Disney Case Essay

The Walt Disney gild, founded in 1923, has been revolutionary in the American animation industry with the institution of Mickey Mo example in Steamboat Willie to be the very first cartoon ever with synchronized sound. In 1954, the company expanded and developed its very sustain boob tube syllabus known as The Wonderful World of Disney. Later on in the decade, the company further expanded beyond film and television to open amusement parks featuring characters from their beloved film and television series. Since then the company has further grown, deriving revenue from entertainment assets and consumer products and foods aimed at children. In 2004, The Walt Disney Company found itself in the middle of a maelstrom, specifically regarding nutrition levels of their consumer foods. The company was subject to growing criticism from activists, p arents and governments around the world who believed that packaged good manufactures, unbendable food companies and media outlets that adverti sed Disney products were contributing to the growing obesity epidemic. Disney Consumer Products (DCP), a division of The Walt Disney Company responsible for product development and marketing of Disney-branded merchandise has seen this controversy as an opportunity to reconsider their entire range of food products.Change is being implemented to transition the Disney brand from a large confecti atomic number 53ry collection of foodinto one that offers a balanced nutritional diet. In regarding this issue, it is recommended Disney take an active approach and collaborate with their television channel in reaching out to children and teaching them the splendor and advantages of healthy eating. As the Disney Channel garners a lot of views, this avenue will reach a wide amount of viewers and may be a positive influence with children. Another recommendation would be to maximize the leverage of the popularity of Disney characters by associating them with healthy eating. This would be similar to the idea of the Popeye character whose strength generally comes from spinach. As well, it is also recommended that Disney employ a Healthy Food Campaign aimed at parents to establish credibility with them and the government to demonstrate that Disney is taking an active footstep to help reduce the obesity epidemic. Issue StatementIn 2004, health experts have characterized childhood obesity in the United States as epidemic and atomic number 63 as not far behind. The dramatic increases in childhood obesity and growing concern from activists, parents and the government have caused The Walt Disney Company to consider the nutritional prize of their food products. DCP managers have realized that the company needs to establish credibility with the U.S. government, parents and nutritionists, however, this is a fundamental challenge due to the companys existing licensing deals with conglomerate candy and treat manufactures and long-standing role as a toy supplier for McDonalds who is also under constant attack as a significant contributor to the obesity epidemic. though nobody expects Disney to solve the problem of childhood obesity single handedly, it is expected from Disney to at least take initiative and use its brand strength to reach children. Situational AnalysisSWOTThe 4 Ps (Product, Price, Place and Promotion)ProductDisney has a great variety of products divided into 5 categories main meal, side dish, snacks, drinks, and treats. In each category, there are a number of food products with 15% of all products can be classified as treats withthe rest of the 85% falling in the other 4 categories. As well, Disney has placed an emphasis on the quality of the goods under the Disney brand. A conducted research shows that mothers comprehended the fact that the products offered under the Disney brand were of juicy quality. This emphasis on high quality standards has continually positioned the company as the preferred food distributor. PriceThough the retailers s ell the products at the normal market price, there exists an extra cost of royalty charged by the company for the advertising effect. Disney wants to be affordable so measures have been taken to reduce costs. PlaceDisney has marketed their products through supermarkets such as Wal-Mart, Albertsons, and Safeway. 3 distribution channels have been used Licensing, sourcing and Direct-to-retail. These channels bring in large steady streams of revenue without much cost. PromotionMany promotion strategies have been implemented by DCP such as the sticker promotion on various fruits, which have generated a lot of interest in young children.The 5 Cs (Company, Competitor, Collaborator, Context, Customer) Company Disney, DCPPotential intimate strengthsPotential internal weaknesses -Corporation brand name has powerfully distinguished itself nationwide as one of the best in the entertainment business -Well-known brand name that has lead to high brand loyalty synonymous with fun and magic -Disne y has held the top spots for the worlds most valuable franchise characters. -DCP is the worlds largest licensor-Children are very well familiar with Disney characters-Licensing with McDonalds and various candy and treat manufacturers -Growing criticism from activists, parents and governments around the world about contribution to the growing obesity epidemic -Does not own their own manufacturingCompetitor Entertainment brandsDisneyNickelodeonSesame workshopWarner bros.CharactersMickey Mouse, Winnie the Pooh, etc. SpongeBob, Dora the Explorer, etc. Elmo, Grover & Cookie MonsterHarry Potter, Looney TunesCollaborationKroger, Safeway, Albertsons, Wal-MartLicensing partnershipDel Monte FoodsReady PacNetworkFilm & Television programNickelodeon channelSesame Street public television program ConceptBetter for YouEvery fruit a kid would want to eat with Nickelodeon character Healthy Habits for LifeHealthier Snack alternating(a) & The Original Kid Pleasin, mom-lovin dippity delicious snack