Created by Sudhanshu Jaiswal, IIITD & M Kancheepuram, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow

2. Content :
1.HISTORY
2.CURRENT SITUATION
3.PROBLEM AND CHALLENGES
4.ANALYSIS
5.RECOMMENDATION
6.CONCLUSION

3. HISTORY

5. Income Statement, Walt Disney Company and
Disney Consumer Products, fiscal
2003–2005 ($ millions)

6. By 2006, Walt Disney Company was comprised
of four major business segments:
Media
Networks
Parks and
Resorts
Studio
Entertainmen
t
DCP

7. Responsible for extending the Disney brand to
merchandise.
Consists of 6 lines of
business
• Soft lines (Apparel, Footwear,
Accessories)
• Hard lines (Food, Health and beauty,
Electronics and stationery)
• Buena vista games
• Home and infant
• Publishing
• Toys

8. DCP’s licensing and distribution models
1. Traditional licensing model
2. Sourcing(designed and
create products by Disney but
manufactured and marketed
by licensee)
3. Direct-to-
Retailer(DTR)Entailed
partnering directly with
retailers

10. Current
Situation

11. 30 %
AMERICAN
KIDS ARE
OVERWEIGHT

12. 14 %
AMERICAN
KIDS ARE
OBESE

13. Disney is being held responsible
for rising obesity epidemic

14. It is facing pressure
from activists,
parents , government
to check their
offerings and
advertisement
activities
Government
imposed rules on
broadcasters asking
not to Encourage
excessive food
consumption.

15. With changing
licensing models,
retail industry
consolidation
and the obesity
epidemic,
DCP sees this as
an opportunity to
broaden and
rationalize its
product
offerings.

16. PROBLEMS
AND
CHALLENGES

17. Could Disney use its ‘magic’ to
switch children from sugary to
more nutritious diet? Could they
sustain?

18. Can Disney meet the
nutritional guidelines setup
by FDA?

19. What did they do?
Market analysis
DCP organized focus groups,
group sessions and shopping
trips with mothers to size the
children’s food market

20. Result of Research
1. Mothers perceived Disney
products with high quality,
trustworthy and familiar to line of
food and beverages.
2. They associated Disney with
“Magic”
3. Children influence purchase
decisions
4. Peer pressure and advertisement
influences children’s preferences

21. 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”
Conclusion and Action Taken
Established Disney Nutritional Guidelines
Using three licensing and distribution models
Decided to include fun graphics,
shapes, good taste and great fun

22. 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.

24. Can Disney use it’s brand image
to reach out to children?
or Does it bring down the brand
value of the Disney?

25. They took These decisions :
1. Products that already had broad appeal such
as milk or peanut butter need to be made “healthier”.

26. 2.Products that are already healthy and make them more
“fun”.
EX: Whole wheat pasta could be molded into character
shapes.

27. 3. Product with attractive packaging to inspire product sampling
.
Ex: making bottles in shape of characters.

28. Who will be their competitors and
how will they face them?

29. Their Competitions……
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.

30. Disney began licensing its characters to imagination
farm, a national fresh produce specially to serve as a
licensee to DCP , in march 2006

31. What are some of the
risks faced by DCP?

32. Pricing & Value
Disney Gardens products were
priced competitively within the
produce department, DCP
managers understood that its
products had to be affordable.

33. Legacy
Though they were confident
that the products would be
healthful, child-friendly and fun,
they had been subject to vocal
criticism in the past and
expected to encounter some
skepticism as a result.
They focused their attention on
DCP’s current strategy rather
than its legacy.

34. Differentiation & Competition
DCP managers believed that
the combination of a broad
product line, wide distribution
and the Disney brand would
win over Moms

35. Growth and distribution
Disney wanted to license or
develop additional lines. DCP
managers believed that the
company could differentiate
additional lines using
characters, brand and price.

36. ANALYSIS

38. SWOT Analysis
Strength
• Good image of brand
• Strong characteristic
• Cooperate with big retailers (Kroger and
Walmart)
Weakness
• Doesn’t have own manufacturing for DCP
• Growing criticism from activists, parents and
governments around the world about
contribution to the growing obesity epidemic
Opportunity
• Mothers beliefs and expectations about DCP
• Disney channel
• Leading licensors of character
Threats
• Competitors
• High expectations from mothers

39. RECOMMENDATION

40. 1.New characters should be created to handle the competition.
The extreme reliance on a small number of characters is not very good for
market products. The popularity of the characters is not guaranteed.

41. 2.The aggressive change towards
more healthy foods is a positive step.
The problem lies in competition. Not
having time to watch competitors may
give them lots of room for exploiting
the products that were being sold by
the company.
Big fast food producers, such as
McDonalds, can make other very
powerful partnerships with
competitors to come up with foods
that can offer very stiff competition
for the company.

42. 3. Healthy Food campaign for parents.
Parents must also tell their children about
the advantage of healthy foods and give
the children healthy foods on the right
proportion.
Parents must understand the importance
and advantages if their children consume
healthy foods on a right proportion.
Tell the parents that Disney already has
the products that meets the healthy food
standards.

43. 4.Promotion through kindergarten
Create children’s habit to eat healthy
foods since kindergarten Children must
understand the advantage of healthy
foods and the amount of foods they must
consumed

44. CONCLUSION

45. The application of good business development
strategies defines the success of DCP.
The development of products in accordance
with the current market requirements enables
the company to position itself as the leader in
the healthy foods production which has the
potential to sustain the business model.
Further implements of new marketing strategies
will bring the company to a new level of world
entertainment and food industry, and the
competitors may only attempt to catch up.

47. DISCLAIMER :
Created by Sudhanshu Jaiswal, IIITD & M Kancheepuram, during a
marketing internship by Prof. Sameer Mathur, IIM Lucknow