Disney Consumer Products launched an initiative in 2006 to market more nutritious foods to children in response to concerns about childhood obesity. They established Disney Nutritional Guidelines to control sugar, fat and additive levels in foods and transitioned their portfolio from sweets to whole foods. Disney utilized three licensing models - traditional licensing, sourcing, and direct-to-retail partnerships - to introduce their "Better For You" product line and planned to make all products compliant with nutrition standards by 2008. They aimed to use the popularity of Disney characters to promote healthy eating habits to both children and parents.

1. Disney Consumer Products:
Marketing Nutrition to
Children

4. 1923
• Debut of mickey mouse in
steamboat willie
1932
• licensing became a formal business
unit
1950
• expand beyond film and television
1955
• opened Disneyland in Anaheim, California
2004
• the obesity epidemic
2006
• DCP launches offering of fresh fruits

5. By 2006 Walt Disney company was comprised of 4
major business segments:
Media
networks
Parks and
resorts
Studio
entertainment
DCP

6. Retail stores in Europe and the US stocked the DCP
The main model presupposed getting the license for
the use of Disney brand on quality products made by
other companies
In 1998 - 1999 the sales on US and Japanese markets
decreased by 10% and 15%
Andy Mooney introduce direct to retail(DTR) and DTR
distribution model, and also keep the traditional
licensing model
Business Situation

7. Disney Consumer Products
(A global product Organization comprised of following lines of business)
ToysHome & Infant
Publishing Buena Vista
Games
Food
Health & Beauty
Electronics
Stationary
Hard Lines
Apparel
Footwear
Accessories
Soft Lines

9. PROBLEM
ANALYSIS

10. THE PORTFOLIO of DCP CONTAINED
MOSTLY SWEETS AND TREATS
THUS, CHILDREN’S TASTE IMPACT THE
CONSUMPTION OF THEIR PRODUCT

12. UNHEALTHY PRODUCTS
LEADING TO
OBESITY

13. 30% OF AMERICAN KIDS ARE
OVER WEIGHT, 13% ARE
OBESE

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

15.  With changing licensing models, retail industry
consolidation and the obesity epidemic, DCP saw
this as an opportunity to broaden and rationalize
its product offerings.
In 2004,DCP estimated that its branded food products
accounted for less than 1% of the children’s food market.

16. MARKETING NUTRITION
TO CHILDREN

17. Could Disney use its
“magic” to switch children
from sugary to more
nutritious diet ?
Could they sustain ?

18. “DCP DISCOVERED THAT
THERE WAS A GAP
BETWEEN FOOD
CHILDREN REQUESTED
AND FOOD THEIR
MOTHERS ARE WILLING
TO BUY FOR THEM”

19. Product Development
Alternatives
Pro’s Con’s
Keep Traditional Line
Keeping broad consumers
base.
Preferable by common
children.
Negative public opinion
Not supporting by
government regulation.
Healthy Program Line
Establish good image
Strong Brand
Strong distribution Channel
Preferable by common
parents.
Possible to loss broad
consumers base.

20. SOLUTION?
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”

21. • Establish Disney
Nutritional
Guidelines
Using three licensing
and distribution
models

22. DISNEY NUTRITIONAL GUIDELINES
Control levels of
added sugar
Prefer to use
whole foods that
intrinsically
dense in
nutrients
Promote
fiber and
calcium
Minimized the
use of additives
Contain no trans or
hydrogenated fats

23. Healthy food campaigns for parents
Parents must also tell their children about the
advantages of healthy foods and give the children
healthy food in right proportions
DISNEY MAGIC SELECTIONS
PRODUCTS

25. GOAL
• THE COMPANY
PLANNED TO HAVE
ALL ITS PRODUCTS
BROUGHT INTO
COMPLIANCE OR
PHASED OUT BY
2008

26. DCP’s Three Models
Traditional Licensing Model
Sourcing
(Designed and create products by Disney but manufactured and
marketed by licensee)
Direct-to-retail (DTR)
(Entailed partnering directly with retailers)

28. SWOT Analysis

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

30. Recommendations
1. Create new
characters
Additional characters will allow Disney to expand their market share
and improve product differentiation

31. Disney films should show their characters consuming healthy food
and show the disadvantages if they consumed non healthy foods
Collaborate healthy foods with Disney programs

32. Improve packaging to provide nutritional facts, jokes and other child-
engaging information

33. Improve coordination between Disney
and its stakeholders
• Licensees are responsible for following the nutrition guidelines,
creating the product changes, conducting consumer taste tests

35. DISCLAIMER
This presentation was created by SUJESHA SHARMA
under the guidance of Prof. Sameer Mathur, during a
summer internship mentored by him.
Prof. Sameer
Mathur
IIM Lucknow