Harvard Business Review Case

By AKASH KUMAR

sWalt

Disney company is not just

a Disneylan

d!

Index Mission.Structure of the Walt Disney Company.HistoryMerchandise Licensing and Disney Consumer Products.Disney at Supermarket.Issues.Nutrition Obesity and the American diet.Disney Nutritional Guidelines.Imagination Farms.Future.The Competition.Conclusions.

Mission

Structure of Walt DisneyWalt Disney

Company

Studio Entertainment

Media Network

broadcasting

Parks And Resorts

Disney Consumer Products

HI STORY

1932-1980 1923

The Walt Disney company with the debut of Mickey Mouse.

1932

Disney won the Academy Award for Best cartoon.

1954

Disney debuted its first television program, “the Wonderful World of Disney”.

1971

Walt Disney World was completed.

1980-present 1984

Disney began focusing more on films for television.

1996

Disney purchased media company Capital Cities /ABC for $19 billion.

2003

Disney became the first studio to surpass $3 billion in global box office receipts.

2016

Star wars :”The Force Awakens”.

Shows that

Disney ruled .

Licensing Model1.Traditonal

Licensing Model

2.Sourcing Model

3.Direct to Retail (DTR) model

Licenses handled product innovation and manufacturing.

Contract manufacturing ,where products were created and

designed by Disney.

Partnering directly with retailers.

Disney Consumer Products

Responsible for extending the Disney brand to merchandise .

Comprised of softlines , Buena vista games , home & infant,hardlines, publishing and toys.

Largest licensor with more than $21 billion in retail sales of licensed products.

IssuesWalt Disney was Criticized for growing obesityepidemic

Issues(2)Health report estimated that more than 30% of American children were overweight and 14% were obese.

In Europe more than 10% children were obese.

Major reason were consumption of sugar-sweetened foods and lack of exercise.

What did Disney do?Due to dramatic increase in childhood obesity , Disney started considering the nutritional value of its own food products.Disney conducted a corporate-level audit of the food and beverage offerings within all its divisions.They took the obesity epidemic as an opportunity to reconsider its entire range of foods.

Guidelines from USDA

IOM recommendationActively promote healthifuldiets for children.

Create or reformulate children’s products to reduce calories,fats, salt and added sugar.

Empirically validated industry-wide rating system.

Enforce strict marketing standards.

Avoid linking”nutritionally questionable” products to celebrities, sports figure etc.

Disney Nutritional guidelines

Promoting healthier categories for kids like water, milk, yoghurt and fruit.

Products categorized into five categories:main meal, side dish, snacks, drinks and treats.

Calories were allocated to each categories.

Approaches• Approaching

products that already had appeal like milk/butter.

• Take products that were already healthy and making fun of them.

• Use packaging to inspire product sampling.

Imagination Farms

Competition

Baby Carrots and clementines bearing character images licensed by Nickelodeon , began to appear on supermarket shelves.By end of 2005, unit sales of clementines increases by almost 25%.Nickelodeon aimed to have every fruit a kid would want to eat must have a Nickelodeon character.

Disney & Kroger

1.Gain market share and acceptance into food and beverage market.2.Focus on family entertainment industry.

ConclusionsContribution of wide distribution and Disney magic meant that DCP would win over moms around the world.DCP also plan to make ties with other retailers , other than krogers.With imagination farm products expected to cross the number of items they produce with Kroger DCP is sure to be a success.With the nutritional and dietary plan adopted by Disney the obesity epidemic can be kept effectively.

Created by Akash Kumar, PESIT Bangalore , during a marketing internship under Prof.

Sameer Mathur , IIM Lucknow