Consumer Products

Marketing Nutrition to Children

Founded by Walter Elias Disney and his brother, Roy Disney in 1923

1923Debut of Mickey Mouse in Steamboat Willie

1932Licensing became a formal business unit

1954Debut in first television program1955Opened Disneyland in Anaheim, California

1980 s – 1990sRenaissance of Disney Animation1984Focus on entertainment assets

2004 The obesity epidemic2006 DCP Launched offerings of fresh fruits

Disney’s Chapter

1950Expand beyond film and television

$32 billion Company with net income of $2.5 billion in 2005

DISNEY’S PRODUC

T MIX

Media Networks• Managed Disney’s 10 TV stations, 72 radio stations, cable

television stations and Internet holdings

Parks and Resorts• Licensed 10 theme parks as well as 35 Disney Vacation Club

resorts and two luxury cruise ships

Studio Entertainment• Created animated and live action films

Disney Consumer Products• Licensed Walt Disney characters, visual and literary properties and

published books, magazines, etc

MAJOR BUSINESS SEGMENTS

Retail 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% and 15%

Andy Mooney introduce direct to retail(DTR) and DTR distribution model, and also keep the traditional

licensing model

Business Situation

PROBLEM DEFINITIO

N

Problem Analysis

• Disney branded was accused contributing towards the growing obesity epidemic• Government passed rules

that stated advertisements must not encourage or condone excessive consumption of food

Healthy foods for children Disney needs to reconsider the nutritional value of their food products

Establish credibility with the government, manufacturers, parents and nutritionist

Children’s taste impact the consumption

Could Disney use its “magic” to get children to switch

from sugary, processed foods to a more nutritious diet ?

In 2004, DCP estimated that its branded food products accounted for less than 1% of the children’s food market

DCP discovered that there was a gap between the foods children requested and the foods their mothers were willing to buy for them

WHAT THEY DID?

Offered food products that tasted good, thus liked by Kids, and also having high nutrition value, thus like by Moms

Establish Disney Nutritional Guidelines Using three licensing and distribution models

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”

Disney Nutritional Guidelines

Nutrition control1. Control levels of added sugar2. Contain no trans or hydrogenated fats3. Promote fiber and calcium4. Minimized the use of additives

Reformulating some products, shrinking portions for others and phase out some products.

DCP’s Three Models

Traditional Licensing

ModelSourcing Direct to Retail

(DTR)

SWOT ANALYSIS

Strength• Good image of brand• Strong characteristic• Cooperate with big retailers (Kroger and Wal-Mart)

Weakness• Doesn’t have own

manufacturing for DCP• Growing criticism from

activists, parents and governments around the world about contribution to the growing obesity epidemic

Opportunity • Mothers beliefs and

expectations about DCP• Disney channel• Leading licensors of

character

Threats • Competitors• High expectations from

mothers

Five C’s

5C Company (Disney ,

DCP)

Customer (Children and

parent)

Collaborator (Imaginator

Farm, Kroger) Context (Increasing Obesity in

Children & Adults)

Competitor (Nickelodeon, Warner, etc.)

COMPANY AND ITS COMPETITORSo Commodity produce:

Dole, Green Giant and Fresh Expresso Entertainment brands:

Nickelodeon Warner Bros Sesame Workshop Disney

Characters SpongeBob, Dora the Explorer, The Fairly Odd parents

Harry Potter, Looney Tunes

Elmo, Grover, Cookie Monster

Mickey Mouse, Winnie the Pooh, etc .

Networks Television channel Nickelodeon

Sesame Street public television program

Film and Television program

Collaboration Licensing partnership Ready Pac Del Monte Foods, Sunkist

Kroger, Safeway and Albertson’s supermarket, Carrefour, Wal-Mart

Concept “Every fruit a kid would want to eat with Nickelodeon character”

“Healthier Snack Alternative”, “The Original Kid Pleasin’, mom-lovin’ dippity delicious snack!”

‘Healthy Habits for Life”

“Better For You”

Disney34%

Warner10%

Nickelodeon8%Marvel

8%Sanrio

7%

Lucas5%

4Kids5%

HIT4%

Mattel4%

Universal3%

20th Century Fox2%

Pokemon2%

Sesame2% Others

7%

Market Share

Product Development

ALTERNATIVESPro’s Con’s

Keep Traditional LineKeeping broad consumers base.Preferable by common children.

Negative public opinionNot supporting by government regulation.

Healthy Program Line

Establish good imageStrong Brand Strong distribution ChannelPreferable by common parents.

Possible to loss broad consumers base.

Licensees:General Foods, Standard Oil, DuPont, General Mills, Amour Meats, Life Savers, McDonalds, Imagination Farms

Direct to Retail (DTR)

Partnership:Target, Wal-Mart, Other large retailersKellogg's and Cadbury

COLLABORATIONS

The Household Decision-Making Process for Children’s Products

Influencers(children)

Communicationstargeted at children(taste, image)

Communicationstargeted at parents(nutrition)

Purchasers(parents)

User(children)

Informationgatherers(parents)

Initiators(parents,(children)

Decisionmakers

(parents,children)

Solutions

Disney arranged its portfolio of products into five categories :Main mealSide dishSnacksDrinksTreats

Solutions

Collaborate healthy foods with Disney programs

Healthy food campaign for parents

Promotion through kindergarten

Disney films shows healthy foods consumed by the Disney’s characters to affect the children who watched the film to also consume healthy foods

Tell children who watch Disney’s programs the disadvantages if they consume non-healthy foods

COLLABORATE HEALTHY FOODS WITH DISNEY

PROGRAMS

Consuming healthy foods on a right proportion

Disney already has the products that meets the healthy food standards

Parents must also tell their children about the advantage of healthy food

HEALTHY FOOD CAMPAIGN FOR PARENTS

New character

Disney could create new character that has the advantage of healthy foods on their adventure. Children like adventure and healthy foods could be a big part on their adventure

Children must understand the advantage of healthy foods

Create children’s habit to eat healthy foods since kindergarten

PROMOTION THROUGH KINDERGARTEN

Conclusion

Not easy for Disney to change the market taste, because it would take a long time to replace the old habit into a new one

There must be coordination between Disney and its stakeholder to get the objectives that Disney wants

Created by Yash Manghnani, RCOEM, Nagpur, as a part of the Marketing Management internship under Prof Sameer, Mathur, IIM Lucknow