PowerPoint Presentation

Disney Consumer Products: Marketing Nutrition to Children

Harvard Business School Case

A brand which is synonymous with fun and Magic

1. History 2.Problems 3.Analysis 4.Solution 5.Conclusion

History

Walter Elias Disney and his brother, Roy, founded Disney Brothers Cartoon Studio, later renamed The Walt Disney Company

Introduced

Mickey Mouse Snow White

1923Debut of Mickey Mouse in Steamboat Willie1932Licensing became a formal business unit1950Expand beyond film and television1954Debut in first television program1955Opened Disneyland in Anaheim, California1980 s 1990sRenaissance of Disney Animation1984Focus on entertainment assets2004 The obesity epidemic2006 DCP Launched offerings of fresh fruitsDisney Evolution

Disney Consumer Product

Offered six lines of business:

Soft lines (apparel, footwear, etc)

Buena Vista Games

Home & infant

Hard lines(food, health & beauty, etc)

Publishing

Toys

Disney Consumer Product

DCPs Licensing and Distribution ModelsRetail stores in Europe and the US stocked the DCP The main model presupposed getting the license for the use of Disney brand on quality products made by other companies In 1998 - 1999 the sales on US and Japanese markets decreased by 10-15%Andy Mooney introduce direct to retail(DTR) and DTR distribution model, and also kept the traditional licensing model

ObesityIn 2004, more than 30% of US children between the ages of 5 and 9 years were overweight and 14% were obese.

Disney branded was accused contributing towards the growing obesity epidemic

Healthy foods for children Disney need to reconsider the nutritional value of their food productsEstablish credibility with the government, manufacturers, parents and nutritionist Problem Defining

CHILDREN CONSUME MORE THAN REQUIRED. TELEVISION ADVERTISING INFLUENCE CHILDREN . CAUSE OF OBESITY

In 2005 and 2006, IOM recommended that the USDA develop standards for marketing foods and beverages to children based on portion sizes, calories, fat, sugar and sodium and issued a set of product development and marketing recommendations regarding the responsibilities of food and beverage companies to halt the obesity epidemic.

Could the company use its magic to get children to switch from sugary, processedfoods and become lifelong converts to a more nutritious diet?

Yes, Disney as a brand has a potential to influence Children habits through its proper market strategy.

Sugar item food are more appealing for children.

Cost of nutritional food was higher.

More R & D, hence more time consuming. Challenges for Nutritional food

AlternativesProsConsKeep Traditional LineKeeping broad consumers base.Preferable by common children.Negative public opinionNot supporting by government regulation.

Healthy Program LineEstablish good imageStrong Brand Strong distribution ChannelPreferable by common parents. Possible to loss broad consumers base.

In June 2006, Disney Consumer Products ( DCP ) decided to change the nutritional content of their product and introduce new healthy foods for children under the slogan of Better for you.

What Disney did ?

Nutrition control

Control levels of added sugarContain no trans or hydrogenated fatsPromote fiber and calciumMinimized the use of additivesPrefer to use whole foods that intrinsically dense in nutrients Disney Nutritional Guidelines

Approaches taken by DisneyTake brand appealed product and make them healthy.Make already healthier product and make them fun.Famous Character based packaging to inspire sampling.

DCP STARTED IMAGATION FARMS TO MARKET FRESH FRUITS AND VEGETABLES VIA LICENSING .

Disney expect competition and channel friction, and believe that it can beat the competition because even if they develop and match our nutritional standards, they cannot access Disney magic.

Disney

DCP DEVELOPED A BROAD RANGE OF PRODUCTS WITH CINCINNATI-BASED KROGER SUPERMARKETS

KROGER DISNEY MAGIC SELECTION PRODUCTS

Challenges

PRICING & VALUE LEGACY DIFFERENTIATION & COMPETITION GROWTH & DISTRIBUTION

Swot Analysis

Weakness

Doesnt have own manufacturing for DCPGrowing criticism from activists, parents and governments around the world about contribution to the growing obesity epidemic.Opportunity

Mothers beliefs and expectations about DCPDisney channelLeading licensors of character (exhibit 5)Threats

CompetitorsHigh expectations from mothers

Promote healthy food by means of their films and shows.

Disney could create new character which shows the advantage of healthy foods. It encourages children.For exampleThis character eating Spinach.

Disney made changes in the absence of broad based consumer demand, and took the risk to change the habits of the consumers towards healthy foods.

Disney will be providing healthier options for families that seek them, whether at our parks or through broad array of licensed foods.

By the end of October, Disney parks and resorts in the United States were serving childrens meals with low fat milk, fruit juice or water instead of soda and apple sauce or carrots in place of French fries.

Disclaimer

Prof. Sameer MathurIndian Institute of Management , LucknowMarketing Professor: August 2013 Present

McGill UniversityMarketing Professor: July 2009July 2013

Carnegie Mellon UniversityPh.D. in Marketing : August 2003June 2009

These slides are created by Ankit Sharma,NIT Surat, as part of a Marketing Internship under Prof. Sameer Mathur.