Disney consumer products: marketing nutrition to children.
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Transcript of Disney consumer products: marketing nutrition to children.
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Disney consumer products.
Marketing nutrition to children
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index
• History• Current situation• Problem definition.• Market analysis• Recommendations• conclusion
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Media and networks Parks and resorts
Studio entertain-ment
Disney consumer products
Current situation:The walt disney company:
Current situation
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Publish-ing
hardline
softlinesBeuna vista
games
toys
Home & infant
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DCP was the world’s largest licensor, with more than $21 billion in retail sales of licensed products.
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DCP’s distribution models:
•Licensees handled product innovation, manufacturing, sales and marketing.
Traditional licensing:
•Products are created and designed by disney and licensees handle manufacturing sales and marketing.Sourcing:
•Selling brand and character rights directly to retailers, bypassing wholesale licensees.
Direct to retail:
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Disney was being held responsible for contributing to obesity among children.
Current situation
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Causes:1) Progressive increase in portion sizes.
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Causes:2) Excessive advertising.
• The average child viewed more than 40,000 TV commercials annually, 50% of which were for high calorie and high fat foods.
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Hence USDA came up with standards for marketing food:
• Actively promote healthful diets for children.• Create or reformulate children’s products,
improving nutritional content.• Develop an empirically validated industry wide
rating system for labelling and advertising that conveyed nutritional information.
• Enforce strict marketing standards and adhere to self-regulatory guidelines for advertising.
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Current situation
• DCP estimated that its brand food products accounted for less than 1% of the children’s market in 2004.
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The company’s changing licensing models, retail industry consolidation, and obesity epidemic offered DCP an opportunity to
broaden and rationalise its product offerings.
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Can Disney use its magic to switch
children from sugary to nutritious diet?
Problem definition:
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Market analysis:
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The research shows that:
• There was a gap between the foods children requested and the foods their mothers were willing to buy.
• Children influenced purchase decisions whether they were in the store with their mothers or not.
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The research show that:
• Peer pressure and advertising strongly influence kids preferences.
• Kids demand products that make them ‘in’ with their peers.
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The research shows that:
People perceived Disney brand as-
• High quality• Trust worthy
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The results concluded that:
• To appeal to mothers the products must be:• Portion controlled• High quality• Taste good• Reduce fats and sugar• REQUESTED BY CHILDREN.
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SWOT analysis:
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Brand recognition. high risk factor.
Strong diversification. doesn’t have its own
Cooperativeness. manufacturing unit for DCP.
Positive perception about the brand & character competitors.Popularity . Pricing competition.
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Competitors:
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What did they do??
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In June 2006, DCP has decided to change the nutritional content of their products and introduce new healthy
products for children under the slogan- “better for you”.
They established Disney nutritional guidelines.
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DCP- nutritional guidelines.
• Controlled level of added sugars
• No added carbs and hydrogenated fats.
• Minimize the use of additives.
• Promote calcium and fiber• Prefer to use whole foods
that are dense in nutrients.
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This can be achieved through:
• Reformulating some products.
• Shrinking portions for others .
• Phasing out some others.
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41% of the existing products were meeting the nutritional guidelines
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Product development approach:
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Make already appealing foods like milk and peanut
butter, more “healthy”.
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Take products that are already healthy and
make them more “fun”
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Use packaging to inspire product sampling.
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DCP began licensing its products to
imagination farms, a national fresh produce
firm in 2006.
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Disney established a DTR relationship with kroger for an exclusive line of
disney branded products.
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Collaborate healthy food with disney programs
• Disney films show disney’s characters having healthy food, to affect the children who watch the film to also consume healthy food
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New characters.• Disney could create new characters to
promote healthy food.
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Conclusion
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It is not easy for Disney to revolutionize the market at once.
• It takes time to replace consumers old habits .
There must be very good coordination between Disney and its stakeholders for Disney to achieve its objectives.
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Thank you.
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Disclaimer
Prepared by G Sai Samhitha, BITS-Pilani Hyderabad campus, as a part of marketing research internship under prof.Sameer Mathur, IIM Lucknow.