This Presentation is the Case Analysis of the Harvard Business School Case-"Disney Consumer Products:Marketing Nutrition to Children" which is part of my Internship Under Prof. Sameer Mathur,IIM Lucknow.

1. Disney Consumer Products:
Marketing Nutrition to Children

2. HISTORY
1923: Disney Brothers Cartoon Studio
(The Walt Disney Company)
1932: First Academy Award for
Best Cartoon
1954: First Television Program
(The Wonderful World
of Disney)
1955: Disneyland,
California
1980-1990: Renaissance of Disney Animation
1996: Purchased media Company Capital
Cities/ABC for $19 billion
2003: First Studio to Surpass $3
billion in global Box Office
2004: Disney Consumer Products
(DCP) on a mission to
Improve nutritional value

4. $32
Billion Company
in 2005
$2.5
Billion Net Income
in 2005

6. Disney Consumer Products
(A global product Organization comprised of following lines of business)
ToysHome & Infant
Publishing Buena Vista Games
Food
Health & Beauty
Electronics
Stationary
Hard Lines
Apparel
Footwear
Accessories
Soft Lines

7. World’s Largest Licensor
Retail Sales of $23 Billion in 90 countries-
a 56% share of $41.2 billion character
licensing industry
10 year, $2 billion licensing deal with
McDonald’s and to offer toys with the
children’s meals.
Licensing of More than
2100 products.
DCP’S Merchandise Licensing

8. “Our Strategy then was,
‘Disney is about fun. We should be
in fun categories.’ ”
-Reid Leslie
Director of Food and Beverage (DCP)

9. $5.8
Billion

10. $5.6
Billion

11. DCP’s Distribution Models
Traditional Licensing
Model
Sourcing
Direct to Retail(DTR)
01
02
03

12. BESITY

14. REASONS

15. INCREASED PORTION SIZES

16. SUGAR SWEETENED BEVERAGE(SSB)

17. TELEVISION ADVERTISING

18. DISNEY SAW IT AS AN
OPPURTUNITY TO
RECONSIDER ITS RANGE
OF FOOD PRODUCTS
DISNEY FACED
CRITICISM FOR
CONTRIBUTING TO
OBESITY EPIDEMIC

19. MARKETING NUTRITION TO
CHILDREN

20. “RIGHT NOW, KIDS EAT THE WRONG
FOODS -AND TOO MUCH OF THE
WRONG FOODS. THE SOLUTION IS TO
PROMOTE HEALTHIER CATEGORIES”
-EMBOLA NDI, VICE PRESIDENT,
PRODUCT DEVELOPMENT

21. Could Disney use its “magic” to
switch children from sugary to more
nutritious diet ?
Could they sustain ?

22. “DCP DISCOVERED THAT THERE
WAS A GAP BETWEEN FOOD
CHILDREN REQUESTED AND
FOOD THEIR MOTHERS ARE
WILLING TO BUY FOR THEM”

23. DISNEY’S BRAND EQUITY
WOULD TRANSFER TO A LINE
OF CHILDREN’S FOOD
PRODUCTS SUCCESSFULLY OR
NOT?

24. • PEER PRESSURE & ADVERTISING
STRONGLY INFLUENCE KIDS
• THEY DEMAND NATIONAL OR
CHARACTER-DRIVEN PRODUCTS

25. • MOMS ASSOCIATE
DISNEY STRONGLY WITH
MAGIC-EVEN WHEN IT
COMES TO FOOD
• THE PRODUCTS NEED
TO MAKE KIDS FEEL
SPECIAL AND MUST BE
NON-PATRONIZING AND
MOM-APPROVED
MOM’S BRAND LOYALTY

26. DISNEY NUTRITIONAL GUIDELINES
Control levels of added sugar
Prefer to use whole
foods that intrinsically
dense in nutrients
Promote fiber
and calcium
Minimized the use of
additives
Contain no trans or
hydrogenated fats

28. GOAL
• THE COMPANY
PLANNED TO HAVE
ALL ITS PRODUCTS
BROUGHT INTO
COMPLIANCE OR
PHASED OUT BY 2008

29. “BETTER
FOR
YOU”

30. APPROACHES
1HOW DO YOU MAKE THE PRODUCTS
THEY ALREADY LOVE HEALTHIER?
2TAKE PRODUCTS THAT WERE ALREADY
HEALTHY AND MAKE THEM MORE
“FUN”.
3
USE PACKAGING TO INSPIRE PRODUCT
SAMPLING, SUCH AS MAKING THEM IN
THE SHAPE OF CHARACTERS.

31. “The Bottom line is that the
food has to taste good.
Kids Have to like it.
If the food is also nutritious ,
Moms like it too .
That is a WIN FOR EVERYONE.”
- Embola Ndi,
Vice President for product
Development(DCP)

32. IMAGINATION FARMS

33. Peaches, Apples, PLU Stickers
were adorned with Disney
Characters
Through Product Preparation
and Packaging
Yielding More Child-
Friendly Foods
Differentiate
Commodity
produce through
promotion
Create Value
Added Products
Develop Exclusive
Produce Varieties
Product Development Strategy
Three-Pronged
1
2
3
DCP
&
IMAGINATION FARMS

34. VALUE ADDED STRATEGY
• Don Goodwin, Product Marketing Consultant believed that this strategy would
ultimately differentiate and build the brand.
• To Debut a Lunch Box Program where fruit and vegetables would be packed in
3-ounce bags.
• Working with Produce Breeders to identify items in their portfolios which
suited to children.
• Retailers Sold Disney Farm Products at Market Prices.
• Shipping more than 1 million cases of produce across 60 SKUs.

