1923

1955

1983

1986

32$

2.5$

CONSUMERS SPENT

9160 HOURSWITH DISNEY PER YEAR

5.8$

5.6$

96%

92%

30%

14%

DISNEY FACED

CRITICISMFOR CONTRIBUTING TO

OBESITY EPIDEMIC

GOVERNMENT IMPOSED RULES ON BROADCASTERS ASKING NOT TO ENCOURAGE

EXCESSIVEFOOD CONSUMPTION

Kellogg and General Mills increased their

advertising spendingon children television channels

DISNEY SAW IT AS AN

OPPURTUNITYTO RECONSIDER ITS RANGE OF

FOOD PRODUCTS

MARKETING NUTRITION TO KIDS

CAN DISNEY MEET THE

NUTRITIONAL GUIDELINES SETUP BY FDA?

CAN DISNEY USE IT’S

BRAND IMAGE TO REACH OUT TO CHILDREN?

OR DOES IT BRING DOWN THE

BRAND VALUE OF THE DISNEY?

HOW DO PEOPLE

PERCIEVETHIS TRANSITION OF THE DCP?

WHO WILL BE THEIR

COMPETITORSAND HOW WILL THEY FACE THEM?

WHAT NEW

CHALLENGESDO THEY FACE WITH THIS TRANSITION?

CAN DISNEY PROVIDE

LEADERSHIPTO 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 LEISE, 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 THAT

THERE WAS A GAP

BETWEEN FOOD CHILDREN

REQUESTED AND FOOD

THEIR MOTHERS ARE

WILLING TO BUY FOR THEM

PEER PRESSURE

& ADVERTISING

STRONGLY

INFLUENCE KIDS

THEY DEMAND

NATIONAL OR

CHARACTER-

DRIVEN

PRODUCTS

MOMS

ASSOCIATE DISNEY

STRONGLY WITH

MAGIC - EVEN

WHEN IT COMES

TO FOOD

THE PRODUCTS NEED TO

MAKE KIDS

FEEL SPECIAL AND MUST

BE NON-PATRONIZING

AND MOM-APPROVED

CAN DISNEY MEET THE

NUTRITIONAL GUIDELINES SETUP 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 PRESIDENT, 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 THE FDA’S

DIETARY GUIDELINES

41%

28%

THE COMPANY

PLANNED TO HAVE

ALL ITS

PRODUCTS

BROUGHT INTO

COMPLIANCE OR

PHASED OUT BY

2008

CAN DISNEY USE IT’S

BRAND IMAGE TO REACH OUT TO CHILDREN?

OR DOES IT BRING DOWN THE

BRAND VALUE OF THE DISNEY?

THE COMPANY ADOPTED

THREE APPROACHES

TOWARD CREATING

DISNEY FOOD PRODUCTS

OFFER PRODUCTS THAT ALREADY HAD

BROAD APPEAL

1

TAKE PRODUCTS THATWERE ALREADY HEALTHY AND MAKE THEM MORE

“FUN”

2

THE COMPANY ADOPTED

THREE APPROACHES

TOWARD CREATING

DISNEY FOOD PRODUCTS

USE PACKAGING TO INSPIRE PRODUCT

SAMPLING

3

THE COMPANY ADOPTED

THREE APPROACHES

TOWARD CREATING

DISNEY FOOD PRODUCTS

IMAGINATION FARM PRODUCTS

TO DIFFERENTIATE

COMMODITIES SUCH

AS PEACHES AND

APPLES, PLU

STICKERS WERE

ADORNED

WITH DISNEY

CHARACTERS

WE PACKAGE FOUR

OR FIVE OUNCE

POTATOES FOR KIDS

OR

PERHAPS HIGHER-

FLAVOR, YELLOW

POTATOES

A LUNCH BOX

PROGRAM WHERE

FRUIT AND

VEGETABLES

WOULD BE

PACKED IN 3-OUNCE

BAGS.

VALUE ADDED STRATEGY WOULD

DIFFERENTIATE AND BUILD THE BRAND

KROGER DISNEY MAGIC SELECTION PRODUCTS

PRICING AND

BRAND EXCLUSIVITY

WERE KEY TO

DISNEY’S DTR

STRATEGY

2nd LARGEST US SUPERMRKET COMPANY

BETTER FOR YOU

WHO WILL BE THEIR

COMPETITORSAND HOW WILL DISNEY FACE THEM?

Sales of Darling

clementine's increased by

almost 25% after the

Dora and SpongeBob

characters were added to

the product packaging

TOP RATED U.S. BASIC CABLE NETWORK SINCE 1996

MY GOAL IS TO HAVE EVERY FRUIT A KID WOULD

WANT TO EAT WITH A NICKELODEON CHARACTER- TORRES, LICENSING VICE PRESIDENT

“

In June 2006, They Extended Fresh Fruit And

Vegetable Line To Apples, Pears And Carrots

Preschoolers’ consumption of

broccoli increased by 28%

when branded with a Sesame

Street character

READY-TO-EAT FRUITS AND VEGETABLES

Cool cut ready snacks package

contained two, 2-ounce

packages each of grapes,

apples and carrots

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

CHALLENGESDO THEY FACE WITH THIS TRANSITION?

1 Pricing and ValueBUT FOR THESE

PRODUCTS,

AFFORDABLE

EQUALS VALUE,

NOT PRICE. WE

HAVE TO DELIVER

QUALITY TO

REPRESENT OUR

BRAND WELL- MOONEY

“

2 LegacyTHOUGH

PRODUCTS WILLL

BE HEALTHFUL

AND FUN, BASED

ON THE PAST

CRITICISM, THEY

EXPECTED SOME

SKEPTICSM. THIS

IS THE TIME TO

LEAVE BACK THE

LEGACY

3 CompetitionDCP 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 AND 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

LEADERSHIPTO REST OF THE FOOD INDUSTRY?

WIN-WIN SOLUTION

FOR MOMS, KIDS AND DISNEY CONSUMER PRODUCST

DISNEY’S SOCIALLY RESPONSIBLE BEHAVIORMARKETERS MUST EXERCISE THEIR SOCIAL CONSCIENCE IN SPECIFIC DEALING WITH CUSTOMERS AND STAKEHOLDERS

"These slides were created by B. Pavan Kumar as part of an internship done under the guidance of Prof. Sameer Mathur

(www.IIMInternship.com)"