The Analysis of Brand from Theoretical Perspective Can Help Us to Understand the Challenges

Introduction

The analysis of Brand from theoretical perspective can help us to understand the challenges of it and to propose better way on the establishment of brand strategy. Because brand becomes social phenomenon and it is hardly to describe characteristics or illustrate ideas without considering brand.(Wally Olins, 2003)

At a time of product adulteration, it means quantity and price, but nowadays the brand becomes standing for the all of a company and their products.(Wally Olins, 2003).

In this assignment, it would be compared with Walt Disney picture (Disney) and Dreamworks Animation(DWA) as keen competitor in business, because Disney has stood unchallenged position but it had be in hot pursuit of DWA since 2004.

Background

The Walt Disney Company is one of the largest media and entertainment corporations in the world. It Founded on October 16, 1923, by brothers Walt and Roy Disney as an animation studio. They have produced famous characters, Mickey Mouse and Donald Duck, and a number of memorial animations. (Disney official web site, 2008)

DWA began in 1994 as an ambitious attempt by Steven Spielberg, Jeffrey Katzenberg, and David Geffen to create a new Hollywood studio which is producing and distributing of commercial movies and animations. In particularly DWA is producing the animations that set a goal of teenagers and adults. (DWA official web site, 2008)

Figure 1 The Market Scales and Forecast of Animation Industry

(Source : Pricewaterhouse Coopers, 2003)

Market and Business Factors

North America is becoming standard that estimate success of global.(CAPA, 2004) World animated film market shows gradually increasing even from beginning of 2000’s, and illustrates growing rate of around 5%.(Figure 1)

Particularly the market share of United State demonstrates the interesting outcomes. DWA has introduced first film in 1998 and reduced the gap with Disney through ‘Shrek’ as starting point in 2001. Finally DWA accomplished the top of market share with ‘Shrek 2’ in 2004.

(Figure 2)

Figure 2 The Market Shares of Animation in United State (Source :KAPA, 2004)

Figure 3 The Market Strategy of Disney and DWA (Source : KAPA, 2004)

It seems that both companies have different attitudes to the market from a view of segmentation even though they aim same market in their business. Disney focus on the audiences centered children and family, but DWA has a different strategy which concentrates teenagers and adults. (Figure 3)

Brand Strategies

Many people remind fairy tales, dream and hope from a name of Disney. Because they produced animated films and also their series of business were achieved under the brand slogan titled “delivering a sound pleasantness for children” since 1938.

It can play a role which strongly implants the brand image that is a friend of children into people. On the other hand, DWA aims producing animated film which can be enjoyed all age group. Jeffrey Katzenberg announced “We will take the different way because there is the best animation company for children already.”(Guardian, 2001)

Thus the brand, market, product and competitive strategies of Disney and DWA are explaining in Figure 4.

Figure 4 Strategies of Disney and DWA

Types of Brand Model

Aaker’s Brand Trap

D.A.Aaker discriminated the brand identity as a comprehensive concept from the various concepts relevant brand. He presented four all-too-common identity traps as distinguished elements from Brand identity. (D.A. Aaker,1996, Figure 5)

Figure 5 Brand Identity Trap s (Source : David A.Aaker, 2002)

Kapferer’s brand identity prism

The concept of brand identity was mentioned for the first time in France by J. Kapferer, and the importance of the concept and its understanding quickly disseminated in the entire world.

According to J. Kapferer, brand identity could be defined by ‘Brand Identity Prism’ and departmentalized six parts; physique, personality, relationship, culture, reflection, and self-image. (J. Kapferer, 1992, Figure 6)

Figure 6 Brand Identity Prism (Source : J. Kapferer, 1992)

Analysis using Brand Model

Aaker’s Brand Trap (Brand Image and Brand Position)

Brand identity is the concept that the company wants the customer to perceive their product or brand, and brand image means the totality of consumer perceptions about the brand. (David A.Aaker, 1996) According to A.Wheeler, Brand is the promise, the big idea, and the expectations that reside in each customer’s mind about a product, service or company. (Wheeler, 2006)

Brand identity of Disney can be viewed as a set of customer’s values and suitable with brand image occupied in customer’s minds. The customers associate Disney with dreams, hopes, fairy tales, magic and fantasy as a brand image. (Figure 7)

Figure 7 Analysis by Brand Image Trap

Disney can stimulate children to imagine their dream and adults to recall their childhood because the logo of Disney stands for fantasy castle.

But it is hard to recognize that the brand identity of Disney has a comprehensive and expansive meaning because the brand identity of Disney has been lasted without changed.

The brand image trap occur when their image inadequacies by changes in customer’s needs. (D.A.Aaker, 1996) Disney clearly reveals the concentration like a mission on their animations, it might be shows the limited roles, the tenacity which should be giving a moral precept and the emphasizing to be happy-end. (Figure 8) But the new customers expect and request more new experiences and better life as time goes by. (John Burnett and R. Bruce Hutton, 2007)

Figure 8 Disney’s Major Animated Films

On the other hand, customer’s image of DWA seems to be uncommon pleasure, different interesting from Disney and adult’s taste. (Newsweek, 2005)

Generally, animated films focus on children but DWA’s products aim all the people. Although DWA make animations which children like, it seems that they have a hope to generate the product which people like. . (Figure 9)

Figure 9 DWA’s major Animated Films

Positioning is how a product appears in relation to other products in the market from the customer’s position.(L.Chernatony, 2006) Brand position trap occurs when the search for brand identity becomes a search for a brand position. Generally it is natural to focus children in animation market, and it is not too much to say that this point of view comes from Disney.

