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Harvard Business Review Case

Disney Case Study

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Harvard Business Review Case

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Laughter is timeless , imagination has no age , and dreams are forever.

Laughter is timeless , imagination has no age , and dreams are forever.

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Index Structure of the Walt Disney Company. History Merchandise Licensing and Disney Consumer Products. Disney at Supermarket. Issues. Nutrition Obesity and the American diet. Disney Nutritional Guidelines. Imagination Farms. SWOT Analysis The Competition. Conclusions.

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1923Debut of Mickey Mouse in Steamboat Willie

1932Licensing became a formal business unit

1954Debut in first television program1955Opened Disneyland in Anaheim, California

1980 s – 1990sRenaissance of Disney Animation1984Focus on entertainment assets

2004 The obesity epidemic2006 DCP Launched offerings of fresh fruits

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History

History

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1923Established in 1923 by Walt Disney and his brother Ross.

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1929 : merchandising started :

• Pg 3 : last para

Disney started licensing it’s characters in the year 1929

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1954

It launched the first TV programme in 1954.

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1955

1955 : Disney land opened in California

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Disney acquiredBC media company in 1996.

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By 2006 : four major segments.By 2006, Walt Disney was compromised of 4 major categories.

Disney Media Networks.

Disney Studio Entertainment.

Disney parks and Resorts.

Disney Consumer Products

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LISENCING AND DISTRIBUTION MODELS :

1.Traditonal Licensing Model

2.Sourcing Model

3.Direct to Retail (DTR) model

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The Obesity EpidemicFood industries were blamed for the raising obesity rates.

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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.

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• Saw it as an advantage to enter the food industry with the “Better for you” strategy

DCP saw it as an opportunity to reinvent it’s foods.

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Guidelines from USDA

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Arrayed it’s products into 5 groups

Arrayed it’s products into 5 categories.

Main meal

Side Dish

Snacks

Drinks

Treats

Solution Plan

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Sent Mom on a shopping trip.

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What Children demand ??

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Imagination

Farms

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DCP developed a broad range ofproducts with Cincinnati-based Kroger Supermarkets

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PRODUCT DEVELOPMENT DECISIONS

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Products that already had broad appeal such as milk or peanut butter need to be made “healthier”

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Products that are already healthy and make them more “fun”.EX: Whole wheat pasta could be moulded into character shapes.

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Product with attractive packaging to inspire product sampling . ex: making bottles in shape of characters

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DEMO GRAPHIC SEGMENTATION

AGE : CHILDERN & ADULT

BEHAVIOURAL SEGMENTATION

TASTE , FUN & MAGIC

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STRENGTHSBrand recognitionCreative process

Strong diversificationCooperate with big retailers like KrogerResponsiveness to

market

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WEAKNESSLarge R&D costsHigh risk factor

Does not have own manufacturing for DCP

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OPPORTUNITIES

Mother’s positive perception of the Disney brandDisney character’s popularity

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THREATSCompetitors

Differentiation form natural produce products

Pricing competition

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Competition

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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.

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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.

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DISCLAIMER

THANK YOU!!

Created by Bikash Sahoo, NIT-

Rourkela, during a Marketing

Internship under Prof. Sameer Mathur, IIM-

Lucknow