MARKETING NUTRITIONTO CHILDREN

CASE

DISNEY CONSUMER PRODUCTS :

Founded DISNEY in 1923

Two brothersWalter Elias & Roy Oliver Disney

19231955

1953

1929

2003’sTop Earning Characters

$5.9Billion

$4.7 Billion

Became $300 Billion Company

Net Income of $2.5 Billion

In 2005

Buena Vista GamesHome & Infant

HardlinesPublishing

SoftlinesToys

Leading LicensorsCharacter-Driven

Entertainment Brands

Worldwide retail sales$21 Billion

>30 % Overweight>14 % Obese

5-9 Years old AMERICAN children Health Experts………….

Government & Parents

So,

Started blaming theFood Production Companies

“Food advertisements promotefood purchase requests bychildren to parents”

Government Imposed ruleson Advertisement

………IOM

Some companies increasedthere investments on ADVERTISEMENTS

Increased Media coverageOf Childhood ObesitySensitized the food & beverageIndustries

Disney started workingOn its products

What will be the ChallengesHow to set Nutritional Guidelineswithin FDA’s limits

Keeping in Mind,

How to advertise to reach to kidsWho will be the competitors

How to face CompetitorsCan Disney set an example

What will be the Challenges

-Pricing & Value-Legacy-Differentiation & Competition-Growth & Distribution

“Go out with low price is challenge”

……Reid Leslie(Director of food & beverages)

“But for these products,Affordable = value,Not price”

…..Mooney

“Forget where are we are todayFocus on developing

‘BETTER FOR YOU’ products”

…..Mooney

DPC’s managers believedthat combination of abroad product line, widedistribution & the Disneymagic would win overMoms

DCP signed an DTR relationship with KrogerDisney wanted to License or Develop additional lines.Can differentiate using Characters, brand & price

How to set Nutritional Guidelineswithin FDA’s limits

“Promote healthier categories, reformulate foods like cookies and cereal to be healthier and to control portions”

…....Embola Ndi(Vice President, product development)

Our goal is to get kids to consumehealthier products

If we decide to use an additive, we need to keep our focus on

WHY we are using it

Recommendations for DCP after Nutritional Audit

How to advertise to reach to kids

Adopted three approaches :

1) Offer products that already had broad appeal

Distributed Peaches with Daisy Duck& goofy stickers

2) Take products that are healthy & make fun

Mold whole wheat pasta into character shapes

3) Use packaging to inspire product samplingMaking water bottles in the shape of characters

Who will be the competitors

We expect competition & channel fraction, but we believe we can beat the competition because even if they develop & match our nutritional standards, they cannot access Disney Magic

…….Ndi

A top rated U.S. basic cable network since 1996

Seen by 89 Million households

SpongeBob SquarepantsThe FairlyOdd Parents

Del Monte Foods signed a licensing deal with Sesame Workshop

Cookie Monster

Ready Pac (ready to eat fruits) signed a licensing deal with Warner Bros

Bugs Bunny

Can Disney set an example

DCP is highly influential with children

Company used Its “MAGIC”To get children to switch from sugary,Processed foods and became lifelong converts to a more nutritious diet

LEKHRAJ KUSHWAHAIIT KANPUR

IIM Lucknow

CASE