Disney Consumer Products: Marketing Nutrition to Children

David E. Bell; Laura  Winig

Case | HBS Case Collection | December 2006 (Revised August 2009)

Disney Consumer Products: Marketing Nutrition to Children

Abstract

In an effort to capture market share in the children's foods category, Disney Consumer Products (DCP) debuted a broad line of "better for you" foods, ranging from fresh fruits and vegetables to frozen meals, through a partnership with Kroger supermarkets. In answer to a global obesity epidemic, DCP reformulated existing products and introduced new ones which met stringent nutritional requirements. Disney--and by extension, DCP--is highly influential with children: can the company use its "magic" to get children to switch from sugary, processed foods and become lifelong converts to a more nutritious diet? What is the food industry's responsibility in this controversial space?

Keywords: Age; Nutrition; Brands and Branding; Corporate Social Responsibility and Impact; Partners and Partnerships; Social Issues; Consumer Products Industry; Food and Beverage Industry;

Format: Print

28 pages

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Citation:

Bell, David E., and Laura Winig. "Disney Consumer Products: Marketing Nutrition to Children." Harvard Business School Case 507-006, December 2006. (Revised August 2009.)

Led by CEO Randall Stuewe, Texas-based Darling Ingredients International was a rendering firm with $3.7 billion in 2017 revenues. Since 2003, Darling had transformed from U.S. focused into a global player in the processing of biological waste from meat and foodservice firms into oils, fats, and proteins that were sold for use in feed, food, fuel, and other products. It had also entered a 50-50 joint venture, called Diamond Green Diesel (DGD), with oil refiner Valero to produce renewable green diesel. Darling supplied the oils and fats that DGD converted into renewable diesel products sold to oil companies. In the U.S., regulatory mandates and incentives supported the market for renewable diesel, which cost more to produce than conventional fuels. For Darling, the renewable diesel JV was proving to be a lucrative outlet for the company’s oils and fats and as a valuable hedge for its traditional business. In 2018, Stuewe and his Valero partners were considering a substantial expansion of DGD. This case invites students to consider the long-term competitive advantages of DGD’s renewable diesel product, the strategic questions for a business (at least in 2018) dependent on favorable regulations, and the tradeoffs involved in moving too aggressively, or not aggressively enough, to claim a place in the carbon-friendly fuel market.

Case | HBS Case Collection | November 2018 (Revised April 2019)

Zespri Grows

David E. Bell and Natalie Kindred

Controlling about a third of global kiwifruit exports by volume and nearly half by value in 2018, Zespri was a grower-owned “corporatized cooperative” with the exclusive right to export New Zealand-grown kiwifruit (except to Australia). Zespri did not grow fruit but rather managed an integrated marketing system across the value chain. This coordinated structure enabled Zespri to control quality, build a brand, and command premium prices in export markets. In 2018, Zespri had a strategic goal of marketing the world’s leading portfolio of kiwifruit year round, with a target of nearly doubling sales, to NZ$4.5 billion, by 2025. This would require Zespri to vastly increase its kiwifruit supply in New Zealand, as well as from overseas suppliers, who currently accounted for a relatively small portion of its volume. Rapid growth presented several challenges, including the need to preserve product quality and consistency while working with new growers, prioritizing customers and markets as demand outpaced supply, considering Zespri’s position vis-à-vis the crucial China market, and developing new capabilities as Zespri transformed from New Zealand-centric into a global organization. At the same time, the Zespri team aspired to launch new products that met consumer demand for sweeter taste and convenience—an increasingly urgent priority as global competition in kiwifruit intensified. Zespri had been the first to introduce a high-quality proprietary gold kiwifruit to the global market, and it continued to dominate the gold segment. Could it do the same in the emerging red-flesh category? As with many questions facing Zespri in 2018, there are risks of moving too fast as well as too slow.

Keywords: Agribusiness; kiwi; kiwifruit; Agriculture; Global Supply Chain; branding; produce; coordinated industry structure; industry coordination; countercyclical supply; New Product Development; Product Strategy; differentiation; Food; Quality; Trade; Brands and Branding; Marketing; Strategy; Global Strategy; Change Management; Organizational Change and Adaptation; Globalization; Globalized Firms and Management; Competitive Strategy; Resource Allocation; Product Development; Agriculture and Agribusiness Industry; Consumer Products Industry; Food and Beverage Industry; New Zealand;

Citation:

Bell, David E., and Natalie Kindred. "Zespri Grows." Harvard Business School Case 519-047, November 2018. (Revised April 2019.) View Details

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