Disney Consumer Products- Case Study

1. DISNEY CONSUMER
PRODUCTS
M A R K E T I N G N U T R I T I O N TO C H I L D R E N

2. HISTORY OF
DISNEY
1

3.  1923: Debut of Mickey Mouse
 1932: Licensing became a formal
business
 1950: Disney expands beyond film &
television
 1954: Debut in first television program
 2004: Obesity Epidemic
 2006: DCP launches offering of fresh
fruits
v
b

4. Walt Disney Company comprises
of 4 business segments
 Media & Network
 Parks & Resorts
 Studio & Entertainment
 Disney Consumer Products (DCP)
v
b

5. DCP’s Licensing & Distribution
Model
 Traditional Licensing Model
 Sourcing (designed and create
products by Disney but manufactured
and marketed by licensee
 Direct to Retailer entailed partnering
v
b

6. Problem Definition
2

7. Problem Analysis
 Dis ney brand was accus ed of contributing
to wa rds the o bes ity epidemic.
 Dis ney needs to co ns ider the nutritio na l va lue o f
their fo o d pro duct.
 E s ta blis h credibility with government
manufacturers , parents & nutritionis ts .
 Children’s ta s te impa cts the co ns umptio n.
v
b

8. Problem Definition
Could Disney use its magic to switch
children from sugary to more
nutritious diet? Could they sustain ?

9. - Disney needs to
reconsider the nutrition
value of their food
products
- DCP products need to
meet USDA dietary
guidelines

10. - The food has to appeal
to children and deliver
on the brand’s promise
of magic

11. Market Analysis
3

12. Market Analysis
Organized focus groups, group sessions and
shopping trips with mothers to size the
children’s food market

13. Observations
 Mothers perceived Disney products with high quality, trustworthy
and familiar to line of food and beverages
 They associated Disney with “Magic”
 Children influence purchase decisions
 Peer pressure and advertisement influences children’s
preferences
v
b

14. Needs & Wants of
Consumer
- Mothers want portion controlled, high quality, taste good,
reduced fat and sugar
- Children want fun graphics, shapes, good taste, great fun

15. Disney’s Nutrition
Guidelines
Nutrition control:
 Control levels of added sugar
 Contain no trans or hydrogenated fats
 Promote fibre and calcium
 Minimize the use of additive
 Prefer to use whole foods that are intrinsically
dense in nutrients
v
b

16. Reformulate some products, shrinking portion for others
and phase out products that don’t meet guidelines
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17. Product Development
Decisions
4

19. Decisions Taken
Products that already had broad appeal
were needed to be made healthier
 Products that are healthy are needed to
make more “fun”.
Products with attractive packaging
v
b

20. Disney began licensing its characters
to imagination farm v
b

22. Strengths
- Brand recognition
- Creative process
- Strong diversification
- Cooperate with big retailers like Kroger
- Responsiveness to market
v
b

23. Weakness
- Large R&D costs
- High risk factor
- Does not have own manufacturing for DCP
v
b

24. Opportunities
- Mother’s positive perception of the Disney brand
- Disney character’s popularity
v
b

25. Threats
- Competitors
- Differentiation form natural produce products
- Pricing competition
v
b

26. Indicators of strength

28. Why did Disney partner with Kroger and not
Walmart?
• Kroger had 12% market share and more number of national
outlets

29. Competition
ENTERTAINMEN
T CHANNELS
COMMODITY PRODUCE

30. Recommendations
5

31. Recommendation
- Additional characters will allow Disney to expand their
market share and improve product differentiation
- Disney films should show their characters consuming
healthy food and show the disadvantages if they consumed
non healthy foods.
- Improve packaging to provide nutritional facts, jokes and
other child-engaging information
v
b

32. Recommendation v
b
- Parents must also tell their children about the
advantages of healthy foods and give the children
healthy food in right proportions.
- Tell the parents that Disney already has the
product that meets the healthy food standards.
- Licensees are responsible for following the
nutrition guidelines, creating the product changes,
conducting consumer taste tests,

33. Created by Vaibhav Agarwal, BITS Goa
during an internship by
Prof. SAMEER MATHUR, IIM Lucknow
Disclaimer