Disney faced criticism for contributing to childhood obesity through its food products. It saw an opportunity to market healthier foods to kids. Disney conducted research and found a gap between what kids wanted and what parents bought. It developed guidelines to make food products healthier by 2008. Disney partnered with Imagination Farms to develop exclusive and value-added produce varieties. It saw competition from Nickelodeon, Sesame Workshop, and Warner Bros. in the healthy kids food space. Disney believed it could beat competitors through its brand magic and characters. Successfully marketing healthier foods while differentiating from competitors and maintaining profitability would be a challenge.

1. Disney Consumer
Products

2. 1923
1955
1983
1986

3. 10 television stations.
 72 radio stations.
10 theme parks .
35 Disney Vacation Club resorts.
 2 luxury cruise ships.
By 2006

4. 32$
Billion Company
in 2005

5. 2.5$
Billion Net Income
in 2005

7. 5.8$
BILLION WORTH
5.6$
BILLION WORTH
3$
BILLION WORTH

8. 96%
Kids Familiar
92%
Kids Familiar
97%
Kids Familiar

9. Families spent an
average of
9.16 billion hours
with Disney per year.

11. DCP was the world’s largest
licensor.

12. 21$ BILLION
WORLD WIDE RETAIL
SALE,2005.

13. 15$ BILLION
WORLD WIDE RETAIL
SALE OF FOOD

14. 1.
SITUATION

15. 30%
American kids are overweight.

16. 14%
American kids are obese.

17. DISNEY faced CRITISISM
For contributing to growing
OBESITY EPIDEMIC.

19. Government ensured that
advertisements must not
encourage or condone excessive
consumption of food.

20. DISNEY saw an opportunity
to reconsider its entire range
of food products.

21. MARKET
NUTRITION
TO KIDS

22. 2.
QUESTIONS

23. WILL
BE ABLE TO MEET THE NUTRITION
NORMS SET-UP BY FDA

24. WILL
BE ABLE TO REACH CHILDREN
AND KEEP FOCUS ON IT’S BRAND
IMAGE

25. WILL
BE ABLE TO CONTINUE IT’S MOTTO
“Disney for fun”

26. WILL
CONSUMERS LIKE THE NEW
PRODUCT IN TASTE AND QUALITY
BOTH

27. WHAT WILL BE THE IMPACT ON
THE BRAND VALUE OF

28. HOW
WILL DISNEY FACE THE
COMPETITONS AHEAD

29. CAN
PROVIDE LEADERSHIP TO REST OF
FOOD INDUSTRY

30. 3.
HYPOTHESIS

31. In 2004, DCP estimated
that its branded food
products accounted
for less than 1% of
the children’s food
market.

32. The challenge stands to bridge this
GAP

33. 4. Proof
And
action

34. In winter 2004, DCP conducted research to size the food
business opportunity and to discover if Disney’s brand equity
would transfer to a line of children’s food products.
Sent Moms on shopping trips to see the difference between
what they bought and what kids wanted.

35. DCP discovered there was a gap between the
foods children requested and the foods their
mothers were willing to buy for them

36. “Peer pressure and advertising
strongly influence kids’ preferences,”
- Reid Leslie, director of food and beverage

37. “We knew that Moms’ brand loyalty
was strong, but we wanted to know
if that would translate to food, and it
did. ” - Reid Leslie, director of food and beverage

38. The products need to make them feel
special and must be non-patronizing
and
Mom-approved

39. “Kids want
fun graphics
and shapes,
good taste,
and great
fun,”
- Reid Leslie,
director of food and beverage

40. determined that key product categories were
Water
 fresh food
 frozen foods
 juice
Pasta
 soup
cereal
baked goods
 dairy/milk.

41. A quality range of
Disney integrated
foods that answers
children’s daily needs
in an entertaining
way—in short, good
food, great fun

42. Before officially
implementing its nutrition
guidelines, DCP audited
2,100 of its food products.

43. 41%
already complied
with the guidelines
28%
need to be
phased out

44. The company
planned to have all
its products
brought into
compliance or
phased out by 2008

45. “We know that to be appealing to
children, the products need to
integrate their favorite characters
and the aura and magic of Disney
into the package design. All together,
these elements can encourage
children to try the products,”
-Embola Ndi,
Vice president for
product development

46. Three
approaches
toward creating
Disney food
products

47. 1.
Offer products that
already had broad appeal

48. 2.
Take products that were
already healthy and
make them more fun.

49. Use packaging to
inspire product
sampling
3.

50. Imagination Farms.
-“They had lots of experience on the growing and
licensing side,

51. Three-pronged
product development
strategy

52. Differentiate commodity produce
through promotion.

53. Create value-added products through
product preparation or packaging.

54. Develop exclusive produce varieties
that would yield more child-friendly
foods.

55. COMPETITION
FACED

56. As the top rated U.S. basic cable network
since 1996, Nickelodeon was seen by
89 million households
“We believe that what is good for kids is good for business. Because the
rising obesity issue is important in kids’ lives, we chose to opt in, and be a
part of the solution”.
-Sherice Torres,
licensing vice president at Nickelodeon.

57. $3 billion U. S. manufacturer of branded and
private label canned vegetables and fruit,
announced that it had signed a licensing deal
with Sesame Workshop
“If anyone can encourage children to eat their fruits and vegetables…it’s
Elmo, along with his friends Cookie Monster and Grover”
- Apu Mody,
managing director for Del Monte

58. Ready Pac, a produce company that packaged washed,
cut and ready-to-eat fruits and vegetables for
supermarkets and food service, signed a licensing
agreement with Warner Bros.
“Healthier snack alternative” and “the original kid pleasing’,
mom-loving’ dippity delicious snack!”

59. “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 for product development

61. More than 14,000 new food and
beverage products entered the U.S.
marketplace each year.

62. But less than 6% were successful; the
remaining 94% failed due to one or more
factors.

64. 1. PRICING AND VALUE
“For the products, affordable equals value, not price. We have to deliver quality to represent our brand well.”
-Mooney
CEO,DCP
To go out with lower pricing,
is a marketing challenge for us.

65. 2. Legacy
“It isn’t useful to ask where are we are today—that’s based on decisions made many years in the past. Now
we are focused on developing ‘better for you’ products and how we’re going to get there,”
-Mooney.
Would consumers embrace the
new food products,
is a marketing challenge for us.

66. 3. Differentiation & Competition
“We expect competition and channel friction, but we believe we can beat the competition because even if they
develop and match our nutritional standards, they cannot access Disney magic,”
- Ndi.
To prove oneself better over others,
is a marketing challenge for us.

67. 4. Growth and distribution
Other retailers won’t turn our products down because of the Kroger relationship. We need to find exclusives for
them, too. Their chief concern and ours is that our products are profitable for them”.
-Mooney.
Differentiate using characters,
brand and price,
is a marketing challenge for us.

68. 5.
Alternative

69. NEW DISNEY
CHARACTERS

70. DISNEY FILMS
FEATURING HEALTHY
FOOD

71. HEALTHY FOOD CAMPAIGNS FOR
PARENTS

72. BRIDGE GAP BETWEEN DISNEY AND ITS
STAKEHOLDERS

74. EVERYONE SAY’S THANK YOU…….

75. Created by Shivanshi Srivastava, During a marketing internship by
NIT Rourkela Prof. Sameer Mathur,IIM Lucknow