DisneyConsumer Products

Marketing Nutrition

to children

It was all started by a Mouse

Disney Brand is synonymous to Fun & Magic

Consumers spend 9160 hours with

Disney Per year

History

By 2004 Walt Disney company was comprised of 4 major business segments

Media Network

Parks and Resorts

DCP

Studio entertainment

Disney licensed its brand characters to merchandise to be sold as retail outlets in this category

30% American Kids are overweight

14% American kids are obese

Disney faced criticism for contributing to the Obesity Epidemic

Government Imposed rules on broadcasters asking not to encourage excessive food consumption

Kelogg and General Mills increased their advertising spending on children television channels

Disney considered this as an opportunity and reconsidered its range of food products

Marketing nutrition to

kids

Can Disney meet the nutritional guidelines set up by FDA?

Can Disney use its

Brand Image to reach

out to children?

Or does it bring down

the Brand Valueof the Disney?

How do people

Perceive this

transition of DCP?

Who will be their

Competitors and how will they face them?

What new

Challenges do they face with this transition?

Can Disney provide

Leadership to the rest of the food industry?

In 2004 DCP’s branded food products accounted

for less than 1% of the children’s food market

“Our strategy then was, Disney was about

fun. We should be in fun categories.-REID LESLIE, DIRECTOR OF FOOD AND BEVERAGES

In winter 2004 DCP conducted research to discover if Disney’s Brand Equity would transfer to a line of children’s food products

DCP discovered there was a gap between food children requested and food their mothers are willing to buy for them

Peer pressure and advertisingstrongly influence kids

Moms associate Disney strongly with magic even when it comes to food

The products need to make the kids feel special and must be non-patronizingand mom-approved

Can Disney meet the nutritional guidelines set up by FDA?

“Right now kids eat the wrong foods- and too much of the wrong foods. The solution is to promote

healthier categories.-EMBOLA NDI, VICE PRECIDENT, PRODUCT DEVELOPMENT

To answer children’s daily

needs in an entertaining way- in

short, Good Food-Great Fun

DCP derived many of its recommendations from FDA’s dietary guidelines

41%of the products complied with the standards

28%Of the products are planed to be phased out

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

Can Disney use its

Brand Image to reach

out to children?

Or does it bring down

the Brand Valueof the Disney?

The company adopted three approaches towards creating Disney Food Products

•1 Offer products that already had

broad appeal

The company adopted three approaches towards creating Disney Food Products

•2 Take products that were already healthy and make

them more fun

The company adopted three approaches towards creating Disney Food Products

•3 Use packaging to inspire product

sampling

Imagination Farm

To differentiate commodities such as peaches and apples, Plu stickers were adorned with Disney Characters

Package four or five ounce potatoes for kids, or perhaps Higher Flavor Yellow potatoes

A Lunch Bag program where fruits and vegetables would be packed in 3-ounce bangs

Disney Magic Selection Products

2nd Largest US Supermarket Company

Pricing and Key Exclusivity were key to Disney’s DTR Strategy

Better For You

Who will be their

Competitors and how will they face them?

Top Rated US Basic Cable Network Since 1996

Sales of Darling Clementine’s increased by almost 25% after the Doraand Spongebobcharacters were added to the product packaging

My Goal is to have every fruit a kid would want to eat with a Nickelodeon Character

-Torres, Licensing Vice President

In 2006, They Extended Fresh Fruit and Vegetable line to Apple, Pear and Carrots

Consumption of broccoli increased

by 28% when

branded with a sesame street character

Ready to Eat Fruits and Vegetables

We expect competition, but we believe we can beat the competition because even if they develop and match our nutritional standards, they cannot access Disney Magic

-Embola NDI, Vice President, Product Development

What new

Challenges do they face with this transition?

1. Pricing and Value

“But for these products

affordable equals value, not price. We have to deliver quality to represent our brand well.-Mooney

2. Legacy Though products will be healthful and fun, based on the past criticism, they expected some skepticism. This is the time to leave back the

Legacy.

3. Competition

DCP Managers believed that the combination of a broad product line, wide distribution and the Disney Brand would win over Moms

4. Growth and Distribution

Disney wanted to license or develop additional lines other than Kroger and differentiate additional lines using characters, brand an price

Within DCP we will take a short term hit financially. But we’re doing the right thing and getting good business

results.-Mooney and Dolmon

Can Disney provide

Leadership to the rest of the food industry?

Win-Win Solutions

For Moms, Kids and Disney Consumer Products

Disney’s Socially Responsible BehaviorMarketers must exercise their conscience in specific dealing with customers and stakeholders

Created by Nuzhat Shaikh, Chetana’s H.S College, Mumbai, During a Marketing Internship By Prof. Sameer Mathur,

IIM Lucknow