Case Study Of Harvard Case for Disney Consumer products

1. Disney Consumer Products: Marketing Nutrition to Children
Harvard Business School Case

2. A brand which is synonymous with
fun
and
Magic

4. 1. History
2.Problems
3.Analysis
4.Solution
5.Conclusion

6. Walter Elias Disney and his brother, Roy, founded
Disney Brothers Cartoon Studio, later renamed

7. Introduced
Mickey Mouse
Snow White

8. 1923
Debut of
Mickey
Mouse in
Steamboat
Willie
1932
Licensing
became a
formal
business
unit
1950
Expand
beyond film
and
television
1954
Debut in first
television
program
1955
Opened
Disneyland in
Anaheim,
California
1980 s –
1990s
Renaissance
of Disney
Animation
1984
Focus on
entertainme
nt assets
2004
The obesity
epidemic
2006
DCP Launched
offerings of
fresh fruits
Disney Evolution

9. Disney Consumer Product
Offered six lines of business:
• Soft lines (apparel, footwear, etc)
• Buena Vista Games
• Home & infant
• Hard lines(food, health & beauty, etc)
• Publishing
• Toys

10. Disney Consumer Product

11. DCP’s Licensing and Distribution
Models
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 10-15%
Andy Mooney introduce
direct to retail(DTR) and
DTR distribution model,
and also kept the
traditional licensing
model

13. Obesity
In 2004, more than 30% of US children between the ages of 5
and 9 years were overweight and 14% were obese.

14. Disney branded 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
Problem Defining

15. CHILDREN CONSUME MORE THAN REQUIRED.
TELEVISION ADVERTISING INFLUENCE CHILDREN .
CAUSE OF OBESITY

16. In 2005 and 2006, IOM recommended
that the USDA develop standards for
marketing foods and beverages to
children based on portion sizes,
calories, fat, sugar and sodium and
issued a set of product development
and marketing recommendations
regarding the responsibilities of food
and beverage companies to halt the
obesity epidemic.

17. Could the company
use its “magic” to
get children to
switch from
sugary, processed
foods and become
lifelong converts to
a more nutritious
diet?

18. Yes, Disney as a
brand has a
potential to
influence
Children habits
through its
proper market
strategy.

19. • Sugar item food are
more appealing for
children.
• Cost of nutritional food
was higher.
• More R & D, hence more
time consuming.
Challenges for Nutritional food

20. Alternatives
Pro’s Con’s
Keep Traditional Line
Keeping broad consumers base.
Preferable by common children.
Negative public opinion
Not supporting by
government regulation.
Healthy Program Line
Establish good image
Strong Brand
Strong distribution Channel
Preferable by common parents.
Possible to loss broad
consumers base.

21. In 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”.
What Disney did ?

22. Nutrition control
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
Disney Nutritional Guidelines

23. Approaches taken by Disney
• Take brand appealed
product and make
them healthy.
• Make already healthier
product and make
them fun.
• Famous Character
based packaging to
inspire sampling.

24. DCP STARTED
IMAGATION
FARMS TO MARKET
FRESH FRUITS
AND VEGETABLES VIA
LICENSING .

25. Disney expect competition and channel friction, and believe that it can beat the
competition because even if they develop and match our nutritional standards,
they cannot access “Disney magic”.

27. Disney
DCP DEVELOPED A BROAD RANGE OF
PRODUCTS WITH CINCINNATI-BASED KROGER
SUPERMARKETS

28. KROGER DISNEY MAGIC SELECTION PRODUCTS

29. Challenges
PRICING & VALUE
LEGACY
DIFFERENTIATION &
COMPETITION
GROWTH &
DISTRIBUTION

31. Swot Analysis
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 (exhibit 5)
Threats
• Competitors
• High expectations from mothers

33. 5CCompany
(Disney , DCP)
Customer
(Children and
parent)
Collaborator
(Imaginator
Farm, Kroger) Context
(Increasing
Obesity in
Children &
Adults)
Competitor
(Nickelodeon,
Warner, etc.)

34. 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

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

37. Promote
healthy food
by means of
their films
and shows.

38. Disney could create
new character which
shows the advantage of
healthy foods. It
encourages children.
For example
This character eating
Spinach.

40. Disney made changes in
the absence of broad
based consumer demand,
and took the risk to
change the habits of the
consumers towards
healthy foods.

41. Disney will be
providing
healthier options
for families that
seek them,
whether at our
parks or through
broad array of
licensed foods.

42. By the end of October,
Disney parks and resorts
in the United States
were serving children’s
meals with low fat milk,
fruit juice or water
instead of soda and
apple sauce or carrots in
place of French fries.

44. Disclaimer
Prof. Sameer Mathur
Indian Institute of Management , Lucknow
Marketing Professor: August 2013 – Present
McGill University
Marketing Professor: July 2009 – July 2013
Carnegie Mellon University
Ph.D. in Marketing : August 2003 – June 2009
These slides are created by Ankit Sharma,NIT Surat, as part of a Marketing
Internship under Prof. Sameer Mathur.