Disney consumer

Products

Marketing

Nutrition to

children

- Adikeshav C

2005• Disney is a $32

billion company with $2.5 billion net income.

• Disney’s Mickey Mouse and Winnie the Pooh are the top earning fictional characters.

Four Major Business Segments

Media and Networks

Parks and Resorts

Studio Entertainment DCP

Disney Consumer Products [DCP] was responsible for extending the Disney brand to merchandise ranging from apparel, toys, home décor and books to interactive games, food and beverages, electronics and animation art.

Types :

Softlines (Apparel , footwear)Buena vista gamesHome and infantHardlines (Food , Health etc.)PublishingToys

DCP licensing and Distribution Model

• Traditional licensing Model (licensees handle everything)

DCP licensing and Distribution Model

• Sourcing (Contract manufacturing , products designed and handled by disney)

DCP licensing and Distribution Model

• DTR model [Direct to retailer]:selling brand and character rights directly to retailers, bypassing wholesale licensees

Packaged goods manufacturers, fast food companies were subject to growing criticism from activists, parents and governments around the world who believed these companies contributed to the growing obesity epidemic

Disney was licensing high calorie foods that did contribute to

obesity.

Can Disney find a

Solution?•

• Disney have to review the nutritional composition of its food products.

• It must to gain its credibility among the public by using its “magic”.

• Its Branded food Market share was around 1% [2005] , so a revamp must be on the cards.

“We sent Moms on shopping

trips to see the difference between what they bought

and what kids wanted,” - Disney

• To develop “a quality range of Disney integrated foods that answers children’s daily needs in an entertaining way—in short, good food, great fun.

IOM recommendations• Actively promote healthful diets for children. • Create or reformulate children’s 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

• Avoid linking “nutritionally questionable” products to admired celebrities, sports figures, or cartoon characters (including the cross-promotion of food with branded children’s programming.

Disney Nutritional Guidelines Disney arrayed its portfolio of products into five categories:

• main meal,• side dish• snacks• drinks • treats

Main meals—such as pizza, pasta and sauce, sandwiches, or cereal with milk—accounted for the most calories per day (approximately 1,100) and treats, drinksand snacks the fewest at less than 90 calories per day each

• Disney’s goal was to balance its portfolio so that 85% of its products could be classified as main meal, side dish, snack or beverage and only 15% could be categorized as treats

• DCP began reformulating some products and shrinking portions for others : as a result, by September 2005, 75% of its U.S. products complied with its nutritional standards

• The company planned to have all its products brought into compliance or phased out by 2008

• First, DCP would offer products that already had broad appeal such as milk or peanut butter.

.

First, DCP would offer products that already had broad appeal such as milk or peanut butter.

The second was to take products that were already healthy and make them more “fun.”

The third was to use packaging to inspire product sampling, such as making water bottles in the shape of characters.

Imagination farms

DCP embraced a “whole foods first” philosophy and as a result, marketed fresh fruits and vegetables in addition to its package products. Disney began licensing its characters to Imagination Farms, a national fresh produce marketing company founded specifically to serve as a licensee to DCP, in March 2006

Three-pronged 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.

To differentiate commodities such as peaches and apples, PLU stickers (labels affixed to

individual pieces of fruit with 4-digit codes used to identify the fruit at the register) were adorned with Disney characters

In addition to licensing produce through Imagination Farms, DCP developed a broad range of

products with Cincinnati-based Kroger SupermarketsDisney began negotiating withKroger to establish a

DTR relationship for an exclusive line of Disney-branded product

Disney and Imagination Farms faced competition from many sources, including commodity produce products, major brands such as Dole, Green Giant and Fresh Express and, within the children’s

segment, other entertainment brands such as Nickelodeon, Sesame Workshop, and Warner Bros.

Nickelodeon• In Fall 2005, spinach,

baby carrots and clementines bearing SpongeBob squarepants and Dora the Explorer character images began to appear on shelves.

• By the end of the 2005, unit sales of Darling clementines increased by almost 25% after the Dora and SpongeBob characters were added to the product packaging,

Warner Bros.• Ready Pac planned to

feature Warner’s Bugs Bunny, Tweety and Tasmanian Devil characters on its Cool Cuts Ready Snax single-serving packages of fruit.

• Each package contained two, 2-ounce packages each of grapes, apples and carrots, which Ready Pac promoted as lunchbox alternatives to cookies, potato chips or candy.!

In June 2006 Del Monte Foods, a $3 billion U. S.manufacturer of branded and private label canned vegetables and fruit, announced that it had signed a licensing deal with Sesame Workshop, a nonprofit educational organization best known for its Sesame Streetpublic television program

Sesame Workshop

Key Performance Statistics:

More than 14,000 new food and beverage products entered the U.S. marketplace each year but less

than 6% were successful; the remaining 94% failed due to one or more factors, including lack of consumer demand, ineffective marketing, lack of support from the public health sector or cost

Challenge of delivering high value at affordable price.

Focussing on developing ‘better for you’ products

Innovation that differentiates competitors with Disney and provides it a “Magic Value“.

Staying Ahead of competiton is neccessary.

Growth oriented business strategies must be given importance

• Extending its offerings from retail supermarket products to food service (school lunch programs) and out-of-home consumption in restaurants.

• Cookbooks, televising cooking shows for children, and linking its nutritional efforts with exercise programs

Could the company make children to switch from sugary, processed foods and become lifelong converts to a nutritious diet?

Yes. Through Magic.

source• Image Source : Google Images.• All ownership rights belong to respective

owners• Images for educational purposes only.• No Copyright infringement intended.

Presentation done for internship under Dr. Sameer mathur , iim lucknow.