walt disney iimlucknow internship
TRANSCRIPT
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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.