Disney : Marketing nutrition to children
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Transcript of Disney : Marketing nutrition to children
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Disney Consumer Products: Marketing
Nutrition to Children
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DISNEY TIMELINE
1923
19321950
1955 20062004
Disney is founded by Walt and Roy Disney
Disney Licensing becomes a formal business unit
Disney expands beyond film and television
Disneyland opens in Anaheim,California
Obesity becomes a major problem
DCP launches “Better for You” campaign
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CURRENT MARKET POSITIONING4 SEGMENTS
Media Networks
Disney Consumer Products
Studio Entertainment
Parks and Resorts
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Line of Products
Softlines
Apparel Footwear Accessories
Buena Vista
Games
Home and
InfantPublishin
g Toys Hardlines
FoodHealth
and beauty
Electronics
Stationery
DISNEY PRODUCT WIDTH
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9.16 billion hours in Disney-branded experience
Net Income $2.5 billion
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World’s most valuable franchise characters
$5.8 billion
$5.6 billion
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DCP’s Licensing methods• Licensing–only Model
Gave licenses to company to feature Disney characters on their products and the company was responsible for manufacturing, sales and promotion.• Source Model
Contract manufacturingProducts were created and designed by Disney and
featured the Disney brand, but the licensee would handle manufacturing, sales and marketing. • Direct-to-Retail Model
Partnering directly with retailersEstablished successful DTR relationships for apparel
with Target, Wal-Mart and other large retailers
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Packaged food portfolio mostly sweets and treats.
Disney stood for “Fun” and “Magic” to appeal children
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OBESITY EPIDEMICIncrease in obese and overweight children
• 2-5 year old 5%-14%
• 6-11 year old 4%-19%
• 12-19 year old 5%-17%
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Increase in portion size
Disney’s exclusive partnership with McDonald’s made it indirect factor
Televised ads
Food advertisements promote food purchase requests by children to parents, have an impact on children’s product and brand preferences, and affect consumer dietary behaviour
FACTORS
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Institute of Medicine recommends USDA to develop standards for marketing foods beverages to children based on portion sizes and quantitative distribution of constituent products.
“Dietary Guidelines for Americans” recommended that
children and adults adopt a “balanced eating pattern,” consume a variety of nutrient-dense foods and
beverages and limit their intake of saturated and trans fats, cholesterol, added sugars, and salt.
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What was Disney’s response to this ?
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DCP saw this obesity epidemic as an opportunity to revamp its product line, rationalize and broaden its product and services width.
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DISNEY’S MARKET ANALYSIS To size the food business opportunity To discover if Disney’s brand equity would transfer to
a children’s line of products
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METHODOLOGY
Used focus groups, group sessions and shopping trips with mothers of children aged 2 to 13 year olds to determine which product categories to target
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OBSERVATIONS1. There was a gap between the
foods children requested and the foods their mothers are willing to buy
2. Children influence purchase decisions, even in their absence at stores.
3. Mothers associate Disney strongly with magic even when it comes to food.
4. Peer pressure and advertising strongly influence kids preferences.
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WHAT TO BE DONE NOW?
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1. Packaged food portfolio needed to be balanced.
2. Introduction of a new product line which is moderately priced and positioned to be fun inducing to appeal the children
3. To appeal the mothers, products needed to be portion-controlled, be high quality, omit trans fat.
4. Products must be non-patronizing and Mom-approved.
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Could Disney provide leadership for the rest of the food industry and use its brand strength to reach children?
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Could the company use its “magic” to get children switch from sugary, processed foods to a more nutritious diet?
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Disney Nutritional GuidelinesQuality range of Disney integrated foods that answers children’s daily calorie requirement in an entertaining way.
GOOD FOOD , GREAT FUNBalance portfolio • 85% main meals • 15% treats
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Divided its array of food into 5 categories and assigned calorie value to each
• Main meal• Side dish• Snacks• Drinks• Treats
Products would be minimally processed and contain controlled level of added sugar and no trans fat.
Minimized use of additives
Reformulated some products and shrunk portions of some
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3 APPROACHES TO CREATION OF DISNEY FOOD PRODUCTS
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Offer products that already has broad appeal e.g. milk , peanut butter
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Take products which were already healthy and make them more “fun” e.g. Whole wheat pasta
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Use packaging to inspire product sampling e.g. making water bottles in shape of characters
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Imagination Farms Marketed fresh fruits and packaged good
with licensed Disney characters.
Provided retailers with customised marketing programs such as seasonal promotions, tie-ins with DVD releases
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DTR Relationship with Kroger SupermarketsLaunched exclusive Disney line of products called
“Disney Magic Selections”
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Who were Disney’s Competitors?
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Nicklodean
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Sesame WorkshopLicensing deal with Del Monte Foods
Del Monte peas, corn and green beans featured Elmo, Grover andCookie Monster characters
“Healthy Habits for Life” campaign
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Warner Bros.Signed licensing agreement with Ready Pac
Featured Warner’s Bugs Bunny, Tweety and Tasmanian Devil characters
Promoted lunchbox alternatives instead of source produce
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WHAT RISKS DOES DISNEY FACE?
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Immediate loss of revenue from this share of products
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Pricing: Had to be competitively
priced within produce department and private brands
Had to live up to the premium-value image as well
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Legacy:Scepticism from media and public was expected regarding the new products
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Differentiation and Competition Disney was a late-entry
into the healthy food-promotion sector
Had to rely on wide distribution and broad product line to sustain competitors
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Growth and Distribution Disney wanted to license and
develop additional lines.
Imagination Farms produce had to co-exist with Krogers, thus posing threat of internal competition.
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WHAT MORE CAN DISNEY DO?
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License other characters than Mickey and Winnie to expand market share and ease product differentiation
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Appeal not only the children but also educate parents to go for healthy food in right proportions
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Introduce food programs to educate kids on the disadvantages of unhealthy food
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Perfect co-ordination between stakeholders and Disney
Licensees must learn the mode and method of promoting healthy eating habits while keeping the core values of Disney intact
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The success of Disney to successfully inculcate healthy eating habits in kids will take time as bad habits take time to be replaced with new one.
Disney has to counter the risks posed by this bold step and not get deterred by short term losses. On a long term and with effecting product development and marketing strategy , the company shall reap huge profits.
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• History of Disney• Current situation
analysis• The obesity epidemic• Market analysis by
Disney• Disney’s course of
Action• Competition in market• Risks faced • Recommendations• Conclusions
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DISCLAIMERThis presentation was repared by Swati Samikshya Sahoo, NIT Rourkela as a part of internship under Prof. Sameer Mathur, IIM Lucknow.
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