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Harvard Business Review Case
Laughter is timeless , imagination has no age , and dreams are forever.
Laughter is timeless , imagination has no age , and dreams are forever.
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.
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
History
History
1923Established in 1923 by Walt Disney and his brother Ross.
1929 : merchandising started :
• Pg 3 : last para
Disney started licensing it’s characters in the year 1929
1954
It launched the first TV programme in 1954.
1955
1955 : Disney land opened in California
Disney acquiredBC media company in 1996.
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
LISENCING AND DISTRIBUTION MODELS :
1.Traditonal Licensing Model
2.Sourcing Model
3.Direct to Retail (DTR) model
The Obesity EpidemicFood industries were blamed for the raising obesity rates.
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.
• 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.
Guidelines from USDA
Arrayed it’s products into 5 groups
Arrayed it’s products into 5 categories.
Main meal
Side Dish
Snacks
Drinks
Treats
Solution Plan
Sent Mom on a shopping trip.
What Children demand ??
Imagination
Farms
DCP developed a broad range ofproducts with Cincinnati-based Kroger Supermarkets
PRODUCT DEVELOPMENT DECISIONS
Products that already had broad appeal such as milk or peanut butter need to be made “healthier”
Products that are already healthy and make them more “fun”.EX: Whole wheat pasta could be moulded into character shapes.
Product with attractive packaging to inspire product sampling . ex: making bottles in shape of characters
DEMO GRAPHIC SEGMENTATION
AGE : CHILDERN & ADULT
BEHAVIOURAL SEGMENTATION
TASTE , FUN & MAGIC
STRENGTHSBrand recognitionCreative process
Strong diversificationCooperate with big retailers like KrogerResponsiveness to
market
WEAKNESSLarge R&D costsHigh risk factor
Does not have own manufacturing for DCP
OPPORTUNITIES
Mother’s positive perception of the Disney brandDisney character’s popularity
THREATSCompetitors
Differentiation form natural produce products
Pricing competition
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.
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.
DISCLAIMER
THANK YOU!!
Created by Bikash Sahoo, NIT-
Rourkela, during a Marketing
Internship under Prof. Sameer Mathur, IIM-
Lucknow