4. WHOFOUNDEDTHE
BILLIONDOLLAR
COMPANY?
• Walt Elias Disney along
with his brother Roy
founded Disney
Brothers Cartoon
Studio in 1923.
• Focused on animated
Film Making.
• In 1954 entered the
television with a series
“The Wonderful World
of Disney”.
• In 1955 expanded and
built amusement park
“DISNEYLAND”
5. 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 meals.
6. By 2006, Walt Disney Company was
comprised of four major business segments:
• Media Networks
• Parks and Resorts
• Studio Entertainment
• DCP
7. In 2006 it became a $32
billion company with a
net income of $2.5
billion.
10. AFTER ENJOYING
DECADES OF 25%
ANNUAL GROWTH, IN
1998 AND 1999,
DCP EXPERIENCED 10-
15% DECLINES IN SALES
IN THE U.S. AND
JAPANESE MARKETS.
11. DCP DECIDED TO USE 3 TYPES OF
LICENSING MODELS
TRADITIONAL MODEL
SOURCING MODEL(designed & create
products by Disney but manufactured and
marketed by licensee)
DIRECT-TO-RETAIN MODEL
12. Current situation
• Disney is being held responsible for rising
obesity epidemic.
• It is facing pressure from parents, activists,
government to check their offerings and
advertisements activities.
13.
14.
15. In the United Kingdom, the
Advertising Standards Code of
the Communications Act of 2003
ensured that broadcasters
followed a tough set of rules
regarding advertising food to
children, including a rule that
said that advertisements must
not encourage or condone
excessive consumption of food.
16. SITUATION
• DCP Had Been A Long-time Licensor Of
Packaged Foods, But The Portfolio Was Mostly
Sweets And Treats.
• In 2004, DCP Estimated That Its Branded Food
Products Accounted For Less Than 1% Of The
Children’s Food Market.
17. DCP EXECUTIVES BELIEVED THAT
THE COMPANY’S CHANGING
LICENSING MODELS, RETAIL
INDUSTRY
CONSOLIDATION AND THE
OBESITY EPIDEMIC OFFERED DCP
AN OPPORTUNITY TO
SIMULTANEOUSLY BROADEN AND
RATIONALIZE ITS PRODUCT
OFFERINGS.
23. Though as of June 2006 the company’s policy
stated that all new licensing contracts
needed to adhere to the guidelines, existing,
long-term contracts could only be changed as
they came up for renewal. DCP then used the
opportunity to share its nutritional guidelines
with its licensees.
Though as of June 2006 the company’s
policy stated that all new licensing
contracts needed to adhere to the
guidelines, existing, long-term
contracts could only be changed as
they came up for renewal. DCP then
used the opportunity to share its
nutritional guidelines with its licensees.
24. DCP knew that
along with
satisfying
nutrient
requirements
the food also
had to appeal
children.
25. MARKET
SURVEY
DCP discovered there was a
GAP between the foods
children requested and the
foods their mothers were
willing to buy for them.
31. STRENGTH
Brand recognition
Creative Process
Strong diversification
Corporate with big
retailers
WEAKNESS
Large R&D cost
High risk factor
No own
manufacturing for
DCP
OPPURTUNITY
Mother’s Positive
perception of the
Disney brand
Disney’s Popularity
THREAT
Competitors
Differentiation from
natural produced
product
Pricing competition
32.
33. DCP and Imagination Farms used a
three-pronged product development
strategy:
Differentiate commodity produce through
promotion,
Create value-added products through
product preparation or packaging, and
Develop exclusive produce varieties that
would yield more child-friendly foods.
34. “The normal size of a potato is six or seven ounces
but we package four or five ounce potatoes for kids
or perhaps higher-flavor, yellow potatoes,” said
Goodwin.
35. In Fall 2005, spinach, baby carrots and
clementines bearing SpongeBob
Squarepants and Dora the Explorer
character images, licensed by children’s
cable television channel Nickelodeon,
began to appear on supermarket 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
COMPETITORS
36. Sesame Workshop found that
preschoolers’ consumption of broccoli
increased by 28% when the vegetable
was branded with a Sesame Street
character
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 Street public television
program.
37. NEW PLANS EXECUTED
October 16, 2006
• Make nutritionally beneficial changes to the meals
served
• Eliminate added trans fats to served foods
• Children’s meals with low fat milk, fruit juice or water
instead of soda and other replacements
38. THE FUTURE
Publishing cookbooks, televising cooking
shows for children, and linking its nutritional
efforts with exercise programs.
Extending its offerings from retail supermarket
products to food service (school lunch
programs) and out-of-home consumption in
restaurants.