The underlying problematic situation in this case is to be found in the food products which are part of the Disney Consumer Products. Due to its large following and support base, the company has the capability to influence the decisions consumers make when they go shopping. This is even worse for children as they will be more drawn into those products that are branded by their favorite cartoon characters such as Mickey Mouse. The other problem in the case is the fact that the company needs to diversify into other income generating activities food products being one of them. However the challenge is that most consumers go for those products that have more sugar and are less nutritious. It is therefore difficult to penetrate a market with products that are of high nutrition value as they may not have the sugar amounts that many people would prefer. This poses a dilemma for the company whether they should give the people what they want or come up with products that meet the expected standards and are safe for use. The second option might affect the reception of the products as consumer prevalence may shift to products being offered by competitors.
The company attempted to rationalize and expand its products due to the changing licensing models. This is yet another problem since the third parties which were given authority to manufacture and market goods using the Disney brand could not guarantee the safety or quality of their products. This had the potential of putting the brand name and reputation of the company at risk. However, part of the problem was in the fact that mothers blindly perceived the Disney range of products as being the best in quality and naturally mothers would go for foods they perceive as healthy for their children. How can the Disney Consumer Products remain competitive by providing healthy nutritive products to reduce obesity problems and at the same time increase revenue streams?
Pertinent Facts
Disney marketing intervention for its food products has come under sharp criticism, both in the US and the UK which are the highest consumers of Disney products. Disney products involve cartoon products, shoes, bags, clothes and food products. Disney also sold out theme parks in memory of the founders of the company and since then, the theme parks greet more than 100 million visitors each year. The Disney food and nutrition market has entirely focused its force towards children, who are also consumer of their television products that include cartoons. Mothers often buy products that their children want and a majority of these mothers view Disney Consumer Products as safe. The other fact is that product packaging has seen Disney foods penetrate the market regardless of the complaints that have been launched severally by groups who feel the company is contributing to the growing cases of children being overweight and obese. Known for fun, the initial products by Disney were received well in the market despite the fact that they were confectionery. It is only later that concerns started growing because most of this products were responsible for the high rates of obesity in the population.
Alternative Solutions
Disney’s problem could have solutions, first if it diverts its production process to a healthier production process. The problem arises because of the high fat and sugar content that its foods have. It could still sell to its market internationally but it needs to reduce the substances to non-harmful levels. Another solution would be for the company to use its resources towards convincing customers and children that there are other healthier products from Disney. As an influential cartoon, the company should advertise it on supermarket shelves using Mickey Mouse under the fresh produce section like carrots, spinach, just like in Sponge Bob Square Pants. This will reinvent the organization’s image and create a healthy perspective about the company.
The company ought to come up with strategies that can enhance the quality of their products, particularly food and beverages. One thing to consider is standard assurance. All the products should be manufactured to meet some standards that have been proven to be acceptable for human consumption. The other strategy to be applied on food products is the need to diversify on the range of products which have different nutrition components. When consumers try a little bit of all these products they end up consuming the required nutrients.
Pros and Cons of the alternatives
The advantage of reducing the sugar and fat content in its products is that the market will be convinced that the company has changed its production strategy and is more caring to its segmented market, who are the children. However, the company was making huge sales because of the sweetening of its products. If it adopts this solution, definitely the sales will have to reduce and with the subsequent stalemate about its products, the company may have to give more attention to marketing of its non-food products. In using the cartoon Mickey Mouse in supermarket shelves, Disney will be conducting marketing strategies aimed at bringing back its glory. However, this may work to its disadvantage with increased competition from other products and producers like Nickelodeon.
Decision on alternative
Out of the two solutions, Disney should focus more on rebranding itself and creating a new image to its customers. Already the company enjoys the aspect of customer loyalty and it has set ground upon which it can penetrate easily, with marketers and product packagers all over its market catchment zone in the international spectrum. Therefore, in rejuvenating its glory, Disney should engage in production of foods that are more organic and rich in components that promote growth of children, additionally, under this strategy, Disney should also engage in aggressive marketing and advertising including in-store signage, floor displays, billboards and direct mail. More emphasis should be placed on campaigns that promote healthy food products that are proven to be nutrition rich. This will help stand up against its competitors in the industry.
Implementation and Feedback
Implementing such a policy requires frameworks that have been identified and justified to be found viable because Disney at the moment is handling a fragile market. Therefore, before implementing, the company should carry out market research through its marketers and distributors, afterwards conduct pilot studies and then gather information from different product packagers. In the course of conducting the pilot studies and researches, continuous monitoring should be used to assess whether the policy is working, taking into consideration feedback from the consumers and key market players like the importers and exporters. Afterwards, the policy can undergo evaluation after which if there is a positive correlation, the company can invest heavily towards it to sell and rebrand itself to reclaim its to avoid damaging its image.
References
Michael, O. (2013). MGT 420 Business Dimensions of Healthcare. New York : McGraw-Hill.
.
