Harsh Ruia
Lin Qi
Mathis Cohen
Qian Cheng
Wang Xiao nan
Yang Yang
Why do we choose yogurt?
Google Trend
Yogurt
Global
United Kingdom
Yogurt seems to be paid more and more attention
The food companies competition in global market and UK
Group Danone is in the 7th place in global food companies, and the Danone yogurt (Activia)
has second largest market share in UK.
24.33
23.95
4.98
2.87
2.76
1.83
1.68
1.45
1.39
0.92
14.23
18.27
Rank of food companies In global market
(by Oxfam)
Top 10 Yogurt Companies in UK
PEST Analysis: Describinga framework of macro-environmental factors
•
•
TREND
•
•
IMPLICATION
•
•
POLITICAL/LEGAL
Political stable.
Law protecting from
takeover.
UK government has
taken a proactive stance
towards rising obesity
levels.
More strict regulations
of food safety
Steady domestic market
Supporting activities
held by the government
enhance the domestic
demand
•
•
•
•
•
•
•
ECONOMIC
Inflation rate falls
down
Cash-strapped
consumers
Recovery from the
recession
Unemployment
stabilized at7.7%
GDP growth 0.8%
last term
Increasing
willingness to spend
More price-sensitive
consumers intensify
price competition
between companies
•
•
•
•
•
•
•
•
+3
+2
SOCIAL/CULTURAL
Higher awareness
about health
High level of obesity
Busy lifestyle
Increasing consumer
spending &
confidence
Increasing interest in
sports club among
kids
Obesity & increasing
health consciousness
affect demand
positively
Increasing demand of
yogurt as a healthy
and convenient food
Natural foods and
exercise are strong
substitutes
+4
•
•
•
TECHNOLOGICAL
Healthier ingredients
Innovation of flavor
More enjoyable and
innovative products
stimulate consumers’
demand
+1
The internal environment– The strength and weakness
Making assessmentin order to develop a realistic and achievable strategy for Danoneyogurt in UK
Factor
Physical
Resources
Trend
 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
Implication
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
Evaluation
+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
Intangible
Resources
 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
The Strategic SWOT analysis – Achievable goals or objectives to be set
Informing later steps in planning to achieve the objective
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
??? Consultants
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
 ‘Low-price/price promotions’ to
super market
increase market share thus
strengthen position
Integrate Danone Yoghurt in lunch deal (Costa,
Market Place, Food Truck,…)
7
Strategy choice: Product development strategy
Product development : Launch a yogurt designed for kid
• Low cost of development as the product already exist in the Danone portfolio in other
country.
• A very strong brand image in the children market on sport and healthy food (Danone
World cup for kid, in 2013 in Wembley London).
• Less intensive competition in comparison with that of adult market.
• National awareness on the importance of a vary alimentation for children as a method to
struggle against obesity.
• Good understanding of the importance of Calcium and vitamine D for growth of kids.
• A very good way to educate children and their mother on the important of Yoghurt in the
healthy diet
Focus on the importance of nutrition (e.g calcium) for kids.
8
Segmentation: How to segmenting a kid market? – Yogurt for kid 1/2
It is hard to segment kids
The percentage of children who did sport in the last 4 weeks, by age and sex, 2010/1
% boys
% girls
5 to 10 years old
87.8
82.9
11 to 15 years old
97
91.9
The percentage of children who need calcium and vitamin D to grow
% boys
% girls
5 to 10 years old
100
100
11 to 15 years old
100
100
Segmentation: How to segmenting a kid market? – Yogurt for kid 2/2
The solution : family behavior (with a focus on mother) !
Segmentation of UK family
Cluster 1: lack time, money and knowledge
Cluster 2: lack the knowledge and parenting skills to improve their
family’s lifestyle
Cluster 1
Cluster 2
16%
14%
Cluster 3
Cluster 4
Cluster 3: affluent, overweight families who over- indulge in
unhealthy foods
Cluster 4: live healthily
Cluster 5
19%
19%
Cluster 5: strong parenting skills but need to make changes
Cluster 6: plenty of exercise but too many bad foods
15%
17%
Cluster 6
??? Consultants
4. Segmentation: How segmentatinga kid market ? - Yoghurt for kid 3/3
More detailson ourmain 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
11
‘Differentiated’ Targeting: Focus on the most promising segments!
