RKETING NUTRITION TO CHILDRE E CHALLENGE FOR “MAGIC” MAKE SNEY
MARKETING NUTRITION TO CHILDREN:
THE CHALLENGE FOR “MAGIC” MAKERS DISNEY
THE WALT DISNEY WONDER IT ALL STARTED WITH A MOUSE
A BRIEF HISTORY OF DISNEY:THE COMPANY WHICH TOOK THE WORLD BY STORM
DISNEY BUSINESS SEGMENTS
DISNEY IS NUMBERS
IN FOCUS: DISNEY
CONSUMER PRODUCTS
DCP EXTENDED THE DISNEY BRAND TO MERCHANDISE AND DISNEYLICENSING BECAME A FORMALBUSINESS IN 1932.
TODAY IT ACCOUNTS FOR RETAIL SALES WORTH $23 BILLION IN 90 COUNTRIES.
THE DISNEY MERCHANDISE PORTFOLIO
RESHAPING DCP LICENSING MODEL: 3 WAY APPROACH
TRADITIONAL LICENSING
MODEL
SOURCING MODELCONTRACT
MANUFACTURING
DIRECT-TO-RETAILMODEL(DTR)
IN 2004, DCP USED ALL 3 MODELS WITH ITSFOOD AND BEVERAGE PRODUCTS, BUTDOLMON NOTED THAT THE BUSINESSSEGMENT RELIED HEAVILY ON “DISNEY-BRANDED, VALUE PRICES, ACTIVELYLICENSING MODEL”.
PROBLEM
IN 2004, THE WALT DISNEY COMPANY WAS SUBJECTED TO GROWING CRITICISMS FROM ACTIVISTS, PARENTS AND GOVERNMENTS AROUND THE WORLD WHICH BLAMED IT FOR CONTRIBUTING TO THE GROWING OBESITY ENDEMIC.
STAGGERING FIGURES!
FROM 1975-2005, THE RATES OF OBESITY IN CHILDREN HAD SKYROCKETED FROM 5% TO14% AMONG 2-5 YEAR OLDS, FROM 4%-19% FOR 6-11 YEAR OLDS AND FROM 5-17% FOR 12-19 YEAR OLDS!
MORE THAN 65% OF THE US POPULATION WAS CLASSIFIED AS OVRWEIGHT OR OBESE!
MED FOR
PROGRESSIVE INCREASES INPORTION SIZES, TELEVISION ADVERTISING CONDONING E BLA
LARMING TRENDS IN CHILDHOOD OBESITY.
ACTIVITS BLAMED DISNEY-BRANDED CONFECTIONS SOLD AT THEME PARKS
AND SUPERMARKETS AND TELEVISION COMMERCIALS
PROMOTING INCREASED FOOD PORTIONS FOR THE
OBESITY ENDEMIC.
DISNEY WAS IN LONG STANDING ROLE AS A TOY SUPPLIER TO MCDONALDS, ITSELF UNDER CONSTANT ATTACK AS CONTRIBUTOR TO THE OBESITY ENDEMIC!
EARLIER DCP PRODUCTS WERE CO-BRANDED AND IN PARTNERSHIPSWITH BRANDS SUCH AS KELLOG’S AND CADBURY .
IN 2004, DCP ESTIMATED THAT ITS BRANDED FOODPRODUCTS ACCOUNTED FORLESS THAN 1% OF THE CHILDREN’S FOOD MARKET.
DECISION (1 /2) DCP EXECUTIVES SAW THE CHANGINGLICENSING MODELS, RETAIL INDUSTRY CONSOLIDATION AND OBESITY ENDEMIC OFFERING AN OPPPORTUNITY TO SIMULTANEOUSLY BROADEN AND RATIONALIZEITS PRODUCTS OFFERINGS.
DECISION (2/2) THE
THE COMPANY,IN 2006,ANNOUNCED THAT IN ADDITION TO DCP’s NUTRITIONAL EFFORTS, IT WOULD ALSO MAKE “NUTRITIONALLY-BENEFICIAL CHANGES” TO THE MEALS SERVED TO CHILDREN IN ALL DISNEY-OPERATED RESTAURANTS IN ITS PARKS AND RESORTS.
DECISION {2/2}
DCP CONDUCTED SHOPPING TRIPS WITH MOTHERS OF CHILDREN AGES 2 TO 13 YEARS OLD, AND DISCOVERED A GAP BETWEEN THE FOODS CHILDREN REQUESTED AND THE FOODS THEIR MOTHERS
WERE WILLING TO BUY THEM.
DISNEY KNEW THAT MOM’s BRAND ROYALTY WAS STRONG AND THEY TRANSLATED THIS INTO A LINE OF BEVERAGES AND FOOD.
FOR MOMS, DISNEY WAS MAGIC
TO APPEAL TO MOTHERS, PRODUCTS NEEDED TO BE PORTION CONTROLLED, BE HIGH-QUALITY TASTE GOOD, OMIT OR REDUCE FAT AND SUGAR AND BE REQUESTED BY THEIR CHILDREN
RULES AND GUIDELINES DISNEY HAD TO ADHERE TO
IN 2005 AND 2006, INSTITUTE OFMEDICINE RECOMMENDED THAT USDA DEVELOP STANDARDS FOR MARKETING FOODS AND BEVERAGES TO CHILDREN BASED ON PORTION SIZES, FAT, SUGARAND SODIUM
IOM ISSUED A SET OF PRODUCT DEVELOPMENT AND MARKETING RECOMMENDATIONS REGARDING THE RESPONSIBILITIES OF FOOD AND BEVERAGE COMPANIES TO HALT THE OBESITY ENDEMIC.
