CASE STUDY OF MARKETING

 Submitted By : Zahid Nawaz

 AG # : 2019-ag-6739

 Submitted to : M .NAZAM

 Section :. A
 DISNEY
Q1.What are the risks and benefit of expanding the
Disney brand in new ways?

It is the policy of Disney that it is always eager to

absorb the new blood and so it looks for expansion of
its market, Disney not only develops its outlets but it
always try to add on new products and services. But
brand expansion brings both lots of benefits as well as
setbacks for the company. The major benefits of
expansion are mass coverage, strong brand image and
increase in profit margins. It has always seen that core
customers of Disney are children’s and families, but
company has nothing new to target older audience as
the people of this age group has both purchasing
power as well as leisure time to spend so ignoring this
audience group will be a great future loss for the
company. Although Disney has already gain trust of its
 customers in the field of entertainment now it should
move ahead and expand in the new sectors like
clothing, cups and decoration. Disney has already
established its own channels and movies.

Q #2; what are the risks and benefit of expanding the

Disney brand in new ways?

It is the policy of Disney that it is always eager to

absorb the new blood and so it looks for expansion
of its market, Disney not only develops its outlets
but it always try to add on new products and
services. But brand expansion brings both lots of
benefits as well as setbacks for the company. The
major benefits of expansion are mass coverage,
strong brand image and increase in profit margins. It
has always seen that core customers of Disney are
children’s and families, but company has nothing
new to target older audience as the people of this
 age group has both purchasing power as well as
leisure time to spend so ignoring this audience group
will be a great future loss for the company. Although
Disney has already gain trust of its customers in the
field of entertainment now it should move ahead
and expand in the new sectors like clothing, cups
and decoration. Disney has already established its
own channels and movies.

IKEA

Q1.IKEA has essentially changed the way people shop

for furniture. Discuss the pros and cons of this strategy?

 Self-Assembling:IKEA delivers most of its products in

box, so the consumers have tocompletely assemble
those in their home. This strategy results in cheaper and
easiertransportation as well as more efficient use of
store shelf space.• A Large pool of suppliers:IKEA’s
production and global supply chain is backed by alarge
pool of suppliers, approximately 1300 suppliers from 53
counties. This hugenumbers of suppliers give the
company a bargaining power over the supplier and they
cansource the product and competitively low price rather
than their compatriots with ahandful of suppliers. So
eventually they can charge a lower price to the consumer
even ifthey maintain a higher profit margin (10%) than
their competitors.•

Store Location:Most of the IKEA stores are located at a

notable distance from the citycenters to lower the costs
and taxes. The consumers have to drive a long way to
shop in the stores and they gladly do that because of the
price and brand attachment. Store Plan and
Management:Most of the IKEA stores are designed very
simply like alarge box with some windows and doors
painted in Sweden national color. The operates24/7 and
also use energy savings electric bulbs to reduce the
operating expense.

Q#2; : IKEA has essentially changed the way

people shop for furniture. Discuss the pros and
cons of this strategy?

The products are affordable with great designs which are

hard to replicate.
2. Adaptability of its design strategy according to the
market demand.
Cons:
1. IKEA has been criticized time and again for using child
labor in manufacturing of its products. Company needs
to make sure that such practices are discontinued
completely.
2. Changing social trends may hinder the growth of sales
of IKEA.