Disney faced criticism for contributing to childhood obesity through unhealthy food products. To address this, Disney conducted market research and established nutritional guidelines. It reformulated products to be healthier, shrinking portions and phasing out some products. Disney launched a "Better For You" campaign with 3 licensing models and a portfolio of 5 food categories to ensure 85% of products were nutritious. This strategic shift helped Disney sustain its business while promoting healthier eating.

1. MARKETING

2. History Problem
Definition
Analysis Solution Conclusion

3. THE WALT DISNEY COMPANY

5. By 2006, The Walt Disney company had 4 business segments
MEDIA NETWORKS PARKS & RESORTS
STUDIO ENTERTAINMENT
DISNEY CONSUMER PRODUCTS

6. Disney brand was accused of contributing towards the growing
obesity epidemic
(Confectionery products, Uncontrolled eating habit)
Healthy foods for children
Disney need to reconsider the nutritional value of their
food products
Establish credibility with the government,
manufacturers, parents and nutritionist
Problem faced by disney
Children’s taste impact the consumption

7. Could Disney use it “magic” to switch children from sugary to
more nutritious diet ? Could they sustain ?
Problem Definition

8. Market analysis
Organized focus groups,
group sessions and
shopping trips with
mothers to size the
children’s food market.
Surveyed about the
disney character's and
the market share of
the company.

9. Disney
34%
Warner
10%
Nickelodeon
8%
Marvel
8%
Sanrio
7%
Lucas
5%
4Kids
5%
HIT
4%
Mattel
4%
Universal
3%
Pokemon
2%
Sesame
2%
Others
7%
0%
0%
Market Share

12. Needs and Wants
Needs
(Food)
Parents Wants
(Nutritious Foods)
Children Wants
(Tasty & Fun Foods)

13. The Household Decision-Making
Process for Children’s Products
Influencers
(children)
Communications
targeted at children
(taste, image)
Communications
targeted at parents
(nutrition)
Purchasers
(parents)
User
(children)
Information
gatherers
(parents)
Initiators
(parents,
(children)
Decision
makers
(parents,
children)

14. FOCUS GROUP FINDINGS:
1.there was a gap between “what moms bought”
and “what kids wanted”
2.peer pressure and advertising strongly influence
kids’ preferences
3.Mothers saw Disney brand as high quality,
trustworthy and familiar (strong brand loyalty)

15. Steps taken by Disney

16.  Established Disney Nutritional Guidelines
 Used three licensing and distribution models
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”

17. Disney Nutritional Guidelines
Nutrition control
1. Controlled levels of added sugar
2. Contains no trans or hydrogenated fats
3. Promote fiber and calcium
4. Minimized use of additives
5. Prefer to use whole foods that are
intrinsically dense in nutrients
Reformulated some products,
shrinked portions for others
and phased out some products.

18. DCP’s Three Models of
distribution
Traditional Licensing Model
Sourcing
Products were designed and created by Disney but manufactured and
marketed by licensee)
Direct-to-retail (DTR)
(Entailed partnering directly with retailers bypassing wholesale licensees)

19. Approaches adopted by Disney
Offer products
which already
had broad
appeal
• Eg. Milk, peanut
butter
Already
healthy
products:
make them
more “FUN”
• Eg. Mold whole
wheat pasta into
character shapes
Use packaging
to improve
product
sampling
• Eg. Water bottles
in the shape of
characters

20. MADE A FRAMEWORK OF
HOW CHILDREN EAT
Made portfolio of products into 5
categories
Treats
Snacks
Beverages
Main meal
Side dishes
1

21. Calories were allocated to each category
2

22. Balanced it's portfolio so that 85% of it's
products could be classified as main meal, side
dishes, snacks or beverages and only 15% could
be categorised as treats.
3

25. POLITICAL ECONOMIC
SOCIAL TECHNOLOGY
Increasing concern of people
has been addressed
by USAD
DCP able to generate profit,
with an increase in the revenue
of food and beverage
Increased concern of
people about damaging
consequences of consuming
sweets and confectionary
on the health of children
PEST
DCP formulated new set
of products with
packaging of Disney
characters in a short time
PEST Analysis

26. Potential Internal Strengths Potential Internal Weaknesses
1. Corporation brand name has powerfully
distinguished itself nationwide as one of the best in
the entertainment business.
1. Growing critics from activists, parents, and
government believed that Disney companies
contributed to the growing obesity epidemic.
2. Well -known brand name that has lead to high
brand loyalty where Disney brand was synonymous
with fun and magic.
2. Licensing with McD.
3. Children familiar with Disney characters. 3. The packaged foods portfolio of Disney was mostly
sweets and treats.
4. The Little Mermaid, The Lion King and The Beauty
and the Beast-the only animated ever nominated
film for the Academy Award for Best Picture. The
Lion King won the Tony Award for best musical in
1997.
4. Disney doesn’t have their own manufacturing.
5. Disney held the top spots for the world’s most
valuable franchise characters.
6. Disney Consumer Products (DCP) was the world’s
largest licensor.
Company

27. Competitor
o Commodity produce:
Dole, Green Giant and Fresh Express
o Entertainment brands:
Nickelodeon Warner Bros Sesame Workshop Disney
Characters SpongeBob, Dora the
Explorer, The Fairly Odd
parents
Harry Potter, Looney
Tunes
Elmo, Grover,
Cookie Monster
Mickey Mouse,
Winnie the Pooh,
etc .
Networks Television channel
Nickelodeon
Sesame Street
public television
program
Film and Television
program
Collaboration Licensing partnership Ready Pac Del Monte Foods,
Sunkist
Kroger, Safeway
and Albertson’s
supermarket,
Carrefour, Wal-
Mart
Concept “Every fruit a kid would
want to eat with
Nickelodeon character”
“Healthier Snack
Alternative”, “The
Original Kid Pleasin’,
mom-lovin’ dippity
delicious snack!”
‘Healthy Habits for
Life”
“Better For You”

28. Customer
Geographic segmentation:
All over the world
Demographic segmentation :
Age : Children and adult
Gender : Male and Female
Psychographic : Lower class, Middle class, Upper class
Behavioral segmentation:
Taste Fun and “Magic”

29. Uses the behaviors and opinions of
others as useful information
Informational
When an individual fulfills group
expectations to gain a reward or
avoid a sanction
Normative
Individuals have internalized the
group’s values and norms
Value Expression
Type of Influence

30. Recommendations
Collaborate healthy foods with Disney programs
Healthy food campaign for parents
New character
Promotion through kindergarten

31. Collaborate healthy foods with Disney programs
Disney films shows healthy foods
consumed by the Disney’s characters to
affect the children who watched the
film to also consume healthy foods
Tell children who watch Disney’s
programs the disadvantages if they
consume non-healthy foods

32. Healthy Food campaign for parents
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
Parents must also tell their children about the
advantage of healthy foods and give the
children healthy foods on the right proportion

33. New character
Disney could create new character that has the advantage of
healthy foods on their adventure. Children like adventure and
healthy foods could be a big part on their adventure

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

36. 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 food
production which has the potential to sustain the
business model

37. Key to getting children to eat
healthier food
Kids have to like it taste good
Moms like it too nutritious