A case study about Disney.

1. DISNEYCONSUMERPRODUCTS
MARKETINGNUTRITION TO CHILDREN

2. 1955

3. Parks and ResortsMedia Networks
Studio Entertainment
DCP

4. 2.5$
BILLION NET INCOME
In 2005

5. Market Position
DISNEY
Warner Bros.
FOX
Consumer Products
Sales
Quantity
Quantity
Sales

6. Families
spent an
average of
9.16
billion
hours
with Disney
per year.

7. as of 2006…

8. as of 2006…
5.8$
BILLION
WORTH
5.6$
BILLION
WORTH
3.0$
BILLION
WORTH

10. Merchandise - Licensing
Responsible for product development and marketing of
Disney-brandedmerchandise!

11. PORTER’S
five
FORCES

13. OBESITY EPIDEMIC

14. 5-9 Years old
AMERICAN children
as of 2004…
30%
American
kids are
overweight

15. 5-9 Years old
AMERICAN children
as of 2004…
14%
American
kids are
obese

16. Reasons for obesity problem
INCREASED PORTION SIZE
SUGAR SWEETENED PRODUCTS
LACK OF EXERCISE

17. DISNEY FACED CRITICISM…
…FOR CONTRIBUTING TO
OBESITY EPIDEMIC

18. GOVERNMENT IMPOSED RULES ON
BROADCASTERS ASKING NOT TO
ENCOURAGE EXCESSIVE FOOD
CONSUMPTION

19. Kellogg and General Mills
increased
their advertising spending
on children television
channels

22. WILL DISNEY BE ABLE TO
EMERGE AS A LEADER IN
SOLVING THE
OBESITY EPIDEMIC ?
The
million dollar
question

23. Disney started
working
On its products

24. “OUR STRATEGY THEN WAS,
DISNEY WAS ABOUT FUN.
WE SHOULD BE IN FUN CATEGORIES”
- REID LEISE
DIRECTOR
FOOD AND BEVERAGES

25. IN WINTER 2004, DCP CONDUCTED
RESEARCH TO DISCOVER IF DISNEY’S
BRAND EQUITY WOULD TRANSFER TO A
LINE OF CHILDREN’S
FOOD PRODUCTS

26. DCP discovered that there was a
GAP BETWEEN food CHILDREN REQUESTED and
food their
MOTHERSARE WILLING to buy for them!

27. THERE WAS A GAP BETWEEN WHAT CHILDREN
REQUESTED AND WHAT THE FOODS MOTHERS
WOULD BUY
CHILDREN INFLUENCE PURCHASE DECISIONS
IIRESPECTIVE OF THEIR PHYSICAL PRESENCE IN
THE STORE
MOTHERS PERCEIVE DISNEY AS A HIGH QUALITY
BRAND
INSIGHTS FROM MARKET RESEARCH

28. • Peer pressure and advertising strongly influence kids’
preferences
• Kids demand products that make them ‘in’ with their
peers and that means either national or character-
driven products
• Kids want fungraphics andshapes, good taste, and great fun
INSIGHTS FROM MARKET RESEARCH

29. THE PRODUCTS NEED TO
MAKE KIDS FEEL SPECIAL AND
MUST BE
NON-PATRONIZING AND
MOM-APPROVED!

30. CAN DISNEY MEET THE
NUTRITIONAL GUIDELINES
SETUP BY FDA?

31. “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

32. ‘BETTER FOR YOU’
NUTRITIONAL GUIDELINES BY DCP

34. The COMPANY
planned to have all its
products brought into COMPLIANCE
or PHASED OUTBY 2008
DCP derived many of its
recommendations from the FDA’S DIETARY
GUIDELINES
Licences of incompetent and unwilling licensees
to be terminated

35. TRADITIONAL LICENSING
MODEL
SOURCING MODEL
DIRECT TO RETAIL(DTR)
Merchandise - Licensing

36. CAN DISNEY USE IT’S BRAND
IMAGE TO REACH OUT TO
CHILDREN?

37. THE COMPANY ADOPTED
THREE APPROACHES
TOWARD
CREATING DISNEYFOOD
PRODUCTS

38. OFFER PRODUCTS THAT
ALREADY HAD BROAD
APPEAL

39. TAKE PRODUCTS THAT WERE
ALREADY HEALTHYAND MAKE
THEM MORE “FUN”

40. USE PACKAGING
TO INSPIRE
PRODUCT SAMPLING

41. Guidelines…

42. Imagination Farms
It served DCP as a license in
fresh products!

43. To Differentiate Commodities Produce
through Promotion
Create Value Added Products through
Product Preparation
Develop Exclusive Product varieties
that would yield more child friendly
foods
DCP and Imagination Farms used three main
marketing strategies

44. KROGER DISNEY MAGIC
SELECTION PRODUCTS

45. DTR RELATIONSHIPS
WITH BIGGEST SUPERMARKETS
IN EUROPE
PRICING AND BRAND
EXCLUSIVITY
WERE KEY TO
DISNEY’S DTR
STRATEGY

46. WHO WILL BE THEIR
COMPETITORS AND HOW
WILL THEY FACE THEM?

47. TOP RATED U.S. BASIC CABLE
NETWORK SINCE 1996
Sales increased by
2% after the introduction of
Dora and SpongeBob
characters in product packaging

49. Preschoolers’ consumption of
broccoli increased by 28%
when branded with a
Sesame Street character

52. WHAT NEW CHALLENGES
DO THEY FACE WITH THIS
TRANSITION?

53. Pricing and Value
“ BUT FOR THESE PRODUCTS,
AFFORDABLE EQUALS VALUE,
NOT PRICE. WE HAVE TO
DELIVER QUALITY TO
REPRESENT OUR BRAND
WELL”
- MOONEY
PRESIDENT (DCP)

54. Legacy

55. differentiation and Competition
The managers believed that
a combination of wide
distribution, broad product
line and the Disney brand
would definitely win over
the crowd

56. growth and distribution
“Other retailers won’t turn our
products down because of the
Kroger relationship. We need to
find exclusives for them, too.
Their chief concern—and ours—
is that our products are
profitable for them”
- MOONEY
PRESIDENT (DCP)

58. DISCLAIMER
Created by ABHILASH BANUBAKDE, NIT
NAGPUR during an internship by Prof. SAMEER
MATHUR, IIM Lucknow.