DISNEY CONSUMER PRODUCTS MARKETING NUTRITION TO CHILDREN

THE DISNEY BRAND

HISTORY

1923:DEBUT OF MICKEY MOUSE IN STEAMBOAT VILLE

1932:DISNEY LICENSING BECAME A FORMAL BUSINESS UNIT

1954:FIRST DISNEY TELEVISION PROGRAMME LAUNCHED

1955:DISNEY THEMEPARKS KNOWN AS DISNEYLAND OPENED

2004:OBESITY PROBLEM STRUCK,DCP OFFERS FRESH OFFERINGS

OBESITY EPIDEMICMORE THAN 30% AMERICAN CHILDREN BETWEEN AGES OF 5 & 9 YEARS ARE OVERWEIGHT

OBESITY EPIDEMIC

MORE THAN 30% AMERICAN CHILDREN BETWEEN AGES OF 5 & 9 YEARS ARE OVERWEIGHT

OUT OF WHICH 14% ARE OBESE

REASONS FOR OBESITY PROBLEM

INCREASED PORTION SIZES

INCREASED USE OF SUGAR SWEETENED BEVERAGES

LACK OF EXCERCISE

ANALYSING THE CASE

SOFTLINES BUENA VISTA GAMES

HOME AND INFANTS HARDLINES

PUBLISHING TOYS

THE PLAYERS • HARRY DOLMAN : EXECUTIVE VP,DCP-FOOD,HEALTH AND

BEAUTY GROUP

• MICHAEL EISNER :CEO,DISNEY

• HERMAN KAY KAMEN :

• ANDY MOONEY :PRESIDENT ,DCP

• LANCE GATEWOOD : VP,DCP-FOOD HEALTH AND BEAUTY GROUP

• EMBOLA NDI : VP,PRODUCT DEVELOPMENT ,DCP

• JOHN HONECK : TEAM LEADER ,DCP.GROCERY AND DRUGS BUSINESS

WHAT IS THE PRESENT SITUATION

SITUATION ANALYSIS(1/3)

BUSINESS NETWORK

S

MEDIA NETWORK

S

STUDIO ENTERTAINMEN

T

DCP

PARKS AND

RESORTS

SITUATION ANALYSIS (2/3)

OBESITY LEVELS ARE INCREASING DRAMATICALLY AND DISNEY IS UNDER A CONSTANT ATTACK AS A CONTRIBUTOR TO OBESITY CRISIS

SITUATION ANALYSIS

DCP LICENSED WALT DISNEY CHARACTERS,VISUAL AND LITERARY PROPERTIES TO MANUFACTURERS AND RETAILERS

DCP PUBLISHED BOOKS,MAGAZINES,VIDEOS AND COMPUTER FOR HOME AND EDUCATIONAL MARKETS

DISNEY HELD THE WORLD’SMOST HIGHLY VALUED FRANCHANISEE CHARACTERS OF MICKEY MOUSE AND WINNIE THE POOH

MERCHANDISE LICENSING

TRADITIONAL LICENSING MODEL

SOURCING MODEL

DIRECT TO RETAIL(DTR)

THE BIG QUESTION

WILL DISNEY BE ABLE TO EMERGE AS A LEADER IN SOLVING THE OBESITY EPIDEMIC ?

INSIGHTS FROM MARKET RESEARCH

THERE WAS A GAP BETWEEN WHAT CHILDREN REQUESTED AND WHAT THE FOODS MOTHERS

WOULD BUY

CHILDREN INFLUENCE PURCHASE DECISIONS IIRESPECTIVE OF THEIR PHYSICAL PRESENCE IN

THE STORE

MOTHERS PERCEIVE DISNEY AS A HIGH QUALITY BRAND

INSIGHTS FROM CONSUMER BEHAVIOURAL RESEARCH• PEER PRESSURE AND ADVERTISING STRONGLY

INFLUENCE KIDS’ PREFERENCES

• KIDS DEMAND PRODUCTS THAT MAKE THEM ‘IN’ WITH THEIRPEERS AND THAT MEANS EITHER NATIONAL OR CHARACTER-DRIVEN PRODUCTS

• KIDS WANTFUN GRAPHICS AND SHAPES, GOOD TASTE, AND GREAT FUN

INSTITUTE OF MEDICINE (IOM) FINDINGS• ACTIVELY PROMOTE HEALTHFUL DIETS FOR CHILDREN.

