Case study analysis of Harvard Business school's case study " Disney Consumer Products- Marketing nutrition to children"

1. Disney consumer
products:
Marketing
nutrition to
children
Abhinay Bandaru
NIT Surat

2. Abhinay Bandaru
NIT Surat
B.Tech-III

3. It’s not about just Disneyland….!
Walt Disney Company

4. Index
1)HISTORY
2)CURRENT SITUATION
ANALYSIS
3)PROBLEM DEFINITION
4)ANALYSIS
5)RECOMMENDATIONS
6)CONCLUSION

6. HISTORY
1923- Debut
of mickey
mouse in
steamboat
willie
1932- licensing
became a
formal business
unit
1950- expand
beyond film and
television
1955- opened
Disneyland in
Anaheim,
California
2004- the obesity
epidemic
2006- DCP
launches offering
of fresh fruits

7. By 2006 Walt Disney company was comprised of 4 major business
segments:
Media
networks
Parks and
resorts
Studio
entertainment
DCP

8. The Walt-Disney Studios Disney Consumer Products
• Walt-Disney Pictures
• Miramax Films
• Buena Vista Home Entertainment
• Disney Records
• Buena Vista Records
• Hollywood Records
• Touchstone Pictures
• Pixar Animation Studios
• Disney Theatrical Group
• Disney Hard Lines
• Disney Soft Lines
• Disney Toys
• Disney Press
• Disney Publishing Worldwide
• Disney Store
Disney’s Corporate Structure

9. Disney’s Corporate Structure
Media Networks Park and Resorts
• “
• Disney/ABC Television Group
• ABC Owned Television Stations
Group
• Internet Group
• ABC Radio
• Disney Land Resorts
• Walt Disney World Resort
• Tokyo Disney Resort
• Disneyland Paris
• Hong Kong Disneyland
• Disney Cruise Line
• Disney Vacation Club

10. Disney consumer products
Disney licensed it brand characters to
merchandise to be sold at retail outlets in
the following category:

11. Disney with
MC Donald's
In 1996, DCP signed an exclusive, 10-year, $2
billion licensing deal with McDonald’s that
gave the fast food giant the right to feature
Disney characters in its promotions and to
offer Disney toys with its children’s meals

12. DCP’s licensing and distribution
models
1. Traditional licensing model
2. Sourcing(designed and create
products by Disney but
manufactured and marketed by
licensee)
3. Direct-to-Retailer(DTR)Entailed
partnering directly with retailers

13. Present situation(1/3)
Media networks Parks and resorts
Studioentertainment DCP
BUSINESS
SEGMENTS

14. Present situation(2/3)
• It is facing pressure from
activists, parents ,
government to check their
offerings and advertisement
activities.
Disney is being held responsible for rising
obesity epidemic

15. Present situation(3/3)
It currently licenses packaged foods like candy, ice cream and few
cereals, juices, some fish and chicken (BUT mainly sweets and treats)

16.  With changing licensing models, retail
industry consolidation and the obesity
epidemic, DCP sees this as an
opportunity to broaden and rationalize
its product offerings.
In 2004,DCP estimated that its branded food products accounted for
less than 1% of the children’s food market.

17. Problem definition
Could Disney use its ‘magic’ to switch children from
sugary to more nutritious diet? Could they sustain?

18. Disney needs to reconsider the nutritional value of
their food products.
CHALLENGES

19.  DCP products need to meet USDA( united nations
department of agriculture) dietary guidelines.

20.  The food has to appeal to children and deliver
on the brand’s promise of magic.

21. Evaluation :
“You're dead if you aim only for kids.
Adults are only kids grown up,
anyway.”
Walt Disney

22. Market analysis
Organized focus groups,
group sessions and
shopping trips with
mothers to size the
children’s food market.

23. Observations
1. Mothers perceived
Disney products with
high quality,
trustworthy and
familiar to line of food
and beverages.
2. They associated Disney
with “Magic”

24. 4. Peer pressure and
advertisement influences
children’s preferences
3. Children influence purchase
decisions
Observations

25. Conclusion
NEEDS and WANTS
portion controlled, high quality, taste
good, reduced fat and sugar
fun graphics, shapes,
good taste, great fun

26. A quality range of Disney
integrated foods that
answer children’s daily
needs in an entertaining
way- “in short, good food,
great fun”
DCP’s new vision statement for food and
beverages

27. Disney’s nutrition guidelines
Nutrition control:
 Control levels of added
sugar
 Contain no trans or
hydrogenated fats
 Promote fibre and calcium
 Minimize the use of additive
 Prefer to use whole foods
that are intrinsically dense in
nutrients

28. Reformulate some products , shrinking portion for
others and phase out some products that could not
meet the guidelines.

29. Product development decisions

30. Decisions
1. Products that already had broad appeal such as
milk or peanut butter need to be made “healthier”

31. 2. Products that are already healthy and make them more “fun”.
• EX: Whole wheat pasta could be moulded into character shapes.
Decisions

32. 3. Product with attractive packaging to inspire product
sampling . ex: making bottles in shape of characters
Decisions

33. CUSTOMER
SEGMENTATION
Demographic segmentation:
Age: children and adults Behavioural segmentation:
Taste fun and “Magic”
Segmentation

34. Disney began licensing its characters to imagination farm, a national
fresh produce specially to serve as a licensee to DCP , in march 2006

36. STRENGTH
Brand recognition
Creative process
Strong diversification
Cooperate with big
retailers like Kroger
Responsiveness to market
WEAKNESS
Large R&D costs
High risk factor
Does not have own
manufacturing for DCP
Opportunity
Mother’s positive
perception of the Disney
brand
Disney character’s
popularity
Threat
Competitors
Differentiation form
natural produce products
Pricing competition

37. Indicators of strength

39. Why did Disney partner with Kroger and
not Wal-mart?
• Kroger had 12% market share and more number of
national outlets

40. Competition
ENTERTAINMENT
CHANNELS
COMMODITY PRODUCE

41. commendationsCreate new
characters
Additional characters will allow Disney to
expand their market share and improve product
differentiation

42. Disney films should show their characters consuming healthy food
and show the disadvantages if they consumed non healthy foods
Collaborate healthy foods with Disney programs

43. Improve packaging to provide nutritional facts, jokes and other child-
engaging information

44. Healthy food campaigns for parents :-
Parents must also tell their children about the
advantages of healthy foods and give the
children healthy food in right proportions
Tell the parents that disney already has the product that meets the
healthy food standards

45. Improve coordination between Disney
and its stakeholders
• Licensees are responsible for following the nutrition guidelines,
creating the product changes, conducting consumer taste tests,

46. Thank You