Disney Consumer Products

Introduction and Background

o October 16,1923 – Walter Elias and Roy Disney founded the Disney Cartoon Brother’s Studio

o 1923 – Mickey Mouse debuted in Steamboat Willie, first cartoon to utilize synchronized sound.

o 1932 – Disney won Academy Award for Best Cartoon, for Flowers and Trees, a Silly Symphony.

o 1937- Snow White was first full-length animated film and highest grossing film of the time.

Background

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

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

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

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

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

Mission Statement

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

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.

ImplementationOf 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

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 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.  

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 cutsFinally, 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.

Implementation Outline

Task List

Network Diagram

Gannt Chart

Questions?