolio objectives
The brand’s portfolio objectives include:
Disney maximizes its value by innovating the financial and other resources, optimizing
the risks of the brand. Adjusting the risks with the commercial value of innovation is the primary
objective of the brand’s portfolio management. Making better investment decisions on the
increasing returns of the company is also a part of maximizing its value. It aims to be the leader
of the entertainment. It differentiates its products and contents. Its objectives is to maximize the
earnings and invest its earnings towards initiative of growth, this will have a long term value on
the shareholders. According to Keller (2014), the main objectives of the company are to focus on
its target audience, families, and communities and inspire the younger generations. It objectives
is to encourage good experience for the younger generation and the families and create good
memories. The brand’s portfolio objective is diversification of risks and consistent returns

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Portfolio roles
The roles of portfolio involve planning and successful implementation of the brand’s
strategy. The roles involve looking into ways towards improvement in the return of investment.
Balancing the returns and managing the risks (Wasko 2016). The portfolio role is to maximize its
value and increase the value of the investment.
Brand scope
The scope of Disney brand is Disney World, the channel of Disney and its movies and
contents. These are main part of the brand. The operations of the business involves the major
business segments including the studio entertainments and movies the parks and resorts of the
Disney, the consumer products targeted to the children of the younger generation and the various
media networks. The main part of the studio entertainments includes Walt Disney pictures and
movies, Hollywood pictures, touchstone pictures (Wilson 2017). The Buena Vista Home
Entertainment distributes movies and animations through home rentals. The Buena Vista
Theatrical Production is also one of the major producers of musicals and other famous movies
and pictures. The Beauna Vista Music Group distributes the soundtracks and the original artist of
the company including the Disney records, Hollywood records. The brands have scope of Disney
Parks and Amusement parks and resorts for the children as well as the adults. The Disney part
and resorts are situated in various countries, some of them includes, Walt Disney World Resort
in Florida, the Disney Land resort in California, Disney land resort Paris, Hong Kong, Disney
land resort, Tokyo Disney land resort and other adventures of Disney (Uggla 2013).
The Brand has a wider scope in Disney consumer products. The company merchandises
the characters of Disney and the production of which was started in the year 1929. Presently the
company has become the largest licensors in the world. It provides ranges of products like

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games, toys, home decors and apparel that relate to the characters of the Disney movies and
animations (Drewniak and Karaszewski 2016). The brand also has a wider scope is Disney
Media Networks, the company owns wide assortment of TV’s, cables and internet outlets. The
leading television network and has the top most rated shows in ABC channel.
The company manages its portfolio by encouraging diversity and reducing risks. The
television networks, movie studious are the groundwork for Disney’s production of animations
and movies. This has strongly helped the company to attain continuous and steady streams of
revenues (Uggla 2013).. The company derives majority of the revenue from its entertainment
networks. The brands such as the ESPN, ABC, and Touchstone pictures are considered to be the
backbone of the company. Other sister channels influence benefits from the dual income streams.
The company values these brands as the completive advantage over the other broadcast
networks, these also relies closely on the advertisement (Mannheim 2016). The company entered
into content distribution agreements for its television series and movies. Moreover, the company
manages its talent and its portfolio by monetizing the characters and it franchises across the
multiple platforms. The theme parks and the amusement resorts are especially attractive and
special segment of the company’s major assess and revenue.
Portfolio structure of Disney
Media Networks: It contains ABC entertainment, Freeform, ABC news, Disney- Abs Domestic
television, Disney channel, ESPN, Radio Disney
Parks and Resorts: Adventures by Disney Vacations, Disney Beach Destination, Disney Cruise
Line, Disney Destinations, Disney Destination Marketing, Disney Florals and gifts, Disney
Golden Oak Realty, Disney institute, Disney photo pass, Disney Vacation Club

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Walt Disney Studios: Buena Vista Catalogue Company, Buena Vista Home Entertainment,
Disney Family movies, Disney movie Rewards, Disney on Ice and Disney Live, EI Capitan
Theatre, Hollywood Records, Marvel studios, Walt Disney records, Walt Disney Studios Home
Entertainment.
Disney Consumer products: Disney BABY, Disney consumer products, Disney digital books,
Disney living, Disney store
Graphics and architecture
Disney utilizes the hybrid structure of brands and its sub brands. The company manages
this structure and its sub brands helps to penetrate into the new market segments. This structure
of the company helps it to achieve the desired result of penetrating the new market (Wasko
2016). The hybrid structure of the company acts as a shield to the effects of mergers and
acquisitions. By managing its brands and sub brands efficiently, that company has gained great
reputation and brand equity. The hybrid structure of the company facilitates great benefit to the
company. It managers the brand architecture by touching new market segments, it facilitates
mergers and acquisitions.
External factors impacting Disney
PESTEL analysis:
Political factors: there is a strong political support for the intellectual property of the company;
this facilitates growth opportunity for the company. This protection highly favors the industry
environment. The company can expect to improve IP protection for its movies and animations.
However, shifting trade policies threatens the instability of the business environment. It can align
its strategies towards the current growth opportunities (Etemad et al. 2016).

