presentation made for case study2 analysis during an internship under Prof. Sameer Mathur, IIM Lucknow.

2. THE OBESITY EPIDEMIC IN AMERICA

4. The division responsible for product
development and marketing of Disney-
branded merchandise, including more than
2,100 packaged food and beverage
products, saw the situation as an opportunity
to reconsider its entire range of food products.

5. Company’s history…

7. Media Networks Parks and Resorts
Studio Entertainment
DCP (Disney Consumer
Products)
By 2006, Walt Disney Company
was comprised of four major
business segments

8. Income Statement, Walt Disney Company and Disney
Consumer Products, fiscal 2003–2005 ($ millions)

9. Consumer Time Investment in Disney-Related Entertainment
Activities

10. Top-Earning Fictional Characters, 2003 to 2004 ($ billions)

11. Character Awareness by Key Disney Franchise, among
Children Ages 2–11 Years

12. 1. Could Disney provide
leadership for the rest of the
food industry and use its
brand strength to reach
children?

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

14. 3. What was the food
industry’s responsibility in
this controversial space?

15. Andy Mooney,
President DCP
Michael Eisner,
CEO, Disney
Harry Dolman,
Executive VP, DCP-
Food
• Lance Gatewood : VP, DCP- Food, Health and Beauty Group.
• Embola Ndi : VP, Product Development, DCP.
• John Honeck : Team Leader, DCP. Grocery and Drug Business.

16. • Licenses handled product,
innovation and manufacturing.
1. Traditional
Licensing
Model
• Contract manufacturing, where
products are created by Disney to
feat. it’s brand.
2. Sourcing
Model
• Partnering directly with the
retailers.
3. Direct to
Retail (DTR)
Model
Licensing and Distribution Model

18. After the research with moms, Reid
Leslie, director of food and beverage,
said, “Kids demand products that make
them ‘in’ with their peers and that means
either national or character-driven
products. So, DCP managers have
decided that to be successful, a new line
would need to be moderately priced and
be positioned as a fun line of products
developed specifically for children.

19. RECOMMENDATIONS BY INSTTUTE OF
MEDICINE
1. Actively promote healthful diets for children.
2. Create or reformulate children’s products to reduce
calories, fat, salt and added sugar while improving
nutrient content.
3. Enforce strict marketing standards and avoid linking
“nutritionally questionable” products to admired
celebrities, sports figures, or cartoon characters

20. USDA and DCP U.S. Dietary Guidelines, 2005

21. Recommendations for Disney-branded Foods after
Nutritional Audit

22. Results showed that while 41% already complied
with the guidelines, more than a quarter of its
products would need to be phased out.

23. Ndi noted that the key to getting children
to eat healthier was to provide plenty of
choices. “The bottom line is that the
food has to taste good. Kids have to like
it. If the food is nutritious, Moms like it
too. Then it is a win for everyone.”

24. Imagination Farms
Marketed fresh fruits and packaged goods with licensed disney
characters.
Provided retailers with customized marketing programs such as
seasonal promotions, tie-ins with DVD releases.

27.  Together, Disney and Kroger selected grocery categories that
supported Disney’s efforts.
 The Disney Magic Selections line was created as a Kroger
corporate brand and was priced at a discount to national
brands but with quality equal to or better than national brands.
 Research showed that within the “Better for You” product
categories, Disney and Kroger had ample opportunity to grow
private label offerings

29. DISCLAIMER
Created by Shivanjali Sharma, NIT Allahabad,
during a marketing internship by Prof.
Sameer Mathur, IIM Lucknow.