A case study on Disney consumer products

1. Disney Consumer Products - Marketing
Nutrition to Children

3. • Disney is a $32 billion company with $2.5
billion net income.
• Disney’s Mickey Mouse and Winnie the Pooh
are the top earning fictional characters.

4. Four Major Business Segments
Media and
Networks
Parks and
Resorts
Studio
Entertainment
Disney
consumer
products

6. Disney Consumer Products was
responsible for extending the Disney
brand to merchandise ranging from
apparel, toys, home décor and books
to interactive games, food and
beverages, electronics and animation
art.
Types :
Softlines (Apparel , footwear)
Buena vista games
Home and infant
Hardlines (Food , Health etc.)
Publishing
Toys

8. Packaged goods manufacturers, fast food companies were subject to growing criticism
from activists, parents and governments around the world who believed these
companies contributed to the growing obesity epidemic

9. Disney was licensed for high calorie foods that
contributed to obesity.

10. Can Disney find
a Solution?•

11. • Disney have to review the nutritional
composition of its food products.
• It must to gain its credibility among the public
by using its “magic”.
• Its Branded food Market share was around 1%
[2005] , so a revamp must be on the cards.

13. “We sent
Moms on shopping trips to
see the difference between
what they bought and what
kids wanted,” - Disney

14. • To develop “a quality range of Disney integrated
foods that answers children’s daily needs in an
entertaining way—in short, good food, great fun
e.t.c

15. Disney Nutritional Guidelines
Disney arrayed its portfolio of products into five
categories:
Main meal,
Side dish
Snacks
Drinks
Treats

16. • Disney’s goal was to balance its
portfolio so that 85% of its
products could be classified as
main meal, side dish, snack or
beverage and only 15% could
be categorized as treats

17. • DCP began reformulating some products and
shrinking portions for others : as a result, by
September 2005, 75% of its U.S. products
complied with its nutritional standards
• The company planned to have all its products
brought into compliance or phased out by 2008

20. • First, DCP would offer products that already
had broad appeal such as milk or peanut
butter.
First, DCP would offer products that already had broad appeal such as milk or
peanut butter.

21. The second was to take products that were already healthy and make them more
“fun.”

22. The third was to use packaging to inspire product sampling, such as making water
bottles in the shape of characters.

23. DCP embraced a “whole foods first” philosophy and as a result, marketed fresh
fruits and
vegetables in addition to its package products. Disney began licensing its
characters to Imagination Farms, a national fresh produce marketing company
founded specifically to serve as a licensee to DCP, in March 2006

24. Three product development strategy:
• Differentiate commodity produce through promotion
• Create value-added products through product preparation or
packaging
• Develop exclusive produce varieties that would yield more child-
friendly foods.

25. To differentiate commodities such as peaches and apples, PLU stickers (labels affixed to
individual pieces of fruit with 4-digit codes used to identify the fruit at the register) were adorned
with Disney characters

26. In addition to licensing produce through Imagination Farms, DCP developed a broad range of
products with Cincinnati-based Kroger Supermarkets
Disney began negotiating with Kroger to establish a
DTR relationship for an exclusive line of Disney-branded product

28. Disney and Imagination Farms faced competition from many sources, including
commodity produce products, major brands such as Dole, Green Giant and Fresh Express
and, within the children’s segment, other entertainment brands such as Nickelodeon,
Sesame Workshop, and Warner Bros.
Nickelodeon
• In Fall 2005, spinach, baby
carrots and clementines
bearing SpongeBob
squarepants and Dora the
Explorer character images
began to appear on shelves.
• By the end of the 2005, unit
sales of Darling clementines
increased by almost 25%
after the Dora and
SpongeBob characters were
added to the product
packaging,
Warner Bros.
• Ready Pac planned to feature
Warner’s Bugs Bunny, Tweety
and Tasmanian Devil
characters on its Cool Cuts
Ready Snax single-serving
packages of fruit.
• Each package contained two,
2-ounce packages each of
grapes, apples and carrots,
which Ready Pac promoted
as lunchbox alternatives to
cookies, potato chips or
candy.!
In June 2006 Del Monte Foods, a
$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, a
nonprofit educational
organization best known for its
Sesame Streetpublic television
program
Sesame Workshop

29. Key Performance Statistics:

30. More than 14,000 new food
and beverage products
entered the U.S. marketplace
each year but less than 6%
were successful; the
remaining 94% failed due to
one or more factors,
including lack of consumer
demand, ineffective
marketing, lack of support
from the public health sector
or cost

31. Challenge of delivering high value at affordable price.

32. Focusing on developing ‘better for you’ products

34. Implementation of new characters

35. Collaborating healthy foods with Disney Programs
Healthy food campaigns for Parents
Promoting items through Kindergarten