This presentation is an analysis of the Harvard Business case, "Disney Consumer Products:Marketing Nutrition to Children"

1. “BETTER FOR
YOU”

2. IN 2005,
AMERICA WAS HIT BY
AN EPIDEMIC

3. OBESITY

4. BUT AT THE SAME TIME,
SOMETHING
INTERESTING
HAPPENED

5. DISNEY CONSUMER PRODUCTS
IN 2004 ESTIMATED THAT IT’S
FOOD PRODUCTS
ACCOUNTED FOR
LESS THAN 1% OF
CHILDREN’S FOOD MARKET

6. THIS LED TO AN IDEA

7. DISNEY DECIDED TO ENTER
THE FOOD AND BEVERAGE
INDUSTRY.

8. BUT THEY WANTED TO DO
IT IN A HEALTHY WAY

9. THIS WAS ALSO
NEEDED
BECAUSE….

10. THEIR PORTFOLIO MOSTLY CONSISTED OF
FATTY STUFF.
THIS WAS ALSO REFLECTED IN THEIR
CO-BRANDING EFFORTS WITH BRANDS
LIKE
MC DONALDS

11. BUT BEFORE ANYTHING,
THEY FACED SOME
FRICTIONING
ELEMENTS

14. NEVERTHELESS,
THEY WENT ON TO CAUSE A
REVOLUTION

15. MEANWHILE,
IN 2005 & 2006
FDA AND IOM PUSHED
HARD TO PROMOTE
NUTRITION

16. AND THUS,
THE TIMINGS WERE RIGHT
FOR DISNEY

17. FIRST THINGS
FIRST

18. THE COMPANY AUDITED
2100 OF IT’S FOOD
PRODUCTS

19. WHILE 41% OF PRODUCTS
ALREADY COMPLIED THE
GUIDELINES BY FDI,
MORE THAN A QUARTER
NEEDED TO BE PHASED OUT

20. NOW IF THEY WERE TO
SUCCEED,
THE COMPANY NEEDED
GOOD BUSINESS
MODELS

21. 3 WAYS TO GO
TRADITIONAL
LICENSING
SOURCING
DIRECT TO
TRADE

22. #1 TRADITIONAL LICENSING
LINCENSEES HANDLED
PRODUCT INNOVATION
MANUFACTURING
SALES
AND MARKETING

23. #2 SOURCING
CREATED AND DESIGNED BY DISNEY,
MANUFACTURED,
SOLD AND MARKETED BY
THE
LICENSEE

24. #3 DIRECT TO RETAIL
SELLING THE BRAND RIGHTS AND
CHARACTERS TO RETAILERS WITH
STRONG CONNECTIONS,
RETAILERS HANDLED
MANUFACTURING
AND MARKETING

25. NOW,
TWO BIG THINGS
HAPPENED TO DISNEY

26. #1 IMAGINATION
FARMS

27. THIS WAS A COMPANY
FOUNDED IN 2006,
TO SERVE AS A LICENSEE TO
DCP

28. AND THE PEOPLE AT
IMAGINATION FARMS USED
VARIOUS MEANS TO EARN
SUCCESS

29. DISNEY CHARACTERS
WERE USED EFFICIENTLY TO
ATTRACT
THE CHILDREN

30. PLU STICKERS WITH
DISNEY CHARACTERS WERE
USED ON
THE FRUITS

31. BAGGED FRUITS AND
VEGETABLES FEATURED A BACK
PANEL WITH NUTRITIONAL
INFORMATION
FOR CHILDREN

32. #2 DISNEY AND
KROGER

33. THIS WAS A DTR
RELATIONSHIP,
AND KROGER WAS
SELECTED BECAUSE IT HAD
A
12% MARKET SHARE
IN US GROCERY MARKET

34. AND THIS GAVE BIRTH TO
“DISNEY MAGIC SELECTIONS”

35. THE PRODUCTS SOLD
HAD A
“BETTER FOR YOU”
CALLOUT

36. CHEF MICKEY
APPEARED ON PACKAGED
FOOD

37. FARMER MICKEY
APPEARED ON FRESH FRUITS
AND VEGETABLES

38. PACKAGES BACK PANELS
FEATURED MAZES AND
PUZZLES FOR CHILDREN

39. AND ALL THESE
MARKETING EFFORTS WERE DONE
TO MAKE
THE CHILDREN FALL IN LOVE
WITH THE BRAND

40. AND AS A RESULT OF THESE
AND MANY MORE SUCH
BUSINESS ENDEAVOURS,
DISNEY WAS FINALLY ABLE TO
“MARKET NUTRITION TO
CHILDREN”

41. BUT,

42. IN THE PROCESS,
DISNEY TOOK A MULTI
MILLION DOLLAR HIT
FOR ALL THE PRODUCTS IT
DISCONTINUED

43. BUT IT WAS NOT ABOUT
THE PROFITS
IN THE FIRST PLACE

44. FOR DISNEY IT WAS
FOR SOMETHING
BIGGER THAN
THAT

45. VALUE TO
IT’S
CUSTOMERS

46. SUMMARY
-IN 2005 AMERICA WAS HIT HARD BY OBESITY
-DISNEY ENTERED THE FOOD MARKET AS IT SAW THE OPPORTUNITY
-IT FOLLOWED THE RECOMMENDATIONS OF FDA
-3 BUSSINESS MODELS WERE PREPARED (LICENSING,SOURCING AND
TDR)
-IMAGINATION FARMS AND DISNEY MAGIC SELECTIONS WERE
CREATED IN THE PROCESS
-FINALLY DISNEY MARKETED NUTRITION TO CHILDREN AND EARNED
BRAND EQUITY BY TAKING A MULTI MILLION DOLLAR HIT THROUGH
IT’S EFFORTS

48. DISCLAIMER
CREATED BY SAMEER TIWARI, NIT RAIPUR
DURING AN INTERNSHIP UNDER
PROFESSOR SAMEER MATHUR, IIM
LUCKNOW.