This presentation was made in July 2016 as a part of marketing internship under Prof. Sameer Mathur of IIM Lucknow.

1. DISNEY CONSUMER PRODUCTS:
MARKETING NUTRITION TO CHILDREN
https://grumpymickey.files.wordpress.com/2013/08/walt-disney-quote-13.jpg
HARVARD CASE STUDY

2. CONTENTS
 HISTORY AND PRESENT
 THE PROBLEM
 CASE ANALYSIS
• CHALLENGES
• BUSINESS MODEL
• STRENGTHSANDWEAKNESS
• COMPETITION
 PROOF OF SUCCESS
 SUGGESTIONS FOR FUTURE

3. http://wallpapercave.com/wp/NMtx4Q9.jpg

4. HISTORY
1923
Mickey Mouse
was introduced.
1932
Merchandising business
was formally launched.
1955
Disneyland
started.
Michael Eisner becomes new CEO,
focuses on diversifying products.
1984
2003
Surpasses $3 billion in box office receipts.
Reaches the zenith.
2006
Segmented as 4 divisions
and valued at $32 billion.

5. https://secure.parksandresorts.wdpromedia.com/resize/mwImage/1/1280/720/90/disneyworld.disney.go.com/media/campaigns/1/media/fy16-national-campaign/DP/magic-kingdom.jpg
Disney now has four main business segments.
CURRENT SCENARIO
MEDIA NETWORKS
PARKS AND RECREATION
STUDIO ENTERTAINMENT
DISNEY CONSUMER PRODUCTS

6. This business segment is
our topic of discussion.
https://disneynewstoday.files.wordpress.com/2015/06/disneyconsumerproducts.png

7. DCP HAS SIX LINE OF
PRODUCTS
Softlines
(apparel, footwear, accessories)
Toys
Publishing Hardlines
(food, health, electronics and
stationery)
BuenaVista
Games
Home and Infant

8. THE PROBLEM
2-5YEAR OLD 14%
6-11YEAR OLD 19%
12-19YEAR OLD 1
OBESITY IN USA, 2005,
AS PERCENTAGE OF AGE GROUP
http://cdn1.listovative.com/wp-content/uploads/2014/07/childhood_obesity_1.jpg

9. SO,WHAT DOES DCP OR DISNEY HAVE
ANYTHINGTO DO
WITH CHILD OBESITY IN AMERICA?

10. DCP has signed a $2 billion deal
with McDonald’s to license its
products and use Disney
character toys as additions
to children’s meals.
DCP has also licensed out
its characters to many
candy and ice cream manufacturers
as well.

11. In 2004, Disney found itself in the middle
of a controversy, where media, critics and
parents were blaming ice cream producers,
fast food outlets as the reason for increasing
obesity among children in USA.
http://hallergard.com/Art/2010%20Caught%20in%20the%20Storm.JPG

12. COULD DISNEY CONVINCE CHILDRENTO
SWITCH OVERTO NUTRITIONAL FOODS?
https://valleyleisurelifestyle.files.wordpress.com/2013/08/child-obesity.jpg
Will she
choose
the fruit?

13. http://amazingbusiness.com/wp-content/uploads/2016/01/shutterstock_171542741-768.jpg
CHALLENGES
To increase the nutritional value of
Disney’s food products.

14. http://amazingbusiness.com/wp-content/uploads/2016/01/shutterstock_171542741-768.jpg
CHALLENGES
Making nutritious food appealing
to children.

15. http://amazingbusiness.com/wp-content/uploads/2016/01/shutterstock_171542741-768.jpg
CHALLENGES
Passing on their values to their
retailers as well, so that they
encourage nutritional foods.

16. http://amazingbusiness.com/wp-content/uploads/2016/01/shutterstock_171542741-768.jpg
CHALLENGES
Differentiating their product in
an already crowded marketplace.

17. DCP’S NUTRITIONAL GUIDE
CONTROLLED USE OF ADDED SUGAR
INCREASE IN FIBRE AND CALCIUM
NO ADDITIVES
MINIMIZE THE USE OF TRANS OR
HYDROGENATED FATS

18. http://matthewfraser-thismuchiknow.com/wp-content/uploads/2014/09/business.jpg
BUSINESS MODEL
OF DCP

19. https://cdn01.boxcdn.net/cdn/farfuture/xn5d3oVeCCFF7zZxq3nbY8cjXYFCo5RnKMNwYIZIG7g/md5:94d0c88439d6778e2633930014367964/sites/default/files/field_image_banner/2014/04/Hero_Business_Capabilities-Overview-desktop_0.jpg
The traditional model had the licensees
handle product innovation, manufacturing,
sales and marketing.
DCP was responsible for extending
the Disney brand to various merchandise.
It gave licenses to other businesses
to use Disney characters on their products.

20. In 2000,Andy Mooney was
appointed the DCP president.
He introduced two more models.
A sourcing model wherein products were designed
and created by Disney, but the licensee would handle
manufacturing, sales and marketing.

