Disney consumer products: HBR case analysis

Marketing Nutrition to Children

OVERVIEW

Walt Disney Company

Media Networks Parks & Resorts Studio Entertainment

Consumer Products

SITUATION

• From 1975 to 2005, Rates of Overweight:

•2-5 Year Olds: 5% to 14%•6-11 Year Olds: 4% to 19%•12-19 Year Old: 5% to 17%• More then 30% of American Children Overweight

•10% of European Kids are obese

Reasons:• Increased Portion size• Eating out frequently

•Marketing by the food companies

PROBLEM

In 2005 & 2006, IOM RecommendedThat USDA develop standards forMarketing Foods & Beverages to

childrenAnd issued a set of product

development & marketing recommendations

regardingResponsibilities of Food & BeverageCompanies to halt obesity epidemic

Disney Brand Accused of contributingTowards growing epidemic

Disney needs to reconsider the Nutritional value of their food products

Needs to establish credibility with theGovernment, manufacturers, parents &

Nutritionists.

Can company use its “Magic” to get

Children to switch to nutritious diet?

Will They Sustain?

STEPS UNDERTAKEN BYDISNEY

• Control Levels of Added Sugar• Contain no Trans or Hydrogenated Fats• Promote Fiber & Calcium•Minimize the use of Additives• Prefer to use whole Foods dense in nutrients•Minimally processed• Calorie Adjusted

Implemented Disney Nutritional GuidelinesUnder the slogan “Better for you”

On Audit, only 41% Met guidelinesWhereas 28% were totally out of

Compliance and needed phasing outAnd some needed Reformulating

3 STEP APPROACH

Take Products with BroadAppeal and make them

Healthy

Take Already Healthy Products& Make them some

“FUN”

Character Based Packaging to inspire Sampling

Distribution Models

Traditional Licensing Sourcing Direct To retail

(DTR)

(Partnering DirectlyWith Retailers)

(Designed & CreatedBy Disney, Manufactured& Marketed by Licensee)

Three Pronged Product DevelopmentStrategy:

1. Differentiate Commodity2. Create Value Added Products

3. Develop Exclusive Product Varities

Sourcing to Imagination Farms

DTR with

Developed Broad Range of productsUnder Disney Magic Selections

As a private Label.

COMPETITION

Found Success with Dora & Spongebob

Dora & Spongebob Characters FeatureOn Packaging with LGS Specialty

Tied up with Del Monte Foods using its Character Elmo, Grover and cookie Monster

Marketed inder “Healthy Habits for Life”

Under “Healthier Snack Alternative”,Marketed foods with Bugs-Bunny, loony Toons,Tweety characters with ready pac & Safeway

FUTURE

Envision Publishing Cookbooks, TV Cooking Shows, Exercise Programs.

Extending Offering from Retail to Food Service& out of home consumption in Restaurants

CONCLUSION

Nutritionally beneficial changes at all DisneyOperated restaurants

Tough task to change the preference and Habits of consumers but possible for disney

The balance of Taste & Nutrition is veryImportant to succeed.

Created by Meet Shah, NMIMS MumbaiDuring a Marketing Internship by

Prof. Sameer Mathur, IIM Lucknow