Disney Consumer Products

1923

1955

1983

1986

10 television stations.

72 radio stations.

10 theme parks .

35 Disney Vacation Club resorts.

2 luxury cruise ships.

By 2006

32$Billion Company

in 2005

2.5$Billion Net

Income in 2005

5.8$BILLION WORTH

5.6$BILLION WORTH

3$BILLION WORTH

96%Kids Familiar

92%Kids Familiar

97%Kids Familiar

Families spent an average of 9.16 billion hours with Disney per year.

DCP was the world’s largest licensor.

21$ BILLION WORLD WIDE RETAIL SALE,2005.

15$ BILLION WORLD WIDE RETAIL SALE OF FOOD RODUCTS,2005.

1.SITUATION

30%American kids are overweight.

14%American kids are obese.

DISNEY faced CRITISISM

For contributing to growingOBESITY EPIDEMIC.

Government ensured that advertisements must not encourage or condone excessive consumption of food.

DISNEY saw an opportunity to reconsider its entire range of food products.

MARKETNUTRITIONTO KIDS

2.QUESTIONS

WILL BE ABLE TO MEET THE NUTRITION NORMS SET-UP BY FDA

WILLBE ABLE TO REACH CHILDRENAND KEEP FOCUS ON IT’S BRAND IMAGE

WILLBE ABLE TO CONTINUE IT’S MOTTO“Disney for fun”

WILLCONSUMERS LIKE THE NEW PRODUCT IN TASTE AND QUALITYBOTH

WHAT WILL BE THE IMPACT ON THE BRAND VALUE OF

HOWWILL DISNEY FACE THE COMPETITONS AHEAD

CANPROVIDE LEADERSHIP TO REST OF FOOD INDUSTRY

3.HYPOTHESIS

In 2004, DCP estimated that its branded food products accounted for less than 1% of the children’s food market.

The challenge stands to bridge this

GAP

4. Proof And action

In winter 2004, DCP conducted research to size the food business opportunity and to discover if Disney’s brand equity would transfer to a line of children’s food products.

Sent Moms on shopping trips to see the difference between what they bought and what kids wanted.

DCP discovered there was a gap between the foods children requested and the foods their mothers were willing to buy for them

“Peer pressure and advertising strongly influence kids’ preferences,”

- Reid Leslie, director of food and beverage

“We knew that Moms’ brand loyalty was strong, but we wanted to know if that would translate to food, and it did. ” - Reid Leslie, director of food and beverage

The products need to make them feel special and must be non-patronizing and

Mom-approved

“Kids want fun graphics and shapes, good taste, and great fun,”

- Reid Leslie, director of food and beverage

determined that key product categories were Water fresh food frozen foods juicePasta soupcerealbaked goods dairy/milk.

A quality range of Disney integrated foods that answers children’s daily needs in an entertaining way—in short, good food, great fun

Before officially implementing its nutrition guidelines, DCP audited 2,100 of its food products.

41% already complied with the guidelines

28% need to be phased out

The company planned to have all its products brought into compliance or phased out by 2008

“We know that to be appealing to children, the products need to integrate their favorite characters and the aura and magic of Disney into the package design. All together, these elements can encourage children to try the products,”

-Embola Ndi, Vice president for product development

Three approaches toward creating Disney food products

1.Offer products that already had broad appeal

2.Take products that were already healthy and make them more fun.

Use packaging to inspire product sampling

3.

Imagination Farms.

- “They had lots of experience on the growing and licensing side,

Three-pronged product development strategy

Differentiate commodity produce through promotion.

Create value-added products through product preparation or packaging.

Develop exclusive produce varieties that would yield more child-friendly foods.

COMPETITIONFACED

As the top rated U.S. basic cable network since 1996, Nickelodeon was seen by 89 million households

“We believe that what is good for kids is good for business. Because the rising obesity issue is important in kids’ lives, we chose to opt in, and be a

part of the solution” . -Sherice Torres,

licensing vice president at Nickelodeon.

$3 billion U. S. manufacturer of branded and private label canned vegetables and fruit, announced that it had signed a licensing deal with Sesame Workshop

“If anyone can encourage children to eat their fruits and vegetables…it’s Elmo, along with his friends Cookie Monster and Grover”

- Apu Mody, managing director for Del Monte

Ready Pac, a produce company that packaged washed, cut and ready-to-eat fruits and vegetables for supermarkets and food service, signed a licensing agreement with Warner Bros.

“Healthier snack alternative” and “the original kid pleasing’, mom-loving’ dippity delicious snack!”

“ We expect competition, but we believe we can beat the competition because even if they develop and match our nutritional standards, they cannot access Disney magic.”

-Embola Ndi, Vice president for product development

More than 14,000 new food and beverage products entered the U.S. marketplace each year.

But less than 6% were successful; the remaining 94% failed due to one or more factors.

1. PRICING AND VALUE

“For the products, affordable equals value, not price. We have to deliver quality to represent our brand well.” -MooneyCEO,DCP

To go out with lower pricing, is a marketing challenge for us.

2. Legacy “It isn’t useful to ask where are we are today—that’s based on decisions made many years in the past. Now we are focused on developing ‘better for you’ products and how we’re going to get there,”

-Mooney.

Would consumers embrace the new food products, is a marketing challenge for us.

3. Differentiation & Competition

“We expect competition and channel friction, but we believe we can beat the competition because even if they develop and match our nutritional standards, they cannot access Disney magic,”

- Ndi.

To prove oneself better over others, is a marketing challenge for us.

4. Growth and distribution Other retailers won’t turn our products down because of the Kroger relationship. We need to find exclusives for them, too. Their chief concern and ours is that our products are profitable for them”.

-Mooney.

Differentiate using characters, brand and price, is a marketing challenge for us.

5.Alternative

NEW DISNEY CHARACTERS

DISNEY FILMS FEATURING HEALTHY FOOD

HEALTHY FOOD CAMPAIGNS FOR PARENTS

BRIDGE GAP BETWEEN DISNEY AND ITS STAKEHOLDERS

EVERYONE SAY’S THANK YOU…….

Created by Shivanshi Srivastava, During a marketing internship byNIT Rourkela Prof. Sameer Mathur,IIM Lucknow