Disney Consumer Products launched an initiative in 2006 to make their food products healthier for children in response to concerns about childhood obesity. They established Disney Nutritional Guidelines to reformulate products with less sugar, fat and additives. Disney used three models - traditional licensing, sourcing, and direct-to-retail partnerships with companies like Imagination Farms and retailers like Kroger. To promote healthy eating, Disney collaborated on healthy food campaigns, developed new characters promoting nutrition, and promoted healthy foods in kindergartens. While changing children's tastes would be difficult, coordination between Disney and stakeholders could help achieve their healthy eating objectives over the long term.

1. Disney Consumer Products:
Marketing Nutrition for
children

2. History Problem
Definition
Analysis Solution Conclusion

3. HISTORY

4. 1923
Debut of
Mickey
Mouse in
Steamboat
Willie
1932
Licensing
became a
formal
business
unit
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
Disney’s Chapter
1950
Expand
beyond
film and
television

5. Disney Consumer Products
Responsible for extending the Disney brand
to merchandise
• Soft lines
• Apparel
• Footwear
• Accessories
• Buena vista games
• Home and infant
• Hard lines
• Food
• Health and beauty
• Electronics and
stationery
• Publishing
• Toys
Consists of 6 lines of business

6. 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% and 15%
Andy Mooney introduce direct to retail(DTR) and DTR
distribution model, and also keep the traditional
licensing model
Business Situation

8. Disney branded was accused contributing towards the growing
obesity epidemic
(Confectionery products, Uncontrolled eating habit)
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 Analysis
Children’s taste impact the consumption

9. Could Disney use it “magic” to switch children
from sugary to more nutritious diet ? Could
they sustain ?
Problem Definition

10. Product Development
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.

11. What they did?
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

12. Disney Nutritional Guidelines
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
Reformulating some products,
shrinking portions for others
and phase out some products.

13. DCP’s Three Models
Traditional Licensing Model
Sourcing
(Designed and create products by Disney but manufactured and
marketed by licensee)
Direct-to-retail (DTR)
(Entailed partnering directly with retailers)

14. Analysi

15. 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
(exhibit 5)
Threats
• Competitors
• High expectations from mothers

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

18. 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

19. 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”

20. 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

22. 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

23. Context
Political & Regulatory environment
Social/Cultural environment

24. 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”

25. 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

26. Customer -- Household
Most of American
Household type is
Nuclear family, consist
of a father, a mother
and children.

27. 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)

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

29. 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

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

32. 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

33. 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

34. 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

35. 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

37. 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

38. THIS SLIDES WERE PREPARED BY RIDHAM PATOLIYA UNDER
GUIDANCE OF PROF. SAMEER MATHUR, IIM LUCKNOW UNDER
SUMMER MARKETING INTERNSHIP, 2016