DISNEY Consumer Products

Marketing Nutrition To Children

It all started with…

Walt Disney

founded the WALT DISNEYCOMPANY in 1923 with the debut ofMickey Mouse,the first cartoon

In 1954, Disney debuted its first television program . The longest running prime time show .The Mickey Mouse Club , a popular children’s series aired in 1955

The company expanded the Disney brand into film, television, consumer products , theme parks and resorts .

Today Disney is comprised of five business segments .

The Walt Disney Studios

Parks and resorts

Disney consumer products

Media and networks

Interactive media

Disney Consumer Products was responsible for extending the Disney brand to merchandiseranging from -• apparel, toys, home décor •books to interactive games, •Food and beverages,•electronics and animation art.

DCP was a global product organization comprised of six lines of business: Soft lines (apparel, footwear and accessories), Buena Vista Games, Home & infant, Hard lines (food, health & beauty, electronics, and stationery)Publishing and toys.

In 2005, DCP was the

world’s largest licensor

with more than $21 billion in retail sales of licensed products,

up from $15 billion in 2004.

EXHIBIT 5 Shows us that

DCP’S LICENSING AND DISTRIBUTION MODEL

Merchandising at Disney dated back to 1929, the company received requests to license the character

Mickey mouse and other characters appeared on products such as candy ,cookies and ad campaigns

Disney’s licensing profits soon extended animation income

In 1948, the company reported licensing income over $1million and retail sales of $100 million

In 1998-1999, DCP experienced 10-15% decline in sales in US and Japanese markets.

DCP planned to use the traditional licensing model with certain innovations of the following -

1.SOURCING

where products were created anddesigned by Disney and featured the Disney brand, but the licensee would handle manufacturing,sales and marketing

2. DIRECT TO RETAIL (DTR)DTR distribution model meant selling brand andcharacter rights directly to retailers, bypassing wholesale licensees

DISNEY AT SUPERMARKET

The products were co-branded, premium priced,and promotions-driven, the result of partnerships with national and global brands such as Kellogg’s and Cadbury

Mr. Kellogg’s

Mr. Cadbury

DISNEY

DCP also discovered that children influenced purchase decisions. “Peer pressure and advertising strongly influence kids’ preferences”Disney kids’ line was

broad based and extended across multiple categories in the store.

PROBLEMS

On January 12, 2005,

the U. S. Department of Agriculture updated its official federal nutrition recommendations

on what Americans should eat to meet nutrient requirements and reduce the risk of chronic disease

More than 65% of the U.S. adult population was classified as

overweight or obese, and experts feared that

Overweight children —who had

A

Chance of becoming O V E R W

E I G H T

In 2005 and 2006, Institute of medicine recommended that the USDA develop standards for marketing foods and beverages to children based on portion sizes, calories, fat, sugar etc .

SOLUTION

DCP’s vision statement for its food and beverages calledfor the company to develop -

Disney Nutritional Guidelines

a quality range of Disney integrated foods that answers children’s dailyneeds in an entertaining way

EXHIBIT 6 – Showing the prescribed calorie intake for children

What an IDEA !!!!!!

Disney began licensing its characters to ImaginationFarms, a national fresh produce marketing company

Retailers sold Disney Farms products at marketprices.

DCP to market fresh fruits and started Imagination Farms vegetables through licensing .

COMPETITION

Disney and Imagination Farms faced competition from many sources, including commodityproduce products, major brands such as Dole, Green Giant and Fresh Express and, within thechildren’s segment, other entertainment brands such as Nickelodeon, Sesame Workshop, and Warner Bros.

NICKELODEON •In Fall 2005, SpongeBob

Squarepants and Dora the Explorer character images, licensed by children’s cable television channel Nickelodeon, began to appear on supermarket shelves.

•As the top rated U.S. basic cable network since 1996, Nickelodeonwas seen by 89 million households and, in addition to its television programming, marketed consumer products, books, magazines and feature films using its popular children’s characters

SESAME WORKSHOP

Sesame Workshop, anonprofit educational organization best known for its Sesame Street public television program.Beginning in September 2006, Del Monte peas, corn and green beans featured Elmo, Grover andCookie Monster characters on its labels

WARNER BROS. Warner Bros. and Ready Pac planned to feature Warner’s Bugs Bunny, Tweety and Tasmanian Devil characters on its Cool Cuts Ready Snacks and single-serving packages of fruit.

EXPANSION WITH KROGER

In addition to licensing produce through Imagination Farms, DCP developed a broad range of products with Cincinnati-based Kroger Supermarkets, the largest pure grocery retailer in the UnitedStates with fiscal year 2005 sales of $60.6 billion

+ =

CONCLUSION

The Walt Disney Company announced that in addition to DCP’s nutritionalefforts, the company would make “nutritionally-beneficial changes” to the meals served to children at all Disney-operated restaurants in its parks and resorts

DISNEY GEARED UP FOR THE NEXT …

The company use its “magic” to get children to switch from sugary, processed foods and become lifelong converts to a more nutritious diet.

RECAP THE BEGINNING INTRODUCTIONPRODUCT LINE DISNEY CONSUMER PRODUCTS DCP LICENSING AND DISTRIBUTION MODEL DISNEY AT SUPERMARKETPROBLEMS SOLUTIONSPARTNERSHIPSCOMPETITIONCONCLUSION

THANKYOU !!