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Incredible Marketing Muscle

By Steven Mallas – Updated Nov 16, 2016 at 4:35PM

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Will The Incredibles' mighty marketing machine ensure that the film performs beyond all expectations?

According to an article in last week's Hollywood Reporter, Disney (NYSE:DIS) will be supporting Pixar's (NASDAQ:PIXR) next animated juggernaut, The Incredibles, with an extraordinarily large promotional campaign (aren't you glad I didn't say incredibly?).

The CGI film about a family of superheroes will be the beneficiary of a media invasion involving several major companies: McDonald's (NYSE:MCD), SBC Communications (NYSE:SBC), Safeway, Procter & Gamble (NYSE:PG), and Kellogg (NYSE:K). Disney says that it will be the biggest push it has ever given to an animated property, with an estimated total value of more than $200 million. We can expect, among other things, Incredibles-themed Happy Meals, complimentary tickets to the film courtesy of SBC (if you subscribe to a broadband or satellite product), and a movie-related breakfast offering from Kellogg.

I wouldn't expect anything less. Not only is it important for Disney to make a mark with the film due to the fact that its movie slate has been having an off cycle, but one has to wonder if the Mouse wants to roar a little at Pixar. Don't get me wrong: The media conglomerate's No. 1 goal here is to generate profits for itself, not engage in silly politics. However, considering that Pixar couldn't come to terms with Disney over a new film deal, I have to wonder if there are thoughts of glee over at Buena Vista at the prospect of Pixar shaking a little at the concept of a world without the famed Disney machine.

I also have to think about the pressure Steve Jobs must be feeling. This guy is used to pressure; heck, he's CEO of not only Pixar, but also Apple Computer (NASDAQ:AAPL). Still, this next film has to be an unqualified, monolithic blockbuster because Pixar's success is predicated on its unique ability to deliver computer-animated hit after box-office hit.

Will its streak end with The Incredibles? Will Rick Munarriz's musings on collapsing moats come to pass? Dreamworks Animation is on fire this year, with Shrek2 grossing well over $400 million this past summer and Shark Tale faring better than I expected. Monsters, Inc. was the last film to be released by Pixar during the fall box-office season (Finding Nemo was released in the summer), and it opened with a take of over $62 million during its first weekend, eventually grossing over $255 million by the conclusion of its run (in the domestic market). The Incredibles must best this easily, opening ideally within a range between $85 million and $95 million and grossing significantly over $300 million (hopefully over $350 million, if possible) domestically to ensure that Pixar continues on its growth trajectory.

Dreamworks Animation will be going public soon, which can only signal that the competition for audiences of computer animation is going to be stiff (as well as the competition for investment dollars).

For more, see:

Pixar and SBC are both Motley Fool Stock Advisor recommendations. Subscribe to Tom and David Gardner's newsletter today risk-free for six months to learn more.

Fool contributor Steven Mallas owns shares of Disney.

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Stocks Mentioned

McDonald's Corporation Stock Quote
McDonald's Corporation
MCD
$245.95 (-0.80%) $-1.99
The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$99.50 (-2.60%) $-2.66
Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.43 (-1.51%) $-2.31
The Procter & Gamble Company Stock Quote
The Procter & Gamble Company
PG
$135.58 (-0.46%) $0.63
Kellogg Company Stock Quote
Kellogg Company
K
$73.04 (-0.77%) $0.57

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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