Marketing Nutrition to Children

The Walt Disney Company

Founded by brothers Elias and Roy Disney in 1923

Started as a cartoon studio before diversifying into live-action films,

television and theme parks

Michael Eisner, appointed CEO in 1984 added DCP to the company’s portfolio to supplement

revenues

Disney Consumer Products

Extended the Disney brand to merchandize by character licensing

Global Character Licensing Industry(2006)

56%44%

Retail Sales

DisneyOthers

DCP Licensing Models

1. Traditional Licensing2. Direct to Retailer3. Contractual Licensing

Disney Consumer Products faces backlash

Starting 2004, Disney faced widespread criticism over its consumer foods and

beverages, which were seen as a cause of obesity among children

Causes of Obesity1. Larger portions2. Increased sugar intake3. Increased frequency of eating junk food

How did Disney respond?

Reconsidered its entire range of food products

Embarked on a mission to improve the nutritional value of its offerings

Strategy

1. Improve nutritional value of existing products

2. Introduce new and healthy products

Improving nutritional value of existing products

Disney arrayed its product portfolio into 5 categories and allotted

calories to each category

1100

400

100

100

100

No. of calories

Main mealSide dishSnacksDrinksTreats

Products that fit the criteria stayed, while the ones that did not, were modified to adhere to it

DCP reformulated some products and shrunk portions for others

By September 2005, 75% products complied with its nutritional

standards

Introducing new and healthy products

Started marketing fresh fruits and vegetables along with packaged foods

Collaborated with Imagination Farms to produce high quality fruits and vegetables

Used character licensing for advertising the fresh fruits and vegetables

Provided retailers with customized marketing campaigns that linked the

products to the Disney experience

Added value by using characters in products to invoke the Disney magic

CompetitorsDisney faces competition from other companies in the cartoon and animated film space, namely:

1. Warner Bros.2. Nickelodeon3. Sesame Workshop among others

Distribution ChannelsDisney collaborates with global retail giants like Walmart, Kroger and Target to boost sales by offering exclusive offers

Future Measures

Disney plans to make nutritionally beneficial changes to its food offering at Disney theme parks and Resorts

Risks

The brand re-positioning cost Disney millions of dollars in losses. Absence

of consumer demand is another cause of concern

Pricing

Keeping prices too high drives customers away, while lowering them too much tarnishes the brand value. Disney presently, has a competitive pricing mix

Disney needs continuous efforts to gain acceptance and market share for its new

products

Future Prospects

Venturing into:

1. Food Service (Lunch Programs)2. Out-of-home consumption