1To: All From: C P Stack Re: Blog Entry Date: July 23, 2007
This blog entry will examine the concepts of synergy, extension and franchise in the context of media. Disney Corporation will be used as an example of these three business applications.
Disney Corporation (DIS) is the largest media and entertainment corporation in the world. It is a component of the Dow Jones Industrial Averages. Disney 2006 revenues exceeded $34 billion. Disney products and cultural inculcation is ubiquitous.
SYNERGY: Organizations that enter into an agreement to share certain proprietary products. Typically, it is a “one plus one equals three” arrangement. Disney pioneered synergistic marketing in the 1930’s when they entered into agreement with several disparate groups for the purposes of cross-marketing the image of Mickey Mouse, which was the creation and property of Disney. This horizontal integration occurs when one organization holds interest in multiple channels of distribution. Simply said, synergy allowed Disney to profit from allowing its products to be marketed in non-conventional venues. For example, a wrist-watch manufacturer places the image of Mickey Mouse on the dial faces and thereby increases sales to children (or adult aficionados).
EXTENSION: An attempt to expand into new markets by using new delivery systems or platforms. Using Disney again as an example, the establishment of Disneyland, an amusement / theme park, represented Disney’s desire to further utilize this medium (park) as a means of distributing more products. Disneyland became an “extension” of their original product, an animated cell called a cartoon. Mickey Mouse was the main character and was found to be seductively attractive to children. This article will not speculate on why this character was so popular. Disney’s theme parks located in California, Florida and Paris are a fantastic extension from the introduction of Mickey Mouse. Few could imagine the monumental effect Disney’s product would have on generations of children. Children in America, Europe and some of Asia have been affected by this Mickey Mouse phenomenon. The product has been marketed in every way: wrist watches, full length motion pictures, apparel, toys, candy, cruise lines and even skull caps with mouse ears. The extension of marketing seems to be limitless and timeless.
FRANCHISE: An effort to market a product under a particular brand. The brand is the property of someone or some corporation and is made available to another party for consideration. Disney has allowed outside interests to recreate inventions of Disney for profit. Using franchise in this context, coordination of efforts for the purpose of enlisting the public’s preference and even devotion to fictional content. Disney has created a “lovable” character in Mickey Mouse. Satchi & Satchi, an advertising agency, has referred to Disney as being a “love mark”; a visionary company which has captured the emotions of an audience through franchising and further exposing their products.
Couple of house cleaning items. First off love the use of the word "aficionados." Second, there is something a bit perverse about a mouse seducing children. Although I can say that I was seduced by the rat in the film Ratatouille. It's the first time that I've actually stood and applauded a motion picture.
I like your succinct definitions of synergy, extension, and franchising. One of things you may have forgot to mention, that Chris actually brought up in class, is that Disney is a major media conglomerate owning ESPN and the ABC family of networks http://corporate.disney.go.com/corporate/overview.htr
Just a quick question about your synergy comment. I get the overall meaning of how Disney has incorporated a synergisitc appoach, but could you explain to me the 'one plus one equals three' concept, maybe I'm thinking to much into it or not enough. In terms of expansion that may be helpful for topics of conversation that have been brought up inour class could also be Disney's expansion into the video game world. They have a significant number of games that I remember growing up playing that were directly linked to Disney, it's characters and brand. A few examples would be The Mickey Mousecapdes, Duck Tales, and Disney's Aladdin. Overall, impressive insight into a company that has certainly grown tremendously from its signature 'Mickey Mouse'
It’s amazing how the Disney Corporation used synergistic methods back in the 1930’s right?! Anyways, I thought that you had good descriptions and examples of each of the three categories. One thing that I think would be worth you mentioning would be the Disney Channel. As a young child, I watched numerous programs on the channel, everything from Mickey Mouse cartoons to original programming. I remember watching sneak previews of Disney films going to the big screen and seeing all the behind the scene footage. Also when a new exhibit or ride would open up at Disneyland or world, there would be countless advertising on the channel promoting it. Now I believe the channel is a little different than it once was, but I know they still do sneak peaks of films.
