Disney Consumer Products:Marketing Nutrition to

Children VIVEK RNIT CALICUT

Founded byRoy & Walt Disney in1923

Debut with Steamboat

Willie

AcademyAward in1932

First Disneyland opened in 1955

Walt Disneypasses awayIn 1966

MICHAEL EISNER BECOMES CEO IN 1984

Valued at $32 billion in 2006

High Familiarity with Disney’s Characters

WORLD’S MOST VALUABLE FRANCHISE !!!

Parks and Resorts Media Networks

DCP Studio Entertainment

Four Major Business Segments

Responsible for extending Disney brand to merchandise

SoftlinesBuena Vista Games

Home & Infant Hardlines Publishing Toys

Mainly Licenses Third Party Products

CURRENT SITUATION

CURRENT SITUATION

Candies & Ice creams Form Major Food Products

CURRENT SITUATION

$2 Billion Exclusive Licensing Deal with McDonalds

WHAT IS THE PROBLEM THEN?

Fast food companies were blamed by activists, parents & governments

Disney gets flak for its Candies and for associating with Companies like McDonald’s

SO WHAT DID DISNEY DO ??

DISNEY TOOK IT AS AN OPPORTUNITY TO RECONSIDER THE NUTRITIONAL VALUE OF ITS OFFERINGS AND TOOK THE FOLLOWING STEPS

• Develop Moderately Priced and Position as a Fun Line of Products Specifically for Children

• Fill The Gap Between What Children Wants & What Moms Buy

• Provide High Quality, Portion Controlled, Good Taste and Less Fat & Sugar Products Which will be Requested by Children

• Restrict ‘treats’ to 15% of Product Mix While Focussing on Main Meals, Side Dishes, Snacks and Drinks

‘BETTER FOR YOU’ NUTRITIONAL GUIDELINES BY DCP

Products to : • Be minimally processed• Have controlled levels of

sugar and sodium• No trans or hydrogenated

fats• Limit calories by

reformulation or portion size• Minimal use of additives• Promote fiber & calcium

• 41% of the products already compatible

• 28% had to be phased out

• Licences of incompetent and unwilling licensees to be terminated

• Sourcing (Imagination Farm) and Direct To Retail (Kroger) strategies adopted

IMAGINATION FARMS

Licensee to market fresh fruits & vegetables under the name of ‘Disney Garden’

‘Taste, Nutrition & Magic !’

THREE PRONGED STRATEGY ADOPTED

Differentiate Commodity Produce Through Promotion

Create Value-added Products Through Product Preparation or Packaging

Develop Exclusive Produce Varieties that Would Yield More Child Friendly Foods

PLU Stickers adorned with Disney characters used to differentiate between commodities

Largest Pure Grocery Retailer in the U.S.

Direct To Retail Relationship

12% of the U.S. Grocery Market

DISNEY MAGIC SELECTIONS

A Kroger Corporate Brand

Satisfying Disney’s ‘Better for You’ Nutritional Guidelines

Introduced Two New Mickey Personas

For Packaged Goods

For Farm GoodsFARM MICKEY

DTR RELATIONSHIPS WITH BIGGEST SUPERMARKETS IN EUROPE

CHALLENGES

PRICING

Premium Ricing Or

Affordable Pricing??

GROWTH & DISTRIBUTION

Competition Between Disney Garden&Disney Magic Selections

LEGACY

Preference toLegacyor Current Strategy

COMPETITION

• Nickelodeon

• Sesame Workshop

• Warner Bros

FUTURE PROSPECTS

COOKERY SHOWSFORCHILDREN

Exercise Programs to Supplement Nutritionary Efforts

FOOD SERVICE

RESTAURANTS

RECAP

• HISTORY• CURRENT SITUATION• PROBLEM FACED• NEW SITUATION• STEPS TAKEN• CHALLENGES• FUTURE PROSPECTS

“Created by Vivek R, NIT Calicut,during an internship with Prof. Sameer Mathur, IIM Lucknow. ”