Marvel Case Assignment 2

Marvel Case Assignment 2 - Issue Statement Marvel is a very...

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Issue Statement Marvel is a very profitable company in 2003 with a market value of $2 billion and $300 million in sales. Marvel has enormous about of market power within the comic/ superhero industry allowing them to have a strong customer loyalty. However Marvel currently needs to improve on diversifying their brand with other less developed character while keeping a competitive advantage in the market place. Situational Analysis Marvel is an extremely profitable company and has the most recognizable characters in the entertainment business. They have the first mover advantage in which they are the only entertainment business that solely focuses their business in superhero movies and merchandise. Marvel has dispersed themselves into three markets, which include comic books, toys and licensing agreements. Theses markets allow the company to create strong brand awareness; through having companies like EA use their characters in their video games or having action figures of their toys. The Marvel has some strong characters such as Spider Man, who are beloved by the consumer. However their lesser- known characters such as The Punisher don’t do so well in the market because the Marvel didn’t position this character in the market place as well as they did for character such as The Hulk and Spider Man. Therefore theses characters didn’t resonated with the consumers as well as the other characters did. Besides having strong brand awareness of a few of their characters, Marvel has a lot of money to spend on advertising. This is where they company gets their competitive advantage from. In 2003 the company spent $40 million on advertising. This creates strong brand awareness for the company because
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consumers are consistently seeing the brand where it is the theater or shopping centers. They have exclusive contracts with top artist to create their characters, giving them a competitive advantage. Licensing segment provided the highest gross profit for the company out of their three-market division, due to the amount of royalties they obtained from other business. Marvels consumers are extremely brand loyal, meaning if they like the character such as Spider Man they will buy all the products associated with the character. The
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