Brian Williams Ben Blomendahl

1. Utilizing the Disney Name to Market Disney Garden™ Fresh Produce to Children: What Does the Future Hold? Brian Williams Ben Blomendahl

2. Overview • Childhood Obesity • Imagination Farms • Disney Brand • Economics • SWOT Analysis • Recommendations

3. Children’s Health • Cost of obesity related disease • Diabetes, high blood pressure, heart disease, etc. • $117 billion/year (National Center for Health Statistics, 2004) • Obesity and fruit and vegetable consumption are inversely related • 32 percent of obesity explained by consumption (or lack of) of fruits and vegetables (Blomendahl, Williams, 2008)

4. Obesity in the U.S. 1990 2007 Source: Center for Disease Control Behavioral Risk Factor Surveillance System

5. Disney and Childhood Obesity • Disney offered high-fat, high-calorie foods in parks and resorts • Disney consumer products (DCP) division • Offered less healthy foods • Children linked fun to less than nutritious foods

6. Disney Going Healthy • Opportunity for change • Phase out fattening products • Healthier choices in theme parks • Chose not to renew contract with McDonalds • New line of healthy foods for children • Began taking proposals for using Disney name

7. Imagination Farms, LLC • Don Goodwin • Former COO of Green Giant Fresh and Produce Marketing Consultant • Matthew Caito • Caito Food Services • Brought idea to Disney • Disney Garden™ fresh produce • Mission: “Increase consumption of fresh fruit and vegetable among children”

8. Objectives

9. Branding in Produce • Reasons consumers purchase specific brands • Design • Prestige • Durability/Quality • Consumers are willing to pay less for fresh produce branding than branding in other products • Younger people are willing to pay more (Jin, et al, 2008) • Disney is associated with fun, magic, and wholesome family values

10. Economics • Supply and demand for fresh produce in supermarkets P

11. Economics • I-Farm’s Goal: Shift the industry demand out. • Provide supply to meet new demand • Bring new suppliers into supermarkets • Enter market w/o hurting current companies S P2 P1 D2 D1

12. Economics • I-Farm’s Goal: Shift the industry demand out. • Provide supply to meet new demand • Bring new suppliers into supermarkets • Enter market w/o hurting current companies S A B C P1 D D2 D1

13. Economic Reality • Monopolistic Competition • Product differentiation (perceived or otherwise) • Disney Garden™ may increase industry demand • The substitution effect • How can I-Farms best exploit these realities to their advantage?

14. Disney and I-Farms Changing Children’s Eating Patterns • Disney characters create demand • Children influence parent’s purchasing • Parents more willing to buy fruits and vegetables • Easily influenced by peers as well as by advertising • Disney makes healthy foods fun

15. SWOT analysis of I-Farms

16. Supplement the Strengths • Use Disney name as an advantage • Retailers can market with the Disney name • Continue educating on the importance of healthy eating • Disney channel • Website • Convenient packaging for putting in lunch boxes

17. Wipe Out Weaknesses • New to the market • Must provide a quality product to gain credibility • Keep Disney Garden™ fresh and exciting • Change packaging to match new movies • Promotions via collectibles, puzzles, prizes • Limited Resources • Promote efficiency in the workplace • Outsource less important tasks • On-going search for high quality employees

18. Wipe Out Weaknesses • Suppliers accustomed to marketing commodities • Offer seminars or other training for supplier marketing representatives • Give tools to take advantage of Disney name • Higher Free on Board (FOB) prices for retailers • Offset higher FOB prices with more sales • Additional traffic in stores

19. Optimize Opportunities • I-Farms can become a pioneer • Product differentiation in produce • Bring children into the produce market • 13 percent of US families with children consume the recommended amount of fruits and vegetables daily (Produce for Better Health Foundation, 2003) • Use care not to expand too fast • Focus on quality before quantity

20. Terminate Threats • Food safety • Random product testing • Quality assurance process • Competition • Product differentiation • Creativity is the key to set yourself apart from the competition

21. Terminate Threats • Seasonal quality differences • Expand to global suppliers • Offer certain items seasonally • Recession • Food is less affected by recession than other products • Turn into an advantage by encouraging less eating out, more eating in

22. Steps to Achieve Objectives

23. Steps to Achieve Objectives

24. Steps to Achieve Objectives

25. Steps to Achieve Objectives

26. Bibliography • Behavioral Risk Factor Surveillance System. Center for Disease Control. (apps.nccd.cdc.gov/brfss/). (accessed July 23, 2008) • Blomendahl, Ben. Williams, Brian. Findings on Obesity. 2008 • Jun, Yanhong H. Zilberman, David. Heiman, Amir. Choosing Brands: Fresh Produce Verses Other Products. American Journal of Agricultural Economics. May 2008: 463-475 • Lin, Biing-Hwan. Fruit and Vegetable Consumption: Looking Ahead to 2020. Economic Research Service. Agricultural Information Bulletin. November 2004. (www.ers.usda.gov/publications/aib792/aib792-7/). (Accessed July 23, 2008) • Lin, Biing-Hwan. Reed, Jane. Lucier, Gary. U.S. Fruit and Vegetable Consumption: Who, What, Where, and How Much. Economic Research Service. Agricultural Information Bulletin, October 2004, (http://www.ers.usda.gov/publications/aib792/aib792-2/aib792-2.pdf). (Accessed July 23, 2008) • National Center for Health Statistics. Prevalence of Overweight and Obesity Among Children and Adolescents: United States. 2003-2004 (www.cdc.gov/nchs/products/pubs/pubd/hestats/ overweight/overwght_child_03.htm). (Accessed July 24, 2008)

27. Bibliography • National Center for Health Statistics. Prevalence of Overweight and Obesity Among Adults: United States. 2003-2004 (www.cdc.gov/nchs/products/pubs/pubd/hestats/ obese03_04/overwght_adult_03.htm). (Accessed July 24, 2008) • Nestle, Marion. Food Marketing and Childhood Obesity — A Matter of Policy. New England Journal of Medicine. 2006: 2527-2529. • Palmer, Edward L. and Courtney F. Carpenter. Food and Beverage Marketing to Children and Youth: Trends and Issues. Media Psychology. 2006: 165-190 (http://www.informaworld.com/10.1207/s1532785xmep0802_6 ). (Accessed 17 July 2008). • Progress in Preventing Childhood Obesity: How do we Measure Up?. Report Brief, Institute of Medicine, September 2006 • State of the Plate: Study on America’s Consumption of Fruits and Vegetables. Produce for Better Health Foundation. 2003

28. Questions???