Why has Disney's merchandise revenue from Marvel-branded products decreased by 20% in the last six months?

Introduction

The recent 20% decrease in Disney's merchandise revenue from Marvel-branded products over the last six months is a significant concern that requires a thorough root cause analysis. To address this issue, I'll employ a systematic approach to identify, validate, and address the underlying factors while considering both immediate and long-term implications for Disney's product strategy.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking about potential seasonal effects. Has this 20% decrease been compared to the same six-month period last year?

Why it matters: Seasonal fluctuations could explain the revenue drop. Expected answer: Yes, it's been compared to the same period last year. Impact on approach: If not seasonally adjusted, we'd need to factor in typical fluctuations.

• Considering recent Marvel releases, I'm curious about the product mix. Has there been a shift in the types of Marvel merchandise being offered?

Why it matters: Changes in product offerings could impact overall revenue. Expected answer: There have been some changes in the product lineup. Impact on approach: We'd need to analyze the performance of new vs. existing products.

• Thinking about distribution channels, have there been any significant changes in how Marvel merchandise is being sold?

Why it matters: Changes in distribution could affect accessibility and sales. Expected answer: No major changes in distribution channels. Impact on approach: If there were changes, we'd focus on channel-specific issues.

• Considering the competitive landscape, have there been any notable new entrants or aggressive moves from existing competitors in the superhero merchandise space?

Why it matters: Increased competition could explain the revenue decrease. Expected answer: Some increase in competition, but nothing drastic. Impact on approach: We'd need to assess our market position and differentiation strategy.