disney consumer products (case study)
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CASE STUDY
Disney consumer products : Marketing nutrition to children…….
1)HISTORY
2)CURRENT SITUATION ANALYSIS
3)PROBLEM DEFINITION
4)ANALYSIS
5)RECOMMENDATIONS
6)CONCLUSION
1923- Debut of mickeymouse in steamboat willie
1932- licensing became a formal business unit
1950- expand beyond film and television
1955- opened Disneyland in Anaheim, California
2004- the obesity epidemic
2006- DCP launches offering of fresh fruits
HISTORY
By 2006 Walt Disney company was comprised of 4 major business segments:
By 2006 Walt Disney company was comprised of 4 major business
segments:
Media networks
Parks and resorts
Studio entertainme
nt DCP
Disney licensed it brand characters to merchandise to be sold at retail outlets in the following category:
DISNEY WITHMC DONALD :
In 1996, DCP signed an exclusive, 10-year, $2 billion licensing deal with McDonald’s that gave the fast food giant the right to feature Disney characters in its promotions and to offer Disney toys with its children’s meals
DCP’s LISENCING AND DISTRIBUTION MODELS :
Traditional licensing model
Sourcing(designed and create products by Disney but manufactured and marketed by licensee)
Direct-to-Retailer(DTR)Entailed partnering directly with retailers
Media networks Parks and resorts
Studio entertainment
DCP
BUSINESS SEGMENTS
CURRENT SITUATION (1/3)
• It is facing pressure from activists, parents , government to check their offerings and advertisement activities.
Disney is bein held responsible for rising obesity epidemic
CURRENT SITUATION (2/3)
YOUTUBE VIDEO REGARDING DISNEY DITCHES JUNK FOOD
CURRENT SITUATION (3/3)
It currently licenses packaged foods like candy, ice cream and few cereals, juices, some fish and chicken (BUT mainly sweetsand treats)
With changing licensing models, retail industry consolidation and the obesity epidemic, DCP sees this as an opportunity to broaden and rationalize its product offerings.
In 2004,DCP estimated that its branded food products accounted for less than 1% of the children’s food market.
PROBLEM DEFINITATION
Could Disney use its ‘magic’ to switch children from sugary To Problem definition more nutritious diet? Could they sustain?
Disney needs to reconsider the nutritional value of their food products.
DCP products need to meet USDA( united nations department of agriculture) dietary guidelines.
The food has to appeal to children and deliver on the brand’s promise of magic.
MARKET ANALYSIS
Organized focus groups, group sessions and shopping trips with mothers to size the children’s food market.
OBSERVATIONS
1. Mothers perceived Disney products with high quality, trustworthy and familiar to line of food and beverages.
2. They associated Disney with “Magic”
3. Children influence purchase decisions
4. Peer pressure and advertisement influences children’s preferences
CONCLUSION :NEEDS and WANTS
portion controlled, high quality, taste good, reduced fat and sugar
fun graphics, shapes, good taste, great fun
DCP’s NEW VISION STATEMENT FOR FOOD AND BEVERAGES
A quality range of Disney integrated foods that answer children’s daily needs in an entertaining way- “in short, good food, great fun”
DISNEY’s NUTRITION GUIDELINES
Nutrition control:
Control levels of added sugar
Contain no trans or hydrogenated fats
Promote fibre and calcium
Minimize the use of additive
Prefer to use whole foods that are intrinsically dense in nutrients
Recommendations for Disney-branded Foods after Nutritional Audit
PRODUCT DEVELOPMENT DECISIONS
1. Products that already had broad appeal such as milk or peanut butter need to be made “healthier”
2. Products that are already healthy and make them more “fun”.
EX: Whole wheat pasta could be moulded into character shapes.
3. Product with attractive packaging to inspire product sampling . ex: making bottles in shape of characters
DEMO GRAPHIC SEGMENTATION
AGE : CHILDERN &ADULT
BEHAVIOURAL SEGMENTATION
TASTE , FUN & MAGIC
Disney began licensing its characters to imagination farm, a national fresh produce specially to serve as a licensee to DCP , in march
2006
SWOT ANALYSIS
STRENGTH
Brand recognition
Creative process
Strong diversification
Cooperate with big retailers like Kroger
Responsiveness to market
WEEKNESS
Large R&D costs
High risk factor
Does not have own manufacturing for DCP
OPPORTUNITY
Mother’s positive perception of the Disney brand
Disney character’s popularity
THREAT
Competitors
Differentiation form natural produce products
Pricing competition
Indicators of strength
Why did Disney partner with Kroger and not Wal-mart?
• Kroger had 12% market share and more number of national outlets
Competition
Recommendations
Create new characters
Additional characters will allow Disney to expand their market share and improve product differentiation
Collaborate healthy foods with Disney programs
Disney films should show their characters consuming healthy food and show the disadvantages if they consumed non healthy foods
Improve packaging to provide nutritional facts, jokes and other child-engaging information
Healthy food campaigns for parents
Parents must also tell their children about the advantages of healthy foods and give the children healthy food in right proportions
Tell the parents that disney already has the product that meets the healthy food standards
Improve coordination between Disney and its stakeholders
• Licensees are responsible for following the nutrition guidelines, creating the product changes, conducting consumer taste tests.
1)HISTORY
2)CURRENT SITUATION ANALYSIS
3)PROBLEM DEFINITION
4)ANALYSIS
5)RECOMMENDATIONS
6)CONCLUSION
CREATED BY :
K.HARSHA VARDHANA
ELECTRICAL DEPARTMENTN I T JAMSHEDPUR.
UNDER :
PROF. SAMEER MATHUR
IIM LUCKNOW