Disney Consumer Products
There are tough choices that are raising on whether the DCPEME will have to raise the office in the Beirut through the full time management of the employees, or rather appoint the part time local representatives of the markets as it aim to run the offices that are in Saudi. The office has the distributors that coordinate as they promote and represent the flow analysis of the products in the market. Efforts in the market deserve that, mediation to take place in case; there is any problem that may arise (Madden removed from air by ESPN, 57). The DCPEME needs to receive all the royalties that do entitle the sales that comes from merchandise of the Disney; in stopping the sales of the piracy products or the imports that are not under the authorization rule, special promotion through sponsoring events; and setting goals that have positive impacts on the products and in favoring the products that Disney manufactures.
The identification of the potential manufactures that are local need to have the licensee that will help the other consumers companies, that their products are legal by presenting the valid license. The seeking of the office in the Beirut will cost 250000 dollars in the first quarter for the full time employees 10000 dollars for the representatives that are half time marketers as the analysis cost was in the year 1994.Jeremy Carter was to encounter choices that were tough, and he was wondering on whether to involve himself in the Lebanese market and how to carry the transactions if his answer was to be yes. The introduction of the products, the level of the sequence and the channels of distribution were the problems that he was encountering as his key concerns were the product copyrights, the handling of the protection issues and the piracy concern were also troubling him. If Disney had to open an office in Beirut, there would be rewards in the Lebanon, but Carter feared the risk. There was a problem in signing the global license because no any distributor was willing to sign the agreements.
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The DCPEME would come up with the ways that would help in coordinating the distributors by encouraging them to carry more merchandise from Disney. The adverting funds and the sponsoring of the television shows were offering the Disney’s Euro entrance and the tour packages. The main problem was the official distributors that would have the financial strength and motivation in distributing more Disney products, and that, this would favor other materials thus, yielding higher profit margins .They also had to carry other Disney’s licensees in the product lines; e.g. A Disney’s licensees in the production line.
Besides that, there are other options of distribution that identifies the distributors in Lebanon that may sell Disney’s materials that are not yet in the market. There were the top ten distributors in Lebanon and in the category of distribution which Disney was competing with. One of the distributors was dealing with the brand toys that was including the Fisher-Price, Matchbox and Milton brandy. A methodical studies the line expertise of the products, the distribution ability and the strength offering the financial aids in distribution that would take approximately six months the DCPEME was to increase the figure of the Lebanese distributors, it was facing the challenges of supporting and coordinating the companies that are not familiar with the Disney’s products. In considering the either options, then DCPEME will determine on how to handle the request to the upper most. Most of the distributors required that, rights of the items to be in consideration, because the market was too small to accommodate the distributors that were competing.
The licensing was encouraged by the DCPEME in testing the new countries that had limited time before it could grant the rights. Granting the licenses to the local distributors would efficiently and effectively bring diversion: The Lebanese retailers do purchase Disney’s merchandise from the United States or fom the Disney licensees wholesalers and sell the products again in Lebanon. For the mean while, DCPEME has been contacted by other upcoming distributors that are wishing to carry Disney products. One company was Saudi retail store that was selling electronics and equipments and selling photographic materials. It was then interested in opening a store that was only selling Disney’s products as it was acting from the retailers to the distributors as to the other retailers. The DCPEME could license the Disney products to the existing retail stores.
The provision of the licensee would erase the products from the store owner as the Disney corner would was to offer the full array of its genuine products that were effectively merchandised, thus ensuring the continuity of the products, as Disney was launching them. The landmark for the Disney corner was the society living in Beruit that was improving on the awareness as it continues awarding the gifts towards the Disney’s products. Although the retail shops had various types of toys in Lebanon were 16 million per year, the Disney products were not that available for various reasons. First, Disney faced a lot of competition from the unbranded and branded products in Lebanon .The fisher price products was targeting the age of 3 and under set, that were 30 percent cheaper than Disney products. The fisher price later inserted the items in the local news papers and was running its promotions on its television through offering free samples causing the Disney’s items to lack some essence of the existence.
