Disney Consumer Products (DCP) saw declining sales in 1998-1999 due to high licensing rates. In 2000, Andy Mooney shifted DCP's model to include direct retail sales. This helped DCP expand its food offerings, though many products lacked nutrition. By 2005, childhood obesity in the US had doubled. In response, DCP launched nutritious products in 2006 and altered recipes to reduce sugar and fat. DCP partnered with retailers and suppliers to widely distribute new healthy options using Disney branding and characters to appeal to children.

2. MARKETING

4. 1923
Debut of
Mickey
mouse in
Steamboat
Willie
1932
Disney won
the academy
award for
best cartoon 1954
First TV
program
1955
Opened
Disneyland in
California
2004
The
obesity
epidemic
2006
DCP
launched
nutritious
eatables

5. Responsible for
extending the
Disney brand
to merchandise

6. DCP
Softlines Buena
Vista
games
Home
and
Infant
Hardlines Publishing Toys
DCP Business Lines
Apparel
Footwear
Accessories
Food
Health and
beauty
Electronics
Stationery

7. Business Situation

8. 1998-1999 the sales on
US and Japanese
markets decreased by
10%and 15%
Decline due to:
High royalty rates
and reliance on
character licensing
from new firms

9. In 2000,Andy Mooney provoked
shift from pure licensing
business model to models
that offered more flexibility
Introduced Direct to Retail(DTR)
model and DTR Distribution
model along with
traditional licensing model

11. Link food with
magic and fun

12. Food items mainly focused
on were sweets, ice creams
and other confectionary items
that were a rich source of sugar
and fats

16. 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2-5 year 6-11 year 12-19 year
1975
2005
(Age)
Obesity Rate in children(U.S.A)

18. Television Advertisements

20. Consumption of
larger portions
irrespective of
their age

23.  Contributing towards the growing
obesity epidemic
 Need to reconsider the nutritional
value for their food products

24. Establish
with
Government, parents,
manufacturers and nutritionist

25. Children's taste impact
the consumption

27. Alter eating patterns
of children
Bring new and healthy
products with
the brand of Disney

28.  28% of DCP were not meeting the
criterion of nutrition and they had
to be phased out
 Managing negative attitude
towards DCP due to
increasing concern of people
related to obesity

29. Corporate Strategy

30. DCP offers products
that already had
broad appeal such as
milk or peanut butter

31. Challenge is how do we make
products they already
love “healthier”?

32. DCP offers products
that were already
healthy and make
them more “fun”

33. Regular
Pasta
Boring

34. Pasta
in
Disney character shapes
Adds fun

35. Packaging to inspire
product sampling

36. Water bottles in shape of
Disney characters attracts children

39. Advertisements made by the company
spread the common message of the
high nutritional production contents offered
under the Disney brand

40. Use of characters such as
Mickey Mouse
on products attracts children
who associate products
with the characters

41. “Better for you”
Disney partnership with Kroger is very
impacting in promoting
high nutritious value

42. In 2006 Imagination Farms was
founded to serve DCP as a
licensee in fresh produce

43. High price as the
product sold under
Disney brand
Supplied through
major
supermarkets and stores
Television
advertisements ,stickers
and attractive packaging
New products related to
food and beverages are
healthy and nutritious
are available in
attractive packaging

45. Allowed DCP to adapt with the
change in the society in the
form of increased
awareness about
health issues of children.

46. Ability to expand its product line in the
emerging market of healthy food items
and maintain its position
in the market
despite having big companies as rivals.

47. Versus

48. Strong ties with the suppliers and retailers
enabled DCP to reach
the consumers at a mass level
with ease and efficiency

51. 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

53.  The marketing of DCP can be further improved by
carefully monitoring the nutritional value
of the food products.
 DCP can also provide nutritional information for
parents on the packages of food items
 Popularity of the characters is not guaranteed,
new characters should be created to handle the
competition

55. 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

57. Manodhar Allu
National Institute of Technology,
Jamshedpur.
"These slides were created by Manodhar Allu, as part of an internship done
under the guidance of Prof. Sameer Mathur (www.IIMInternship.com)"