Disney consumer products: HBR case analysis
Transcript of Disney consumer products: HBR case analysis
Marketing Nutrition to Children
OVERVIEW
Walt Disney Company
Media Networks Parks & Resorts Studio Entertainment
Consumer Products
SITUATION
• From 1975 to 2005, Rates of Overweight:
•2-5 Year Olds: 5% to 14%•6-11 Year Olds: 4% to 19%•12-19 Year Old: 5% to 17%• More then 30% of American Children Overweight
•10% of European Kids are obese
Reasons:• Increased Portion size• Eating out frequently
•Marketing by the food companies
PROBLEM
In 2005 & 2006, IOM RecommendedThat USDA develop standards forMarketing Foods & Beverages to
childrenAnd issued a set of product
development & marketing recommendations
regardingResponsibilities of Food & BeverageCompanies to halt obesity epidemic
Disney Brand Accused of contributingTowards growing epidemic
Disney needs to reconsider the Nutritional value of their food products
Needs to establish credibility with theGovernment, manufacturers, parents &
Nutritionists.
Can company use its “Magic” to get
Children to switch to nutritious diet?
Will They Sustain?
STEPS UNDERTAKEN BYDISNEY
• Control Levels of Added Sugar• Contain no Trans or Hydrogenated Fats• Promote Fiber & Calcium•Minimize the use of Additives• Prefer to use whole Foods dense in nutrients•Minimally processed• Calorie Adjusted
Implemented Disney Nutritional GuidelinesUnder the slogan “Better for you”
On Audit, only 41% Met guidelinesWhereas 28% were totally out of
Compliance and needed phasing outAnd some needed Reformulating
3 STEP APPROACH
Take Products with BroadAppeal and make them
Healthy
Take Already Healthy Products& Make them some
“FUN”
Character Based Packaging to inspire Sampling
Distribution Models
Traditional Licensing Sourcing Direct To retail
(DTR)
(Partnering DirectlyWith Retailers)
(Designed & CreatedBy Disney, Manufactured& Marketed by Licensee)
Three Pronged Product DevelopmentStrategy:
1. Differentiate Commodity2. Create Value Added Products
3. Develop Exclusive Product Varities
Sourcing to Imagination Farms
DTR with
Developed Broad Range of productsUnder Disney Magic Selections
As a private Label.
COMPETITION
Found Success with Dora & Spongebob
Dora & Spongebob Characters FeatureOn Packaging with LGS Specialty
Tied up with Del Monte Foods using its Character Elmo, Grover and cookie Monster
Marketed inder “Healthy Habits for Life”
Under “Healthier Snack Alternative”,Marketed foods with Bugs-Bunny, loony Toons,Tweety characters with ready pac & Safeway
FUTURE
Envision Publishing Cookbooks, TV Cooking Shows, Exercise Programs.
Extending Offering from Retail to Food Service& out of home consumption in Restaurants
CONCLUSION
Nutritionally beneficial changes at all DisneyOperated restaurants
Tough task to change the preference and Habits of consumers but possible for disney
The balance of Taste & Nutrition is veryImportant to succeed.
Created by Meet Shah, NMIMS MumbaiDuring a Marketing Internship by
Prof. Sameer Mathur, IIM Lucknow