A Harvard case study analysis CREATED BY VIJAY ARORA,COLLEGE OF TECHNOLOGY,PANTNAGAR DURING MARKETING INTERNSHIP UNDER PROF. SAMEER MATHUR,IIM LUCKNOW.

1. DISNEY CONSUMER PRODUCTS:MARKETING NUTRITION TO CHILDREN

2. HISTORY

3. MAJOR BUSINESS SEGMENTS

4. OBESITY EPIDEMIC
MORE THAN 30 % AMERICANS
BETWEEN AGES OF 5 & 9 YEARS
ARE OVER WEIGHT.
OUT OF WHICH 14% ARE
OBESE.

5. REASONS FOR
OBESITY PROBLEM
INCREASED USE OF FAST FOOD AND
SUGAR SWEETENED BEVERAGE
INCREASED PORTION SIZES
LACK OF EXERCISES

6. DISNEY
CONSUMER
PRODUCTS
RESPONSIBLE FOR
PRODUCT DEVELOPMENT
AND MARKETING OF
DISNEY BRANDED
MERCHANDISE

7. 6 BUSINESS LINES:
SOFTLINES
HOMES AND INFANTS
PUBLISHING
BUENA VISTA GAMES
HARDLINES
TOYS

8. DCP’S MERCHANDISE LICENSING MODELS
TRADITIONAL MODEL
SOURCING MODEL
DIRECT TO RETAIL (DTR)
MODEL

9. WHAT IS THE PRESENT
SITUATION?

10. DISNEY WAS ACCUSED CONTRIBUTING TOWARDS THE OBESITY
EPIDEMIC.THUS, DISNEY NEED TO RECONSIDER THE NUTRITIONAL VALUE
OF THEIR FOOD PRODUCTS AND ESTABLISH CREDIBITY WITH THE
GOVERNMENT MANUFACTURERS AND THE PARENTS

11. WILL DISNEY EMERGE AS A
LEADER IN SOLVING THIS
PROBLEM AND AVOID CRITICISM
REGARDING OBESITY EPIDEMIC?

12. MARKET RESEARCH
INSIGHTS
• There was a gap between
what children requested
and what mother’s would
buy.
• Children influence
purchase decisions
irrespective of their
physical presence in the
store.

13. DCP’S NUTRITIONAL GUIDELINES
•“Right now, kids eat the wrong foods—and too much of the wrong foods.
The solution is to promote healthier categories for kids like water, milk,
yogurt, and fruit, reformulate foods like cookies and cereal to be healthier
and to control portions,” said Ndi.

14. DCP derived many of its recommendations from the FDA’s
dietary guidelines
The company planned to have all its products brought into
compliance or phased out by 2008.
The company adopted three approaches toward creating
Disney food products.

15. OFFER
PRODUCTS
THAT ALREADY
HAD BROAD
APPEAL

16. PRODUCTS
WHICH ARE
ALREADY
HEALTHY MAKE
THEM MORE
FUN.

17. USE
PACKAGING
TO INSPIRE
PRODUCT
SAMPLING

18. IMAGINATION FARMS
Disney began licensing
its characters to
Imagination
Farms, a national fresh
produce marketing
company founded
specifically to serve as
a licensee to
DCP, in March 2006.

19. PRODUCT DEVELOPMENT STRATEGY
•DIFFERENTIATE COMMODITY PRODUCE
THROUGH PROMOTION.
•CREATE VALUE ADDED PRODUCTS THROUGH
PREPRATION
•DEVELOP EXCLUSIVE PRODUCE VARIETIES THAT
WOULD YIELD MORE CHILD FRIENDLY FOODS.

20. USE PLU STICKERS TO
DIFFERENTIATE
BETWEEN
COMMODITIES LIKE
APPLES AND PEACHES

21. TO MARKET STAPLE FOOD ITEMS,DCP
ESTABLISHED MANY STORE KEEPING UNITS

23. DCP developed a broad range
of products with Cincinnati-
based Kroger Supermarkets,
the largest pure grocery
retailer in the United States
with fiscal year 2005 sales of
$60.6 billion.
Pricing and brand exclusivity
were key to Disney’s DTR
strategy.

24. BETTER FOR U
PRODUCTS

25. WHO WILL BE THEIR COMPETITORS
AND HOW WILL THYE FACE THEM?

26. 1. NICKELODEON
2. SESAME WORKSHOP
3. WARNER BROS

27. WHAT ARE THE
CHALLENGES?

28. 1. PRICING AND VALUE
DCP FACED THE
CHALLENGE OF
DELIVERING GOOD
QUALITY PRODUCTS
AT AFFORDABLE
PRICES.

29. 2. LEGACY
Skepticism from
media and public was
expected regarding
the new products.

30. 3. COMPETITION
DCP MANAGERS
BELIEVED THAT THE
BROAD PRODUCT
LINE AND WIDE
DISTRIBUTION
WOULD WIN OVER
MOMS.

31. 4.GROWTH AND DISTRIBUTION
DCP managers believed
that the company could
differentiate
additional lines using
characters, brand and
price.

32. THANK YOU !!

33. DISCLAIMER
CREATED BY VIJAY ARORA,COLLEGE OF
TECHNOLOGY,PANTNAGAR DURING MARKETING
INTERNSHIP UNDER PROF. SAMEER MATHUR,IIM
LUCKNOW.