Secondly, the distributors were acquiring the Disney’s licensees.The USA licensee sold the Disney’s picture through the local distributors as the annual general retail sales that were in Lebanon. The price completion was tough, because there were some products that had no licenses, therefore, causing them to be cheap. This made the Disney products to continue loosing its values in Lebanon. Most of the products were existing, yet Disney was not familiar with what was affecting the market.
most of the computer games were available on Nintendo systems, though there was stiff competition from other outside companies, Disney’s best games was the best dealer in the year 1993,selling out after several weeks in the market, and this lead the retailers to get interested with the tapes ,though the compact disks were minimal at 5 percent of the households that had the CD players. The characters were the Mickey and the Minnie mouse, snow white and the Ariel that had concurrent beauty that added flavor to the products. The DCPEME had concentration on the merchandize that was ruling under the influence of its principality that made the films to succeed, as it was the target. Around 15 Disney’s licensees had the official distributors that monitored closely due to close and small market sales .Given the political stability, the licensees interest was to extract adequate sales that could make the sales to increase.
Thus, DCPEME had various options to rely on its licensees from its current distributors. In order to know the products that were to be introduced in Lebanon, Jeremy did research findings on the Lebanon’s parents to reactions on the various products from Disney. He also collected the data on distributors and the retailers from the product margin .With this information, he had to set out and consider which products had the highest potential sales in Lebanon. There was the category that included variety of the product lines that was differing in price and the target audience (Cumberland snaps up conservative-leaning series from Nelson in The Tennessean, 20). Few items were being imported illegally thus making Disney line of production that favored the teenagers to loose their taste and preferences as there was the completion between and among other upcoming companies in Lebanon.
Lacoste, was encountering privacy problems .,and therefore had too open stores in Beruit to allow the customers buy genuine products as they continue educating on how to hit the market. The main concerns of Carter was whether Disney had to build a high awareness for the merchandize in Lebanon, since his products would have been considered as piracy products which had made the scenario to develop in East Africa. The researchers had looked forward unto the price levels of the quality medium lines, the Disney tee-shirts at 20 dollars and the sweatshirts at the price of 30 dollars represented the product line in Lebanon, and the customers see it reasonable. Though one of the concerns was the act of perceiving the value of apparel, through the additional of the value originality would be provided.
on the other hands, sweatshirts and t-shirts were some times sold as gifts, and Disney thought that this would represent an important share of sale in Lebanon. At the outset, he might work internationally, to ensure the products are of quality and standard. Disney later came to understand that this is very hard because cheap products cannot compete with the expensive products. The company could therefore try to import some of the products from Asia, as the dollar sales of the products, were being distributed through retail outlets, could also be significant (Dempster, 65). On the side of the publications, the French language in the Disney’s magazine were distributed in Lebanon, through representing the annual sales of about 20000 picture books were the Disney publications .Most of the Lebanon’s children were in a position of understanding English and French.
The Lebanon schools were taught through the French language, and most publications of Disney were mostly Written in French language. One of the major French publications was to distribute a volume of 30 series of the picture books through featuring classic stories like PINOCCHIO and SNOW WHITE; the series was to be carried by each Lebanon bookstore followed by licensee personnel who was responsible for replenishing the inventory. The annual retail sales of the publications represented 10 percent of the licensees’ total sales in Lebanon (Tebbel, 45). The licensing agreement did not include the Lebanon, but Disney did not reject the sales, they continued helping the products to increase, as they introduced the awareness in selling the Disney stories to improve the characters of young children in LEBANON. In the early 1994, DCPEME commissioners focused, on the groups that were under the age of 18 years in order to comprehend how the parents were entertaining their children, and the activities that their children were carrying, and the Disney products they liked to purchase. The parent had the interview with Beruit and they got the household income and were ranked among the top 25 percent in Lebanon.
In addition to this, 200 children that aged between 8 and 18 years were put into test, in order to reveal the awareness of the Disney’s products. After the study, it was discovered that, parents viewed the television as a form of stimulating their children’s imagination-till the kids were about the age of eight years ;beyond that particular age, the televisions were considered negative, and as an activity of passiveness (Cumberland snaps up conservative-leaning series from Nelson in The Tennessean, 23). The children were encouraged to watch the cultural programs, but the parents were encouraged through reading stories from when the children were small to when they become grown ups. The plush toys were also appealing to the children aged between 1-4, who was forming the relationships that were emotional with the kinds of these toys. Beyond the age of four years, most children become interested in computer games, engaging in outdoor sports, watching and in watching the television. In conclusion, there so many brands in Lebanon that have licenses to carry the transactions, while others do not have licenses, thus, they end up making cheap products that makes most people to forget about the quality products from Disney.