DISNEY NUTRITIONAL GUIDLINES
THE “BETTER FOR YOU” DISNEY FOOD PRODUCTS
DCP’s “BETTER FOR YOU” NUTRITIONAL GUIDELINES-WAS DCP’s INTERNAL NOMENCLATURE FOR ITS
EVOLVING HEALTHIER PRODUCT LINES
DCP DERIVED ITS RECOMMENDATIONS FROM FDA’s DIETARY GUIDELINES WHICH PRESCRIBED OPTIMUM CONSUMPTION LEVELS FOR FOODS AN CALORIE INTAKE FOR CHILDREN
DCP SHARED ITS NUTRITIONAL GUIDELINES WITH ITS LICENSEES AND THUS DEVELOPED HEALTHIER PRODUCTS
AT A MUCH LARGER SCALE
THE CHALLENGE
THE FOOD MUST DELIVER ON THE BRAND’S PROMISE OF DISNEY MAGIC AND APPEAL TO CHILDREN
THUS CAME THE THREE APPROACHES TOWARD CREATING DISNEY FOOD PRODUCTS
FIRST: MAKING THE PRODUCTS THE KIDS ALREADY LOVE HEALTHIER
SECOND: MAKING THE HEALTHY PRODUCTS MORE FUN
THIRD: USING PACKAGING TO INSPIRE PRODUCT SAMPLING
EMBRACING THIS “WHOLE FOODS FIRST” PHILOSOPHY BY COLLABORATING WITHIMAGINATION FARMS
IMAGINATION FARMS: A NATIONAL FRESH PRODUCE MARKETING COMPANY FOUNDED SPECIFICALLY TO SERVE AS LICENSEE TO DCP
THEY EXPLAINED NUTRITION IN A KID FRIENDLY WAY
THE DISNEY AND KROGER DTR SYMBIOIS
WHY KROGER?
LARGEST PURE GROCERY RETAILER IN UNITED STATES
FISCAL YEAR SALES OF 60.6BILLION IN 2005
3700 STORES IN 30 STATES
DISNEY AND KROGER SIZED THE OPPORTUNITY AT $250 MILLION
AND THUS LAUNCHED THE“DISNEY MAGIC SELECTIONS”
DISNEY MAGIC SELECTIONS
EXCLUSIVE DISNEY LINE FEATURING “CHEF MICKEY” AND OTHER FAVORITE CHARACTERS DEBUTS WITH FOOD RANGE INCLUDING ASSORTMENT OF HEALTHY ITEMS
STRENGTHTHE DISNEY BRAND
WAST RESOURCES OF WALT DISNEY COMPANY
THE ASSOCIATION OF QUALITY, TRUST AND “MAGIC” WITH THE DISNEY BRAND FOR MOMS
STRONG IMAGE AS A “FUN BRAND” AMONGST CHILDREN
WEAKNESS SCEPTICISM SURROUNDING THE FOOD PRODUCTS FOLLOWING VOCAL CRITICISM IN THE PAST
HIGH INTIAL COST OF OPERATIONS AND PRODUCT LAUNCH
CONCENTRATION IN THE NORTH-AMERICAN MARKET
OPPORTUNITY UNTAPPED MARKET SEGMENT TO DELIVER “FUN” AND “HEALTHY” FOOD PRODUCTS
BROAD-BASED APPEAL AND MULTIPLE CATEGORIES
RELEASE OF NEW SUCCESSFUL STORIES AND CHARACTERS
THREAT (1/4)
LACK OF CONSUMER DEMAND: NEARLY 94% OF THE PRODUCTS OUT OF 14,000 NEW FOOD PRODUCTS LAUNCHED IN U.S. MARKET FAIL.
THREAT (2/4)PRICING AND VALUE
-EVEN THOUGH KROGER’S DMS PRODUCTS AND IMAGINATION FARM PRODUCTS WERE COMPETITIVELY PRICED, THEY STILL NEED TO BE AFFORDABLE
THREAT (3/4)COMPETITION FROM BRANDSSUCH AS NICKELDEON, SESAME WORKSHOP, AND WARNER BROS
NICKELDEON: OFFERING SERIOUS COMPETITION
THREAT (4/4)GROWTH AND DISTRIBUTION:IN ORDER TO THRIVE, DISNEY NEEDS TO DEVELOP ADDITIONAL LINES
CONCLUSIONDISNEY-SO FAR-HAS BEEN SUCCESSFULLY ABLE TO ENTER INTO THE FOOD MARKET, BUT THEY STILL HAVE A LONG WAY TO GO TO SPREAD THE MAGIC, ESPECIALLY IF THEY WANT TO PURSUADE CHILDREN TO SWITCH TO MORE NUTRITIOUS DIETS
THANK YOU
DISCLAIMER
Created by Pooja Goel, IGDTUW, during a marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow