Disney Consumer Products - Marketing Nutrition to

Children

• Disney is a $32 billion company with $2.5 billion net income.

• Disney’s Mickey Mouse and Winnie the Pooh are the top earning fictional characters.

Four Major Business Segments

Media and Networks

Parks and Resorts

Studio Entertainment

Disney consumer products

Disney Consumer Products was responsible for extending the Disney brand to merchandise ranging from apparel, toys, home décor and books to interactive games, food and beverages, electronics and animation art.

Types :

Softlines (Apparel , footwear)Buena vista gamesHome and infantHardlines (Food , Health etc.)PublishingToys

Packaged goods manufacturers, fast food companies were subject to growing criticism from activists, parents and governments around the world who believed these

companies contributed to the growing obesity epidemic

Disney was licensed for high calorie foods that contributed to obesity.

Can Disney find a

Solution?•

• Disney have to review the nutritional

composition of its food products.• It must to gain its credibility

among the public by using its “magic”.

• Its Branded food Market share was around 1% [2005] , so a revamp must be on the cards.

“We sent Moms on shopping trips to see the difference between what they bought and what

kids wanted,” - Disney

• To develop “a quality range of Disney integrated foods that answers children’s daily needs in an entertaining way—in short, good food, great fun e.t.c

Disney Nutritional Guidelines Disney arrayed its portfolio of products into five categories:

Main meal,Side dishSnacksDrinks Treats

• Disney’s goal was to balance its portfolio so that 85% of its products could be classified as main meal, side dish, snack or beverage and only 15% could be categorized as treats

• DCP began reformulating some products and shrinking portions for others : as a result, by September 2005, 75% of its U.S. products complied with its nutritional standards

• The company planned to have all its products brought into compliance or phased out by 2008

• First, DCP would offer products that already had broad appeal such as milk or peanut butter.

.

First, DCP would offer products that already had broad appeal such as milk or peanut butter.

The second was to take products that were already healthy and make them more “fun.”

The third was to use packaging to inspire product sampling, such as making water bottles in the shape of characters.

DCP embraced a “whole foods first” philosophy and as a result, marketed fresh fruits and

vegetables in addition to its package products. Disney began licensing its characters to Imagination Farms, a national fresh produce marketing company

founded specifically to serve as a licensee to DCP, in March 2006

Three product development strategy:

• Differentiate commodity produce through promotion

• Create value-added products through product preparation or packaging

• Develop exclusive produce varieties that would yield more child-friendly foods.

To differentiate commodities such as peaches and apples, PLU stickers (labels affixed to individual pieces of fruit with 4-digit codes used to identify the fruit at the register) were adorned

with Disney characters

In addition to licensing produce through Imagination Farms, DCP developed a broad range of products with Cincinnati-based Kroger SupermarketsDisney began negotiating with Kroger to establish a

DTR relationship for an exclusive line of Disney-branded product

Disney and Imagination Farms faced competition from many sources, including commodity produce products, major brands such as Dole, Green Giant and Fresh Express and, within the children’s

segment, other entertainment brands such as Nickelodeon, Sesame Workshop, and Warner Bros.

Nickelodeon• In Fall 2005, spinach,

baby carrots and clementines bearing SpongeBob squarepants and Dora the Explorer character images began to appear on shelves.

• By the end of the 2005, unit sales of Darling clementines increased by almost 25% after the Dora and SpongeBob characters were added to the product packaging,

Warner Bros.• Ready Pac planned to

feature Warner’s Bugs Bunny, Tweety and Tasmanian Devil characters on its Cool Cuts Ready Snax single-serving packages of fruit.

• Each package contained two, 2-ounce packages each of grapes, apples and carrots, which Ready Pac promoted as lunchbox alternatives to cookies, potato chips or candy.!

In June 2006 Del Monte Foods, a $3 billion U. S.manufacturer of branded and private label canned vegetables and fruit, announced that it had signed a licensing deal with Sesame Workshop, a nonprofit educational organization best known for its Sesame Streetpublic television program

Sesame Workshop

Key Performance Statistics:

More than 14,000 new food and beverage products entered the U.S. marketplace each year but less than 6% were successful; the remaining 94% failed due to one or more factors, including lack of consumer demand, ineffective marketing, lack of support from the public health sector or cost

Challenge of delivering high value at affordable price.

Focusing on developing ‘better for you’ products

Implementation of new characters

Collaborating healthy foods with Disney Programs

Healthy food campaigns for Parents

Promoting items through Kindergarten