Disney Consumer Products- Marketing Nutrition to Children

History

The Disney Journey

19231955

1980-1984

2004

2006

1923

2004

2006

1980s-1990s

1955

World’s Most Franchise Characters

5.8$ Million worth 5.6$

Million worth

3$ Millionworth

Families spent an annual average of 9.6 billion hours with Disney.

DCP’s 6 lines of business1. Soft lines 2. Toys 3. Publishing

4.Buena Vista Games 5. Home & Infant

6.Hardlines(Food,Health & Beauty,Stationary & Electronics)

Distribution Models 1.Licensing Model

2.Sourcing Model

3.Direct-to-Retail (DTR) Model

Problem faced by DCP

Obesity Epidemic in America

Major Contributing Factors

1. Increased Portion Size

2. Lack of Exercise

3. Sugar Sweetened Products

Because of Disney’s licensing with McDonald’s , People criticised DCP for its CONTRIBUTION to Obesity Epidemic.

Disney saw the controversy as an Opportunity to broaden and reassemble its range of products.

Could Disney provide leadership for the rest of the food industry & use its brand strength to reach children ?

Main Goal to Achieve

To satisfy both,

Children and their Mothers.

Steps taken by Disney

Disney Nutritional Guidelines

Products would be minimally processed Control levels of added sugar Promote fibre and calcium Contain no trans or hydrogenated fats Minimize the use of additives

Three strategies are adopted

1. Offer products that already had broad appeal2. Already healthy products : Make them more

“fun”3. Use packaging to inspire product sampling

Imagination Farms

Marketed fresh fruits& packaged goods with licensed Disney Characters.

DCP and Imagination Farms used a three-pronged strategy

1. Differentiate Commodity produce through promotion

2. Create Value added products

3. Develop exclusive product varieties

DCP established a DTR relationship with Kroger Supermarket, the largest grocery retailer in US, to develop an exclusive line of Disney-

branded products.

Who will be DCP’s major Competitors ?

Top rated US basic cable

network, seen by 89 million households.

Sales of Darling clementine’sincreased by almost 25% after the Dora and SpongeBobcharacters were added toproduct packaging

Pre-schoolers’ consumption ofbroccoli increased by 28% when the vegetable was brandedwith a Sesame Street character

Ready Pac featured WBCharacters on its Cool Cuts Ready Snacks single-serving packages of fruit

What are the challenges faced by DCP ?

1. Pricing & Value

The shift of premium pricing to lower pricing was a marketing challenge for DCP

2. Legacy

Change in brand positioningto new “Better for you”products created ambiguityamong DCP managers

3. Differentiation and Competition

Competition and Channelfriction is expected from the competitors such asNickelodeon, SesameWorkshop and Warner Bros

4. Growth and Distribution

After establishing a DTR relationship with Kroger,DCP wanted to license ordevelop additional lineswhich could be differentiated using characters, brand and price.

What’s next?

Thank you !