Disney Consumer Products: Marketing Nutrition to Children

1. Consumer Products
Marketing Nutrition to Children

2. Founded by Walter EliasDisney andhis brother,
Roy Disney in 1923

3. 1923
Debut of
Mickey
Mouse in
Steamboat
Willie
1932
Licensing
became a
formal
business
unit
1954
Debut in first
television program
1955
Opened Disneyland in
Anaheim, California
1980 s – 1990s
Renaissance of Disney
Animation
1984
Focus on
entertainment assets
2004
The obesity
epidemic
2006
DCP Launched
offerings of fresh
fruits
Disney’s Chapter
1950
Expand
beyond
film and
television

4. $32 billion Company
with net income of
$2.5 billion in 2005

5. DISNEY’S
PRODUCT
MIX

6. Media Networks
• Managed Disney’s 10 TV stations, 72 radio stations, cable
television stations and Internet holdings
Parks and Resorts
• Licensed 10 theme parks as well as 35 Disney Vacation Club
resorts and two luxury cruise ships
Studio Entertainment
• Created animated and live action films
Disney Consumer Products
• Licensed Walt Disney characters, visual and literary properties and
published books, magazines, etc
MAJOR BUSINESS SEGMENTS

7. Retail stores in Europe and the US stocked the DCP
The main model presupposed getting the license for
the use of Disney brand on quality products made by
other companies
In 1998 - 1999 the sales on US and Japanese markets
decreased by 10% and 15%
Andy Mooney introduce direct to retail(DTR) and DTR
distribution model, and also keep the traditional
licensing model
Business Situation

8. PROBLEM
DEFINITION

9. Problem Analysis
• Disney branded was accused
contributing towards the growing
obesity epidemic
• Government passed rules that stated
advertisements must not encourage or
condone excessive consumption of
food

10. Healthy foods for children
Disney needs to reconsider the nutritional value
of their food products
Establish credibility with the government,
manufacturers, parents and nutritionist
Children’s taste impact the consumption

11. Could Disney use its “magic” to
get children to switch from
sugary, processed foods to a
more nutritious diet ?

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

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

14. WHAT
THEY DID?

15. Offered food
products that
tasted good,
thus liked by
Kids, and
also having
high nutrition
value, thus
like by Moms

16.  Establish Disney Nutritional Guidelines
 Using three licensing and distribution models
June 2006, Disney Consumer Products ( DCP )
decided to change the nutritional content of their
product and introduce new healthy foods for
children under the slogan of “Better for you”

17. Disney Nutritional Guidelines
Nutrition control
1. Control levels of added sugar
2. Contain no trans or hydrogenated fats
3. Promote fiber and calcium
4. Minimized the use of additives
Reformulating some
products, shrinking
portions for others and
phase out some products.

18. DCP’s Three Models
Traditional
Licensing Model Sourcing Direct to Retail
(DTR)

20. SWOT ANALYSIS
Strength
• Good image of brand
• Strong characteristic
• Cooperate with big retailers
(Kroger and Wal-Mart)
Weakness
• Doesn’t have own manufacturing
for DCP
• Growing criticism from activists,
parents and governments around
the world about contribution to
the growing obesity epidemic
Opportunity
• Mothers beliefs and expectations
about DCP
• Disney channel
• Leading licensors of character
Threats
• Competitors
• High expectations from mothers

22. Five C’s
5C
Company
(Disney ,
DCP)
Customer
(Children and
parent)
Collaborator
(Imaginator
Farm, Kroger)
Context
(Increasing Obesity
in Children &
Adults)
Competitor
(Nickelodeon,
Warner, etc.)

23. COMPANY AND ITS COMPETITORS
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”

25. 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

27. Product Development
ALTERNATIVES
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.

28. Licensees:
General Foods, Standard Oil, DuPont, General Mills, Amour
Meats, Life Savers, McDonalds, Imagination Farms
Direct to Retail (DTR)
Partnership:
Target, Wal-Mart, Other large retailers
Kellogg's and Cadbury
COLLABORATIONS

29. 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)

31. Disney arranged its
portfolio of products
into five categories :
 Main meal
 Side dish
 Snacks
 Drinks
 Treats

33. Solutions
Collaborate healthy foods with Disney programs
Healthy food campaign for parents
Promotion through kindergarten

34. 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
COLLABORATE HEALTHY
FOODS WITH DISNEY
PROGRAMS

35. Consuming healthy foods
on a right proportion
Disney already has the
products that meets the
healthy food standards
Parents must also tell
their children about the
advantage of healthy
food
HEALTHY FOOD CAMPAIGN
FOR PARENTS

36. 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

37. Children must
understand the
advantage of healthy
foods
Create children’s habit
to eat healthy foods
since kindergarten
PROMOTION THROUGH
KINDERGARTEN

39. Not easy for Disney to change the market taste,
because it would take a long time to replace the old
habit into a new one
There must be coordination between Disney and its
stakeholder to get the objectives that Disney wants

40. Created by Yash Manghnani,
RCOEM, Nagpur, as a part of the
Marketing Management
internship under Prof Sameer,
Mathur, IIM Lucknow