Study based on Harvard Business School Case.

1. Disney Consumer products :
MARKETING
NUTRITION
TO
CHILDREN
Harvard Business School Case

3. THE WALT DISNEY COMPANY

4. 1923
Debut of
Mickey
Mouse
in
Steambo
at Willie
1932
Licensing
became a
formal
business
unit
DECIDED TO
EXPAND 1954
Debut in first
television
program
1955
Opened
Disneyland in
Anaheim,
California
1980 s – 1990s
Renaissance of
Disney Animation
1984
Focus on
entertainment
assets
2004
The obesity
epidemic
2006
DCP
Launched
offerings of
fresh fruits

5. In 2006, The Walt Disney company had 4 business segments
MEDIA NETWORKS PARKS & RESORTS
STUDIO ENTERTAINMENT
DISNEY CONSUMER PRODUCTS

6. Responsible for
product
development
and marketing
of Disney-
branded
merchandise
(DCP)

7. DCP’s 6 lines of business
Hardlines
Food
Health & beauty
Stationary & electronics
Buena vista games
Softlines publishing
Home &
infant
toys

8. Why DCP had to enter into market of
nutritious food?

9. Because of the dramatic
increase in child OBESITY

10. Let’s try to
DEFINE THE PROBLEM
here

11. Disney was accused contributing towards
the growing obesity epidemic
Healthy foods for children :
Disney need to reconsider the nutritional
value of their food products
Establish credibility with the
government, manufacturers,
parents and nutritionist
Children’s taste impact the
consumption

12. Could DCP solve the problem of
childhood obesity ?
OR

13. could Disney provide
leadership for rest of the food
industry and use its brand
strength to reach children?

14. Could Disney use it “MAGIC” to switch children
from sugary to more nutritious diet ? Could they
SUSTAIN ?

15. Steps taken by Disney

16. To become global consumer
products’ company
Disney focused on
Product
innovation
Creativity
Quality
Building
relationships
with key retailers

17. 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”
 Establish Disney Nutritional Guidelines
 Using three licensing and distribution models

18. Disney Nutritional Guidelines
“Better for you”
Nutrition control healthier
product line
1. Control levels of added sugar
2. Contain no trans or hydrogenated fats
3. Promote fiber and calcium
4. Minimized the use of additives
5. Prefer to use whole foods that intrinsically
dense in nutrients
6. Minimally processed
7. Calorie adjusted
Reformulating some products,
shrinking portions for others
and phase out some products.

19. NEED A FRAMEWORK OF
HOW CHILDREN EAT
Made portfolio of products into 5
categories
Treats
Snacks
Beverages
Main meal
Side dishes
1

20. Calories were allocated to each
category
2

21. Balance its portfolio so that 85% of
its products could be classified as
main meal, side dishes, snacks or
beverages and only 15% could be
categorised as treats.
3

22. In 2004 DCP estimated that its
branded products accounted for less
than 1%of children’s food market
Disney conducted a research to size
food business opportunity

23. Research objective- To see the difference between what
mothers bought and what kids wanted
Research Methodology- focus group, group sessions and
shopping trips with mothers of children ages 2 to 13 years
old were conducted

24. RESEARCH FINDINGS:
1.there was a gap between “what moms bought”
and “what kids wanted”
2.peer pressure and advertising strongly influence
kids’ preferences
3.Mothers saw Disney brand as high quality,
trustworthy and familiar (strong brand loyalty)

25. DCP’s Three Models of
distribution
Traditional Licensing Model
Sourcing
Products were designed and created by Disney but manufactured and
marketed by licensee)
Direct-to-retail (DTR)
(Entailed partnering directly with retailers bypassing wholesale licensees)

26. 3 approaches adopted by Disney
Offer products
which already
had broad
appeal
• Eg. Milk, peanut
butter
Already
healthy
products:
make them
more “FUN”
• Eg. Mold whole
wheat pasta into
character shapes
Use packaging
to improve
product
sampling
• Eg. Water bottles
in the shape of
characters

27. DCP and Imagination farms used
three-pronged product development
strategy
1. Differentiate commodity
2. Create value added products
3. Develop exclusive product
varieties

28. Imagination farms ( new licenser
of DCP)
Contracted 15 US
growers to provide
organic produce under
the Disney Garden
brand
Provided retailers with
customised marketing
programs

