Danone Yoghurt UK
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2. Capturing Marketing Insights – the internal environment
The mostrelevant StrategicCapabilities – a resource audit of DanoneYogurt UK
Factor
Trend
Implication
Evaluation
Physical
Resources
 Production of Yoghurts is made in
larges factories in a short amount of
time due to the raw material
characteristic (milk).
Warehouses have to be high quality
standard and close to places of sales
(nature of the product
Danone owns its yoghurts factories . But
all Yoghurts are not made in the UK (Oykos
are produced in France)
 Warehouses and distribution sub
contracting to two UK companies
+3
major
strength
Human
Resources
Three very different types of
employees : worker, administrative
employee (marketing, supply chain,
finance), scientist (R&D labs).
Danone created three graduate programs
to attire new employees. It has a learning
and development center and offers the
possibility to do sabbaticals.
+1
minor strength
Financial
Resources
 Access to capital is crucial for
launch of new product and large
marketing campaign
Strong financial position with parent
Danone Group making EBITDA £2,445m
+2
significant
strength
 High brand awareness and customer
trustworthiness essential in the mass
market competition
Innovation and R&D are very
important to produce new fashionable
Yoghurt
 ‘Danone’ has a strong brand awareness
and reputation for quality and innovative
produce
Large portfolio of products not all present
in the UK
 Global Danone R&D for new product
worldwide and UK lab to product
adaptation to local taste
+ 4 significant
strength
Intangible
Resources
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3. The Strategic SWOT analysis – identifying the alternatives for future success
Ext. Opportunities and risks
 National campaign against obesity
 Global trend to more healthy food
 Emergence of new ingredients
 Changes in consumer lifestyle
(healthier behaviour)
 UK shows sight of recovery (0,8% from
July to Sept, strongest growth since
2010)
External Threats
 Strong competition in the adult
Yoghurt market n°2 behind Muller
 Price-sensitive buyer
 High substitution possible in desert
and snack segments
 Increasing price of raw materials
Internal Strengths
 very innovative R&D labs
 Excellent brand reputation for quality
and taste
 Among of cash available to launch of
new products
Large portfolio of products not all
present in the UK
Internal Weaknesses
 New distributor (after a massive failure
in June 2013)
 Lack of flexibility (huge organisation)
Decrease in internal efficiency
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3. The Strategic SWOT analysis – identifying the alternatives for future success
Differentiation Strategy
Product development strategy
 Create a close relationship with consumer
(Yoghurt day, fidelity program,…)
 Extend portfolio kids products
Create a pleasure focus products (less
healthier, better taste)
 Create man focus recipe
 Make vegetarian range
Market Penetration Strategy
Cost Leadership Strategy
 Negotiate larger space in Yoghurt section in
super market
Integrate Danone Yoghurt in lunch deal (Costa,
Market Place, Food Truck,…)
 ‘Low-price/price promotions’ to
increase market share thus
strengthen position
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4. Strategic choose
Strategy choice : Product development and penetration strategy
Product development : Launch a yoghurt specialy design for kid
• Low cost of development as the product already exist in the Danone
portfolio in other country
• Use the very strong brand image in the
children market(Danone World cup for kid,
in 2013 in Wembley London)
• Small number of competitor on the
segment only two in comparison of the
adult market
• National awareness on the importance of a vary alimentation for
children as a mean to struggle against obesity
• Good understanding of the population of the importance of Calcium
and vitamine D to help the growth
• A very good way to educate people to yoghurt (parents, habit in the
childhood)
Focus on the importance of calcium for kids during growth and the
healthy food
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3. Segmentation: How segmentating a kid market ? - Yoghurt for kid 1/3
Kid market can sometime difficult to segment
The percentage of children who did sport in the last 4 weeks, by age and sex, 2010/1
% boys
% girls
5 to 10 years
87.8
82.9
11 to 15 years
97
91.9
The percentage of children who need calcium and vitamin D to grow
% boys
% girls
5 to 10 years
100
100
11 to 15 years
100
100
Sources: Office for National Statistics, National Records of Scotland and Northern Ireland Statistics and Research Agency
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3. Segmentation: How segmentating a kid market ? - Yoghurt for kid 2/3
The solution : the family behavior (with a focus on mother) !
