Disney faced criticism for contributing to childhood obesity through its food marketing. In response, Disney reconsidered its food product line and established nutritional guidelines in 2004. It aimed to create fun, Disney-branded foods that also met nutrition standards. This was a challenge as competitors targeted kids' food preferences through character branding. Disney saw opportunities to use its brand to market healthier foods to children and provide industry leadership.

2. 1923
1955
1983
1986

3. 32$

4. 2.5$

5. CONSUMERS SPENT
9160 HOURS
WITH DISNEY PER YEAR

7. 5.8$
5.6$

8. 96%
92%

12. 30%

13. 14%

14. DISNEY FACED
CRITICISM
FOR CONTRIBUTING TO
OBESITY EPIDEMIC

15. GOVERNMENT IMPOSED
RULES ON BROADCASTERS
ASKING NOT TO ENCOURAGE
EXCESSIVE
FOOD CONSUMPTION

16. Kellogg and General Mills
increased their
advertising spending
on children television channels

17. DISNEY SAW IT AS AN
OPPURTUNITY
TO RECONSIDER ITS RANGE OF
FOOD PRODUCTS

18. MARKETING
NUTRITION TO KIDS

19. CAN DISNEY MEET THE
NUTRITIONAL
GUIDELINES SETUP BY FDA?

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

21. OR DOES IT BRING DOWN THE
BRAND VALUE
OF THE DISNEY?

22. HOW DO PEOPLE
PERCIEVE
THIS TRANSITION OF THE DCP?

23. WHO WILL BE THEIR
COMPETITORS
AND HOW WILL THEY FACE THEM?

24. WHAT NEW
CHALLENGES
DO THEY FACE WITH THIS TRANSITION?

25. CAN DISNEY PROVIDE
LEADERSHIP
TO REST OF THE FOOD INDUSTRY?

26. IN 2004, DCP’S BRANDED FOOD
PRODUCTS ACCOUNTED FOR LESS
THAN 1% OF THE CHILDREN’S FOOD
MARKET

27. OUR STRATEGY THEN WAS,
DISNEY WAS ABOUT FUN.
WE SHOULD BE IN FUN CATEGORIES
- REID LEISE, DIRECTOR OF FOOD AND BEVERAGES
“

28. IN WINTER 2004, DCP CONDUCTED
RESEARCH TO DISCOVER IF DISNEY’S
BRAND EQUITY WOULD TRANSFER TO
A LINE OF CHILDREN’S FOOD
PRODUCTS

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

30. PEER PRESSURE
& ADVERTISING
STRONGLY
INFLUENCE KIDS

31. THEY DEMAND
NATIONAL OR
CHARACTER-
DRIVEN
PRODUCTS

32. MOMS
ASSOCIATE DISNEY
STRONGLY WITH
MAGIC - EVEN
WHEN IT COMES
TO FOOD

33. THE PRODUCTS NEED TO
MAKE KIDS
FEEL SPECIAL AND MUST
BE NON-PATRONIZING
AND MOM-APPROVED

34. CAN DISNEY MEET THE
NUTRITIONAL
GUIDELINES SETUP BY FDA?

35. RIGHT NOW, KIDS EAT THE WRONG
FOODS - AND TOO MUCH OF THE
WRONG FOODS. THE SOLUTION IS TO
PROMOTE HEALTHIER CATEGORIES
- EMBOLA NDI, VICE PRESIDENT, PRODUCT DEVELOPMENT
“

36. TO ANSWER
CHILDREN’S DAILY
NEEDS IN AN
ENTERTAINING
WAY—IN SHORT,
GOOD FOOD,
GREAT FUN

37. DCP DERIVED MANY OF
ITS RECOMMENDATIONS
FROM THE FDA’S
DIETARY GUIDELINES

38. 41%
28%

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

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

41. OR DOES IT BRING DOWN THE
BRAND VALUE
OF THE DISNEY?

42. THE COMPANY ADOPTED
THREE APPROACHES
TOWARD CREATING
DISNEY FOOD PRODUCTS
OFFER PRODUCTS
THAT ALREADY HAD
BROAD APPEAL
1

43. TAKE PRODUCTS THAT
WERE ALREADY HEALTHY
AND MAKE THEM MORE
“FUN”
2
THE COMPANY ADOPTED
THREE APPROACHES
TOWARD CREATING
DISNEY FOOD PRODUCTS

