transforming the "yuck" to the "yum":the disney way
Post on 13-Apr-2017
79 Views
Preview:
TRANSCRIPT
Transforming the
“Yuck” to the “Yum”
The Disney Way
COMPANY
OVERVIEW
Was Founded in1923 by TwoBrothers WalterElias and RoyOliver Disney withthe Creation of
1923
1929
1953
1955
TIMELINE
2003’s TOP MAIN CHARACTERS
5.9
BILLION $
4.7
BILLION $
Media NetworkStudio
Entertainment
Parks and Resorts
Disney Consumer Products(DCP)
Walt Disney
By 2006
DISNEY CONSUMER PRODUCTS
Softlines Toys
Buena Vista Games
Home and Infant
Hard Lines Publishing
SIX LINES OF PRODUCT BUSINESS
DCP
Traditional Model
Direct to Retail Model(DTR)
Sourcing ModelIn January 2000, AndyMooney, the then president ofDCP introduced new licensingmodels
SITUATION
ANALYSIS
Link food with
MAGIC and FUN
Food items by Disney mainly focusedon were sweets, ice creamsand other confectionary items
that were a rich source of sugarand fats
30%AMERICAN KIDS
ARE OVERWEIGHT
14%AMERICAN KIDS
ARE OBESE
DISNEY FACED INCREASED
CRITICISMFOR THE
OBESITY EPIDEMIC
GOVERNMENT ENSURED THAT THE
BROADCASTERS FOLLOWED A TOUGH SET OF RULES AND MUST NOT ENCOURAGE EXCESSIVE CONSUMPTION OF FOOD
Effects on the Companies
INCREASED
INVESTMENTON
INCREASED MEDIA COVERAGE OF CHILDHOOD OBESITY SENSITIZED THE FOOD AND
BEVERAGE INDUSTRIES
HYPOTHESIS
Can Use Its “MAGIC”
To get children to switch fromsugary, processed foods andbecame lifelong converts to amore nutritious diet
QUESTIONS
• What will be the Challenges?
• How to set Nutritional
Guidelines within FDA’s limits?
• How to advertise to reach kids?
• Who will be the competitors?
• How to face Competitors?
• Can Disney set an example?
PROOF &
ACTION
PRODUCT EXTENSION
The product mix now included a wide range of “Better For You” Products
BRAND REPOSITIONING
Nutritionally Bad
Childrens’ Foods
• Appealed to Children Only
Nutritionally Good
Childrens’ Foods
• Appealed to both Children and
Parents
WHAT WILL BE THE CHALLENGES?
Pricing and Value
Legacy
Differentiation and
Competition
Growth and Distribution
DCP managers understood that its products had to be
“Forget where you are today, focus on developing
Products”
-Mooney
DPC’s managers believed that combination of a broad product
line , wide distribution & the
would win over Moms
¥ DCP signed an with Kroger.
¥ Disney wanted to License or Develop .
¥ Can using Characters, brand & price.
“Promote healthier categories, reformulate foods like cookies and cereal to be healthier and to control portions”
-Embola Ndi(Vice President, Product development)
HOW TO SET NUTRITIONAL GUIDELINES
WITHIN FDA’S LIMITS?
Our goal is to get kids to consume healthier products
If we decide to use an additive, we need to keep our focus on
we are using it
Recommendations for DCP after Nutritional Audit
Products to be Reformulated:7 %
Products Exempted from nutritional guidelines:15 %
Products to be phased out: 28%
No Changes Required:41 %
HOW TO ADVERTISE TO REACH KIDS?
Offer products that already had
broad appeal
Distributed Peaches with Daisy Duck & Goofy Stickers
Take products that are healthy &
make it interesting and fun
Mold whole wheat pasta into character shapes
Use packaging to inspire Product
SamplingWater Bottles were made in the shape of
characters
We expect competition & channel fraction, but we believe we can beat the competition because even if they develop & match our nutritional standards, they
cannot access Disney Magic
WHO WILL BE THE COMPETITORS?
-Ndi
A top rated U.S. basic cable network since 1996
Seen by 89 Million households
Del Monte Foods signed a licensing deal withSesame Workshop
Ready Pac (ready to eat fruits)signed a licensing deal with Warner Bros
WHAT WERE THE RISKS TAKEN?
Making Changes in the absence of
broad-based consumer demand
Phasing out successful yet unhealthy products
Could have arisen to losing out brand loyalty among its target customers i.e. Children
DID DISNEY SET AN EXAMPLE?
Even when Disney was making huge profits with
fast foods it took upon it as a
and also a huge risk to expose children to healthier
food alternatives.
"These slides were created by
Priyanka Sahoo, IIT Kharagpur as part of an internship done under the guidance of
Prof. Sameer Mathur, IIM Lucknow
top related