21. Second one was a Direct-To-Retail (DTR) model,
wherein the character rights were directly sold
to retailers likeWalmart,Target etc. Retailers then
sourced the manufacturing, sales and marketing.
DCP negotiated a DTR
relationship with Kroger,
the largest grocery retailer in USA.
The Disney Magic
Selections line was created as a
Kroger corporate brand.

22. Strengths
IMMENSE BRAND LOYALTY AMONG
MOTHERS AND KIDS.
9.16 BILLION HOURS
SPENT BY CONSUMERS
ON DISNEY PRODUCTS.
POSITIONEDAS A “MAGICAL”
PRODUCT INTHE MINDSOF
YOUNG KIDS. MAKES IT
UNIQUELY POSITIONED
TO COMPETITION.
PRIOR EXPERIENCE IN DTR AND GOOD
RELATIONSHIPS WITH RETAILERS.
http://joelfromcanada.com/wp-content/uploads/2013/09/Strengths.jpg

23. WEAKNESSES
THEY LOSTTHE FIRST MOVER ADVANTAGETO NICKELODEON.
SO,THEY NEEDTO DIFFERENTIATETHEIR PRODUCTS FROM COMPETITORS
https://aurorameyer.files.wordpress.com/2010/06/weakness.jpg
HIGH RISK.

24. COMPETITION

25. SPONGEBOB SQUARE PANTS AND DORA
THE EXPLORERWERETHEIR
MOST FAMOUS CHARACTERS.
THEIR PROGRAMS WERE SEEN BY
89 MILLION HOUSEHOLDS.
THEIR FOCUS ON NUTRITIOUS
FOOD HAS BEEN SINCE 2001.
IN 2006,THEY MERCHANDIZED
FRESH FRUITS ANDVEGETABLES.
https://smhttp-ssl-23575.nexcesscdn.net/80ABE1/sflashrouters/wp/wp-content/uploads/2015/02/Nickelodeon_Splat_Logo3.gif

26. https://pbs.twimg.com/profile_images/575042635171172352/kP-VewoF.png
TIED UPWITH DEL MONTE
FOODS IN 2006.
“HEALTHY HABITS FOR LIFE”
INITIATIVE LAUNCHED
FOR CHILDREN.
THEY MAINLY SELLVEGETABLES.

27. https://i.ytimg.com/vi/vZzzYoT8FH0/hqdefault.jpg
BUGS BUNNY,TWEETY, HARRY POTTE
ALL BELONGTOTHIS FRANCHISE.
In early 2006,Ready Pac, a
company which made
packaged fruits and
vegetables signed a licensing
agreement with WB.

28. SO,WHYWOULD DCP
SUCCEED IN
THIS PURSUIT OF
OFFERING NUTRITIOUS
FOOD TO KIDS?
Let’s look at some evidence.
https://s-media-cache-ak0.pinimg.com/736x/35/bf/e3/35bfe366582b8811753bcf7527766121.jpg

29. AS IS SEEN HERE,
THERE IS IMMENSE
GROWTH POTENTIAL
FOR A GREATER
MARKET SHARE.
1.

30. 2.
THEY USED FOCUS GROUPS, GROUP
SESSIONS AND SHOPPINGTRIPS WITH
MOTHERS.
MOTHERS PERCEIVED DISNEY AS A
HIGH QUALITY,TRUSTWORTHY AND
FAMILIARTO A LINE OF FOOD AND
BEVERAGES.
ALSO, CHILDREN INFLUENCED PURCHASE
DECISIONS. CHILDRENWERE INTURN
INFLUENCED BY PEER PRESSURE.
http://2.everyday-families.com/wp-content/uploads/2013/02/grocery-shop-mother-son.jpg

31. 3.
THIS EXHIBIT HERE SHOWS
THE NUTRITIONAL STANDARD
THAT DCP STABLISHED FOR
ITSELFAND HOW IT COMPARES
WITHTHE USDA NORMS.
THE DCP PRODUCTSARE
HEALTHY ANDTHIS RESONATES
WELLWITHTHE CUSTOMERS.

32. 4.
THEY HAVE AWIDE
VARIETY OF PRODUCTS
COVERING ALMOST ALL
CUSTOMER NEEDS.

33. 5.
RELATIONSHIPWITH
RETAIL STORES IS
GOOD ANDTHEIR
NETWORKS ARE
EXTENSIVE.

34. https://images8.alphacoders.com/496/496002.jpg
THAT IS GOOD ENOUGH
REASON TO BELIEVE THAT DISNEY
WILL BE ABLE TO HELP
CHILDREN SWITCH OVER TO
NUTRITIOUS FOOD.

35. And, finally, she chose the fruit.

36. So, what can DCP do to
keep the “magic” alive?
http://kingofwallpapers.com/magic/magic-004.jpg

37. Disney can launch new products
with new characters in it.
They can do TV shows where the Disney characters,
inform about the nutritional values of products.
Offering food services like lunch box
and out of home consumption in
restaurants.
Publish cookbooks.

38. DISCLAIMER
This presentation was made by Srikant Nair,
L.D.College of Engineering, Ahmedabad
as a part of marketing internship under
Prof. Sameer Mathur, IIM Lucknow.

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THANK YOU