One more side note, just last week, Disney banned smoking in their films, trying to use their influence to promote anti-smoking campaigns http://news.yahoo.com/s/nm/20070725/film_nm/disney_smoking_dc.
I agree with all previous comments about your definition of the terms.
It is truly amazing to think about what Disney has accomplished over the years. Not only have they been a significant part of my growing up years, I see them being a huge part in my nieces' lives.
I think one of their biggest appeal is their ability to cater not only to children but to adults also. The movies they put out generate young fans as well as old fans. I am with Dave on being seduced by the rat in Ratatouille.
Your blog was an excellent discussion of the key concepts for the course. I am wondering if you will be doing Disney for your final project... I know that they have a couple of 2nd life/playstation type virtual worlds for children and a host of social networking sites (where I suspect they are cutting edge at hooking kiddies). Definitely look into these aspects for a good final project.
About the question of defining synergy, I think 1 + 1 = 3 is a perfect definition of the win-win and then some quality of synergy... the idea being that when the total outcome is greater than the mere sum of the parts... you have synergy! Its what anyone would want, now we want to discuss strategies for maximizing the potential of synergy and the risks of overextending in search of it... etc.
Its a very nice and clear about synergy, extention, and franchise. I had a difficult time understanding it before and I could make the point clear from your blog. Yes Disney is a very good example of thoes Professor G mentioned in class. Disney does a lot of franchaising, we can see it from toys, from fast food resturants, and many places. Everyone would know wut Disney is. People know them from theme partk, movies, toys, etc. Its very successful media entertainment company. It captures all gaes from kids to adults. Many asian kids who have never been to DisneyLands before still know what mickey mouse is. Its pretty amazing how many kids who dont know much about disney know about mickey mouse. Very nice Blog, thank you
13 comments:
Pat's out there on the internet!
1To: All
From: C P Stack
Re: Blog Entry
Date: July 23, 2007
This blog entry will examine the concepts of synergy, extension and franchise in the context of media. Disney Corporation will be used as an example of these three business applications.
Disney Corporation (DIS) is the largest media and entertainment corporation in the world. It is a component of the Dow Jones Industrial Averages. Disney 2006 revenues exceeded $34 billion. Disney products and cultural inculcation is ubiquitous.
SYNERGY: Organizations that enter into an agreement to share certain proprietary products. Typically, it is a “one plus one equals three” arrangement. Disney pioneered synergistic marketing in the 1930’s when they entered into agreement with several disparate groups for the purposes of cross-marketing the image of Mickey Mouse, which was the creation and property of Disney. This horizontal integration occurs when one organization holds interest in multiple channels of distribution. Simply said, synergy allowed Disney to profit from allowing its products to be marketed in non-conventional venues. For example, a wrist-watch manufacturer places the image of Mickey Mouse on the dial faces and thereby increases sales to children (or adult aficionados).
EXTENSION: An attempt to expand into new markets by using new delivery systems or platforms. Using Disney again as an example, the establishment of Disneyland, an amusement / theme park, represented Disney’s desire to further utilize this medium (park) as a means of distributing more products. Disneyland became an “extension” of their original product, an animated cell called a cartoon. Mickey Mouse was the main character and was found to be seductively attractive to children. This article will not speculate on why this character was so popular.
Disney’s theme parks located in California, Florida and Paris are a fantastic extension from the introduction of Mickey Mouse. Few could imagine the monumental effect Disney’s product would have on generations of children. Children in America, Europe and some of Asia have been affected by this Mickey Mouse phenomenon. The product has been marketed in every way: wrist watches, full length motion pictures, apparel, toys, candy, cruise lines and even skull caps with mouse ears. The extension of marketing seems to be limitless and timeless.
FRANCHISE: An effort to market a product under a particular brand. The brand is the property of someone or some corporation and is made available to another party for consideration. Disney has allowed outside interests to recreate inventions of Disney for profit. Using franchise in this context, coordination of efforts for the purpose of enlisting the public’s preference and even devotion to fictional content.
