Walt disney iimlucknow internship

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MARKETING NUTRITION TO CHILDREN

Transcript of Walt disney iimlucknow internship

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MARKETING NUTRITION TO CHILDREN

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Some historical clues…

Founded by Walt Disney Established in 1923 Headquartered in California, USA Currently world’s largest conglomerate in terms of

revenue.

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Walt Disney Vision

“To make people happy ”

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1950Expand beyond film and television

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Walt Disney Mission Statement

“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.”

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Walt DisneyMission Statement’s Evaluation Product oriented

statement Focus on what products to sell and

what services to offer rather than on

how to satisfy customer needs

Lack of 5 essential components:

1. Customers2. Technology3. Philosophy4. Concern for

public image5. Employees

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Walt Disney Recommended Vision

“To make entertainment the wheel of life”

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Problem Definition

Could Disney use it “magic” to switch children from sugary to more nutritious diet ? Could they sustain ?

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Alternatives

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Disney Nutritional Guidelines

Nutrition control1. Control levels of added sugar2. Contain no trans or hydrogenated fats3. Promote fiber and calcium4. Minimized the use of additives5. Prefer to use whole foods that intrinsically

dense in nutrients

Reformulating some products, shrinking portions for others and phase out some products.

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DCP’sThree Models Traditional Licensing Model

Sourcing(Designed and create products by Disney but manufactured and marketed by license )

Direct-to-retail (DTR)(Entailed partnering directly with retailers)

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Disney - contribution of segments to revenues

Media Networks 45%Parks & Resorts 31%Studio Entertainment 13%Consumer Products 8%Interactive 3%

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• HUMAN RESOURCES

• RESEARCH & DEVELOPMENT

• MARKETING • FINANCIAL

20% annual growth in

earnings per share

Family orientation :

appeal to kids and bring the

family together

Foster an engaged and collaborative

company culture

Expand the portfolio of

characters and drive the

company into the e-world

Walt Disney Objectives

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Market penetration

• Targeted market segmentation through acquisitions

New products

• Related Diversification• Diversification in branding• Vertical & Horizontal integration

Market development

• Foreign Outsourcing• Direct Investment• Licensing

Conglomerate diversification

-

Existing

New

Existing New

PRODUCTS

MARKETS

Walt Disney Corporate Strategies

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RAPID MARKET GROWTH

SLOW MARKET GROWTH

Walt Disney Grand Strategy

STRONG COMPETITIVE POSITIONWEAK COMPETITIVE POSITION

Market development Related Diversification Vertical Integration Horizontal Integration Market penetration

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Walt Disney PEST Analysis

POLITICAL

The animation industry enjoys tax benefits. Political differences are an obstacle to International Trade.

Tighter regulations regarding products safety.

ECONOMIC Global financial crisis slows down growth.

Emerging markets such as India offer a cost advantage in terms of salaries and the overall cost of production.

Economic growth, per capita income and stage of economic development among different countries needs to be considered.

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SOCIAL

Recent social trend in smartphones, tablets and apps. Different local cultures, as well as stories and history of the host place. Changes in customers preferences for entertainment. Significant role of kid’s and family’s entertainment.

TECHNOLOGICAL

Technological advancements are having a profound effect on the world’s media.

Changes in technology affect demand for entertainment products as well as the cost of production.

Walt Disney PEST Analysis

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Brand Reputation• Highly Diversified Portfolio

• Strategic & Tactical Acquisitions

• Global Expansion & Alliances• Economies of Scope• Top Management• Loyal Customers

• Strong Financial Position

• High Cost of Operations•Concentration of Revenues In

North America• Approaches Antitrust Law

Limits

• Benefits From IT Advances & Mobile Gaming

•Build A More Eco-Friendly Image• Further expansion in new

emerging economies • Release of New Successful

Stories & Characters

• Financial Récession• Increasing Piracy• Strong Competition• Continous Need For

Technological Update• Change in Consumers

Preferences & Tastes• Negative Publicity Due to

Unexpected Event

S W

TO

Walt Disney SWOT Analysis

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5C Company (Disney , DCP)

Customer (Children and

parent)

Collaborator (Imaginator

Farm, Kroger) Context (Increasing Obesity in Children &

Adults)

Competitor (Nickelodeon, Warner, etc.)

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Market Share onStudio Entertainment Industry

Globally$ 5,03 billion

Overseas$ 3,14 billion

U.S.$ 1,89 billion

Globally$ 4,68 billion

Overseas$ 3 billion

U.S.$ 1,68 billion

Globally$ 3,68 billion

Overseas$ 2,26 billion

U.S.$ 1,42 billion

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Mobile Games IndustryDescriptive Statistics

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Preparation of the appropriate budget.

Allocation of personnel.

Communication of the strategic vision, the strategic themes and their role to the employees.

Use of presentations, workshops, meetings, frequent updates.

Implementing Strategy

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Evaluation of Strategy

• Mobile/online games could grow to ~$60B revenue (23.6% CAGR 11-17F)

• Mobile/online games could take 60% games software market share by 2017

• Total global games software revenue could grow to ~$100B revenue by 2017

Mobile could drive total games software industry revenue to $100B by 2017 .

• Games took 32% of 2013 mobile app usage (blended iOS/Android tablet/smartphone) - 67% of tablet usage

• Games took 72% of 2013 mobile app revenue and ~40% of mobile app downloads

Games dominate mobile app usage and revenue.

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Conclusion

Not easy for Disney to change the market taste, because it would take a long time to replace the old habit into a new one

There must be coordination between Disney and its stakeholder to get the objectives that Disney wants

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Disney Resorts:California

FloridaTokyo

Hong KongParis

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• These slides were created by rama sagar as part of an internship done under the guidance of Prof. Sameer Mathur IIM Lunknow.