Disney Consumer Products – Marketing Nutrition to Children

Case Study: Disney Consumer Products – Marketing Nutrition to Children

1. Is Disney’s new strategy in foods likely to be profit enhancing?

Disney’s strategy in foods will be profitable in the long run. In the short-term, Disney will be investing drastically in healthy food offerings, which will require capital. At the same time, they are giving up lucrative licensing deals with existing suppliers that do not meet their new nutritional standards. However, the focus on corporate social responsibility is designed to improve brand image and customer loyalty, which will translate into improved brand reputation. Essentially this will drive customer sales across all their business interests in the future.

2. Is it a good idea for Disney to directly participate in the children’s food business?

It is best for Disney to take a less direct role in the food business, as their primary business and expertise is in entertainment. Their role in the food business should be focused on setting the nutritional, production, and quality control standards and choosing the right suppliers that can match their criteria.

Disney has taken the right approach in letting the food experts handle aspects such as taste and how to substitute fattening ingredients for healthier options.

Disney’s input on packaging and marketing, however, is crucial, as they are prominent and visual features of the products.

3. Should Disney look for more partners like Kroger? If so, when?

It was important for Disney to sign an exclusive partnership with Kroger at the launch of their new health food strategy to gain access to their distribution networks and customer base. This allowed them to test the market in the initial stage with a willing collaborator. With the lessons learned and having established themselves, it will no longer be necessary for Disney to seek exclusive partnerships with specific retailers like Kroger. However, it is important for Disney to find non-exclusive partnerships while staying sensitive to their current exclusivity agreements with Kroger. This can be done by offering different product lines and with different character ambassadors to other companies.

4. How important is Disney’s move in the effort to reduce childhood obesity?

With their strong influence on young children, Disney’s healthy food initiative is crucial in the battle against childhood obesity. Disney’s focus is to educate both parents and kids from a young age, attracting them, with cartoon role models, to try healthier options in a bid to establish healthy habits.

While parents are ultimately the ones that buy their