Cluster 1: lacking time, money and knowledge
Cluster 2: lack the knowledge and parenting skills
to improve their family’s lifestyle
Cluster 6
16%
Cluster 1
14%
Cluster 3: affluent, overweight families who overindulge in unhealthy foods
Cluster 4: living healthily
Cluster 2
19%
Cluster 5
19%
Cluster 5: strong parenting skills but need to make
changes
Cluster 6: plenty of exercise but too many bad
foods
Cluster 4
17%
Cluster 3
15%
Sources: Source: TNS Childhood Obesity Consumer Segmentation Research
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4. Segmentation: How segmentating a kid market ? - Yoghurt for kid 3/3
More details on our main cluster.
Custer 4
Custer 5
Custer 6
Family diet
Strong interest in
healthy diet.
Strong parental
control but diet
rich in energydense foods and
portion size an
issue.
Eating motivated
by taste, diet
includes both
healthy and
unhealthy foods.
Physical Activity
Family active
although believe
children not
confident doing
exercise.
Know they need to
do more: time,
money, selfconfidence seen as
barriers
Activity levels are
high
Social class
AB
C1
C2
Intent of change
Low intent to
change but already
leading a healthy
lifestyle.
Low intent on diet
but significant
intent to change
on physical activity.
Highest among the
clusters for both
diet and physical
activity.
Sources: Source: TNS Childhood Obesity Consumer Segmentation Research
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4. ‘Differentiated’ Targeting: Focus on the most promising segments!
A targeting strategy: Differentiated
Cluster 1
Cluster 2
Marketing Mix 3
Kids Yoghurt
Cluster 3
Cluster 4
Cluster 5
Cluster 6
76%
of potential
customers
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4. ‘Differentiated’ Targeting: Focus on the most promising segments!
A targeting strategy: Differentiated
Cluster 4: living healthily
Distinct:
Accessible
Measurable
Profitable
Cluster 5: strong parenting
skills but need to make
changes
Cluster 6: plenty of exercise
but too many bad foods
Strong interest in healthy diet,
active but not focus on sport
Significant intent to change on
physical activity and diet rich in
energy-dense foods
Activity levels are high and diet
drove by taste
through multi-platform
advertising campaign on
importance of yoghurt in
children healthy diet
through multi-platform
advertising campaign on
importance of yoghurt for
healthy sport performance
through multi-platform
advertising campaign on
importance of yoghurt for
healthy sport performance /
store promotion
through age groups of mums
(mainly 45-64-year-olds) and
the social class (AB)
through age groups of mums
(mainly 45-64 and 17-24-yearolds) and the social class (C1)
through age groups of mums
(mainly 17-24-year-olds) and
the social class (C2)
price premium for superior
quality
segment stands for 19,1% of
consumer market
Strong wiliness of change their
diet
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5. Defining the Marketing Mix – the 7PsCluster
for achieving
success
5: strong parenting skills but need
Cluster 4: living healthily
to make changes
Cluster 6: plenty of exercise but too
many bad foods
In large batch
Rich nutrition (high quality)
Generous flavour
Product
drinkable yoghurts (30g)
 Rich nutrition (high quality)
Natural flavour
 classic yoghurts (50g)
Rich nutrition (high quality)
New flavour
Price
Premium Pricing
 Market Pricing
Competitive Pricing
Place
 Increase stores presence (on street and
on line)
 Increase stores presence (on street and
on line)
 Increase stores presence (on street
and on line)
 Create a trendy brand for the children (“you’re cool if you have it”) with advertising campaign to support it
TV& online ads
Promotion
Partnership with primary school. Take the
Danone kids yogurt as a break time
dessert
Public Relationship campaign on the
importance of yoghurt to children healthy
diet (campaign in children medical centre,
special web site to help mother to cook
healthy diet, specialized press )
Sales promotion of “family packs”(yogurts
for all family members, including parents
and kids) and 3 for 1 discount.
Provide free trial yogurt in Parks, sports
club etc.
Public relationship on the importance of a
daily yoghurts for kids to practice sport
(explicative tv/radio spot with a moral
support)
Public relationship on the importance
of a daily yoghurts for kids to practice
sport (explicative tv/radio spot with a
moral support) and in sport club (which
are frequently use by the mother.
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