Article about Disney Consumer Products

[Another Voice]

The Los Angeles Times has published a great article on Disney’s Consumer Product division. It appeared on the front page of the business section and is titled ‘Disney Hopes to Revive Magic by Selling More Stuff’. The article details both current state of the group and their plans for the immediate future. The full text can be found at http://www.latimes.com/business/20010708/t000056122.html


As a sample, here’s one of the more interesting paragraphs:

“And by early 2003, Disney will rely on its characters to convince kids that drinking water can be fun. ‘You’d be surprised what you can do,” Mooney (Andy Mooney, the current head of the division who was interviewed for this piece) said of the water mission. 'In packaging, you can really make a difference.' "

The article also states that operating income for the group has fallen 50% in the last three years.

 

[Sarangel]

What a great article, AV. There are a bunch of relevent points, among my favorites:

Margaret King, director of Cultural Studies and Analysis, a Philadelphia company that tracks consumer choices and buying patterns, said, "The value of the merchandise used to be that it was scarce. [Disney] has devalued the brand by making it too available."

Boy is this ever true...It's a very fine line between making enough merchandise available, and making too much. I'm getting really sick of seeing so many items with Mickey & Winnie the Pooh, and I like the idea of diversifying into the other characters.

Another, somewhat scarier, point is that Disney believes

"...that Disney as a brand is powerful enough to thrive in both markets," Mooney said. "Disney as a brand is so strong it can survive without characters."

Yipes! Can you just see the 'D' logo sportswear?

Sarangel

 

[larworth]

Not much encouraging here is there. It seems to paint an even more negative picture of what age group the Disney brand appeals to.

Most boys older than 5 no longer regard Mickey Mouse as cool.
Disney plans to launch TV network aimed at 2-5 year olds.
Scuttled plans for line of hip urban clothes, because the look just wasn’t Disney
No longer commands the children’s clothing and merchandise market –or children’s attention

It use to be the teen set people worried about. Are they now in danger of losing the after 6 crowd? And how is marketing IASW merchandise going to change any of this? That might appeal to adults, but I don't see it having much appeal to kids.

Should be very interesting to see whether they can become “a 365-day-a-year brand” in the face of these comments

Disney has devalued the brand by making it too available
There’s so much merchandise everywhere, some people think they’ve overdone it

I guess the key is whether this statement is true

Disney is a brand so strong it can survive without characters

Question?

How much of a link is there between product success and park success? Should we have any concerns if the merchandise brand is losing appeal for younger and younger kids. Does this have any spills over effect on the parks or are they only marginally related?

 

[F.C. Fan]

My favorite part of the similar, if not same article that was in the Orlando Sentinel yesterday, was that Disney is partnering up with K-mart an J.C. Penny( talk about 2 companies with 1 foot in the grave). That's almost as funny as the rumor that Sears was gonna run the Disney Stores for them. While I don't like Wal-Mart, I think they would have been a much smarter choice to allign with if Disney is sincere about resurecting their name.

Another thing I find strange is that here in Orlando(1 of Disney's own backyards) our local ABC affiliatte does not show Disney's House of Mouse on Saturday morning-afternoon.Instead they show it on a different small affilliate of theirs at 7:00 a.m. on Sunday morning instead. but yet we have 5-7 Disney stores in an 80 mile area none of which are stellar performers.