Disney consumer products faces a problem of being seen as contributing to childhood obesity through marketing of unhealthy foods. Its current situation includes being the world's largest licensor but not having its own manufacturing. A market analysis found a gap between foods children request and what mothers buy, and that advertising strongly influences children. Disney has a positive brand perception. To address this, in 2006 Disney introduced new nutritional guidelines, reformulating 41% of products and developing new healthy options under the slogan "better for you". This included collaborating with farms and retailers to market fresh produce and exclusive healthy lines. It will take time to change consumer habits but coordination with stakeholders is needed for Disney to achieve its objectives.

1. Disney consumer
products.
Marketing nutrition to
children

2. index
• History
• Current situation
• Problem definition.
• Market analysis
• Recommendations
• conclusion

4. Media
and
networks
Parks and
resorts
Studio
entertain-
ment
Disney
consumer
products
Current situation:
The walt disney company:
Current situation

5. Publish-
ing
hardline
softlines
Beuna
vista
games
toys
Home &
infant

6. DCP was the world’s largest
licensor, with more than $21 billion
in retail sales of licensed products.

7. DCP’s distribution models:
• Licensees handled product innovation,
manufacturing, sales and marketing.
Traditional
licensing:
• Products are created and designed by
disney and licensees handle
manufacturing sales and marketing.
Sourcing:
• Selling brand and character rights
directly to retailers, bypassing wholesale
licensees.
Direct to
retail:

8. Disney was being held
responsible for contributing to
obesity among children.
Current situation

10. Causes:
1) Progressive increase in portion
sizes.

11. Causes:
2) Excessive advertising.
• The average child viewed more than 40,000
TV commercials annually, 50% of which were
for high calorie and high fat foods.

12. Hence USDA came up with standards
for marketing food:
• Actively promote healthful diets for children.
• Create or reformulate children’s products,
improving nutritional content.
• Develop an empirically validated industry wide
rating system for labelling and advertising that
conveyed nutritional information.
• Enforce strict marketing standards and adhere
to self-regulatory guidelines for advertising.

13. Current situation
• DCP estimated that
its brand food
products
accounted for less
than 1% of the
children’s market
in 2004.

14. The company’s changing licensing models,
retail industry consolidation, and obesity
epidemic offered DCP an opportunity to
broaden and rationalise its product
offerings.

15. Can Disney use its
magic to switch
children from sugary
to nutritious diet?
Problem definition:

16. Market analysis:

17. The research shows that:
• There was a gap
between the foods
children requested and
the foods their mothers
were willing to buy.
• Children influenced
purchase decisions
whether they were in
the store with their
mothers or not.

18. The research show that:
• Peer pressure and
advertising strongly
influence kids
preferences.
• Kids demand products
that make them ‘in’
with their peers.

19. The research shows that:
People perceived Disney
brand as-
• High quality
• Trust worthy

20. The results concluded that:
• To appeal to mothers the products must be:
• Portion controlled
• High quality
• Taste good
• Reduce fats and sugar
• REQUESTED BY CHILDREN.

21. SWOT analysis:

22. Brand recognition. high risk factor.
Strong diversification. doesn’t have its own
Cooperativeness. manufacturing unit for DCP.
Positive perception about
the brand & character competitors.
Popularity . Pricing competition.

25. Competitors:

26. What did they do??

27. In June 2006, DCP has decided to
change the nutritional content of
their products and introduce new
healthy products for children under
the slogan- “better for you”.
They established Disney nutritional
guidelines.

28. DCP- nutritional guidelines.
• Controlled level of added
sugars
• No added carbs and
hydrogenated fats.
• Minimize the use of
additives.
• Promote calcium and
fiber
• Prefer to use whole foods
that are dense in
nutrients.

29. This can be achieved through:
• Reformulating some
products.
• Shrinking portions for
others .
• Phasing out some others.

30. 41% of the existing products were
meeting the nutritional guidelines

31. Product development approach:

32. Make already appealing
foods like milk and peanut
butter, more “healthy”.

33. Take products that are
already healthy and make
them more “fun”

34. Use packaging to inspire
product sampling.

35. DCP began licensing
its products to
imagination farms, a
national fresh
produce firm in 2006.

36. Disney established a
DTR relationship with
kroger for an exclusive
line of disney branded
products.

38. Collaborate healthy food with disney
programs
• Disney films show disney’s
characters having healthy
food, to affect the children
who watch the film to also
consume healthy food

39. New characters.
• Disney could create new characters to
promote healthy food.

40. Conclusion

41. It is not easy for Disney to
revolutionize the market at once.
• It takes time to replace consumers old habits .
There must be very good coordination
between Disney and its stakeholders
for Disney to achieve its objectives.

42. Thank you.

43. Disclaimer
Prepared by G Sai Samhitha, BITS-Pilani
Hyderabad campus, as a part of marketing
research internship under prof.Sameer
Mathur, IIM Lucknow.