Disney consumer products

the walt disney company
aravind samala
nit surat

Introduction and History
1923:
Disney and his brother Roy arrived in California to sell “Alice Wonderland”.
October 1923:
Disney Brother Cartoon studio was founded. But in 1925 the name was
changed to “Walt Disney Studio”.
1928:
First time ever, the Mickey Mouse emerged as the cartoon in sound.
1932:
Flowers and Trees, first full-color cartoon and first Academy Award winner.

history
 Disney Brother’s revolutionized the way
movies were watched, from 8 minute shorts
to full-length feature films.
 Disney Brother’s were preeminent pioneers
in animation.
 1946 – Live action incorporated into
production films, starting with Song of the
South.
 1954 – Disney produces first television
program, called Wonderful World of Disney.

history
 1955 – Mickey Mouse Club debuted and ran
through 1959, made stars of many of its
actors.
 July 17, 1955 – Disneyland opens and attracts
millions of people worldwide.
 1966 – Walter Elias Disney dies and Roy build
Disneyworld in his honor.
 1971 – Roy Disney dies and all day-to day
operations are taken over by management.

history
 1984 – Michael Esiner takes over as CEO of
Disney with a plan to make the company the
most powerful entertainment company in the
world.
 Genius at brand marketing, syndicated
Disney library of films, restoring and
rerelesaing classic films.
 Created billions in revenue.
 1996 – Disney acquires ABC for $19 billion.
 Box office sales for movies hit $3billion.

history
 2005 – Robert Eiger replaces Eisner as
current CEO.
 2006 – Disney worth an estimated $43.2
billion with annual revenues of $2.5 billion.
 Disney has most valuable franchise character,
Mickey Mouse worth $5.8 billion.
 Consumers spend an average of 9.16 billion
hours immersed in the Disney experience.

Disney Resorts:
1.California
2.Florida
3.Tokyo
4.Hong Kong
5.Paris
LOCATIONS OF DISNEY

Mission
Statement
 Walt Disney Company is to be one of the
world's leading producers and providers
of entertainment and information. Using
our portfolio of brands to differentiate
our content, services and consumer
products, we seek to develop the most
creative, inovative and profitable
entertainment experiences and related
products in the world."

Marketing Management
Issues
 Promotion
 Place
 Product

Promotion
 Public’s knowledge of Disney’s line of healthy
products is minimal to near existent.
 Disney spent five hundred and seventy
million dollars in 2009 and six hundred and
eighty seven million on selling, general,
administrative, and other services in 2010. Of
that, only a small portion was geared toward
advertising.

Place
 Disney vaguely recognizes the idea of building a stronger external distribution
relationship
 One of Disney’s distribution methods is direct to retail (DTR), selling where the brand
and character rights are sold directly to the retailers, which bypasses wholesale
licensees
 Another Disney distribution model is called sourcing. The sourcing model consists of
contracting to manufacturers “where products were created and designed by Disney
and featured the Disney brand, but the licensee would handle the manufacturing,
sales and marketing
 With such distribution models, Disney has little control over how the sales and
marketing aspects are managed

Product
 Disney’s idea to enter the market of healthy
foods comes at a huge risk. The products
being produced and distributed may not be
attractive to consumers.
 If Disney poses attractive and new health
conscience products, they will face a number
of other competitors looking to establish a
market share

Goals
 Improve the nutritional value of its licensed food products by June of 2006
and embark on a mission to improve all of its licensed food products by
2008.
 Propose products that are adequately portioned, high in quality, taste good,
and omit or reduce fat and sugars.
 Product categories to introduce/improve are fresh food, frozen food, fresh
food, juice, pasta, soup, cereal, baked goods and dairy/milk
 Offer more than 200 Stock Keeping Units (SKU) by summer of 2007
 Establish sourcing relationships with Safeway and Albertson’s supermarket
chains to build market share

