Group 9 Homework

Group member
1. Phạm Thanh Lam
2. Hứa Ánh Minh
3. Lê Nguyễn Tường Vy
4. Nguyễn Hoàng Bảo Trâm
5. Dư Hỷ Vy

DISNEY
1. What does Disney do best to connect with its core consumers?
- In 1970, Disney focused on customers including children, families, and
adults. Since the 1980s, it has adopted a strategy of reaching an older audience. Now,
its market includes all ages and cultures. c Disney connects with customers through
branding around creating magical experiences that evoke feelings of surprise and
excitement. Disney is known for its ability to tell stories that are both entertaining and
emotionally impactful. From animated films to theme park attractions, Disney creates
experiences that allow its customers to immerse themselves in beloved characters and
stories. In addition, Disney uses technology to enhance the customer experience, such
as the use of the Disney app to make theme park visits more seamless and
personalized. Additionally, the company has embraced virtual and augmented reality
to bring its stories and characters to life in new and innovative ways. Moreover,
Disney fosters a sense of community among its fans through social media, fan clubs,
and special events like D23, the official Disney fan club. This allows fans to connect
with each other and share their love for Disney's franchises and stories.
- Disney's core values, like the CEO's pledge when he said that Disney's
biggest challenge right now is to keep a 90-year-old brand relevant and current with
its core audience while remaining loyal. true to its heritage and core brand values.
2. What are the risks and benefits of expanding the Disney brand in new ways?
- In 1980, The Walt Disney Company expanded into new areas reaching an older
audience. It launched the Disney Channel, Touchstone Pictures and Touchstone
Television. 1990 when Disney entered the publishing field. International theme parks
and theatrical productions have reached many types of audiences around the world.
Today, Disney consists of five business divisions: The Walt Disney Studios, which
 create films, record labels, and theatrical performances; Parks and Resorts, focusing
on 11 Disney theme parks, cruise lines, and other travel-related properties.
 Disney not only grows its stores, but is always trying to add new products and
services. But brand extension brings many benefits as well as obstacles for the company
 Benefits:
 Build your brand awareness. Increase the presence of the brand in the market,
helping businesses have more business opportunities.
 Reach a better customer base, increase sales, and increase overall profit margins.
The business will also have a competitive advantage over rival companies that do not
offer similar products
 Save on new brand development costs. Brand extension is a free way of
advertising. The more famous the main brand, the more marketing costs are
significantly reduced.
 Brand market share is expanded under Brand Extension, customers can access and
consume newly launched products easily.
 Brand extension helps businesses compete with rival brands. If the rival brand
does not have a response strategy, the business will have a much better advantage.
 The major benefits of expansion are mass coverage, strong brand image and
increase in profit margins.The company Is able to attract new customers. By having
more consumers, Disney Is able to earn greater revenues. It has always seen that core
customers of Disney are children and families, but the company has nothing new to
target older audiences as the people of this age group have 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 gained the trust of its customers in the
field of entertainment now it should move ahead and expand in new sectors like
clothing, cups and decoration. Disney has already established its own channels and
movies…
Risks:
 Dilution of the brand: Expanding the Disney brand into new areas can
dilute the brand's image and reputation, leading to confusion and a loss of brand
equity.
 Inconsistent quality: When expanding the brand into new areas, it's
important to maintain consistent quality. If the quality of the new offerings is not
up to the standard that customers have come to expect from Disney, it can
negatively impact the brand.
  Disney also faces the risk of constant improvement, research and
overdevelopment as it constantly needs to find new initiatives and strategies to
expand its brand and stay ahead of the competition. .
 Continuous brand expansion is associated with high investment and high
risk factor. As a result, Disney has to invest quite a lot of money when expanding
its brand, and it can never be guaranteed whether this expansion will be successful
or not.
 Expanding the brand in a new way will face many risks. This could have
negative effects on the image of Disney's core brand.
 If brand extension products do not have an advantage over competitors,
brand extensions will easily fail.
 IKEA
1. What are some of the things IKEA is doing right to reach consumers in
different markets? What else could it be doing?
 Affordable and convenient
Thrift is a key element of IKEA's corporate culture. IKEA makes
people's daily lives simpler by providing trendy, cost-effective home
furniture. Since Kampard founded IKEA in 1943, the company has given
"low-income people access to affordable furniture just as much as the
wealthy." Even IKEA has become part of German culture: In 2009, the
Hamburg theater even staged an IKEA opera called "Wunder von
Schweden" (The Miracle from Sweden).
 Simple design (Sustainability and trendy are important factors)
IKEA always operates on the principle of providing furniture with
beautiful design and high applicability. In order to attract customers to
find the product.
Ikea first introduced flat-pack furniture (consumers would assemble
it at home) in the 1950s. The cost-effectiveness and convenience of
shipping were obvious. But flat-packed furniture also has an important
potential influence on consumers as they never tire of making their own
furniture. The simple act of touching the product can increase the overall
perceived value of the product. That plus the fact that the actual act of
assembling something so that it becomes a finished object creates a more
pleasurable perception of the object than if it were purchased in its
finished form.

