Case study - Disney Consumer Products: Marketing Nutrition to Children

1. Disney Consumer Products:
Marketing Nutrition to
Children

4. Worlds Largest Licensor
56% market share of character licensing
industry.
Retail sales of $23 billion in branded
merchandise

5. Six lines of Business
Softlines(apparel, footwear and
accessories)
 Buena Vista Games
 home & infant
 hardlines (food, health & beauty,
electronics, and stationery)
publishing
 toys

6. DCP licensed food products :
Mostly Cookies or candy’s

7. 10-year, $2
billion licensing
deal with
McDonald’s

8. Retail sales of
DCP-licensed
food products
was

9. The problem : Dramatic increases in
childhood obesity

10. 30% of American children are
overweight

11. And 14%
are obese…

13. Disney is being held responsible
for rising obesity epidemic and
advertising sugary foods to kids.

15. saw the controversy
as an opportunity to
reconsider its entire
range of food products

16. The Big Question :
Can Disney provide leadership for the
rest of the food industry and use its
brand strength to reach children?

17. Can the company use its “magic” to
get children to switch from sugary,
processed foods and become lifelong
converts to a more nutritious diet?

18. What are the challenges for DCP?
Can it overcome the hurdles to
maintain the brand value?

19. The Big Question :
Can Disney provide leadership for the
rest of the food industry and use its
brand strength to reach children?

22. Analysis : there was a gap between what
children requested and what their mothers
were willing to buy for them

23. children influenced purchase decisions

24. Peer pressure and
advertisement
influence kids.

25. Moms associate
Disney strongly with
magic. And have
perception as high
quality and
trustworthy
products.

26. Kids want fun
graphics and
shapes, good
taste, and
great fun

27. The products need to make them feel
special and must be non-patronizing and
Mom-approved.

28. After Nutrition Audit

29. The company
planned to have
all its products
brought into
compliance or
phased out by
2008

30. Can the company use its “magic” to
get children to switch from sugary,
processed foods and become lifelong
converts to a more nutritious diet?

31. Worldwide retail sale of : $21 billion

32. Estimated Value:

33. Estimated Value:

34. Disney nutrition guidelines
 products would be minimally
processed.
 have controlled levels of
added sugar and contain no
trans or hydrogenated fats.
 Calories were limited by either
adjusting a food’s formulation
or its portion size.
 minimized the use of additives.

35. Three approaches toward
creating Disney food products

36. 1 . offer products that already had broad
appeal !

37. 2 . to take products that were already
healthy and make them more “fun”

38. 3. to use packaging to inspire
product sampling

39. Licensing its
characters to
Imagination farms

40. product development
strategy
differentiate commodity
produce through promotion
create value-added products
through product preparation
or packaging
develop exclusive produce
varieties that would yield
more child-friendly foods

41. Disney Magic Selections

42. What are the challenges for DCP?
Can it overcome the hurdles to
maintain the brand value?

43. 94% food products fail..

44. 1 . Pricing and value

45. “For these products, affordable equals
value, not price”
“We have to deliver quality to represent
our brand well.” - Mooney

46. 2 . Legacy

47. It isn’t useful to ask where are we are
today, that’s based on decisions made many
years in the past.
we are focused on developing ‘better
for you’ products and how we’re going
to get there - Mooney

48. 3 . Differentiation & Competition

49. Competition with entertainment brands

50. Competition with Commodity producers

51. We believe we can beat the
competition
Because they cannot access Disney magic
- Mooney

52. 4 . Growth and distribution

53. “Other retailers won’t turn our products
down because of the Kroger relationship”
Their chief concern and ours is that our
products are profitable for them - Mooney

56. DISCLAIMER
Created by Parag Karguppikar,
PESIT Bangalore, during a
marketing internship by
Prof.Sameer Mathur, IIM
Lucknow.