Targeting strategy: Differentiated Targeting
Cluster1
Cluster2
Cluster 4: living
healthily
Strong interest in
healthy diet,
active but not
focus on sport
Significant intent to
change on physical
activity and diet
rich in energydense foods
Activity levels are
high and diet drove
by taste
Accessible
through multiplatform
advertising
campaign on
importance of
yoghurt in
children healthy
diet
through multiplatform
advertising
campaign on
importance of
yoghurt for healthy
sport performance
/ store promotion
through multiplatform
advertising
campaign on
importance of
yoghurt for healthy
sport performance
/ store promotion
Measurable
through age
groups of mums
(mainly 45-64year-olds) and the
social class (AB)
through age groups
of mums
(mainly 45-64 and
17-24-year-olds)
and the social class
(C1)
through age groups
of mums
(mainly 17-24-yearolds) and the social
class (C2)
Profitable
segment stands
for 17% of
consumer market
segment stands for
19,1% of consumer
market
segment stands for
17% of consumer
market
Cluster5
Cluster6
52%
Potential consumer
Cluster 6: plenty of
exercise but too
many bad foods
Distinct:
Cluster3
Cluster4
Cluster 5: strong
parenting skills but
need to make
changes
Positioning: Developing the image of our product in consumer’s mind
Nutrition information of our main competitors
Typical Values Per
100g
Tiny-Tims
Muller Little Star
Yeo Valley – Little
Yeos
Yoplait Kids
Energy
405kJ/97Kcal
411kJ/98Kcal
457kJ/109Kcal
405kg/96kcal
Carbohydrate(of
which sugars)
11.7g (of which
sugars 10.8g)
13g (of which sugars
12.1g)
11.9g (of which
sugars 10.4g)
12.6g(of which
sugars 12.2g)
Protein
4.7g
3.7g
5.1g
5.3g
Fat(of which
saturates)
3.5g (of which
saturates 2.2g)
3.1g (of which
saturates 1.9g)
4.6g (of which
saturates 3.1g)
2.3g (of which
saturates 1.6g)
Fibre
0.1g
0.1g
Trace
0.1g
Sodium
0.08g
0.1g
0.1g
Calcium
140mg
108mg
200mg
150mg
Positioning: Developing the image of our product in consumer’s mind
Nutrition-Age Axes –Where are our competitors and Where do we want to be
Focusing on kids from 5-10
Offering nutrimental Lifestyle
Developing energetic kids
Nutrition
0-5yrs
5-10yrs
Age
Positioning: Developing the image of our product in consumer’s mind
Nutrition-Price Axes –Where are our competitors and Where do we want to be
Nutrition
Healthy
Positive
Optimistic
We worth it !
Price
SMARTT
Long term and Short term objectives for our strategy
Long-term objectives
• Increase Danone’s market share in the UK to
and better market penetration. , brand
loyalty and equity ,and increase in the total
turnover by 10%.
Short-term objectives
Reenforce
the R&D
lab on
nutrition
raising
number of
products in
the uk from
5 to 6
Be the first kid
yoghurts
company
(aiming to 50%
of the market
share)
Increasing the
Product
Awareness in
the uk through
market
penetration
and marketing
Maintenance /
increase in the
market share
by 40-50%
Achieved through product development and segmentation as the quality leader by targeting
1. Kids
2. Mothers
Marketing Mix: What does our product offer
Product –Price –Place –Promotion
Cluster 4: living healthily
Cluster 5: strong parenting skills
but need 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
Partnership with primary school.
Take the Danone kids yogurt as a
break time dessert
Promotion
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.
Public relationship on the
importance of a daily yoghurts for
kids to practice sport (explicative
tv/radio spot with a moral
support)
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) and in sport club
(which are frequently use by the
mother.
Implementation Control: Assessment of the overall strategy
Continuously questions the basic direction of the strategy
Type of Control
Prime Responsibility
Purpose of Control
I. Annual-plan control
Top management; middle
management
• To examine whether the
planned results are being
achieved
Marketing controller
• To examine where the
company is making and losing
money
• To evaluate and improve the
spending
Profitability by:
• Product
• Territory
• Customer
• Segment
• Trade channel
• Order size
Line and staff management;
marketing controller
• Efficiency and impact of
marketing expenditures
Efficiency of:
• Sales force
• Advertising
• Sales promotion
• Distribution
Top management; marketing
auditor
• To examine whether the
company is pursuing its best
opportunities with respect to
markets, products, and
channels
• Marketing effectiveness
rating instrument
• Marketing audit
• Marketing excellence review
• Company ethical and social
responsibility review
I I. Profitability control
III. Efficiency control
IV. Strategic control
Approach
• Sales analysis
• Market-share analysis
• Sales-to-expense ratios
• Financial analysis
• Market-based scorecard
analysis
Appendix
Danone: History of the group
1919, Barcelona, Spain, Isaac Carasso,
· Named after his son Daniel.
· Manufacturing Yogurt
1929, Daniel Carasso launched Danone in Paris and business
was good.
1941, entrusted Danone France to Norbert Lafont and
Danone Spain to Luis Portabella
· Founded Dannon US
1945,rebuilding French and Spanish businesses.
· Lost interest in the US market;
· Back to BSN Gervais Danone in 1981.
1967, fusion with Gervais,
· Gervais-Danone company.
1972, Daniel Carasso and Antoine Riboud.
· Merged their two companies.
· Making Danone into a world brand
Danone : some information over the range of brands
Fresh Dairy Product --- Yogurt
Water
Baby Nutrition
Segmenting more information on the Cluster
Positioning : price information