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Disney consumer

products:
Marketing
nutrition to
children
Index
1)HISTORY
2)CURRENT SITUATION
ANALYSIS
3)PROBLEM DEFINITION
4)ANALYSIS
5)RECOMMENDATIONS
6)CONCLUSION
HISTORY

2004- the obesity


epidemic
1955- opened
Disneyland in 2006- DCP
Anaheim, launches offering
1950- expand California of fresh fruits
beyond film and
television
1932- licensing
became a
formal business
unit
1923- Debut
of mickey
mouse in
steamboat
willie
By 2006 Walt Disney company was comprised of 4
major business segments:

Media Parks and


networks resorts

Studio
DCP
entertainment
Disney consumer products

Disney licensed it brand


characters to merchandise to be
sold at retail outlets in the
following category:
Disney with In 1996, DCP signed an exclusive,
10-year, $2 billion licensing deal
MC Donald's 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 licensing and distribution
models
1. Traditional licensing model
2. Sourcing(designed and
create products by Disney
but manufactured and
marketed by licensee)
3. Direct-to-
Retailer(DTR)Entailed
partnering directly with
retailers
Current situation(1/3)

Media networks Parks and resorts

BUSINESS
SEGMENTS

Studio
DCP
entertainment
Current situation(2/3)

Disney is being held responsible


for rising obesity epidemic

• It is facing pressure from


activists, parents , government
to check their offerings and
advertisement activities.
Current situation(3/3)

It currently licenses packaged foods like candy, ice cream and few
cereals, juices, some fish and chicken (BUT mainly sweets and 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 definition

Could Disney use its ‘magic’ to switch children from


sugary to more nutritious diet? Could they sustain?
CHALLENGES

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
Reformulate some products , shrinking portion for
others and phase out some products that could not
meet the guidelines.
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
Demographic segmentation:
Age: children and adults Behavioural segmentation:
Taste fun and “Magic”

CUSTOMER
SEGMENTATION
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
WEAKNESS
Brand recognition
Large R&D costs
Creative process
High risk factor
Strong diversification
Does not have own
Cooperate with big manufacturing for DCP
retailers like Kroger
Responsiveness to market

Opportunity Threat
Mother’s positive Competitors
perception of the Disney
brand Differentiation form
natural produce products
Disney character’s
popularity 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
COMMODITY PRODUCE

ENTERTAINMENT
CHANNELS
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,