• CREATE OR REFORMULATE CHILDREN’S PRODUCTS TO REDUCE CALORIES, FAT, SALT AND ADDED SUGAR WHILEIMPROVING NUTRIENT CONTENT

DCP ‘S NEW NUTRITIONAL GUIDELINES

“RIGHT NOW,KIDS EAT THE WRONG FOODS—AND TOO MUCH OF THE WRONG FOODS. THE SOLUTION IS TO PROMOTE HEALTHIER CATEGORIES FOR KIDS LIKE WATER, MILK, YOGURT, AND FRUIT, REFORMULATE FOODS LIKE COOKIES AND CEREAL TO BEHEALTHIER AND TO CONTROL PORTIONS,” SAID NDI

CREATING DISNEY FOOD PRODUCTS

COMPANY ADOPTED THREE STRATEGIES TOWARDS CREATING

DISNEY FOOD PRODUCTS

OFFER PRODUCTS THAT ALREADY HAD BROAD APPEAL

PRODUCTS WHICH ARE ALREADY HEALTHY MAKE THEM MORE FUN

USE PACKAGING TO INSPIRE PRODUCT SAMPLING

IMAGINATION FARMS

DISNEY LICENSED ITS ITS CHARACTERS TO IMAGINATION FARMS , A NATIONAL FRESH PRODUCE COMPANY TO SERVE AS A LICENSEE TO DCP

PRODUCT DEVELOPMENT STRATEGY

• DIFFERENTIATE COMMODITY PRODUCE THROUGH PROMOTION

• CREATE VALUE ADDED PRODUCTS THROUGH PRODUCT PREPARATION

• DEVELOP EXCLUSIVE PRODUCE VARITIES THAT WOULD YIELD MORE CHILD FRIENDLY FOODS

USING PLU STICKERS SO AS TO DIFFERENTIATE BETWEEN

COMMODITIES LIKE APPLES AND PEACHES

TO MARKET STAPLE FOOD ITEMS ,DCP ESTABLISHED MANY STORE KEEPING UNITS

KROGER DISNEY MAGIC SELECTION PRODUCTS

2nd LARGEST SUPERMARKET COMPANY

KROGER WAS SELECTED FOR A DTR RELATIONSHIP BECAUSE OF ITS COMMITMENT OF A LARGE PRODUCT LINE

BETTER FOR YOU PRODUCT CATEGORIES

COMPETITION FROM OTHER MARKET PLAYERS

DISNEY AND IMAGINATION FARMS FACED COMPETITION IN COMMODITY MARKETS

WHEREAS THESE GAVE COMPETITION IN THE ENTERTAINMENT SECTOR

WHAT ARE THE CHALLENGES ?

#1 PRICING AND VALUE

DCP FACED THE CHALLENGE OF DELIVERING GOOD QUALITY PRODUCTS AT AFFORDABLE PRICES

#2 LEGACY

PRODUCTS MAY FACE SKEPTICISM DUE TO THEIR DINSTINCTNESS.SO LEGACY SHOULD BE KEPT BEHIND AND DEAL THE ISSUES STRAIGHT .

#3 COMPETITION

DCP MANAGERS BELIEVED THAT THE BROAD PRODUCT LINE AND WIDE DISTRIBUTION WOULD WIN OVER MOMS

#4 GROWTH AND DISTRIBUTION

TO DEVELOP ADDITIONAL LINES AND MORE LICENSIES ,OPENING OF MORE DTR RELATIONS WAS VERY IMPORTANT

DISCLAIMER

THESE SLIDES ARE MADE BY ANURAG VIJ,AS A PART OF INTERNSHIP UNDER THE GUIDANCE OF PROF SAMEER MATHUR

WWW.IIMINTERNSHIP.COM