In an effort to capture market share in the children's foods category, Disney Consumer Products (DCP) debuted a broad line of "better for you" foods, ranging from fresh fruits and vegetables to frozen meals, through a partnership with Kroger supermarkets. In answer to a global obesity epidemic, DCP reformulated existing products and introduced new ones which met stringent nutritional requirements. Disney--and by extension, DCP--is highly influential with children: can the company use its "magic" to get children to switch from sugary, processed foods and become lifelong converts to a more nutritious diet? What is the food industry's responsibility in this controversial space?

1. Disney consumer
products:
Marketing
nutrition to
children

3. Index
1)HISTORY
2)CURRENT SITUATION
ANALYSIS
3)PROBLEM DEFINITION
4)ANALYSIS
5)RECOMMENDATIONS
6)CONCLUSION

5. HISTORY
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

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

7. Disney consumer products
Disney licensed it brand
characters to merchandise to be
sold at retail outlets in the
following category:

8. Disney with
MC Donald's
In 1996, DCP signed an exclusive,
10-year, $2 billion licensing deal
with McDonald’s that gave the
fast food giant the right to
feature Disney characters in its
promotions and to offer Disney
toys with its children’s meals

9. 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

10. Current situation(1/3)
Media networks Parks and resorts
Studio
entertainment
DCP
BUSINESS
SEGMENTS

11. Current situation(2/3)
• It is facing pressure from
activists, parents , government
to check their offerings and
advertisement activities.
Disney is being held responsible
for rising obesity epidemic

12. Current situation(3/3)
It currently licenses packaged foods like candy, ice cream and few
cereals, juices, some fish and chicken (BUT mainly sweets and treats)

13.  With changing licensing models, retail industry
consolidation and the obesity epidemic, DCP sees
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.

14. Problem definition
Could Disney use its ‘magic’ to switch children from
sugary to more nutritious diet? Could they sustain?

15. Disney needs to reconsider the nutritional value of
their food products.
CHALLENGES

16.  DCP products need to meet USDA( united nations
department of agriculture) dietary guidelines.

17.  The food has to appeal to children and deliver
on the brand’s promise of magic.

18. Market analysis
Organized focus groups,
group sessions and
shopping trips with
mothers to size the
children’s food market.

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

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

21. Conclusion
NEEDS and WANTS
portion controlled, high quality, taste
good, reduced fat and sugar
fun graphics, shapes,
good taste, great fun

22. A quality range of Disney integrated
foods that answer children’s daily
needs in an entertaining way- “in
short, good food, great fun”
DCP’s new vision statement for food and
beverages

23. Disney’s nutrition guidelines
Nutrition control:
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

24. Reformulate some products , shrinking portion for
others and phase out some products that could not
meet the guidelines.

25. Product development decisions

26. 1. Products that already had broad appeal such as
milk or peanut butter need to be made “healthier”

27. 2. Products that are already healthy and make them more “fun”.
• EX: Whole wheat pasta could be moulded into character shapes.

28. 3. Product with attractive packaging to inspire product
sampling . ex: making bottles in shape of characters

29. CUSTOMER
SEGMENTATION
Demographic segmentation:
Age: children and adults Behavioural segmentation:
Taste fun and “Magic”

30. Disney began licensing its characters to imagination farm, a national
fresh produce specially to serve as a licensee to DCP , in march
2006

31. SWOT Analysis

32. 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

33. Indicators of strength

35. Why did Disney partner with Kroger and
not Wal-mart?
• Kroger had 12% market share and more number of
national outlets

36. Competition
ENTERTAINMENT
CHANNELS
COMMODITY PRODUCE

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

38. 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

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

40. 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
Tell the parents that disney already has the product that meets the
healthy food standards

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