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Economic factor: the economic factor involves diverse economic conditions, and facilitates
multinational reach to the business (Galvez 2018). There is a rapid growth of the developments
of the markets; also there is an increasing level of the disposal incomes which is an opportunity
for the company.
Social factors: there is a favorable attitude towards the leisure and entertainment opportunity.
There is an increase in the cultural diversity; this threatens the target market of the company.
There is an increased competitiveness in the market.
Technological factors: there is an increasing level of R&D rate in the industry; however, the
company can strategically increase its R&D to match up with the increased competition. The
technological trend is a threat to the company, as it increases level of competition (Ayodele
2013).
Environmental factors: The extreme weather conditions and climate change affects the activities
of the Disney owned amusement parks and resorts, and its other film production and consumer
goods. The company needs to take measures to manage the expectations of the customers.
Legal factors: the company can regulate the s industry environment pertaining to the rules and
regulations of the business and the legal laws of the remote entertainment (Wilson 2017).
Perceptual mapping of Disney brand
According to the perceptual mapping, the universal studious of Disney is perceived to be
aggressive in nature and it is highly attractive to the younger generation of the society and the
teenagers. The Disneyland is perceived to be highly romantic in nature and down to earth. The
amusement park and resorts are highly attractive to all age groups; the company is constantly

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increasing its attractions which are aggressive and bold in nature. The company craves out new
and innovative products (Abdin, Fajardo and Prudencio 2016). The company is engaged in
creating a memorable experience based on the perception of the uses.
Review of brands/sub brands segmentation of Disney
It order to better meet the demands of the segmented markets and protect the parent
brands, Disney segments its brands and sub brands on the basis of economic demographics,
psychographic segmentation and geographic segmentation. Economic demographics imply
economic background of the target market, the market size, density or climate (Brook and
Pagnanelli 2014). The demographic segmentation of the brands refers to the age, income, ethnic
background of the family. This determines the place of their chain stores known as Disney
stores. Psychographic segmentation is on the basis of personality of the target audience, motives,
lifestyles and behavior of the target market and the audience. It determines which customers
would be going to buy more products from the company. The segmentation is based on the
channels and is mainly targeted to the children’s and their families. The company uses multi-
segment targeting strategy (Drewniak and Karaszewski 2016). The company targets and
intrigues the people of all ages. The Disney channels including the play house Disney attracts the
adult viewers and audiences and Disney uses the family approach segmentation. The animation
movies and contents are targeted to both the children and their parents with good morals and
humor. The Disney store of consumer goods intends to satisfy both the younger generation and
the adults.
Divergence of principal strategy of Disney

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The Disney method complies of a complex creative strategy and uses specific thinking
styles. The company uses parallel thinking to analyze problems and determine solutions to the
problems (Etemad et al. 2016). The company however, experienced wide number of strategic
issues. The competitors had taken advantage of the weakness in strategies of the company.
However the issues are limited for the success of the company. To over the problems and issues
faced by the company in its strategic issues, the company diverged from its core strategies and in
its business operations to attain surplus cash. The company has been facing stiff competition in
the market (Galvez 2018). Therefore, the company had to shift its strategy and shift its potential
target customers. Due to stiff competition in the market the company has been dealing with the
issues pertaining to customer’s tastes and preferences, therefore they had to focus on the strategic
approaches in order to satisfy the needs and requirements of the customers. Due to increased
amount of criticism the company had to diverge from its principle strategy. The company had to
reduce the pricing of its movies and contents. These were the main reasons for the brand’s
divergence from the principal strategy (Mannheim 2016).
Issues in the brand portfolio
The first issue that is faced by the company is there strategic approach, it was identified
that the company had several weakness in its strategies; the company has been facing still
competition and have lost many subscribers (Wasko 2016). The company had been appealing the
customers regarding the prices and its historic market position. The company mainly targeted the
two categories of the customers the children and the youths. Disney is a huge company with
many segments in various industries, therefore its faces issues and opportunities. The main issue
that is faced the company increasing levels of competition n the marketing. Icy faces competition
from the other entertainment industries, lodging and satellite services and also from the web