Disney Consumer Products: Marketing Nutrition to Children
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Transcript of Disney Consumer Products: Marketing Nutrition to Children
Disney Consumer Products: Marketing Nutrition to Children
•Year – 2004•American Children aged 5-9 years-Overweight 30%-Obese 14%
Obesity is Characterised as a epidemic by US government
As a result Disney Consumer products were criticised for advertising and selling obesity inducing products
Disney decided to reconsider its entire range of food products
What is the current Situation ?
Income Statement
Consumer time investment
Character Awareness
Top Earning Characters
Share of total licensing Industry to Disney
Disney has
56% Share of the estimated
$41.2 Dollar
Share of total licensing Industry to Disney
What is the Objective of the
Case ?
Objective-1/3•To determine the role/objective responsibility for-profit company in addressing social issues namely Obesity and steps taken by the company to address that.
Objective-2/3•To understand the risks associated with the company converting its business model in the absence of broad based consumer demand.
Objective-3/3•Steps taken by the company to avoid these risks.
What are the issues addressed
by the case?
Issue-1/3
• Research done by
Disney for introducing better
Nutritious diet for children
Issue-2/3
• Steps taken by Disney for introducing better
Nutritious diet for children
Issue-3/3
• Future RISKS associated with
Disney’s new venture
Issue-1/3
• Research done by
Disney for introducing better
Nutritious diet for children
Disney at Supermarket
What Mothers Buy• Moderately priced good• High quality • Nutritious • Taste good• Reduce Fat and Sugar• Requested By Children
So....
• Disney needs
Kid-pleasing’ mom-loving’ dippity delicious snack!
Institute of medicine asked Companies to
share responsibility for Childhood Obesity
prevention
So....•Disney did a Nutritional audit of its products and
MADE Disney Nutritional
Guidelines
Issue-2/3
• Steps taken by Disney for introducing better
Nutritious diet for children
License Distribution Model
“We wanted to focus on product innovation creativity and quality and building relationship with key retailers”
-Harry Dolman
So....Disney gave three models for converting
from
Licensing-only business modelsto
Global consumers product company
Models-1/3
• Traditional Licensing model
Models-2/3
•Sourcing model
Models-3/3
• Direct to Retail
Models-3/3• Direct to Retail -Imagination Farm- fresh food producing company founded to license DCP
Disney Magic Selection (private Label)
Models-3/3• Direct to Retail -Kroger Supermarket- The largest pure grocery retailer in the US in 2005 sales- It has 12% share of US Grocery Market
But… In futureDisney would rely heavily on
Disney-branded, value priced active licensing
model
Creating Disney food products
Three approaches1. Approaching products that already
had appeal like milk/butter2. Take Products that were already
healthy and make them fun3. Use Packaging to inspire product
sampling
So…
Issue-3/3
• Future RISKS associated with
Disney’s new venture
Short term financial multi million dollar hit
Products have to be affordable and have value
Differentiation and Competition
Growth and Distribution
Created by Pankaj Goyal, IIT Kanpur, during an internship byProf. Sameer Mathur, IIM Lucknow.www.IIMInternship.com