Disney Consumer Products - Marketing nutrition to children

Summary Analysis Strategies Recommendations Conclusion

Walter Elias and Roy Oliver Disney Founded Disney in 1923

1923

1955

1983

1986

The Walt Disney Company was a $32 billion company, reporting net income of $2.5 billion.

More than 30% of American children between the ages of 5 and 9 years were overweight.

And more than 14% of American children between the ages of 5 and 9 years were obese.

• Softlines

• Home and Infant

• Buena Vista Games

• Hardlines

• Publishing

• Toys

Disney Consumer Products Business Lines

Disney faced Criticism for contributing to Obesity Epidemic

Government imposed rules on broadcasters asking not to encourage EXCESSIVE food consumption

DISNEY saw an opportunity to reconsider its entire range of food

The company took the responsibility of pursuing ways of improving the nutritional balance of the foods.

THE BIG SWITCH FROM THE FAT AND SUGAR RICH CONFECTIONERY TO THEMORE HEALTHY SNACKS, FRUITS AND VEGETABLES REQUIRED.

THE COMPANY ADOPTED THREE APPROACHES TOWARD CREATING

DISNEY FOOD PRODUCTS

OFFER PRODUCTS THAT ALREADY HAD

BROAD APPEAL

1

TAKE PRODUCTS THATWERE ALREADY HEALTHY AND MAKE THEM MORE

“FUN”

2

THE COMPANY ADOPTED THREE APPROACHES TOWARD CREATING

DISNEY FOOD PRODUCTS

USE PACKAGING TO INSPIRE PRODUCT

SAMPLING

3

THE COMPANY ADOPTED THREE APPROACHES TOWARD CREATING

DISNEY FOOD PRODUCTS

DCP’s Three Models

Traditional Licensing Model

Sourcing (Designed and create products by Disney but manufactured and

marketed by licensee)

Direct-to-retail (DTR) (Entailed partnering directly with retailers)

DCP discovered that there was a gap between food children requested and food their mothers are willing to buy for them!

Ten Largest U.S. Supermarket Companies, 2006

The partnership with Kroger is very impacting. The “Better for You” tag line placed next to the picture of a gloved, thumbs- up Mickey’s hand was used to promote the high nutritious value.

• In 2006 Imagination Farms was founded to serve DCP as a licensee in fresh produce.

• The farms engaged 15 large U.S growers to produce both organic and conventionally grown produce under the Disney Garden brand.

• Peaches, grapes, apples and citrus from Disney Garden were in the retail stores just five months after contracting.

• A great deal of promotions through the owned by the company media and the advertising in the animated programs developed by Walt Disney were very effective.

• Besides, the use of packaging for attracting customers and the use of stickers on fruits and other products was a powerful promotion tool utilized by DCP.

WHO WILL BE THEIR COMPETITORS AND HOW WILL THEY FACE THEM?

Sales of Darling clementine's increased by almost 25% after the Dora and SpongeBob characters were added to the product packaging.

Sales increased by 2% after the introduction of

Dora and SpongeBob characters in product

packaging.

TOP RATED U.S. BASIC CABLE NETWORK SINCE 1996

“MY GOAL IS TO HAVE EVERY FRUIT A KID WOULD WANT TO EAT WITH A NICKELODEON CHARACTER”

-TORRES LICENSING VP

Preschoolers’ consumption of broccoli increased by 28% when branded with a Sesame Street character.

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.

•Create children’s habit to eat healthy foods since kindergarten. •There must be coordination between Disney and its stakeholder to get the

objectives that Disney wants. •Children must understand the advantage of healthy foods and the amount of foods

they must consumed.

DISCLAIMER

Created by ARPIT DHOBALE, IIT GUWAHATI during an internship by Prof. SAMEER MATHUR, IIM Lucknow.