The Walt Disney Company, a $27 billion-a-year global entertainment giant, recogn izes what its customers value

in the Disney brand: a fun experience and homespun entertainment based on old-fashioned family values. Disney responds to these consumer preferences by leveraging the brand across different consumer markets. Say a family goes to see a Disney movie together. They have a great time. They want to continue the experience. Disney Consumer Products, a division of the Walt Disney Company, lets them do just that through product lines aimed at specific age groups. Take the 2004 Home on the Range movie. In addition to the movie, Disney created an accompanying soundtrack album, a line of toys and kids clothing featur ing the heroine, a theme park attraction, and a series of books. Similarly, Disneys 2003 Pirates of the Caribbean had a theme park ride, merchandising program, video game, TV series, and comic books. Disneys strategy is to build consumer segments around each of its characters, from classics like Mickey Mouse and Snow White to new hits like Kim Possible. Each brand is created for a special age group and distribution channel. Baby Mickey & Co. and Disney Babies both target infants, but the former is sold through department stores and specialty gift stores whereas the latter is a lower-priced option sold through mass-market channels. Disneys Mickeys Stuff for Kids targets boys and girls, while Mickey Unlimited targets teens and adults. On TV, the Disney Channel is the top primetime destination for kids age 6 to 14, and Playhouse Disney is Disneys preschool programming targeting kids age 2 to 6. Other products, like Disneys co-branded Visa card, target adults. Cardholde rs earn one Disney dollar for every $100 charged to the card, up to $75,000 annually, then redeem the earnings for Disney merchandise or services, including Disneys theme parks and resorts, Disney Stores,Walt Disney Studios, and Disney stage productions. Disney is even in Home Depot, with a line of licensed kidsroom paint colors with paint swatches in the signature mouse-and-ears shape. Disney also has licensed food products with character brand tie-ins. For example, Disney Yo-Pals Yogurt features Winnie the Pooh and Friends. The fouroun ce yogurt cups are aimed at preschoolers and have an illustrated short story under each lid that encourages reading and discovery. Keebler Disney Holiday Magic Middles are vanilla sandwich cookies that have an individual image of Mickey, Donald Duck, and Goofy imprinted in each cookie. The integration of all the consumer product lines can be seen with Disneys Kim Possible TV program. The series follows the action-adventures of a typical high school girl who, in her spare time, saves the world from evil villains. The number-one-rated cable program in its time slot has spawned a variety of merchan dise offered by the seven Disney Consumer Products divisions. The merchandise includes: Disney Hardlinesstationery, lunchboxes, food products, room decor. Disney Softlinessportswear, sleepwear, daywear, accessories. Disney Toysaction figures, wigglers, beanbags, plush, fashion dolls, poseables. Disney Publishingdiaries, junior novels, comic books. Walt Disney RecordsKim Possible soundtrack. Buena Vista Home EntertainmentDVD/video. Buena Vista GamesGameBoy Advance. The success of Kim Possible is driven by action-packed storylines which translate well into merchandise in many categories, said Andy Mooney, chairman, Disney Consumer Products Worldwide. Rich Ross, president of entertainment, Disney Channel, added: Todays kids want a deeper experience with their favorite television characters, like Kim Possible. This line of products extends our viewers experience with Kim, Rufus, Ron and other show characters, allowing [kids] to touch, see and live the Kim Possible

experience. Walt Disney created Mickey Mouse in 1928 (Walt wanted to call his creation Mortimer until his wife convinced him Mickey Mouse was better). Disneys first feature-length musical animation, Snow White and the Seven Dwarfs, debuted in 1937. Today, the pervasiveness of Disney product offerings is staggeringall in all, there are over 3 billion entertainment-based impressions of Mickey Mouse received by children every year. But as Walt Disney said: I only hope that we dont lose sight of one thingthat it was all started by a mouse. Discussion Questions 1. What have been the key success factors for Disney? 2. Where is Disney vulnerable? What should it watch out for? 3. What recommendations would you make to their senior marketing executives going forward? What should it be sure to do with its marketing?