How Disney grabbed the opportunity of the obesity epidemic and took decision to change their product line.

2. Decision&Effects
Hypothesis
Product Line
Brand
History

3. 1923
Debut of
Mickey
Mouse in
Steamboat
Willie
1932
Licensing
became a
formal
business
unit
1954
Debut in first
television program
1955
Opened Disneyland in
Anaheim, California
1980 s – 1990s
Renaissance of Disney
Animation
1984
Focus on
entertainment assets
2004
The obesity
epidemic
2006
DCP Launched
offerings of fresh
fruits

4. Soft lines &
Hard lines
Buena Vista
Games
Home & Infant Toys &
Publishing

5. Could Dis ey use it agic to switch childre fro
sugary to more nutritious diet ? Could they sustain ?
Problem Definition

6. Disney branded was accused contributing towards the growing
obesity epidemic
(Confectionery products, Uncontrolled eating habit)
Healthy foods for children
Disney need to reconsider the nutritional value of their
food products
Establish credibility with the government,
manufacturers, parents and nutritionist
Problem Analysis
Children’s taste impact the consumption

7. What they did?
 Establish Disney Nutritional Guidelines
 Using three licensing and distribution models
June 2006, Disney Consumer Products ( DCP ) decided
to change the nutritional content of their product and
introduce new healthy foods for children under the
slogan of Better for you

8. Disney Nutritional Guidelines
Nutrition control
1. Control levels of added sugar
2. Contain no trans or hydrogenated fats
3. Promote fiber and calcium
4. Minimized the use of additives
5. Prefer to use whole foods that intrinsically
dense in nutrients
Reformulating some products,
shrinking portions for others
and phase out some products.

9. Analysis

10. Needs, Wants & Demands
NEED:-Increase of OBESITY in Children.
• Countries & Parents bothered about it
WANT:- Change in FOOD habits
• Preferring NUTRITIOUS food for children
DEMAND:- Increasing Consumption of healthy foods
• Opportunity for new market

11. Targeting & Positioning
Target:-
Countries which have
Children suffering
with Obesity.
Target Customers:-
Parents who are
worried about their
Children
Positioning:-
Establish as a brand
which care about
health & which is fun

12. Value & Satisfaction
Customers associate
the brand strongly
with Magic & Loyalty
Already perceived as
the brand that
provides high value
and satisfaction
Disney Nutrition values
and portion sizes can
provide required Value
and Satisfaction

13. Marketing Channels
• Disney can
market through
it’s own
broadcast
channels
• Marketing through
the wide variety of
characters Disney
have by organising
campaigns on
streets and in
schools.
• Using the
epidemic Obesity
to create more
awareness of
having healthy
food and
promoting their
product.

14. Supply Chain
SOURCING
Designed and create
products by Disney but
manufactured and
marketed by licensee.
Traditional Licensing Model
Trading the license
of their characters
to other retailers
Direct-to-retail (DTR)
Entailed partnering
directly with
retailers.

15. COMPETITION
It was seen by 89
million households and
can be a tough
competition for Disney.
Ready Pac signed up
with WB and has good
market share in target
market.
Del-Monte signed of
with it and they have
popularity among
children with their
street characters

16. Disney
34%
Warner
10%
Nickelodeon
8%
Marvel
8%
Sanrio
7%
Lucas
5%
4Kids
5%
HIT
4%
Mattel
4%
Universal
3%
20th Century Fox
2%
Pokemon
2%
Sesame
2% Others
7%
0%
0%
0%
0%
0%
0%
Market Share

17. Alternatives
Healthy Program Line
Strong Brand & Image & Distribution Channels
Preferred by parent's & Govt.
Possible to loose broad Consumer Base
Keep Traditional Line
Keeping broad consumers base.
Preferable by common children.
Negative public opinion
Not supporting by government regulation
Alternatives
PRO’s CON’“

19. Conclusion
Not easy for Disney to change the market taste,
because it would take a long time to replace the old
habit into a new one
There must be coordination between Disney and its
stakeholder to get the objectives that Disney wants

20. SUMMARY
Disney got criticism for increase in Obesity in U.S. & other countries
because of their wide variety products and attachment of their brand
to children.
Disney and their managers saw opportunity in this controversy
and took a decision to pivot their food line of products and make
them more nutrition oriented.
This decision of Disney has it’s own pro’s and con’s. From
parent’s perspective it is a high valued decision. From company’s
perspective it is risky and one wrong step can lead to total failure.

22. DISCLAIMER
This presentation is prepared for marketing internship under Prof: Sameer Mathur by Sumanth
Reddy from BITS Pilani Hyderabad.