Disney Consumer Products has faced criticism for potentially contributing to childhood obesity. It has since implemented nutritional guidelines for its food products and launched offerings of fresh fruits. To address health concerns, Disney will consider new strategies like collaborating with Disney programs and characters to promote healthy eating, educating parents on nutrition, and creating a new character that emphasizes healthy foods' benefits.

1. DISNEY CONSUMER PRODUCTS

2. Strategic Formulation
“I do not like to repeat successes, I like to go
on to other things.”
Walt Disney

3. 1923
Debut of
Mickey
Mouse in
Steamboat
Willie
1932
Licensing
became a
formal
business
unit
1954
Debut in first
television program
1955
Opened Disneyland in
Anaheim, California
1980 s – 1990s
Renaissance of Disney
Animation
1984
Focus on
entertainment assets
2004
The obesity
epidemic
2006
DCP Launched
offerings of fresh
fruits
Disney’s history
1950
Expand
beyond
film and
television

4. It’s not about just Disneyland….!
THE Walt Disney Company
7/7/2016 4

5. Locations
Disney Resorts:
1.California
2.Florida
3.Tokyo
4.Hong Kong
5.Paris
4
7/7/2016

6. The World's Top Facebook Check-In Locations Include
4 Disneylands

7. Disney Consumer Products
Responsible for extending the Disney brand
to merchandise
• Soft lines
• Apparel
• Footwear
• Accessories
• Buena vista games
• Home and infant
• Hard lines
• Food
• Health and beauty
• Electronics and
stationery
• Publishing
• Toys
Consists of 6 lines of business

8. 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

9. Today 30% of the
American kids are
overweight
14% of the
American kids are
obese
&

11. Disney branded was accused 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 Analysis
Children’s taste impact the consumption

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

13. Disney Nutritional Guidelines
Nutrition control
1. Control levels of added sugar
2. Contain no trans or hydrogenated fats
3. Promote fiber and calcium
4. Minimized the use of additives
5. Prefer to use whole foods that intrinsically
dense in nutrients
Reformulating some products,
shrinking portions for others
and phase out some products.

14. 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”

15. Disney
34%
Warner
10%
Nickelodeon
8%
Marvel
8%
Sanrio
7%
Lucas
5%
4Kids
5%
HIT
4%
Mattel
4%
Universal
3%
20th Century Fox
2%
Pokemon
2%
Sesame
2% Others
7%
0%
0%
0%
0%
0%
0%
Market Share

17. SWOT Analysis
Strength
• Good image of brand
• Strong characteristic
• Cooperate with big retailers
(Kroger and Wal-Mart)
Weakness
• Doesn’t have own manufacturing
for DCP
• Growing criticism from activists,
parents and governments around
the world about contribution to
the growing obesity epidemic
Opportunity
• Mothers beliefs and expectations
about DCP
• Disney channel
• Leading licensors of character
(exhibit 5)
Threats
• Competitors
• High expectations from mothers

18. Critical Success factors Weights Rating Weighted Score Rating Weighted Score Rating Weighted Score
0.0 to 1.0 1 to 4 1 to 4 1 to 4
0 0 0
Advertising 0.12 4 0.48 4 0.48 2 0.24
Market Share 0.11 3 0.33 4 0.44 2 0.22
Company Image 0.12 4 0.48 3 0.36 3 0.36
Financial Position 0.11 4 0.44 4 0.44 3 0.33
Management 0.09 3 0.27 3 0.27 3 0.27
Global Expansion 0.12 4 0.48 4 0.48 4 0.48
Consumer Loyalty 0.12 4 0.48 4 0.48 3 0.36
Production Capacity 0.12 3 0.36 3 0.36 2 0.24
Technology 0.09 3 0.27 4 0.36 3 0.27
Totals 1 3.59 3.67 2.77
CPM
Media Network Segment

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

20. 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

21. 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

22. 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

23. 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

24. • Build an indoor theme Park and Resort in New
York.
• Improve advertising to promote entertainment
which target a more mature audience.
• Remove the Interactive Media Segment.
• Remodel and build new attractions in every Park
and Resorts to stay appealing to our customers.
Recommendations
In the next three years Walt Disney should..
Recommendations

25. Objectives
In the next year Walt Disney should…
• Improve advertising to promote
entertainment
• Remove the Interactive Media Segment
• Buy a land in New York City
Objectives

26. Internal Audit
Disneyland will never be completed. It will continue to grow as
long as there is imagination left in the world.
- Walt Disney
THANK YOU

27. sources
• ““Home, The Walt Disney Company”, < http://thewaltdisneycompany.com/<ALDRIDGE, B.
“Walt Disney”, Brad Aldridge Productions, Berkley, CA, August 2002,
http://www.justdisney.com/walt_disney/’>
• “ Annual Reports, The Walt Disney Company”,
• <http://thewaltdisneycompany.com/investors/financial-information/annual-report>
• “ Who Owns the Media? Media Ownership Charts, Free Press”, Florence, MA,
• <http://www.freepress.net/ownership/chart>
• https://www.google.co.in/search?q=disney+consumer+products&oq=disney+consumer+&aqs=chro
me.0.69i59l3j69i57j69i60j0.7790j0j7&sourceid=chrome&ie=UTF-8
• https://www.google.co.in/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-
8#q=disney%20pics
• http://www.disney.in/
• https://en.wikipedia.org/wiki/The_Walt_Disney_Company

28. DISCLAIMER
Created by T.C.BALAMURUGAN, P.S.G. TECH
COIMBATORE, during a Marketing Internship under
the guidance of prof. SAMEER MATHUR , IIM
LUCKNOW.
(See www.IIMInternship.com)