disney consumer products (case study)

HBS

CASE STUDY

Disney consumer products : Marketing nutrition to children…….

1)HISTORY

2)CURRENT SITUATION ANALYSIS

3)PROBLEM DEFINITION

4)ANALYSIS

5)RECOMMENDATIONS

6)CONCLUSION

1923- Debut of mickeymouse in steamboat willie

1932- licensing became a formal business unit

1950- expand beyond film and television

1955- opened Disneyland in Anaheim, California

2004- the obesity epidemic

2006- DCP launches offering of fresh fruits

HISTORY

By 2006 Walt Disney company was comprised of 4 major business segments:

By 2006 Walt Disney company was comprised of 4 major business

segments:

Media networks

Parks and resorts

Studio entertainme

nt DCP

Disney licensed it brand characters to merchandise to be sold at retail outlets in the following category:

DISNEY WITHMC DONALD :

In 1996, DCP signed an exclusive, 10-year, $2 billion licensing deal with McDonald’s that gave the fast food giant the right to feature Disney characters in its promotions and to offer Disney toys with its children’s meals

DCP’s LISENCING AND DISTRIBUTION MODELS :

Traditional licensing model

Sourcing(designed and create products by Disney but manufactured and marketed by licensee)

Direct-to-Retailer(DTR)Entailed partnering directly with retailers

Media networks Parks and resorts

Studio entertainment

DCP

BUSINESS SEGMENTS

CURRENT SITUATION (1/3)

• It is facing pressure from activists, parents , government to check their offerings and advertisement activities.

Disney is bein held responsible for rising obesity epidemic

CURRENT SITUATION (2/3)

YOUTUBE VIDEO REGARDING DISNEY DITCHES JUNK FOOD

CURRENT SITUATION (3/3)

It currently licenses packaged foods like candy, ice cream and few cereals, juices, some fish and chicken (BUT mainly sweetsand treats)

With changing licensing models, retail industry consolidation and the obesity epidemic, DCP sees this as an opportunity to broaden and rationalize its product offerings.

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

PROBLEM DEFINITATION

Could Disney use its ‘magic’ to switch children from sugary To Problem definition more nutritious diet? Could they sustain?

Disney needs to reconsider the nutritional value of their food products.

DCP products need to meet USDA( united nations department of agriculture) dietary guidelines.

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

MARKET ANALYSIS

Organized focus groups, group sessions and shopping trips with mothers to size the children’s food market.

OBSERVATIONS

1. Mothers perceived Disney products with high quality, trustworthy and familiar to line of food and beverages.

2. They associated Disney with “Magic”

3. Children influence purchase decisions

4. Peer pressure and advertisement influences children’s preferences

CONCLUSION :NEEDS and WANTS

portion controlled, high quality, taste good, reduced fat and sugar

fun graphics, shapes, good taste, great fun

DCP’s NEW VISION STATEMENT FOR FOOD AND BEVERAGES

A quality range of Disney integrated foods that answer children’s daily needs in an entertaining way- “in short, good food, 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

Recommendations for Disney-branded Foods after Nutritional Audit

PRODUCT DEVELOPMENT DECISIONS

1. Products that already had broad appeal such as milk or peanut butter need to be made “healthier”

2. Products that are already healthy and make them more “fun”.

EX: Whole wheat pasta could be moulded into character shapes.

3. Product with attractive packaging to inspire product sampling . ex: making bottles in shape of characters

DEMO GRAPHIC SEGMENTATION

AGE : CHILDERN &ADULT

BEHAVIOURAL SEGMENTATION

TASTE , FUN & MAGIC

Disney began licensing its characters to imagination farm, a national fresh produce specially to serve as a licensee to DCP , in march

2006

SWOT ANALYSIS

STRENGTH

Brand recognition

Creative process

Strong diversification

Cooperate with big retailers like Kroger

Responsiveness to market

WEEKNESS

Large R&D costs

High risk factor

Does not have own manufacturing for DCP

OPPORTUNITY

Mother’s positive perception of the Disney brand

Disney character’s popularity

THREAT

Competitors

Differentiation form natural produce products

Pricing competition

Indicators of strength

Why did Disney partner with Kroger and not Wal-mart?

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

Competition

Recommendations

Create new characters

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

Collaborate healthy foods with Disney programs

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

Healthy food campaigns for parents

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

Improve coordination between Disney and its stakeholders

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

1)HISTORY

2)CURRENT SITUATION ANALYSIS

3)PROBLEM DEFINITION

4)ANALYSIS

5)RECOMMENDATIONS

6)CONCLUSION

CREATED BY :

K.HARSHA VARDHANA

ELECTRICAL DEPARTMENTN I T JAMSHEDPUR.

UNDER :

PROF. SAMEER MATHUR

IIM LUCKNOW