Disney consumer products.

Marketing nutrition to children

index

• History• Current situation• Problem definition.• Market analysis• Recommendations• conclusion

Media and networks Parks and resorts

Studio entertain-ment

Disney consumer products

Current situation:The walt disney company:

Current situation

Publish-ing

hardline

softlinesBeuna vista

games

toys

Home & infant

DCP was the world’s largest licensor, with more than $21 billion in retail sales of licensed products.

DCP’s distribution models:

•Licensees handled product innovation, manufacturing, sales and marketing.

Traditional licensing:

•Products are created and designed by disney and licensees handle manufacturing sales and marketing.Sourcing:

•Selling brand and character rights directly to retailers, bypassing wholesale licensees.

Direct to retail:

Disney was being held responsible for contributing to obesity among children.

Current situation

Causes:1) Progressive increase in portion sizes.

Causes:2) Excessive advertising.

• The average child viewed more than 40,000 TV commercials annually, 50% of which were for high calorie and high fat foods.

Hence USDA came up with standards for marketing food:

• Actively promote healthful diets for children.• Create or reformulate children’s products,

improving nutritional content.• Develop an empirically validated industry wide

rating system for labelling and advertising that conveyed nutritional information.

• Enforce strict marketing standards and adhere to self-regulatory guidelines for advertising.

Current situation

• DCP estimated that its brand food products accounted for less than 1% of the children’s market in 2004.

The company’s changing licensing models, retail industry consolidation, and obesity epidemic offered DCP an opportunity to

broaden and rationalise its product offerings.

Can Disney use its magic to switch

children from sugary to nutritious diet?

Problem definition:

Market analysis:

The research shows that:

• There was a gap between the foods children requested and the foods their mothers were willing to buy.

• Children influenced purchase decisions whether they were in the store with their mothers or not.

The research show that:

• Peer pressure and advertising strongly influence kids preferences.

• Kids demand products that make them ‘in’ with their peers.

The research shows that:

People perceived Disney brand as-

• High quality• Trust worthy

The results concluded that:

• To appeal to mothers the products must be:• Portion controlled• High quality• Taste good• Reduce fats and sugar• REQUESTED BY CHILDREN.

SWOT analysis:

Brand recognition. high risk factor.

Strong diversification. doesn’t have its own

Cooperativeness. manufacturing unit for DCP.

Positive perception about the brand & character competitors.Popularity . Pricing competition.

Competitors:

What did they do??

In June 2006, DCP has decided to change the nutritional content of their products and introduce new healthy

products for children under the slogan- “better for you”.

They established Disney nutritional guidelines.

DCP- nutritional guidelines.

• Controlled level of added sugars

• No added carbs and hydrogenated fats.

• Minimize the use of additives.

• Promote calcium and fiber• Prefer to use whole foods

that are dense in nutrients.

This can be achieved through:

• Reformulating some products.

• Shrinking portions for others .

• Phasing out some others.

41% of the existing products were meeting the nutritional guidelines

Product development approach:

Make already appealing foods like milk and peanut

butter, more “healthy”.

Take products that are already healthy and

make them more “fun”

Use packaging to inspire product sampling.

DCP began licensing its products to

imagination farms, a national fresh produce

firm in 2006.

Disney established a DTR relationship with kroger for an exclusive line of

disney branded products.

Collaborate healthy food with disney programs

• Disney films show disney’s characters having healthy food, to affect the children who watch the film to also consume healthy food

New characters.• Disney could create new characters to

promote healthy food.

Conclusion

It is not easy for Disney to revolutionize the market at once.

• It takes time to replace consumers old habits .

There must be very good coordination between Disney and its stakeholders for Disney to achieve its objectives.

Thank you.

Disclaimer

Prepared by G Sai Samhitha, BITS-Pilani Hyderabad campus, as a part of marketing research internship under prof.Sameer Mathur, IIM Lucknow.