44. USE PACKAGING
TO INSPIRE PRODUCT
SAMPLING
3
THE COMPANY ADOPTED
THREE APPROACHES
TOWARD CREATING
DISNEY FOOD PRODUCTS

45. IMAGINATION
FARM PRODUCTS

46. TO DIFFERENTIATE
COMMODITIES SUCH
AS PEACHES AND
APPLES, PLU
STICKERS WERE
ADORNED
WITH DISNEY
CHARACTERS

47. WE PACKAGE FOUR
OR FIVE OUNCE
POTATOES FOR KIDS
OR
PERHAPS HIGHER-
FLAVOR, YELLOW
POTATOES

48. A LUNCH BOX
PROGRAM WHERE
FRUIT AND
VEGETABLES
WOULD BE
PACKED IN 3-OUNCE
BAGS.
VALUE ADDED STRATEGY WOULD
DIFFERENTIATE AND BUILD THE BRAND

49. KROGER DISNEY
MAGIC SELECTION PRODUCTS

50. PRICING AND
BRAND EXCLUSIVITY
WERE KEY TO
DISNEY’S DTR
STRATEGY
2nd LARGEST US
SUPERMRKET COMPANY

51. BETTER
FOR YOU

52. WHO WILL BE THEIR
COMPETITORS
AND HOW WILL DISNEY FACE THEM?

53. Sales of Darling
clementine's increased by
almost 25% after the
Dora and SpongeBob
characters were added to
the product packaging
TOP RATED U.S.
BASIC CABLE
NETWORK SINCE 1996

54. MY GOAL IS TO HAVE EVERY FRUIT A KID WOULD
WANT TO EAT WITH A NICKELODEON CHARACTER
- TORRES, LICENSING VICE PRESIDENT
“
In June 2006,
They Extended Fresh Fruit And
Vegetable Line To Apples,
Pears And Carrots

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

56. READY-TO-EAT
FRUITS AND
VEGETABLES
Cool cut ready snacks package
contained two, 2-ounce
packages each of grapes,
apples and carrots

57. WE EXPECT COMPETITION, BUT WE BELIEVE
WE CAN BEAT THE COMPETITION BECAUSE
EVEN IF THEY DEVELOP AND
MATCH OUR NUTRITIONAL STANDARDS, THEY
CANNOT ACCESS DISNEY MAGIC
- EMBOLA NDI, VICE PRESIDENT, PRODUCT DEVELOPMENT
“

58. WHAT NEW
CHALLENGES
DO THEY FACE WITH THIS TRANSITION?

59. 1Pricing and Value
BUT FOR THESE
PRODUCTS,
AFFORDABLE
EQUALS VALUE,
NOT PRICE. WE
HAVE TO DELIVER
QUALITY TO
REPRESENT OUR
BRAND WELL
- MOONEY
“

60. 2LegacyTHOUGH
PRODUCTS WILLL
BE HEALTHFUL
AND FUN, BASED
ON THE PAST
CRITICISM, THEY
EXPECTED SOME
SKEPTICSM. THIS
IS THE TIME TO
LEAVE BACK THE
LEGACY

61. 3CompetitionDCP MANAGERS
BELIEVED THAT
THE COMBINATION
OF A BROAD
PRODUCT LINE,
WIDE
DISTRIBUTION
AND THE DISNEY
BRAND WOULD
WIN OVER MOMS

62. 4 Growth and
distribution
DISNEY WANTED
TO LICENSE OR
DEVELOP
ADDITIONAL LINES
OTHER THAN
KROGER AND
DIFFERENTIATE
ADDITIONAL LINES
USING
CHARACTERS,
BRAND AND PRICE

63. WITHIN DCP WE WILL TAKE A SHORT
TERM HIT FINANCIALLY, BUT WE’RE
DOING THE RIGHT
THING AND GETTING GOOD BUSINESS
RESULTS
- MOONEY AND DOLMON
“

64. CAN DISNEY PROVIDE
LEADERSHIP
TO REST OF THE FOOD INDUSTRY?

65. WIN-WIN SOLUTION
FOR MOMS, KIDS AND DISNEY
CONSUMER PRODUCST

67. DISNEY’S SOCIALLY
RESPONSIBLE BEHAVIOR
MARKETERS MUST EXERCISE THEIR SOCIAL CONSCIENCE IN SPECIFIC
DEALING WITH CUSTOMERS AND STAKEHOLDERS

68. "These slides were created by B. Pavan Kumar as part of an
internship done under the guidance of Prof. Sameer Mathur
(www.IIMInternship.com)"