Company Objective
 The Walt Disney Company's objective is to be one
of the world's leading producers and providers of
entertainment and information, using its portfolio
of brands to differentiate its content, services and
consumer products. The company's primary
financial goals are to maximize earnings and cash
flow, and to allocate capital toward growth
initiatives that will drive long-term shareholder
value

SWOT TABLE Disney Nickelodeon Sesame Street Warner Brothers
Strengths
- Providing experiences for every age
group
- Park visits give extra exposure to
character
- Lots of capital for marketing
- Experience food through Parks and
hospitality experiences
- worlds most admired companies
(Number 14)
- superior creative process (product)
- different methods of influencing
target group/ audience (children)
- Established presence in healthy
foods market
- Popular cartoon characters
- Seen by 89 million households
- Cartoons aimed at relevant age
group
- cartoons aired weekly that influence
target audience
- increased familiarity products such
as tickle me elmo (big hit)
- promotion through cartoons
(Elmo/Big Bird/Cookie Monster)
- distribution channels (amazon, toys r
us, walmart, target, etc)
- recognizable brand name from
childhood
- stronger relationship with young
children through schools
- specialized in advertising
(promotion)
- character placement in theme parks
(Six Flags)
- promotion through cartoons on
public tv (no cable necessary)
- targeted toward all age groups
- well connected to famous stars for
promotional purposes
Weakness’
- Lack of promotion for healthy
product lines
- Lack of strategic placement in stores
- Moving into established markets
- Undifferentiated products
- Lack of experience in healthy foods
- Competitive vulnerability
- Not managing sales
channels effectively
- Lacking positive public relations
- Moderate to high pricing
- Poor brand recognitions
- Lack of promotion for healthy
product lines
- Lack of strategic placement in stores
- Moving into established markets
- Undifferentiated products
- Lack of experience in healthy foods
- Competitive vulnerability
- Limited age group appeal
- Targeting wrong audience
- Small market share
- Limited products
- Targeting wrong age group
- Lack of food product experience
- Small market share
- Limited products
Opportunities
- create effective promotional
strategies to draw in new customers
- strategically placing products
effectively
- establish a market position
- differentiate products
- gain experience for the market
-expand R&D to capture larger share
of market to reduce vulnerability
- utilize effective sales channels
- gain positive public relations
-find different vendors for better price
points
- create positive image for healthy
food brands
- change perception of the characters
to positive
- capture the market of the female
audience
- expand R&D to capture larger share
of market to reduce vulnerability
- gaining recognition for health
products
- find different vendors for better price
points
- utilize celebrity appeal toward all
audiences
- target the appropriate age groups
- capture more market share
points
- create new innovative products
- target appropriate age group
- gain product experience
- expand market share
points
- expand product line
Threats
- lack of healthy vendors
- economic crisis
-agricultural problems
-healthy foods are not as nutritious as
perceived
- surgeon general says a healthy food
product is not healthy
- economic crisis
perceived
- economic crisis
perceived
- economic crisis
perceived

Key Findings (Strengths)
 Reputation in quality experience in theme parks,
hospitality, and services is renowned
 Ranked 19 as one of the most admired companies
in 2011 (CNN)
 Widely recognized Disney characters
 Large amounts of disposable capital

Key Findings (Weaknesses)
 Poor advertisement of healthy foods
 How many of you knew they sold healthy foods in
grocery stores?
 The attractiveness of healthy foods
 Will consumers adhere to the new line?
 Is the concept just a fad?
 Lack of distribution networks
 Limited vendors
 Limited placement in stores

ProPosed solution ideas
for Key finding 1
(lacK of advertising)

Solution 1
 A marketing campaign strategy focusing on
both T.V. and in store ads will address
Disney’s weak promotional issues and take
advantage of opportunities competitors are
not.
 It will also reinvent Disney in consumers’
minds as a healthy food and combat the lack
of weekly consumer influence.