29. Disney’s DTR relationship with
Kroger (largest pure grocery retailer
in US)
Working together they developed
DISNEY MAGIC SELECTIONS as a
PRIVATE LABEL

30. ANALYSIS

31. Disney
34%
Warner
10%
Nickelodeon
8%
Marvel
8%
Sanrio
7%
Lucas
5%
4Kids
5%
HIT
4%
Mattel
4%
Universal
3%
20th Century Fox
2%
Pokemon
2%
Sesame
2% Others
7%
0%
0%
0%
0%
0%
0%
Market Share

34. 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
• More than 14000 new food and
beverage entered US market each
year but less than 6%were
successful
• Bear risk, financial hit to DCP

36. Five C’s
5CCompany
(Disney , DCP)
Customer
(Children and
parent)
Collaborator
(Imaginator Farm,
Kroger) Context
(Increasing
Obesity in
Children &
Adults)
Competitor
(Nickelodeon,
Warner, etc.)

37. Potential Internal Strengths Potential Internal Weaknesses
1. Corporation brand name has powerfully
distinguished itself nationwide as one of the best in
the entertainment business.
1. Growing critics from activists, parents, and
government believed that Disney companies
contributed to the growing obesity epidemic.
2. Well -known brand name that has lead to high
brand loyalty where Disney brand was synonymous
with fun and magic.
2. Licensing with McD.
3. Children familiar with Disney characters. 3. The packaged foods portfolio of Disney was mostly
sweets and treats.
4. The Little Mermaid, The Lion King and The Beauty
and the Beast-the only animated ever nominated
film for the Academy Award for Best Picture. The
Lion King won the Tony Award for best musical in
1997.
4. Disney doesn’t have their own manufacturing.
5. Disney held the top spots for the world’s most
valuable franchise characters.
6. Disney Consumer Products (DCP) was the world’s
largest licensor.
Company

38. Competitor
o Commodity produce:
Dole, Green Giant and Fresh Express
o 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”

39. 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 retailers
Kellogg's and Cadbury
Collaboration

40. Context
Political & Regulatory environment
Social/Cultural environment

41. Customer
Geographic segmentation:
All over the world
Demographic segmentation :
Age : Children and adult
Gender : Male and Female
Psychographic : Lower class, Middle class, Upper class
Behavioral segmentation:
Taste Fun and “Magic”

42. Customer -- National Culture
The collectivism is high rather than individualism
Power distance is low that children could affect
decisions
In USA, the extended family been replaced as the
most common mode of living by the nuclear family
Uncertainty avoidance is high the parents has
important role that determining the purchase and
healthy become the main factor which consider by
the parents

43. The Household Decision-Making
Process for Children’s Products
Influencers
(children)
Communications
targeted at children
(taste, image)
Communications
targeted at parents
(nutrition)
Purchasers
(parents)
User
(children)
Information
gatherers
(parents)
Initiators
(parents,
(children)
Decision
makers
(parents,
children)

44. Needs and Wants
Needs
(Food)
Parents Wants
(Nutritious Foods)
Children Wants
(Tasty & Fun Foods)

45. Uses the behaviors and opinions of
others as useful information
Informational
When an individual fulfills group
expectations to gain a reward or
avoid a sanction
Normative
Individuals have internalized the
group’s values and norms
Value Expression
Type of Influence

46. Solution
Collaborate healthy foods with Disney programs
Healthy food campaign for parents
New character
Promotion through kindergarten

47. Collaborate healthy foods with Disney programs
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

48. Healthy Food campaign for parents
Parents must understand the importance and
advantages if their children consume healthy
foods on a right proportion
Tell the parents that Disney already has the
products that meets the healthy food standards
Parents must also tell their children about the
advantage of healthy foods and give the
children healthy foods on the right proportion

49. 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

50. Promotion through kindergarten
Children must understand the advantage of
healthy foods and the amount of foods they
must consumed
Create children’s habit to eat healthy foods
since kindergarten

51. 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

52. Key to getting children to eat
healthier food
Kids have to like it taste good
Moms like it too nutritious

54. Created by :
Tanvi Maheshwari
Lady Shri Ram College for
Women,
during an internship by
Prof. Sameer Mathur,
IIM Lucknow
(www.IIMInternship.com)