Disney

DISNEY CONSUMER PRODUCTS

M A R K E T I N G N U T R I T I O N T O C H I L D R E N

HISTORY OF DISNEY1

1923: Debut of Mickey Mouse

1932: L icens ing became a formal

bus iness

1950: Disney expands beyond fi lm &

te levis ion

1954: Debut in first te lev is ion

program

2004: Obesi ty Epidemic

2006: DCP launches offer ing of f resh

f ru i ts

v b

Walt Disney Company comprises of 4 business segments

Media & Network

Parks & Resorts

Studio & Entertainment

Disney Consumer Products

(DCP)

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DCP’s Licensing & Distribution Model

Traditional Licensing Model

Sourcing (designed and create

products by Disney but

manufactured and marketed by

l icensee

Direct to Retai ler entai led

partnering

v b

Problem Definition

2

Problem Analysis Disney b rand was accused o f con t r ibu t ing

towards the obes i t y ep idemic .

Disney needs to cons ide r the nu t r i t i ona l

va lue o f the i r f ood p roduc t .

Es tab l i sh c red ib i l i t y w i th gove rnment

manu fac tu re r s , pa ren ts & nu t r i t i on i s t s .

Ch i ld ren ’ s tas te impac ts the consumpt ion .

v b

Problem Definition

Could Disney use its magic to

switch chi ldren from sugary to

more nutrit ious diet? Could they

sustain?

- Disney needs to reconsider the nutrition value of their food products

- DCP products need to meet USDA dietary guidelines

- The food has to appeal to children and deliver on the brand’s promise of magic

Market Analysis

3

Market Analysis

Organized focus groups, group sessions

and shopping tr ips with mothers to size

the chi ldren’s food market

Observations

Mothers perceived Disney products with high quality,

trustworthy and familiar to line of food and beverages

They associated Disney with “Magic”

Children influence purchase decisions

Peer pressure and advertisement influences children’s

preferences

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Needs & Wants of Consumer

- Mothers want portion controlled, high quality, taste good, reduced fat and sugar

- Children want fun graphics, shapes, good taste, great fun

Disney’s Nutrition Guidelines

Nutrition control:

Control levels of added sugar Contain no trans or hydrogenated fats Promote fibre and calcium Minimize the use of additive Prefer to use whole foods that are

intrinsically dense in nutrients

v b

Reformulate some products, shrinking portion for others

and phase out products that don’t meet guidelines

v

b

Click here to learn more!

Product Development Decisions4

Decisions Taken

Products that already had broad appeal

were needed to be made healthier

Products that are healthy are needed

to make more “fun”.

Products with attractive packaging

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Disney began licensing its characters to imagination farm

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Strengths- Brand recognition- Creative process

- Strong diversification- Cooperate with big retailers like Kroger

- Responsiveness to market

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Weakness

- Large R&D costs- High risk factor

- Does not have own manufacturing for DCP

v b

Opportunities

- Mother’s positive perception of the Disney brand

- Disney character’s popularity

v b

Threats

- Competitors- Differentiation form natural produce

products- Pricing competition

v b

Indicators of strength

Why did Disney partner with Kroger and not Walmart?

• Kroger had 12% market share and more number of national outlets

Competition

ENTERTAINMENT CHANNELS

COMMODITY PRODUCE

Recommendations5

Recommendation- Additional characters will allow Disney to expand their market share and improve product differentiation

- Disney films should show their characters consuming healthy food and show the disadvantages if they consumed non healthy foods.

- Improve packaging to provide nutritional facts, jokes and other child-engaging information

v b

Recommendation v b

- Parents must also tell their children about the advantages of healthy foods and give the children healthy food in right proportions.

- Tell the parents that Disney already has the product that meets the healthy food standards.

- Licensees are responsible for following the nutrition guidelines, creating the product changes, conducting consumer taste tests,

Created by Vaibhav Agarwal, BITS

Goa during an internship by

Prof. SAMEER MATHUR, IIM

Lucknow

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