Utilizing the Disney Name to Market Disney Garden™ Fresh Produce to Children: What Does the Future Hold? Brian Williams Ben Blomendahl Overview Childhood Obesity Imagination Farms Disney Brand Economics SWOT Analysis Recommendations Children’s Health Cost of obesity related disease Diabetes, high blood pressure, heart disease, etc. $117 billion/year (National Center for Health Statistics, 2004) Obesity and fruit and vegetable consumption are inversely related 32 percent of obesity explained by consumption (or lack of) of fruits and vegetables (Blomendahl, Williams, 2008) Obesity in the U.S. 1990 2007 Source: Center for Disease Control Behavioral Risk Factor Surveillance System Disney and Childhood Obesity Disney offered high-fat, high-calorie foods in parks and resorts Disney consumer products (DCP) division Offered less healthy foods Children linked fun to less than nutritious foods Disney Going Healthy Opportunity for change Phase out fattening products Healthier choices in theme parks Chose not to renew contract with McDonalds New line of healthy foods for children Began taking proposals for using Disney name Imagination Farms, LLC Don Goodwin Former COO of Green Giant Fresh and Produce Marketing Consultant Matthew Caito Caito Food Services Brought idea to Disney Disney Garden™ fresh produce Mission: “Increase consumption of fresh fruit and vegetable among children” Objectives Increase consumption of fruits and vegetables by children Maintain Disney’s reputation Build strong brand recognition in the produce department Develop and maintain a profitable business Branding in Produce Reasons consumers purchase specific brands Design Prestige Durability/Quality Consumers are willing to pay less for fresh produce branding than branding in other products Younger people are willing to pay more (Jin, et al, 2008) Disney is associated with fun, magic, and wholesome family values Economics Supply and Price demand for fresh produce in supermarkets S P D Q1 Quantity Economics I-Farm’s Goal: Price Shift the industry demand out. S Provide supply to meet new demand Bring new suppliers into supermarkets P2 P1 Enter market w/o hurting current companies D2 D1 Q1 Q2 Quantity Economics I-Farm’s Goal: Price Shift the industry demand out. S Provide supply to A B meet new demand Bring new suppliers into supermarkets Enter market w/o hurting current companies P2 P1 E C D D2 D1 Q1 Q2 Quantity Economic Reality Monopolistic Competition Product differentiation (perceived or otherwise) Disney Garden™ may increase industry demand The substitution effect How can I-Farms best exploit these realities to their advantage? Disney and I-Farms Changing Children’s Eating Patterns Disney characters create demand Children influence parent’s purchasing Parents more willing to buy fruits and vegetables Easily influenced by peers as well as by advertising Disney makes healthy foods fun SWOT analysis of I-Farms Strengths Weaknesses Opportunities Threats Supplement the Strengths Use Disney name as an advantage Retailers can market with the Disney name Continue educating on the importance of healthy eating Disney channel Website Convenient packaging for putting in lunch boxes Wipe Out Weaknesses New to the market Must provide a quality product to gain credibility Keep Disney Garden™ fresh and exciting Change packaging to match new movies Promotions via collectibles, puzzles, prizes Limited Resources Promote efficiency in the workplace Outsource less important tasks On-going search for high quality employees Wipe Out Weaknesses Suppliers accustomed to marketing commodities Offer seminars or other training for supplier marketing representatives Give tools to take advantage of Disney name Higher Free on Board (FOB) prices for retailers Offset higher FOB prices with more sales Additional traffic in stores Optimize Opportunities I-Farms can become a pioneer Product differentiation in produce Bring children into the produce market 13 percent of US families with children consume the recommended amount of fruits and vegetables daily (Produce for Better Health Foundation, 2003) Use care not to expand too fast Focus on quality before quantity Terminate Threats Food safety Random product testing Quality assurance process Competition Product differentiation Creativity is the key to set yourself apart from the competition Terminate Threats Seasonal quality differences Expand to global suppliers Offer certain items seasonally Recession Food is less affected by recession than other products Turn into an advantage by encouraging less eating out, more eating in Steps to Achieve Objectives Increase Fruit and Vegetable Consumption by Children Educate on healthy eating Use Disney name to influence children Steps to Achieve Objectives Increase Fruit and Vegetable Consumption by Children Educate on healthy eating Use Disney name to influence children Brand Recognition/Brand Strength Quality over quantity International suppliers for seasonal differences Keep Disney Garden™ name fresh Steps to Achieve Objectives Increase Fruit and Vegetable Consumption by Children Educate on healthy eating Use Disney name to influence children Brand Recognition/Brand Strength Quality over quantity International suppliers for seasonal differences Keep Disney Garden™ name fresh Maintain Disney’s Reputation Random testing Process to ensure safety Quality products Steps to Achieve Objectives Increase Fruit and Vegetable Consumption by Children Educate on healthy eating Use Disney name to influence children Brand Recognition/Brand Strength Quality over quantity International suppliers for seasonal differences Keep Disney Garden™ name fresh Maintain Disney’s Reputation Random testing Process to ensure safety Quality products Profitable Business Training for suppliers Product differentiation Outsource unimportant tasks Encourage promotional ads by retailer Bibliography Behavioral Risk Factor Surveillance System. Center for Disease Control. (apps.nccd.cdc.gov/brfss/). (accessed July 23, 2008) Blomendahl, Ben. Williams, Brian. Findings on Obesity. 2008 Jun, Yanhong H. Zilberman, David. Heiman, Amir. Choosing Brands: Fresh Produce Verses Other Products. American Journal of Agricultural Economics. May 2008: 463-475 Lin, Biing-Hwan. Fruit and Vegetable Consumption: Looking Ahead to 2020. Economic Research Service. Agricultural Information Bulletin. November 2004. (www.ers.usda.gov/publications/aib792/aib792-7/). (Accessed July 23, 2008) Lin, Biing-Hwan. Reed, Jane. Lucier, Gary. U.S. Fruit and Vegetable Consumption: Who, What, Where, and How Much. Economic Research Service. Agricultural Information Bulletin, October 2004, (http://www.ers.usda.gov/publications/aib792/aib792-2/aib792-2.pdf). (Accessed July 23, 2008) National Center for Health Statistics. Prevalence of Overweight and Obesity Among Children and Adolescents: United States. 2003-2004 (www.cdc.gov/nchs/products/pubs/pubd/hestats/ overweight/overwght_child_03.htm). (Accessed July 24, 2008) Bibliography National Center for Health Statistics. Prevalence of Overweight and Obesity Among Adults: United States. 2003-2004 (www.cdc.gov/nchs/products/pubs/pubd/hestats/ obese03_04/overwght_adult_03.htm). (Accessed July 24, 2008) Nestle, Marion. Food Marketing and Childhood Obesity — A Matter of Policy. New England Journal of Medicine. 2006: 2527-2529. Palmer, Edward L. and Courtney F. Carpenter. Food and Beverage Marketing to Children and Youth: Trends and Issues. Media Psychology. 2006: 165-190 (http://www.informaworld.com/10.1207/s1532785xmep0802_6 ). (Accessed 17 July 2008). Progress in Preventing Childhood Obesity: How do we Measure Up?. Report Brief, Institute of Medicine, September 2006 State of the Plate: Study on America’s Consumption of Fruits and Vegetables. Produce for Better Health Foundation. 2003 Questions???