A Presentation analyzing the Harvard business school case - " Disney consumer products - marketing nutrition to children "

1. Disney
consumer
Products
Marketing
Nutrition to
children

4. 2005
• Disney is a $32
billion company
with $2.5 billion net
income.
• Disney’s Mickey
Mouse and Winnie
the Pooh are the
top earning fictional
characters.

5. Four Major Business Segments
Media and
Networks
Parks and
Resorts
Studio
Entertainment
DCP

7. Disney Consumer Products [DCP]
was responsible for extending the
Disney brand to merchandise ranging
from apparel, toys, home décor and
books to interactive games, food and
beverages, electronics and animation
art.
Types :
Softlines (Apparel , footwear)
Buena vista games
Home and infant
Hardlines (Food , Health etc.)
Publishing
Toys

8. DCP licensing and Distribution Model
• Traditional licensing Model (licensees handle
everything)

9. DCP licensing and Distribution Model
• Sourcing (Contract manufacturing , products
designed and handled by disney)

10. DCP licensing and Distribution Model
• DTR model [Direct to retailer]:selling brand and
character rights directly to retailers, bypassing
wholesale licensees

13. Packaged goods manufacturers, fast food companies were subject to growing criticism
from activists, parents and governments around the world who believed these companies
contributed to the growing obesity epidemic

14. Disney was licensing high calorie
foods that did contribute to obesity.

15. Can Disney find
a Solution?•

16. • Disney have to review the nutritional
composition of its food products.
• It must to gain its credibility among the public
by using its “magic”.
• Its Branded food Market share was around 1%
[2005] , so a revamp must be on the cards.

18. “We sent
Moms on shopping trips to
see the difference between
what they bought and what
kids wanted,” - Disney

19. • To develop “a quality range of
Disney integrated foods that
answers children’s daily needs in an
entertaining way—in short, good
food, great fun.

20. IOM recommendations
• Actively promote healthful diets for children.
• Create or reformulate children’s products to reduce calories, fat, salt
and added sugar while improving nutrient content.
• Develop an “empirically validated industry-wide rating system” for
labeling and advertising that appealed to children and conveyed
nutritional information.
• Enforce strict marketing standards and adhere to self-regulatory
guidelines for traditional advertising as well as “evolving vehicles”
such as the Internet
• Avoid linking “nutritionally questionable” products to admired
celebrities, sports figures, or cartoon characters (including the cross-
promotion of food with branded children’s programming.

21. Disney Nutritional Guidelines
Disney arrayed its portfolio of products into five
categories:
• main meal,
• side dish
• snacks
• drinks
• treats
Main meals—such as pizza, pasta and sauce, sandwiches, or cereal with milk—accounted for the
most calories per day (approximately 1,100) and treats, drinksand snacks the fewest at less than
90 calories per day each

22. • Disney’s goal was to balance its portfolio so that
85% of its products could be classified as main
meal, side dish, snack or beverage and only 15%
could be categorized as treats

23. • DCP began reformulating some products and
shrinking portions for others : as a result, by
September 2005, 75% of its U.S. products
complied with its nutritional standards
• The company planned to have all its products
brought into compliance or phased out by 2008

26. • First, DCP would offer products that already
had broad appeal such as milk or peanut
butter.
First, DCP would offer products that already had broad appeal such as milk or peanut
butter.

27. The second was to take products that were already healthy and make them more “fun.”

28. The third was to use packaging to inspire product sampling, such as making water bottles
in the shape of characters.

29. Imagination farms
DCP embraced a “whole foods first” philosophy and as a result, marketed fresh fruits and
vegetables in addition to its package products. Disney began licensing its characters to
Imagination Farms, a national fresh produce marketing company founded specifically to
serve as a licensee to DCP, in March 2006

30. Three-pronged product development strategy:
• Differentiate commodity produce through promotion
• Create value-added products through product preparation or
packaging
• Develop exclusive produce varieties that would yield more child-
friendly foods.

31. To differentiate commodities such as peaches and apples, PLU stickers (labels affixed to
individual pieces of fruit with 4-digit codes used to identify the fruit at the register) were adorned
with Disney characters

32. In addition to licensing produce through Imagination Farms, DCP developed a broad range of
products with Cincinnati-based Kroger Supermarkets
Disney began negotiating withKroger to establish a
DTR relationship for an exclusive line of Disney-branded product

34. Disney and Imagination Farms faced competition from many sources, including
commodity produce products, major brands such as Dole, Green Giant and Fresh Express
and, within the children’s segment, other entertainment brands such as Nickelodeon,
Sesame Workshop, and Warner Bros.
Nickelodeon
• In Fall 2005, spinach, baby
carrots and clementines
bearing SpongeBob
squarepants and Dora the
Explorer character images
began to appear on shelves.
• By the end of the 2005, unit
sales of Darling clementines
increased by almost 25%
after the Dora and
SpongeBob characters were
added to the product
packaging,
Warner Bros.
• Ready Pac planned to feature
Warner’s Bugs Bunny, Tweety
and Tasmanian Devil
characters on its Cool Cuts
Ready Snax single-serving
packages of fruit.
• Each package contained two,
2-ounce packages each of
grapes, apples and carrots,
which Ready Pac promoted
as lunchbox alternatives to
cookies, potato chips or
candy.!
In June 2006 Del Monte Foods, a
$3 billion U. S.manufacturer of
branded and private label canned
vegetables and fruit, announced
that it had signed a licensing deal
with Sesame Workshop, a
nonprofit educational
organization best known for its
Sesame Streetpublic television
program
Sesame Workshop

35. Key Performance Statistics:

36. More than 14,000 new food and beverage products entered the U.S. marketplace each year but less
than 6% were successful; the remaining 94% failed due to one or more factors, including lack of
consumer demand, ineffective marketing, lack of support from the public health sector or cost

37. Challenge of delivering high value at affordable price.

38. Focussing on developing ‘better for you’ products

39. Innovation that differentiates competitors with Disney and provides it a “Magic Value“.
Staying Ahead of competiton is neccessary.

40. Growth oriented business strategies must be given importance

41. • Extending its offerings from retail supermarket products to
food service (school lunch programs) and out-of-home
consumption in restaurants.
• Cookbooks, televising cooking shows for children, and linking its
nutritional efforts with exercise programs

42. Could the company make children to switch from
sugary, processed foods and become lifelong
converts to a nutritious diet?
Yes. Through Magic.

44. source
• Image Source : Google Images.
• Allownership rights belong to respective owners
• Images for educationalpurposes only.
• No Copyright infringement intended.
Presentationdone for internshipunder Dr. Sameer mathur, iim
lucknow.