35. “WE EXPECT COMPETITION, BUT WE
BELIEVE WE CAN BEAT THE
COMPETITION BECAUSE EVEN IF THEY
DEVELOP AND
MATCH OUR NUTRITIONAL
STANDARDS, THEY CANNOT ACCESS
DISNEY MAGIC”
-EMBOLA NDI,
VICE PRESIDENT,
PRODUCT DEVELOPMENT
THE COMPETITION

36. NICKELODEON
• TOP RATED U.S. BASIC CABLE NETWORK SINCE 1996
• Sales of Darling clementine's increased by almost 25% after
the Dora and SpongeBob characters were added to the
product packaging.
• In June 2006, They Extended Fresh Fruit And Vegetable Line
To Apples, Pears And Carrots.
• “MY GOAL IS TO HAVE EVERY FRUIT A KID WOULD WANT
TO EAT WITH A NICKELODEON CHARACTER.”
-TORRES, LICENSING VICE PRESIDENT

37. • Preschoolers’ consumption of broccoli
increased by 28%when branded with a
Sesame Street character.
• In June,2006 Del Monte Foods, a $3 billion
U.S. manufacturer Of canned vegetables and
fruits signed the licensing deal with the
Sesame Workshop.
• Del Monte peas , corn and green beans
featured Elmo, Grover and Cookie monster
characters on its labels.

38. • READY-TO-EAT FRUITS AND VEGETABLES
• Ready Pac planned to feature Warner’s Bug Bunny, Tweety and Tasmanian Devil
Characters on its Cool cut ready snacks package which contained two, 2-ounce
packages each of grapes, apples and carrots.

39. DISNEY MAGIC SELECTIONS
PRODUCTS

40. “We wanted to use Disney’s
storytelling and characters to help kids
understand and internalize
information-to communicate to kids in
fun , Disney way”
-John Henock, Team Leader
DCP Grocery Business

41. • 2nd LARGEST U.S. SUPERMRKET COMPANY
• PRICING AND BRAND EXCLUSIVITY WERE KEY TO
DISNEY’S DTR STRATEGY WITH KROGER
• TOGETHER , DISNEY AND KROGER SIZED THE
OPPORTUNITY AT $250 MILLION IN ANNUAL REVENUE

42. DISNEY
KROGER

43. SWOT Analysis
Strengths Weaknesses
O T
Opportunities Threats
S W

44. Strengths
• Good image of brand
• Largest Licensor of
character based
merchandise
• Unique and Diversified
Products
• Large Base of protected
intellectual property
• Co-operation with big
retailers (Kroger and Wal-
Mart)

45. Weaknesses
• Doesn’t have own
manufacturing for DCP
• Growing criticism from
activists, parents and
governments around the
world about contribution
to the growing obesity
epidemic.

46. Opportunities
• Moms’ beliefs and
expectations about DCP
Disney channel
• Leading licensors of
character
• Growth through New
Markets
• Changes in Technology
and Consumption
Patterns

47. Threats
• Competitors like Sesame
Street , Nickelodeon etc.
• High expectations from
mothers
• Availabilities of
Substitutes
• Piracy and Infringements
of Intellectual Property
Rights

48. PRICING & VALUE
LEGACY
DIFFERENCIATION &
COMPETITION
GROWTH & DISTRIBUTION
CHALLANGES

49. “WITHIN DCP WE WILL TAKE A
SHORT TERM HIT FINANCIALLY, BUT
WE’RE DOING THE RIGHT
THING AND GETTING GOOD
BUSINESS RESULTS”
-MOONEY AND DOLMON

50. SOLUTIONS

51. SOLUTIONS
04 02
.
03
01

52. 04 02
03
01
Collaborate healthy foods
with Disney programs
• Disney films shows healthy
foods consumed by the
Disney’s characters to affect
the children who watched
the film to also consume
healthy foods.
• Tell children who watch
Disney’s programs, the
disadvantages if they
consume non-healthy foods.
.

53. 04 02
03
01
Healthy Food campaign
for parents
• Tell the parents that Disney
already has the products
that meets the healthy food
standards
• Parents must understand the
importance and advantages
if their children consume
healthy foods on a right
proportion

54. 04 02
03
01
Introducing New Characters
• Disney could create new
character that has the
advantage of healthy foods
on their adventure. Children
like adventure and healthy
foods could be a big part on
their adventure.

55. 04 02
03
01 Awareness from the
Very Start
• Create children’s habit to
eat healthy foods since
kindergarten
• Children must understand
the advantage of healthy
foods and the amount of
foods they must consumed

57. THANK
YOU

58. DISCLAIMER
This presentation was created by Manal Shah under the guidance of Prof.
Sameer Mathur, during a summer internship mentored by him.
Prof. Sameer Mathur
IIM Lucknow
Manal Shah
NIT Jaipur