A case study on Marketing Nutrition to Children, done as part of an internship at IIM L under Prof. Sameer Mathur.

1. -Tushar Vatsa
BITS – Pilani, Dubai
- Marketing Nutrition to Children

2. 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

4. Disney Consumer Products (DCP)
• The main model presupposed getting
the license for the use of Disney brand
on quality products made by other
companies
• Andy Mooney introduce direct to
retail(DTR) and DTR distribution model,
and also keep the traditional licensing
model

5. Product Integration 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

6. Disney was accused contributing towards the growing
obesity epidemic (Confectionery products, Uncontrolled
eating habit)

7. Healthy Food for Children
Disney need to
reconsider the
nutritional value of
their food products

8. It is facing pressure from
activists, parents ,
government to check their
offerings and advertisement
activities & needs to get
credibility.

9.  Can Disney meet Nutritional Guidelines
setup by FDA ?
 Can Disney use it’s Brand Image to reach out
to children
Or does it bring down the Brand Value of
Disney ?
 How do people perceive this transition of
DCP ?
 Who will be their competitors & how will
they face them ?
 What new challenges do they face with this
transition ?
 Can Disney provide leadership to the rest of
the food industry ?

10. Peer pressure & advertising strongly influence kids.
They demand national or character driven products.
Market Analysis

11. Moms associate Disney strongly
With Magic – even when it
comes to food

12. The Household Decision-Making
Process for Children’s Products
Influencers
(children)
Communications
targeted at children
(taste, image)
Communications
targeted at parents
(nutrition)
Purchasers
(parents)
User
(children)
Information
gatherers
(parents)
Initiators
(parents,
(children)
Decision
makers
(parents,
children)

13. Product Development
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.

14. Disney’s Nutrition Guidelines
• Controls level of added sugar

15. Disney’s Nutrition Guidelines
• Contains no trans-
fat or
hydrogenated fat.

16. Disney’s Nutrition Guidelines
• Promote fibre & calcium

17. Disney’s Nutrition Guidelines
• Minimize use of additives
& preservatives.

18. Disney’s Nutrition Guidelines
• Prefer to use whole foods that are nutrient
dense.

19.  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.

20. • Portion
controlled
• High quality
• Reduced fat
& sugar
• Fun Graphics
& shapes
• Good taste
KIDS
MOM
Needs & Wants

21. Had to reformulate some products , shrinking portion for others and
phase out some products that could not meet the guidelines.

22. 3. Use packaging to
inspire product
sampling
1. Offer products that
already had broad appeal
2. Take products that
were already healthy &
make them more “fun”
Disney adopted 3 approaches for creation of food
products

24. 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

25. Indicators of strength

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

28. 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”

29. 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

30. Challenges faced by Disney in this Business Model
1. Pricing it such that doesn’t only carry value but also
makes it affordable.
2. Initial financial hardship can be expected till demand
grows.
3. Disney must diversify aditional distribution lines other
than Kroger too.
4. Although nutritious & fun based on the past criticism can
be expected. Hence legacy must be left behind.

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

33. 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

34. 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

35. 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

36. 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

37. Thank You…

38. Created by Tushar Vatsa during a
marketing internship under Prof.
Sameer Mathur – IIM Lucknow
(visit www.IIMInternship.com )