Disney Consumer Products
Introduction and Background
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October 16,1923 – Walter Elias and Roy
Disney founded the Disney Cartoon
Brother’s Studio
1923 – Mickey Mouse debuted in
Steamboat Willie, first cartoon to utilize
synchronized sound.
1932 – Disney won Academy Award for
Best Cartoon, for Flowers and Trees, a
Silly Symphony.
1937- Snow White was first full-length
animated film and highest grossing film
of the time.
Background
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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.
Background
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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.
Background
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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.
Background
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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.
Marketing Management Issues
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Promotion
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Place
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Product
Promotion
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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
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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
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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
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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
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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
Mission Statement
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The mission of The 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, innovative and profitable
entertainment experiences and related
products in the world
Constraints
SWOT TABLE
Strengths
Weakness’
Opportunities
Threats
Disney
Nickelodeon
Sesame Street
Warner Brothers
- 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
- 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
- Moderate to high pricing
- Limited age group appeal
- Targeting wrong audience
- Small market share
- Moderate to high pricing
- Limited products
- Targeting wrong age group
- Lack of food product experience
- Small market share
- Moderate to high pricing
- Limited products
- 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
- find different vendors for better price
points
- create new innovative products
- target appropriate age group
- gain product experience
- expand market share
- find different vendors for better price
points
- expand product line
- 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
- 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
- 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
- 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
Key Findings (Strengths)
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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)
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Poor advertisement of healthy foods
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How many of you knew they sold healthy
foods in grocery stores?
The attractiveness of healthy foods
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Will consumers adhere to the new line?
Is the concept just a fad?
Lack of distribution networks
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Limited vendors
Limited placement in stores
Proposed Solution Ideas for Key
Finding 1
(Lack of Advertising)
Solution 1
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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
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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
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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
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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
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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
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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
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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
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Coca Cola Revenues vs DCP
Revenues
14000
12000
In millions
10000
8000
6000
4000
2000
0
2004
2005
Coca Cola
DCP
2006
2007
2008
Date
2009
2010
2011
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.
Implementation Outline
D. Agency Presents Concept to Client
 The ad agency may have a formal meeting or teleconference 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.
Implementation Outline
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.
Implementation Outline
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.
Implementation Outline
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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Task List
Network Diagram
Gannt Chart
Questions?