Disney has created a “lovable” character in Mickey Mouse. Satchi & Satchi, an advertising agency, has referred to Disney as being a “love mark”; a visionary company which has captured the emotions of an audience through franchising and further exposing their products.
Wherever there is persuasion, there is rhetoric and wherever thereis meaning there is persuasion.
Choice is tragic.
Pat, welcome to the world of the "internets" as GW would say. Have you discovered "the google" yet?
Couple of house cleaning items. First off love the use of the word "aficionados." Second, there is something a bit perverse about a mouse seducing children. Although I can say that I was seduced by the rat in the film Ratatouille. It's the first time that I've actually stood and applauded a motion picture.
I like your succinct definitions of synergy, extension, and franchising. One of things you may have forgot to mention, that Chris actually brought up in class, is that Disney is a major media conglomerate owning ESPN and the ABC family of networks http://corporate.disney.go.com/corporate/overview.htr
Pat,
Just a quick question about your synergy comment. I get the overall meaning of how Disney has incorporated a synergisitc appoach, but could you explain to me the 'one plus one equals three' concept, maybe I'm thinking to much into it or not enough.
In terms of expansion that may be helpful for topics of conversation that have been brought up inour class could also be Disney's expansion into the video game world. They have a significant number of games that I remember growing up playing that were directly linked to Disney, it's characters and brand. A few examples would be The Mickey Mousecapdes, Duck Tales, and Disney's Aladdin.
Overall, impressive insight into a company that has certainly grown tremendously from its signature 'Mickey Mouse'
It’s amazing how the Disney Corporation used synergistic methods back in the 1930’s right?! Anyways, I thought that you had good descriptions and examples of each of the three categories. One thing that I think would be worth you mentioning would be the Disney Channel. As a young child, I watched numerous programs on the channel, everything from Mickey Mouse cartoons to original programming. I remember watching sneak previews of Disney films going to the big screen and seeing all the behind the scene footage. Also when a new exhibit or ride would open up at Disneyland or world, there would be countless advertising on the channel promoting it. Now I believe the channel is a little different than it once was, but I know they still do sneak peaks of films.
One more side note, just last week, Disney banned smoking in their films, trying to use their influence to promote anti-smoking campaigns http://news.yahoo.com/s/nm/20070725/film_nm/disney_smoking_dc.
I agree with all previous comments about your definition of the terms.
It is truly amazing to think about what Disney has accomplished over the years. Not only have they been a significant part of my growing up years, I see them being a huge part in my nieces' lives.
I think one of their biggest appeal is their ability to cater not only to children but to adults also. The movies they put out generate young fans as well as old fans. I am with Dave on being seduced by the rat in Ratatouille.
Pat;
Your blog was an excellent discussion of the key concepts for the course. I am wondering if you will be doing Disney for your final project... I know that they have a couple of 2nd life/playstation type virtual worlds for children and a host of social networking sites (where I suspect they are cutting edge at hooking kiddies). Definitely look into these aspects for a good final project.
About the question of defining synergy, I think 1 + 1 = 3 is a perfect definition of the win-win and then some quality of synergy... the idea being that when the total outcome is greater than the mere sum of the parts... you have synergy! Its what anyone would want, now we want to discuss strategies for maximizing the potential of synergy and the risks of overextending in search of it... etc.
Its a very nice and clear about synergy, extention, and franchise.
I had a difficult time understanding it before and I could make the point clear from your blog. Yes Disney is a very good example of thoes Professor G mentioned in class. Disney does a lot of franchaising, we can see it from toys, from fast food resturants, and many places. Everyone would know wut Disney is.
People know them from theme partk, movies, toys, etc. Its very successful media entertainment company. It captures all gaes from kids to adults. Many asian kids who have never been to DisneyLands before still know what mickey mouse is. Its pretty amazing how many kids who dont know much about disney know about mickey mouse.
Very nice Blog, thank you
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