Solution 1
 First, T.V. ads will target parents of children.
 This will maximize parents awareness of Disney’s
healthy products.
 Commercials showing healthy food and
informing consumers on its standards.
 Later T.V. ads will target children from the ages
of 3 – 13.
 Later commercials will entertain children and
increase their demand for the products.

Solution 1
 Second step, in-store ads.
 Once consumers become familiar with Disney’s
healthy foods they need to find it.
 Ads placed in grocery store isles showing
Disney’s foods locations.
 Disney products on end caps and other high
traffic areas.
 Samples of healthy foods with trained
employees and monitor emphasizing nutritional
facts.

Solution 2
 A positive PR campaign can gain Disney
recognition for their healthy foods.
 Disney does not lack brand reputation against
any competitor, yet they lack weekly cartoon
character promotion of their food products.
 Establish Disney’s place in the market.

Solution 2
 Disney’s motive is reducing childhood
obesity; this needs to be known by the public.
 Disney is putting children’s health above
profits.
 Risking millions due to their concern for
childhood obesity.

Solution 3
 Distinctly designed packaging will help draw
attention to Disney’s healthy food movement
and make an impact in consumers’ minds.
 Changing people’s perception about their
children’s food line.
 Entice new consumers and create a place for
Disney in the market.

Solution 3
 The packaging should contain nutrition
standards and can incorporate green
movement ads in designs.
 Disney needs to draw on the experience of
their marketing and advertising.
 Show products meets or exceeds FDA
guidelines.
 Create the Disney experience on packaging.

Implementation
Of Solution 1
(T.V. Ads)

Return on Investment
 Comparing these DCP products to Coca-Cola’s revenues after the purchase
of “Vitamin Water” from Glaceau in 2007, we can see a trajectory of possible
growth in revenues as seen in the graph below

Implementation Outline
A. Prepare Business Case
 Develop short-term to long-term implementation plan on how to address
and resolve current weaknesses in current sector.
B. Initial Client / Agency Meeting
 The agency and client meet to address the messaging the TV spot should
convey.
C. Agency Creative Brainstorming
 First stages of creative concepts. The creative department form concepts
for the TV spot. These concepts aim to achieve the appropriate messaging
as discussed in the client/agency meeting. This part of the process is the
responsibility of the Creative Director and Art Director assigned to the
project.

D. Agency Presents Concept to Client
 The ad agency may have a formal meeting or tele-conference with the
client to discuss the concepts. The client will provide feedback. In many
cases, the client may add additional assets to incorporate into the spots.
E. Adjustments Made to Concept
 Ongoing discussions with client, hiring of film crew, story boards created.
The creative team fleshes out the concepts and hires illustrators to create
the storyboards.
F. Ongoing Discussion with Client
 Client and creative team meet to discuss what areas need to be expanded
upon and further develop concept.

G. Hiring of Film Crew
 The agency will begin the process of interviewing films crews and
commercial directors.
H. Story Board Created
 Graphic organizer developed to demonstrate and organize illustrations and
images in sequence in order to visualize concept. Serve to give a visual
representation as to how the spots will look (camera angles, story arc,
visual assets, etc.).
I. Presentation of Story Boards to Client / Project approval
 The agency presents the completed storyboards for the TV spots in detail.

J. Approval of Story Board
 If all goes well, the client will approve the spots for filming. Sometimes
there will be minor changes, which would be adjusted in the
storyboards. Then, the storyboards would be sent to the client for
approval.
K. Audition and Hiring Talent
 The agency will be seeking acting talent for the spots. Usually, they
have casting calls to have auditions. This may include voice actors for
voice-overs.
L. Filming
 This stage is simply the filming of the TV spots with long hours on set.

 M. Editing and final cuts
Finally, the film crew edits the spots with agency art director providing
direction. With the approval from the ad agency and its client, final
cuts are made. The final spots are sent to a media team for distribution
to TV networks.

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