Companies and Brands

Disney's Brand Badly Damaged

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24/7 Insights

  • A recent analysis reveals that Disney’s brand valuation is sinking.

The Kantar BrandZ Most Valuable Global Brands is the gold standard for brand valuation. This year, the analysis showed that Walt Disney Co. (NYSE: DIS) dropped by 9% to $47 billion. It was one of only 14 brands out of 100 that lost ground

The methodology determining the value is complex and has a “black box” aspect, which may be a way to get brands not on the list to be valued by Kantar. Although this is a bit cynical, it would be a perfectly rational way to get revenue.

The company that owns the brand must be huge to reach its figure. Its primary goal is determining how people “feel” about a brand. A rotating polling effort covers 4.3 million people and over 21,000 brands. The brand must appeal to “relevant and potential” customers. It also must come “spontaneous to mind” in its category. Finally, how much does the brand alone contribute to “corporate value”? Anyone who does not see the black box aspect must not be paying attention.

Disney has been battered by both bad news and controversial news. Its earnings have been poor. It went through a public proxy fight with raider Nelson Peltz, who lost his efforts to get two board seats but made $1 billion on the transaction. Almost immediately after the fight, Disney posted abysmal quarterly numbers. There has also been a great deal in the press about charging customers at its theme parks unusually high ticket prices. Although any one of these might not be considered crippling to its image, taken together, they paint a grim picture.

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