DISNEY CONSUMER PRODUCTS

Disney brand: Synonymous with fun and Magic!

History!

1923- Debut of Mickey Mouse in Steamboat

Willie

1932- Won the Academy

award for Best Cartoon

1955- Amusement

Park in California

1980s- Additional

parks opened in different

places

2004- The Obesity

Epidemic

Parks and ResortsDisney Consumer Products(DCP)Studio EntertainmentMedia Networks

By 2006, it had four Major Business Segments:

In that year, the Walt Disney Company was a $32 billion company,Reporting net income of $2.5 billion!

Around the world, families spent an annual average of 9.16 billion hours immersed in Disney Branded experiences and Products.

• In 1932, Disney Licensing became a formal unit.

• In 1948, the company reported licensing income of over $1 million and retail sales of $100 million.

DCP’s Licensing and Distribution Models•Traditional Licensing Model•Sourcing•Direct-To-Retailer(DTR)

THE OBESITY EPIDEMIC

2004 statistics:30% of American Children between 5 to 9 years were overweight and 14% obese.

DISNEY WAS CRITICIZED FOR CONTRIBUTING TO THIS EPIDEMIC

Parents and activists criticized it for sugary and fatty products.

The unhealthy food had to be replaced!

Could Disney use its ‘magic’ to get children to switch from a sugary, unhealthy diet to a nutritious one?

Disney audited 2,100 products and found that more than a quarter of its products would need to be phased out.

Disney had to reconsider the nutrition value of its products.

DCP observed that children influenced the purchase decisions. Two main factors influenced the children:Peer pressure and Advertising.

Products had to be portion controlled, high quality with reduced fat or sugar.They realized kids want fun graphics and shapes, good taste and great fun. And of course, they needed Mom’s approval!

Deal with Imagination Farms

• Attractive packaging with Disney Characters• Free Collectibles for kids• Promoted the products in a children-friendly way• Important nutrition facts explained in a fun wayAll of these attracted the kids to fruits and vegetables much more!

COMPETITION

DISNEY AND KROGER

Disney preferred Kroger as it stood out because of its willingness to commit to a large product line.

Disney Magic Selections

• Ensured the new products fit Disney’s emerging “good-for-you” nutrition guidelines.• Pricing and Brand exclusivity

were key to Disney’s DTR strategy.

Kroger invested significantly in marketing the Disney Selections Line.It had 12% of the market share which fit with their global food distribution strategy.

WHAT RISKS DID THEY FACE?

•Pricing and Value•Legacy•Differentiation &

Competition•Growth and Distribution

ConclusionDisney has put in great efforts to handle the situation well. With the competition in the market, it should be more innovative. It must continue to engage children and contribute to a healthy society.

Presentation by:Stuti Sabharwal(BITS Pilani Hyderabad Campus)doing an internship under Prof. Sameer Mathur(IIM Lucknow).

Thank you!