disney harvard case study
TRANSCRIPT
Consumer Products
Marketing Nutrition to Children
Founded by Walter Elias Disney and his brother, Roy Disney in 1923
1923Debut of Mickey Mouse in Steamboat Willie
1932Licensing became a formal business unit
1954Debut in first television program1955Opened Disneyland in Anaheim, California
1980 s – 1990sRenaissance of Disney Animation1984Focus on entertainment assets
2004 The obesity epidemic2006 DCP Launched offerings of fresh fruits
Disney’s Chapter
1950Expand beyond film and television
$32 billion Company with net income of $2.5 billion in 2005
DISNEY’S PRODUC
T MIX
Media Networks• Managed Disney’s 10 TV stations, 72 radio stations, cable
television stations and Internet holdings
Parks and Resorts• Licensed 10 theme parks as well as 35 Disney Vacation Club
resorts and two luxury cruise ships
Studio Entertainment• Created animated and live action films
Disney Consumer Products• Licensed Walt Disney characters, visual and literary properties and
published books, magazines, etc
MAJOR BUSINESS SEGMENTS
Retail stores in Europe and the US stocked the DCP
The main model presupposed getting the license for the use of Disney brand on quality products made by
other companies
In 1998 - 1999 the sales on US and Japanese markets decreased by 10% and 15%
Andy Mooney introduce direct to retail(DTR) and DTR distribution model, and also keep the traditional
licensing model
Business Situation
PROBLEM DEFINITIO
N
Problem Analysis
• Disney branded was accused contributing towards the growing obesity epidemic• Government passed rules
that stated advertisements must not encourage or condone excessive consumption of food
Healthy foods for children Disney needs to reconsider the nutritional value of their food products
Establish credibility with the government, manufacturers, parents and nutritionist
Children’s taste impact the consumption
Could Disney use its “magic” to get children to switch
from sugary, processed foods to a more nutritious diet ?
In 2004, DCP estimated that its branded food products accounted for less than 1% of the children’s food market
DCP discovered that there was a gap between the foods children requested and the foods their mothers were willing to buy for them
WHAT THEY DID?
Offered food products that tasted good, thus liked by Kids, and also having high nutrition value, thus like by Moms
Establish Disney Nutritional Guidelines Using three licensing and distribution models
June 2006, Disney Consumer Products ( DCP ) decided to change the nutritional content of their product and introduce new healthy
foods for children under the slogan of “Better for you”
Disney Nutritional Guidelines
Nutrition control1. Control levels of added sugar2. Contain no trans or hydrogenated fats3. Promote fiber and calcium4. Minimized the use of additives
Reformulating some products, shrinking portions for others and phase out some products.
DCP’s Three Models
Traditional Licensing
ModelSourcing Direct to Retail
(DTR)
SWOT ANALYSIS
Strength• Good image of brand• Strong characteristic• Cooperate with big retailers (Kroger and Wal-Mart)
Weakness• Doesn’t have own
manufacturing for DCP• Growing criticism from
activists, parents and governments around the world about contribution to the growing obesity epidemic
Opportunity • Mothers beliefs and
expectations about DCP• Disney channel• Leading licensors of
character
Threats • Competitors• High expectations from
mothers
Five C’s
5C Company (Disney ,
DCP)
Customer (Children and
parent)
Collaborator (Imaginator
Farm, Kroger) Context (Increasing Obesity in
Children & Adults)
Competitor (Nickelodeon, Warner, etc.)
COMPANY AND ITS COMPETITORSo Commodity produce:
Dole, Green Giant and Fresh Expresso Entertainment brands:
Nickelodeon Warner Bros Sesame Workshop Disney
Characters SpongeBob, Dora the Explorer, The Fairly Odd parents
Harry Potter, Looney Tunes
Elmo, Grover, Cookie Monster
Mickey Mouse, Winnie the Pooh, etc .
Networks Television channel Nickelodeon
Sesame Street public television program
Film and Television program
Collaboration Licensing partnership Ready Pac Del Monte Foods, Sunkist
Kroger, Safeway and Albertson’s supermarket, Carrefour, Wal-Mart
Concept “Every fruit a kid would want to eat with Nickelodeon character”
“Healthier Snack Alternative”, “The Original Kid Pleasin’, mom-lovin’ dippity delicious snack!”
‘Healthy Habits for Life”
“Better For You”
Disney34%
Warner10%
Nickelodeon8%Marvel
8%Sanrio
7%
Lucas5%
4Kids5%
HIT4%
Mattel4%
Universal3%
20th Century Fox2%
Pokemon2%
Sesame2% Others
7%
Market Share
Product Development
ALTERNATIVESPro’s Con’s
Keep Traditional LineKeeping broad consumers base.Preferable by common children.
Negative public opinionNot supporting by government regulation.
Healthy Program Line
Establish good imageStrong Brand Strong distribution ChannelPreferable by common parents.
Possible to loss broad consumers base.
Licensees:General Foods, Standard Oil, DuPont, General Mills, Amour Meats, Life Savers, McDonalds, Imagination Farms
Direct to Retail (DTR)
Partnership:Target, Wal-Mart, Other large retailersKellogg's and Cadbury
COLLABORATIONS
The Household Decision-Making Process for Children’s Products
Influencers(children)
Communicationstargeted at children(taste, image)
Communicationstargeted at parents(nutrition)
Purchasers(parents)
User(children)
Informationgatherers(parents)
Initiators(parents,(children)
Decisionmakers
(parents,children)
Solutions
Disney arranged its portfolio of products into five categories :Main mealSide dishSnacksDrinksTreats
Solutions
Collaborate healthy foods with Disney programs
Healthy food campaign for parents
Promotion through kindergarten
Disney films shows healthy foods consumed by the Disney’s characters to affect the children who watched the film to also consume healthy foods
Tell children who watch Disney’s programs the disadvantages if they consume non-healthy foods
COLLABORATE HEALTHY FOODS WITH DISNEY
PROGRAMS
Consuming healthy foods on a right proportion
Disney already has the products that meets the healthy food standards
Parents must also tell their children about the advantage of healthy food
HEALTHY FOOD CAMPAIGN FOR PARENTS
New character
Disney could create new character that has the advantage of healthy foods on their adventure. Children like adventure and healthy foods could be a big part on their adventure
Children must understand the advantage of healthy foods
Create children’s habit to eat healthy foods since kindergarten
PROMOTION THROUGH KINDERGARTEN
Conclusion
Not easy for Disney to change the market taste, because it would take a long time to replace the old habit into a new one
There must be coordination between Disney and its stakeholder to get the objectives that Disney wants
Created by Yash Manghnani, RCOEM, Nagpur, as a part of the Marketing Management internship under Prof Sameer, Mathur, IIM Lucknow