Analysis on the HBR case on Disney Consumer Products. This presentation was created as a part of an internship under Professor Sameer Mathur, IIM Luchnow.

2. INDEX
1. History
2. Situational Analysis
3. Problem Definition
4. Challenges Faced
5. Market Analysis
6. What they Did?
7. Major Competitors
8. Challenges Ahead
9. SWOT Analysis
10. Recommendations
11. Conclusion

3. History
1923 1955 1983 1986

4. Media
Networks
Parks and
Resorts
Studio Network DCP
4 Segments of
the Walt Disney
Company

5. Segment
Responsible for
Development
and Marketing
of Disney
branded
Merchandise

6. DCP’s
Lines of
Business
Softlines
Publishing
Toys
Hardlines
Buena
Vista
Games
Home
and
Infant

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

9. Situational Analysis (1/4)
30% of the American
Kids are Overweight
14% of the
American Kids
are Obese

10. Situational Analysis (2/4)
Disney used to license its
characters for several food
products . However, most of
them were sweets and treats
Several reports claimed that
children are getting obese due
to excessive consumption of
Sugary products.

11. Situational Analysis (3/4)
Disney faced Criticism for contributing to
the growing obesity epidemic

12. Situational Analysis (4/4)
Disney saw this as an opportunity to
reconsider it range of food Products

13. Problem Definition
Could Disney use its ‘MAGIC’ to switch
children from sugary to more nutritious
diet? Could they sustain?

14. Challenges

15. CAN DISNEY
MEETTHE
NUTRITIONAL
GUIDELINES
SETUP BY FDA?

16. CAN DISNEY
USE IT’S
BRAND IMAGE
TO REACH OUT
TO CHILDREN?

17. OR DOES IT
BRING DOWN
THE BRAND
VALUE OFTHE
DISNEY?

18. Market Analysis
Disney Observed
that Mom’s
perceived Disney
Products as high
quality and
trustworthy

19. They
associated
Disney with
“MAGIC”
They associated
Disney with
“MAGIC”

20. Children
influence
Purchase
Decisions

21. Advertisements and Peer Pressure
influence Children’s Decision

22. DCP’sVision for its new
range of food products
A quality range of
Disney integrated
foods that answer
children’s daily
needs in an
entertaining way.
In short – “Good
Food , Great Fun”

23. 1.Established Disney nutritional
guidelines
2.Used three licensing and distribution
models

24. In June 26,DCP
decided to
change the
nutritional
content of their
products and
introduce new
healthy foods for
children under
the slogan -
“Better for you”

25. Disney Nutrition Guidelines
Controlled Level of Added Sugar
Minimal use of Additives
NoTrans Fat
Promote
Fiber and
Calcium

26. The company
usedThree
Approaches for
creating Food
Products

27. It took the products that already
had broad appeal and made them
“healthier”

28. They took the products that were
already healthy and tried to
involve more “fun” with them
Food Items molded in character shapes

29. They used attractive packaging to
inspire product sampling

30. Major Competitors?

31. Sales of Darling
clementine's
increased by almost
25% after the Dora
and SpongeBob
characters were
added to the product
packaging

32. Warner Bros partnered with Ready Pac
Foods.
Ready Pac planned to feature Warner’s
Bugs Bunny,Tweety andTasmanian Devil
characters on its
Cool Cuts Ready Snax single-serving
packages of fruit

33. Preschoolers’
consumption of
broccoli increased
by 28% when
branded with a
Sesame Street
character

34. Challenges
Ahead

35. Pricing andValue
The biggest
challenge for
DCP was to
provide the
value added
products at
Affordable
Prices.

36. Legacy
Though the
products will be
healthy and fun-
filled, they
expected some
skepticism
based on past
criticism

37. Competition
Disney faces
competition from
other brands like
Warner Bros, Sesame
Street, etc.

38. Competition
However, it managers
believe that a
combination of wide
distribution, broad
product line and the
Disney brand would
definitely win over the
crowd

39. Growth and Distribution
Though DCP
already has an
agreement
with Kroger’s.
DCP wishes to
license and
develop
additional
lines

41. Strength
1. Brand Recognition
2. Partnership with a brand like
Kroger
3. Strong Diversification
Weakness
1. High R&D costs
2. Huge risk in phasing our old
products and bringing new products.
3. Doesn’t have own manufacturing for
DCP.
Opportunities
1. Disney’s character popularity
2. Mother’s positive perception of the
Disney Brand
Threats
1. Competitors
2. Pricing Competition
SWOT

42. Recommendations
Create more
Characters
More characters would
ensure Disney does not
become repetitive with
its characters.

43. Encourage eating
healthy food
using DisneyTV
shows and Films.
These can be
used to show the
advantages of
eating healthy
food and
disadvantages of
not eating them.

44. Healthy food campaign for Parents
Tell parents that
Disney already
has the product
that meets their
kids nutritional
needs
Healthy Food Campaign’s for Parents

45. Conclusion
Disney has taken a risk by
changing it range to products
to develop healthier
alternatives instead.
It would face many
challenges going forward.
However, it will continuously
outshine its competition as
long as it can maintain the
Disney “MAGIC.”

47. Disclaimer
This Presentation was created by
Ashutosh Sharma, IIT Delhi
during an internship under Prof.
Sameer Mathur, IIM Lucknow