 The media
"Love is complicated, IKEA is simple," was the message of an
IKEA advertising campaign.
Launching a catalog is not an exciting event, but IKEA has
successfully captured the attention of the public around the world by
inviting the memory athlete who currently holds the world record. Yanjaa
Wintersoul world to join the campaign. She was challenged to memorize
all 328 pages of IKEA's 2018 catalog, then took quizzes on Facebook
Live. Information about her amazing memory appeared in major
newspapers in more than 127 countries, giving IKEA $5.7 million worth
of media coverage for free.
 The campaign "Challenge 1m2" is a series of videos about small
living spaces broadcast on social networks. The idea behind the challenge
is quite simple: IKEA offers suggestions for users on how to optimize
small rooms, from baby rooms, kitchens, two-person bedrooms to family
rooms. The series attracted the attention of a large number of viewers,
becoming a hot topic of discussion for users around the world to share
their space-saving solutions. Since then, Ikea has been able to reach more
customers and understand their desires.
 Ecommerce
The company decided to enter the world of Internet selling since
2017, IKEA is investing in adapting the company to the new consumption
habits of the public, developing more digital services. In the past 12
months, the company has expanded its e-commerce strategy to 9 countries.
This makes it easy for Ikea to reach customers in different countries. In
2020, online sales account for about 10% of Ikea's total retail sales.
Distribution
The tastes and lifestyles of consumers in different countries. IKEA
is quick to address some of these issues and localize their products to a
certain extent without compromising on costs. It also studies local tastes
and tries to satisfy the needs of local customers. This not only helps IKEA
to increase sales, but also helps IKEA expand its market segment as well
as target customers while maintaining their loyalty.(In China, .... IKEA
has grown. The world's largest furniture retailer with about 300 stores in
38 countries and sales of 21.5 billion Euros in 2009. The leading countries
in terms of sales include Germany, 16%; the United States. United States,
11 percent; France, 10 percent; United Kingdom, 7 percent; and Italy, 7
percent).
What else could it be doing?
IKEA earns a huge amount of revenue because of its low price
strategy from consumers around the globe. However, IKEA does not have
stores in South Asian markets. South Asia has a huge market for furniture
especially in Bangladesh. Due to its low price strategy, IKEA could beat
any competitors in Bangladesh and India. Besides, South Africa, Mexico,
Brazil and Chile can be a profitable market for IKEA.
Developing competitive advantage – because IKEA has a low cost
structure, they should be able to expand the online market easily without
incurring too much additional costs. IKEA should also look at an
 expansion to the West Coast, particularly California. Also, expansion into
regions with enough people to sustain a store of their size.
Developing a strategic focus – going online is not only reaching
potential customers in less populated areas, it will also help customers to
catch up with competitors. Besides that, younger people (Gen Z) willing to
buy online more compare to the older people.
Use social media to get client input and raise product awareness
globally.
- IKEA may choose for eco-friendly items or technologies.
- Provide some smart furniture.
- Make use of social media to increase awareness
- Offer further discounts (e.g. seasonal discounts)
- Make useof catalogs for convenience
2. IKEA has essentially changed the way people shop for furniture. Discuss the
pros and cons of this strategy.
 IKEA's goal is to provide "reasonable solutions for a better life". The
company achieves this goal by offering a wide range of furniture and home
appliances at low prices. At this price the company can appeal to a large
market, especially those who are just starting out with a roeeng family. IKEA
offers good quality products at low prices. With prices customers can afford to
replace furniture and refresh their living environment more often. The low
price strategy governs product design, production and distribution. Products are
simply packaged to save costs for customers and eliminate time delays between
purchase and sale.
 Pros:
 One of the strengths leading to IKEA's success is maintaining a low
price strategy for furniture and household products to attract all types of
customers.
 Most IKEA products are neatly packaged in flat packaging that can
be easily assembled by customers at home. This is an innovative way to cut
management, inventory and packaging costs. Flat packages are easy to handle,
taking up less space both in the trucks they are shipped to and in the IKEA
warehouse. IKEA promotes flexible, customizable and composable furniture
designs. The combination of affordability and sustainability is key to this
success.
 The brand pays special attention to the direct customer experience at
the store premises. The floor plan is designed in a one-way format that allows
 the customer to see everything available. As a result, they may end up buying
even something they didn't even think about.

Cons:
 Although IKEA has many stores around the world, its reach to customers in
small cities is still limited. Customers can only find IKEA stores in major cities
or towns in various countries. For customers far from these cities or towns, it is
difficult to experience IKEA products directly. IKEA's exploitation market is
mainly concentrated in North America and Europe but ignores potential
markets with large populations such as Asia and Africa.
 Solution:

👉Opportunity to expand and develop a large market in South America,

Africa, China, India and Asian countries. Targeting low- and middle-income
customers in the above countries will make Ikea's sales increase significantly
in the future. Businesses can exploit online sales channels to save operating
costs. In addition to low-income customers, IKEA can offer more premium
products to attract upper-class customers.

👉Expanding business products is a great development opportunity for

businesses. In addition to household items, IKEA should take advantage of the
brand's reputation to sell more items that are easy to attract customers,
including electronics, exercise equipment ...

👉Implement and innovation technology the right way to increase

productivity, drive more revenue, and retain customers with a better shopping
experience.