Disney's improvised range of consumer products addressing issues such as obesity

2. Walter Elias Disney and his
brother, Roy, founded Disney
Brothers Cartoon Studio

3. In 1923 the debut of Mickey
Mouse in Steamboat Willie,
the first cartoon
with synchronized
sound.

4. Later came
• Snow White
• Pinocchio
• Fantasia
• Bambi

5. In 1954, Disney debuted in its
first television program, continued
making hit shows like The Mickey
Mouse Club.

6. In 1955, Disneyland, an amusement
park featuring characters from Disney’s
films and television shows, opened in
California. More amusement parks
eventually came up

7. By 2006, Walt Disney Company was
comprised of four major business segments:
Media Networks, Parks and Resorts,
Studio Entertainment and DCP

8. DCP was a global product organization
comprised of six lines of business:
• softlines (apparel, footwear and
accessories)
• Buena Vista Games
• home & infant
• hardlines (food, health &
beauty, electronics, and
stationery)
• publishing

9. Disney hired Andy Mooney, as DCP
president. Three ways of licensing
followed:
1.Traditional licensing model
2.Sourcing model
3.Direct-to-retail (DTR)

10. Seizing of the opportunity
DCP estimated that its branded food products accounted for less
than 1% of the children’s food market. Using focus groups, group
sessions and shopping trips with mothers of children ages 2 to
13 years old, DCP set out to learn which product categories the
market would support.

11. Findings
1. Mothers perceived Disney products with high quality,
trustworthy and familiar to line of food and beverages.
2. They associated Disney with “Magic”

12. 3. Peer pressure and advertisement influences children’s
preferences.
4. Children influence purchase decisions

13. The Blame Game!
Experts were noting alarming trends in childhood
obesity. From 1975 to 2005, the rates of
overweight and obesity in children had
skyrocketed: from 5% to 14% among 2-5 year
olds, from 4%-19% for 6-11 year olds and from
5%-17% for 12-19 year olds.

14. Some industry experts pointed to
progressive increases in portion sizes as
a reason, others decried television
advertising as a primary factor.

15. How is Dcp affected?
DCP had been a long-time licensor of
packaged foods, though the portfolio
had consisted largely of candy and ice
cream.

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

17. The problem definition
Can Disney’s ‘magic’ work and
promote a healthier diet
among the children?

18. Rules it needs to comply to
• Creating foods that met tough
USDA nutritional guidelines was
only half the battle!
• The foods had to appeal to
children and deliver on the
brand’s promise of Disney magic.

19. Shaping of new strategy
With changing licensing models, retail
industry consolidation and the obesity
epidemic, DCP sees this as an
opportunity to broaden and rationalize
its product offerings.

20. • Control levels of added sugar
• Contain no trans or hydrogenated fats
• Promote fibre and calcium
• Minimize the use of additive
• Prefer to use whole foods that are intrinsically dense in
nutrients

21. Disney’s goal was to balance its portfolio so
that 85% of its products could be classified
as main meal, side dish, snack or beverage
and only 15% could be categorized as treats.
Before officially implementing its nutrition
guidelines, DCP audited 2,100 of its food
products , and the results are as follows:

22. Improving the product line…
• Offer products that already had
broad appeal such as milk or peanut
butter. “The challenge is how do you
make the products they already love
healthier?”

23. • Take products that were already
healthy and make them more “fun.”
Eg: whole wheat pasta and different
shapes.

24. • Use packaging to inspire product
sampling, such as making water
bottles in the shape of characters.

25. Successful licensing
In pursuit of increasing it’s market share
and better produce, it’s major alignments
with
1. Imagination Farms
2. Kroger Supermarkets
Were a huge success

26. Imagination Farms
Three-pronged 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.

27. • By June 2006, Imagination Farms was
distributing peaches with Daisy Duck and
Goofy stickers and table grapes displayed
in Mickey and Minnie Mouse grower’s boxes;
Disney apples and citrus were in stores five
months later.

28. Kroger supermarkets
• The companies were committed to ensuring
that the Disney-branded products would fit
Disney’s emerging “good for you” nutrition
guidelines.

29. • The Disney Magic Selections line was
created.
• Kroger had a 12% share of the U.S.
grocery market, which fit with global food
distribution strategy

30. Swot analysis
• Brand recognition
• Creative process
• Strong diversification
• Cooperate with big
retailers like Kroger
• Responsiveness to
market
• Large R&D costs
• High risk factor
• Does not have own
manufacturing for
• DCP
• Mother’s positive
perception of the Disney
brand
• Disney character’s
popularity
• Competitors
• Differentiation form
natural produce
products
• Pricing competition

31. strengths
• Brand recognition

32. • Cooperate with big retailers :

33. opportunities
• Disney character popularity:

34. threats
• Competition

35. Challenges faced
• Pricing & Value : conditioned the market to
expect premium pricing from Disney and a
marketing challenge , to go out with lower
pricing

36. • Legacy: Though they were confident that
the products would be healthful, child-
friendly and fun, they had been subject to
vocal criticism in the past and expected to
encounter some skepticism as a result.

37. • Differentiation &
Competition:
Nickelodeon
packaged products
had been on the
shelves since
the mid-1990s .
Expected broad
product line,
wide distribution and
the
Disney brand would
win
over Moms

38. • Growth and distribution : Disney wanted to
license or develop additional lines. DCP
managers believed that the company could
differentiate additional lines using
characters, brand and price.

39. recommendations
• Create new Disney Characters.
• Improve the reach by targeting at the
micro level like schools and malls where
there are a lot of children and parents

40. • Maintain the quality and standards by
choosing trustworthy franchises and keeping
a check on the products being sold.
• Propagate Corporate social responsibility to
maintain and develop the brand image.

41. "These slides were created by
T.Amulya Shruthi as part of
an internship done under the
guidance of Prof. Sameer
Mathur, IIM Lucknow”