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Disney Consumer

Products: Marketing
Nutrition to Children
Social Marketing
Group 4
Anoop
Chinmaya
Nidhi
Richa
Rishibha
Sourin

Chapters
2004
The obesity epidemic

1954

2006

Debut in first
television
program

DCP Launched offerings of fresh fruits

1955
Opened
Disneyland in
Anaheim,
California

Licensing
became a
formal
business
unit

1932

1980 s
1990s
Renaissance of
Disney Animation

1950
Expand
beyond film
and
television

1923
Debut of Mickey Mouse in
Steamboat Willie

1984
Focus on
entertainment
assets

Disney Consumer Product (DCP)


Was responsible for extending the Disney Brand to
Merchandise
Line
of
Branded Merchandise -> $23 billion across
90 countries

Business

Buena vista
games

Soft Lines

Home and
infant

Hard lines

Apparel

Food

Footwear

Health and
beauty

Accessories

Electronics
and
stationery

Bargaining Power

Interactive
Games
Food
Beverages
Electronics
Animation Art

Publishing

Toys

Traditional
Licensing

Retailers

Licensing only Business Model

Andy Mooney
DCP President

Apparel
Toys
Home
Dcor
Books

Distribution
Models
Focus Product Innovation Creativity
&Quality Building Relationships with Key
Retailers

Sourcing to
Direct to
Retail (DTR)
Partnering
with Retailers

@ Supermarket

Obesity

With Change in Licensing Model, it was a opportunity to simultaneously broaden and rationalize product offerings
Brand Equity

What Children Wanted

Childrens Food Product

DCP Decides, in order to


succeed
-moderately priced
- fun line of products(kids)

What is healthy food?


-Fresh Fruits and
Vegetables
- Staple Food (e.g. Pasta)

Mothers Perceived Disney as


-High Quality
-Trustworthy
-Familiar

How to Appeal Mothers?


-portion controlled
-high on quality
-taste good
-less fat and sugar
- be requested by children

DCP Came up with-

Water

Fresh
Food

GAP

Influence Purchase
Decisions

Mothers would buy

What kids want?


-fun graphics and shape
- good taste
-great fun

Product
Categori
es
Frozen
Foods

Juice

Pasta

Soup

Cereal

Baked
Goods

Daily/Mil
k

Nutrition Obesity and American Diet


1975 to 2005
Institute of Medicine (IOM) findings
rates of obesity and overweight
Kids over 4 years of age would consume
skyrocketed
more calories than required.
5% to 14% among 2-5 year olds
4%-19% for 6-11 year olds
5% to 7% for 12-19 years olds
Average Child viewed more than 40,000
>65% of of U.S population obese or
TV commercials annually- 50% were high
overweight
calorie, fat foods
High risk of various diseases diabetes,
stroke, hypertension etc
IOM statementShare responsibility for childhood obesity
prevention
IOM recommendationsActively promote healthful diets for children.
Create or reformulate childrens products to reduce calories, fat, salt and added sugar
while improving nutrient content.
Develop an empirically validated industry-wide rating system for labeling and
advertising that appealed to children and conveyed nutritional information.
Enforce strict marketing standards and adhere to self regulatory guidelines for
traditional advertising as well as evolving vehicles such as the Internet and
advergames
Avoid linking nutritionally questionable products to admired celebrities, sports
figures, or cartoon characters .

Disney Nutritional Guidelines


Food product standards and nutritional guidelines
-licensed and proprietary products
To revolutionize food industry
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 be healthier
and to control portions
Products
Food- is nutrition, but also lifestyle

Embola Ndi
-VP Product
Dev
Five Categories in its portfolio

Main
Meal

Side
Dish

Snacks

Drinks

Treats

Disney Nutritional Guidelines


Before implementing the guidelines, an internal audit of 2100 food products and found
41% complaint
More than a quarter of the products needed to be phased out.

3 approaches to create Disney Food Products


1. DCP offering products that are already a broad appeal e.g. milk or peanut butter
2. To take products that are already healthy and make them more fun
3. Use packaging to inspire product sampling (making water bottle in shape of a
character)

Imagination Farms
DCP embraced whole foods first, marketed fresh fruits
and vegetables in addition to its package products
Increasing consumption of fruits and vegetables among
children

Product Development
Strategy
Differentiate commodity produce
through promotion

Create value-added products through


product preparation or packaging

Develop exclusive produce varieties that would


yield more child-friendly foods

Competition
Commodity Produce
Products
Dole
Green Giant
Fresh Express

NickelodeonTie-up with LGS Specialty Sales


Products- line of fresh fruit and vegetables

Sesame Workshop
Tie-up with Del Monte Foods
Products- can vegetable and fruits

Warner Bros
Tie-up with Ready Pac
Products- packaged, washed ready to eat fruits and vegetables

Entertainment
brands
Nickelodeon
Sesame Workshop
Warner Bros

Disney and Kroger


Disney Magic Selections
Launched on September 10 2006
Better for You product
Disney Storytelling and characters to help kids understand and
internalize information- to communicate with kids with a pinch of
fun

2nd Largest Retail firm


Ref. Exhibit 8

Conclusion

Make "Nutritionally-beneficial changes


Eliminate added trans-fats
S

r
ac

c
ifi

To meals served to children in all Disney-operated restaurants


& all licensed and promotional products

Ri
sk

True Test -> Market adopting re-positioning (Quickly)

CONSUMER DEMAND

Taste
Palatability
Cost
Convenience
Value
Drives
Variety
Availability
Ethnic Preferences
Safety

Price Value
Legacy
Differentiation &
Competition
Growth & Distribution

Lack of Consumer Demands


Ineffective Marketing
Lack of support (public health)
Cost

Food and Beverage products entering US Markets

Not Opportunity

Fail; 94%

Ch
o
o
o

Absence
of broad
based
CD

Risk !

al
le
es ng
!

Suceed; 6%

Capitalize on vast resources of Walt Disney to gain


market share and acceptance
Envisioned
- Publishing cook books
-Televising cooking shows (children)
- Nutritional efforts
link Exercise program
-Retail -> School Lunch Program
- Magic to switch children to healthy diet

e
Th ure
t
Fu

Thank
you