Mickey and Minnie are homeless

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Disney has a mouse problem. 

Even though the company posted record numbers last quarter, retail sales of all things Mickey and Minnie mouse are down by what is evidently a disturbing number.

Disturbing because for the first time in its history visitors, fans, and shoppers are choosing to buy all its other intellectual property (Frozen, Star Wars, Toy Story, etc.) instead.

The “pros” out there (and I use that term VERY loosely) say it’s not that big a deal considering Disney’s diversified character offerings.

But I (and the smart cookies at Disney) know differently…
And so should you.
“Line Extension” is a very naughty phrase when building a dominating brand.

In a nutshell, it means that when you launch a new line (of products, services, whatever…) it does not attract NEW customers or dollars spent.

Instead, it simply pilfers spendable dough from one hand and into the other.
So people are going into Disney parks and retail stores and instead of buying Mickey AND Chewbacca, they’re leaving the flagship product on the shelf and ONLY buying the new line.


Every biz needs to extract maximum lifetime total value per customer.

You launch new programs, products, services, etc. in order to grow that LTV.

NOT to have it run laterally on you.
Of course, Disney made over $20B last quarter, so they have the time and moolah to figure it out.

Most businesses don’t.

So here’s the answer…

(And any Disney VP reading this, you’re welcome!)
Create your own competition.

Disney paid over a combined $16B for Pixar, Star Wars, and Marvel.

The reason those companies commanded so much was because they came with a built-in fan base.

So instead of sticking Galaxy’s Edge (Star Wars land) in the Magic Kingdom or Disney store, they should have given it it’s own park/retail outlet/distribution/etc.

Heck, I’d even go as far as having Mickey & friends have one park and the Disney Princesses another.

EVERYONE will eventually get to EVERYTHING.

And if segmented and separated CLEARLY and distinctly like that, not only will fans buy all of it as it separates their purchasing decisions…

ie. “Of course, you can have a Mickey today sweetie! Even though I just bought you R2-D2 yesterday, and Captain America the day before that.”

But it also clearly SHUTS OUT any other outside purchasing decision. 
People are going to choose something…

Might as well make sure ALL the options flow back to you.

Happy to plan this out for your business as well:

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