Disney faces challenges with the nutritional value of its food products for children. It must change its strategy to focus on nutrition, health, and long term growth over short term profits. Disney's plan is to phase out unhealthy foods, partner with producers of nutritious options, and market these products effectively. This approach may lead to short term losses but positions Disney well for future market share in the growing nutritious children's food industry.

1. Can Mickey save the
industry?

2. Background
Obesity Epidemic
Low Nutritional
value of Disney
Products
Change in strategy
needed

3. Factors To Be Considered
FUN
NUTRITION
PRICING
SHORT
TERM
LOSSES
LONG TERM
UNCERTAINITY

4. Disney’s Way Forward
1
• Use market research to properly target children
• Phase out fatty/harmful food products from its line.
2
• Connect with producers (eg. Imagination Farms)
• Branch out networks for supply with retailers.
3
• Supplement the repositioning with a smart marketing
plan.
• Build up a market share which will make up for the
losses due to repositioning.

5. Will the Disney brand be able to position itself in
the nutritious food consumer product
market?
It may be the correct decision ethically, but is it
the right business decision?
Disney’s Dilemma

6. I would claim that this decision is
in the right direction, for the
future of Disney’s food products.
Hypothesis

7. Increase in operating income since repositioning
Proofs and Action
0
10
20
30
40
50
60
2003 2004 2005
Series 1
Series 1
In millions ($)

8. Private Label Opportunities
for Better for You

9. WHAT DOES THIS MEAN

10. IT MEANS GROWTH
POTENTIAL !

11. Disney’s food product line is aimed at children,
where it already rules roost in other sectors.
BRAND RECOGNITION
IN TARGET MARKET

12. Mickey Mouse
has 96%
recognition
among children.
Brand Equity
carries over
Higher positive
recall increases
chances of
buying.
AND THAT MATTERS
BECAUSE?

13. Partnerships
2501 supermarkets
Largest pure grocery retailer
in the US
Pricing and Brand Equity
gives Disney the edge

14. And this is supplemented by….

15. Access to 80%
of all outlets in
USA

16. Inevitable Outcome
• Growing awareness of importance of nutrition
both among children and parents
• Stricter laws in advertising against unhealthy
food
• Negative consequences due to associations.
Eg- Disney’s association with McDonalds
• Pioneering this change may ensure Disney
commands significant market share in the
future

17. Actions Required

18. Pricing Strategy
1. Disney is a premium brand, but this
category will have to be more
moderately priced.
2. Higher or similar quality as its
competitors (Nickelodeon etc), but at a
lesser price.

19. 1. Smart Advertising
2. Signaling the change across the company and
using its vast resources
3. Leveraging its brand awareness to push for
change
4. Smart associations with organizations like
UNICEF etc which add to its cause.
Shifting children to
nutritious food

20. Alternatives
Consider Disney Foods to be a short
term investment, and hence concentrate
on maximizing short term gain, by not
overhauling the product line. Divest the
profits into the main business, and keep
the attention on the company’s core
interests- entertainment for the family.

21. This presentation was made by Rushabh
Menon (IIT Madras), as a part of the
Marketing Internship by Prof. Sameer
Mathur (IIM Lucknow)
DISCLAIMER