Marketing Nutrition to Kids by-

Getting to know the roots of Disney!• Synonymous with fun and magic.• Initially known as Disney Brothers Cartoon studio.• Later changed to The Walt Disney Company, with the

debut of Mickey Mouse in Steamboat Willie• Steamboat Willie- first cartoon with synchronized

sound.

Ventures of brand Disney!

Media Networks Parks and Resorts

Studio Entertainment

Disney Consumer Products (DCP)

The Craze of Disney!

We will mainly focus on the Disney

Consumer Products business segment in

this presentation!

Disney Consumer Products (DCP)

• Apparel• Toys• Home décor• Books• Interactive games• Food and beverages• Electronics• Animation Art

Responsible for

extending the Disney brand to

merchandise ranging from-

Let us have a look at the current situation of DCP in

the marketplace!

The Disney Store• Carries a wide assortment of DCP products.• Chain of retail stores wholly owned in Europe• Operated by third parties through licensing agreements

in North America and Japan.• World’s largest licensor in 2005.

Largest licensor? No competition there!

DCP licensing and Distribution models

• New DCP president Andy Mooney in 2000. • Vision to build DCP into global consumer products

company. • Shift away from the licensing-only business model.• Focus on innovation, creativity and equality, and

building relationships with key retailers.

Various model approaches by DCP

Licensing Model

Sourcing Model Direct to Retail (DTR) Model

So what is the situation faced by Disney currently?

Obesity Epidemic!• Disney- synonymous with fun

and magic.• Growing obesity problem in the

world.• Growing criticism from

activists, parents and governments around the world.

What were the major factors contributing to the obesity epidemic?

Increased Portion SizesEating out more oftenHigher sugar consumptionLack of exercise

An opportunity in disguise?• Growing criticism forced DCP to reconsider its product

line.• Opportunity to reconsider its entire range of food

products.• Mission to improve nutritional value of licensed food

products • Introduce first offerings: fresh fruits marketed by a new

licensor Imagination Farms.

So how did DCP approach this whole

situation!?

Let us start with the supermarkets!

• DCP estimated that its branded food products accounted for less than 1% of children’s food market.• Used focus groups, group sessions and shopping trips to

search for products that market would support.• Peer pressure and advertising influence children.• Mothers had high brand loyalty towards Disney.

Strike a balance: That is the key!What mothers need?

Portion controlled foodHigh qualityTaste GoodOmit/reduce fat and sugarRequested by children

What kids want?

Fun graphics and shape

Good taste

Great fun

Food- Nutrition and lifestyle• Portfolio of products arrayed into five categories.

Main Meal

Side Dish

Snacks

Drinks

Treats

Why the classification?

• Balance in portfolio so that 85% of products could be classified as main meal, side dish, snack or beverage.• Only 15% categorized as treats, as they faced more

criticism.• Products to be minimally processed, have controlled

levels of added sugar, and contain no trans or hydrogenated fats. • Focus to adhere to FDA guidelines.

Innovation is better- A look at the approaches

• The company adopted three approaches to create the products that would live up to its brand image.

Broad appeal products like milk

Make healthy products fun

Packaging to inspire product

sampling

Strategy with Imagination Farms

• Disney chose Imagination Farms as a licensee to DCP because it was a nationwide known fresh producing marketing company and was instrumental to DCP for its new business.• Imagination Farms marketed products to supermarkets under

the Disney Garden brand. • Cartoon characters’ stickers on food boxes• Customized marketing programs to retailers including point-

of-sale signage such as header cards, seasonal promotions and tie-ins to Disney movie and DVD releases.

Product development strategy- Imagination and DCP

Differentiate through promotionCreate added value by preparation/packaging Develop more child-friendly foods

Packaging prowess of Disney!

The competition to look out for!

Nickelodeon

Sesame Workshop

Warner Bros.

Partnership with Kroger

• Broad range of products developed with Cincinnati based Kroger supermarkets. • Largest pure grocery retailer in the year 2005.• 12% share of US grocery market- highly beneficial to

DCP. • A Kroger corporate brand (private label) known as

Disney Magic Solutions created.

Why did DCP partner with Kroger but not Walmart?

Let us have a look at the statistics first!

An analysis-• Though Wal-Mart has higher sales revenue when compared

to Kroger, it has lesser number of supermarkets when compared to its competitor.• Moreover, Kroger was the largest pure grocery retailer in

the US.• DCP wanted maximum reach for its new line of products.• Kroger had a huge market share (i.e. 12%) when it came to

groceries in the US market.• Thus, Kroger was the better choice when compared to Wal-

Mart.

Future approaches- Think Out of the Box!

Publishing Cookbooks

TV cooking shows for children

Exercise programs

Retail supermarkets to food service

Out of home consumption in restaurants

Summary

• DCP managers focused on-• Creating affordable products with high value.• Developing ‘better for you’ products and gaining acceptance for new

products among people.• Differentiate by the strategic combination of product line, wide

distribution and the Disney brand to win over Moms.• License and develop additional lines using characters, brand and price.

DisclaimerCreated by Amrit Dash, BITS Hyderabad, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.