Figure 10 Analysis by Brand Position Trap

Disney has the position which is focusing children in the market and their strategies of brand identity are aiming the children and family.(Figure 10) As can be seen from the logotype reminded a fantasy and the product derived from fairy-tales that might confines its brand identity within the children as customers. Like brand image trap, the limited brand identity might restricts its brand position.

On the other hand, DWA has a different position and product style from Disney and it can expand the region of marketing and brand identity of DWA indicates comprehensive notions more than present one.

Kapferer’s brand identity prism

These six dimensions of this prism enable company to assess the differentiating features of a brand. (L.Chernatony, 2006) Disney’s brand identity includes dreams, hopes, fantasy and friendship with children and family from every viewpoint. (Figure 11)

They have the conditions that can be surviving as a powerful brand, which is durability, coherence and realism.(Kapferer,1992) But Disney might be seen the remaining unchanged because they did not reflect the change of value with the times.( John Burnett, 2007, Mark J. Kay, 2006, John M.T. Balmer, 2006)

Figure 11 Disney brand Analysis by Kapferer’s Brand Identity Prism

From Figure 12, it can be shown that the DWA’s brand identity allows customers to aware of parodies and pathos that can be felt from the black comedy in spite of the animated films. It can deliver new experiences to audiences and might be a differentiating element. Accordingly it seems that DWA’s brand identity has a flexible attitude that opened forward the future.

Figure 12 DWA brand Analysis by Kapferer’s Brand Identity Prism

Results and Suggestions

Brand identity should have differentiations of core ideas and it is necessary to break existing conventions surround a business.(Wally Olins, 2003) As mentioned above, Disney which is pursuing the only-one value with 80 years tradition is even more daunting in animated film market, and DWA which is success to involve various audiences by differentiation is becoming new intimidator against Disney. (Figure 13)

Figure 13 Box Office Records of Animation Companies (Source : www.boxofficemojo.com)

Recently Disney is trying to break the tradition mould. They are spending much time to create the new story and high technology. (Figure 14)

Figure 14 New Attempt of Disney (Source : Disney Official Web Site)

Thus, new challenges of Disney allow the brand identity to switch future-oriented and to expand scope of brand identity. DWA will be necessary to develop the range of products and to establish various differentiation strategies in order to make sustainable and powerful brand.

Conclusions

Brand identity is the most important integrated strategy method which can be positioned brand image in a direction the company want to be and core value of company.(Keller, 1998)

In this assignment, brand identities of Disney and DWA were analysed and compared by brand identity frameworks. The results allow us to understand that ‘BRAND IDENTITY’ should be a reflection of company’s present and future from customer perspective, and it means vision, final aim and comprehensive ideas. In particularly, Aaker’s Brand Trap and Kapferer’s Brand Identity Prism are seen as useful and efficient analysis methods that provide problems of brand and propose direction to improve.

References

Aaker, D. A. (1996) Building Strong Brands, The Free Press.

Alan Bergman (President, Walt Disney Studios) (2008) Merrill Lynch Media Fall Preview Conference, September 2008

Box Office Mojo (2008) All time box office [Online] Available from;

http://www.boxofficemojo.com/alltime/domestic.htm [Accessed 24 November 2008]

DreamWorks Animation (2008) Company Overview [Online] Available from;

http://www.dreamworksanimation.com/ [Accessed 24 November 2008]

Fournier, S. (1998) Consumers and Their Brands: Developing Relationship Theory in consumer research, Journal of Consumer Research.

Interview: Jeffrey Katzenberg, DreamWorks founder and Shrek producer (2007) The Independent 22 June 2007 [Online] Available from:

http://www.independent.co.uk/arts-entertainment/films/features/ [Accessed 25 November 2008]

John Burnett, R. Bruce Hutton (2007) New consumers need new brands, Journal of Product & Brand Management

John M.T. Balmer (2006) corporate brands: what are they? What of them? Bradford School of Management, Bradford, UK,

Kapferer, J. N. (1992) Strategic Brand Management, The Free Press.

Keller, K. L. (1998) Strategic Brand Management, Prentice Hall.

Korea Animation Producers Association (2008) Statistic Materials [Online] Available from;

http://www.koreaanimation.or.kr/mainframe.html [Accessed 21 November 2008]

Leslie de Chernatony, (2006) From Brand Vision to Brand Evaluation, ELSEVIER

Mark J. Kay (2006) Strong brands and corporate brands Montclair State University, European Journal of Marketing Vol. 40 No. 7/8

Nina Ziv, (2003) Digital and Wireless Innovation at the Walt Disney Company, Polytechnic University

Pricewaterhouse Coopers (2003) Entertainment and media outlook: 2003-2007

Simon, C, Sullivan, M (1993) The Measurement and Determinants of Brand Equity, Financial

Approach/Marketing Science

Serena Davies (2004) Film-makers on film: Jeffery Katzenberg, Telegraph, 12 July 2004 [Online]. Available from;

http://www.telegraph.co.uk [Accessed 25 January 2005]

Thomas, B. (1976) Walt Disney: An American Original, Disney Editions

Walt Disney (2008) The Walt Disney Company Overview [Online] Available from;

http://corporate.disney.go.com/corporate/overview.html [Accessed 22 November 2008]

Wally Olins (2003) On Brand, Thames & Hudson

Wheeler, A. (2006) Designing Brand Identity, John Wiley & Sons, Hoboken NJ.

DM 5502 BRANDING STRATEGY STUDIES

ASSIGNMENT ONE

Student No. 0822095

Jung-Keun OH

28.Nov.2008