Marketing Nutrition to Children

By :Sagar Kartik

MNIT JAIPUR

HAVARD

1923

1955

1983

1986

32billion$Company at the end of 20052.5 billion $of net income

The image of Disney is changing due to criticism by social activists parents and government.

Disney consumer products30% children between age of 5

& 9 are obese.

Great opportunity of marketing nutrition to kids.

Could Disney use it ‘magic’ to switch children from sugar to more nutritious diet ? Could they sustain ?

In 2004 DCP’s branded food product accounted for less than 1% of the children’s food market

“OUR STRATEGY THEN WAS ,DISNEY WAS ABOUT FUN.

WE SHOULD BE IN FUN CATEGORIES-REID LEISE, DIRECTOR OF FOOD AND BEVERAGES

Child prefer products based on advertisements and peer pressure while mothers prefer health conscious products and believe strongly on such promoting brands.

Disney Channel Disney cruise lines Reading Disney Books Theme Parks Theater Disney Movies Video Games Home Disney Movies

Consumer spent 9160 million hours with Disney per year

Individual hours spent in different types of services :

iWinnie the Pooh• Sales worth 5.6 billion $ in 2004• 92% kids familiar with it

Micky Mouse• Sales worth 5.8 billion $ in 2004• 96% kids

familiar with it

Disney with Top Earning Fictional Characters :

21 billion $ world wide retail sales, 2005

Lets see,How and by what time nutritional guidelines can be met by Disney products?

DCP derived its own guidelines based

on that laid by USDA • Control levels of added sugar• Contain no trans or hydrogenated fats• Promote fibre and calcium • Minimize the use of additives• Prefer to use whole foods that intrinsically dense in nutrients.

DCP derived its own guidelines

based on that laid by USDA

APPROVED

NOT CONSIDEREDOUT OF CCOMPLIANCE

BUT APPROVED

OUT OF CCOMPLAINS BUT NEED OF RE-

FORMATIONS

OUT OF PHASE REJECTED

Really !!!!!28% of phased out products……………….

NUTRITIONAL AUDIT RESULTS OF DISNEY BRANDED FOODS :

2008

ALL THE BRAND PRODUCT WILL BE UNDER THE GUIDELINES FORMED.

Three approaches for Creating and marketing Disney products

1) Offering products that already have broad appeals.

Three approaches for Creating and marketing Disney products

2)Choose healthy products and make them more fun i.e. tasty

Three approaches for Creating and marketing Disney products

3) Use packaging to promote product sampling.

Traditional Licensing model

• Product designed manufactured by licensee.

Sourcing Model

• Designed and created by Disney but manufactured and marketed by licensee.

Direct to Retail (DTR)

• Entailed partnering with retailers.

DCP’s Three Product Brand Marketing Models

IMAGINATION FARMS PRODUCTS

“It’s so exciting because now my daughter doesn’t select peaches or plums, she picks her favourite

character, Daisy. When she eats the fruit, she puts the sticker on her forehead and then when she’s finished,

she brings the sticker upstairs and puts it in her sticker book.”

……Reviewed Consumer

IMAGINATION FARMS PRODUCTS

Promotions

IMAGINATION FARMS PRODUCTS

Special four to five ounce packs of high flavour small sized yellow potatoes for SQUASH.

A lunch box program where fruit and vegetables would be packaged in 3 ounce bags.

ONLY VALUE ADDED STRATEGY CAN DIFFRENTIATE AND BUILD THE BRAND.

KROGER DISNEY MAGIC SELECTION PRODUCTS

• The largest pure grocery retailer.• 12% share of the US grocery market.

“We want to have one major DTR relationship in a country where the retailer has a 10-20% share of

the market and the rest of the market will be servedusing the source and traditional licensing models,”

-Dolman

DTR

KROGER DISNEY MAGIC SELECTION PRODUCTS

• Opportunity of annual revenue to be around $250 million.

• Pricing and brand exclusivity were key to Disney’s DTR strategy.

• The Disney Magic Selections line was created as a Kroger corporate brand (also known as private label) and would be priced at a discount to national brands but with quality equal to or better than national brands.

KROGER DISNEY MAGIC SELECTION PRODUCTS

Better for you

BETTER FOR YOU

How tense is the competition ?

Worldwide Retail Sales (%)DISNEY

CONSUM-MER PROD-

UCT

WARNER BROS.

CONSUMER PRODUCTS

NICKELODEON & VIACOM CONSUMER PRODUCTS

MARVEL ENTERTAINMENT

SANRIO

6

7

8

910

1112 13 14 15 1617 181920

We expect competition, but we believe we can beat the competition because even if they develop and

match our nutritional standards, they cannot access Disney magic.

- Embola Ndi, Vice President, Product Development

Not easy to change market taste, long time will be required. This is the time to leave back legacy.

Co-ordination among Disney and licensee is crucial.

“But for these product, affordable equals value, not price. We have to deliver quality to represent our

brand well.- DCP CEO Mooney

The effort to win over mom and kids is done by combination of broad product line, wide distribution

and the Disney brand.

Disney aims to license more than just Kroger to develop additional lines using characters, brand and

price.

“Within DCP we will take short term hit financially, but we ar doing the right thing and getting good

business results.”-Mooney and Dolmon

After all markets must exercise their conscience in specific dealing with customers and stake holders.

This slides were prepared by :Sagar Kartik

MNIT JAIPUR in a Marketing internship under:

Prof. Sameer Mathur Marketing Professor

IIM Lucknow.