Disney Consumer Products launched a new healthy food initiative in 2006 in response to criticism over contributing to childhood obesity. It developed nutrition guidelines to make foods healthier by reducing sugar, avoiding unhealthy fats, and emphasizing whole foods. Disney partnered with Imagination Farms and Kroger to market fresh produce and other healthy items with Disney branding. While this strengthened the Disney brand with mothers concerned with nutrition, it also increased costs and risks while facing competition from other healthy and mainstream food brands. Disney addressed these challenges by creating new characters, collaborating on healthy programming, improving product packaging, and campaigning to parents.

1. Disney Consumer
Products:
Marketing Nutrition
to Children

3. Journey of Disney from the start
1923
Debut of
Mickey Mouse
in steamboat wille
1932
Licensing became
A formal
Business
1954
Expansion of Disney
1954- T.V. program
1955-Disneyland
1980-1990’s
Renaissance
Of Disney
Animation
2004
Obesity epidemic
2006-DCP launc
offerings of fresh
fruits

4. By 2006, Walt Disney Company was comprised of four major
business segments
Parks and Resorts DCP
Studio EntertainmentMedia Networks

5. Media Networks Studio Entertainment
•10 Television stations
•72 Radio stations cable
television stations
(including ESPN, Disney
Channel and ABC Family)
•Internet holdings
•Created live action films
•Created animated films

6. Parks and Resorts DCP
•10 Theme parks in North
America, Europe and Asia
•35 Disney Vacation Club
•2 Luxury cruise ships
•Softlines (apparel, footwear and
accessories)
•Buena Vista Games
•Home & infant
•Hardlines
(food, health & beauty,
electronics, and stationery)
•Publishing
•Toys

7. It is responsible for extending the Disney brand to merchandise by
giving licenses to retail companies and manufacturers worldwide

8. In 1996, DCP signed an
exclusive, 10-year, $2 billion
licensing deal with McDonald’s that
gave the fast food giant the right to
feature Disney characters in its
promotions and to offer Disney toys
with its children’s meals

9. DCP’s Licensing and
Distribution Models
• Traditional licensing model
• Sourcing(designed and create
products by Disney but
manufactured and marketed by
licensee)
• Direct-to-Retailer(DTR)Entailed
partnering directly with
retailers

10. Criticism from activists,
parents and governments
around the world who
believed these companies
contributed to the growing
obesity epidemic

11. Disney is being held
responsible for rising
obesity epidemic
It is facing pressure from activists,
parents , government to check their
offerings and advertisement activities.

12. Disney currently licenses
packaged foods like candy,
ice cream and few cereals,
juices, some fish and
chicken (But
mainly sweets and treats)

13. Problem Definition

14. Could Disney use its “magic”
to get children to switch from
sugary, processed foods to a
more nutritious diet? Could
they sustain?

16. Disney needs to reconsider the nutritional value
of their food products.

17. DCP products need to meet USDA
dietary guidelines.

18. The food has to appeal to children and
deliver

20. Keeping Traditional
line
Broad consumer base of mostly
children but criticized by
government, activists etc.and
negative public opinion.
Healthy Program
line
Small Consumer base of mostly
parents with a strong brand and
a good image but possible loss of
broad consumer base.
Alternatives

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

23. Mothers perceived Disney
products with high
quality, trustworthy and
familiar to line of food
and beverages

24. They associated Disney
with “Magic”

25. Children
influence
purchase
decisions

26. Peer pressure and
advertisement
influences
children’s
preferences

27. DCP’s new vision statement for food and beverages
A quality range of
Disney integrated
foods that answer
l ’ a ly
in an entertaining
way- “ ,
food, great fun”

28. Disney’s nutrition guidelines
Nutrition Control
•Control levels of added sugar
•Contain no trans or
hydrogenated fats
•Promote fibre and calcium

29. Disney’s nutrition guidelines
Nutrition Control
•Minimize the use of additive
•Prefer to use whole foods that
are intrinsically dense in
nutrients

30. Product Development
Decisions

31. Reformulate some products , shrinking portion for others and phase out some
products that could not meet the guidelines.

32. Products that already had broad appeal such as
milk or peanut butter need to be made
“healthier”

33. Products that are already healthy and make
them more “fun”.
E.g. Whole wheat pasta could be moulded into
character shapes

34. Product with attractive packaging to
inspire product sampling .
E.g. making bottles in shape of characters

35. Phase out products that didn’t meet
Disney’s nutritional standards

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

37. DCP developed a broad
range of
products with Cincinnati-
based Kroger Supermarkets,
the largest pure grocery
retailer in the United
States

39. Strengths
•Brand recognition
•Strong diversification
•Cooperate with big retailers like Kroger
•Responsiveness to market

40. Kroger had 12% market share
and more number of national

41. Strength

42. Weakness
•Large R&D costs
•High risk factor

43. opportunities
•Mother’s positive perception of the
Disney brand
•Disney character’s popularity

44. Popularity

45. Threats
•Competitors
•Differentiation form natural produce
products
•Pricing competition

46. Competition
Commodity
produce
Big brands

47. Competition
Entertainment
channels

48. Solutions

49. Create New Characters
Additional characters will allow Disn
to expand their market share and
improve product differentiation

50. Collaborate healthy
foods with Disney
Programs

51. Improve packaging to
provide nutritional facts,
jokes and other child-
engaging information

52. Healthy food campaign
for parents

53. •History
•Current situation
•Problem definition
•Challenges
•Observations
•New vision statement
•Products development decision
•S.W.O.T. analysis
•Competition
•Solution

55. This presentation was created by Aditya Ghuge,
IIT(BHU) Varanasi, During a marketing
internship by Prof. Sameer Mathur , IIM
Lucknow
Disclaimer