Danone aims to be the leader of the food market. Indeed, the group aims to become the world leader in the sectors of water, biscuits and fresh milk products. This choice is justified by growth in these three areas which are recorded above the industry average. It is also a strategic choice on its part.
The group decided a decade ago to separate 40% of its turnover from confectionery, packaging, ready meals, and beer and to focus on a few aspects at very high orientation and health nutrition. Therefore, how does one ensure that Danone is the market leader in food? First, what are the resources available to the Group Danone? Danone will have to effectively target its strengths and weaknesses to identify opportunities and better able to address its threats. Secondly, what are the ways to implement to achieve this top position on these three sectors?
Analysis of its environment is indispensable for the implementation of its marketing strategy. The latter must be consistent with its marketing mix. In an attempt to better respond to these questions, this report will address in the first part about the analysis of group Danone and its market. Then, it will discuss in the second part, about the group's marketing strategy. In the last part, it will study the marketing mix of Danone. The report attempts to address these issues by bringing a critical analysis.
Danone Group is one of the largest companies in the CAC 40. It operates in three businesses where growth is higher than the industry average. Its primary objective to maintain its position as No. 1 in fresh products (yogurt, cheese, desserts, baby food) and the fate of the other two segments which are water and biscuits.
The Danone Group is present in 120 countries and generated sales of13.1 billion euros in 2003. Danone owns many brands such as Danone, of course, Evian, LU, or Wahaha. One should know that these four brands alone account for 53% of sales of the group. Next, the group has leading products such as Actimel, Taillefine products, Danette, Fruix, Pim's, Danacol, or Pepito.
To be competitive in the market, Danone uses a policy of constant innovation. 0.9% of revenue is dedicated to pure research. This allows it to be free from competition, from private labels and price products. It develops a number of local brands with global concepts.
In the present context, competition is intense, consumers are very wary and highly informed about the products they consume. It is very important for different businesses to have a reassuring image to the public. As it has been quoted in this report, Danone uses much of its budget on research.
The group tries to maintain its image as protector of health. Indeed, the overall view of the Danone brand is health through diet.Worldwide, the brand stands for quality and safety, and health and nutrition, evidenced by the product Danacol.
Danone's marketing strategy is to develop local brands with global concepts, ie, it uses the same brand, the same policy for all markets by adapting the product: its packaging, consistency etc. This strategy is good at Danone, but for now, this is not enough to become No. 1 based on the three areas of focus.
Tags: Danone group, marketing strategy, international management of the group
[...] The analysis of its environment is essential for the implementation of its marketing strategy. This should be consistent with its marketing mix. In an attempt to better respond to these questions, we will address initially the analysis and market of the Danone group. Subsequently, we will discuss the company's marketing strategy followed by the marketing mix of Danone. We attempt to address these points by bringing a critical analysis. I.Analysis Description of work Danone Group is one of the largest companies in the CAC 40. [...]
[...] This choice is quite thoughtful, as these sectors have growth above the industry average. This should enable it to best increase its market share and turnover. ¬ Progress in markets where the group operates. ¬ Identify new micro-segments. ¬ Standard offer products tailored to each local market while preserving the overall values of the group. This was the case, for example, in Saudi Arabia with the product Danao which was originally launched in France and was subsequently launched in the market in smaller packaging, expression of expectations the Saudi market. [...]
[...] In this way, the group's investments are growing, economies of scale are achievable. Thus, this allows Danone to increase its revenues and expand its market share. However, despite positive results (growth of in first quarter 2004) Danone has difficulty in organizing the internal working of the various local representatives of the mark in certain foreign markets, especially in Asia where the group's reputation is not as large as in Europe. Moreover, the major weakness of Danone is to have a free float to that is to say, that the most powerful multinational corporations can absorb the group. [...]
[...] Indeed, it uses much of its budget for communication (TV spots, sponsorship, etc). Moreover, Danone was the first advertiser in terms of advertising investment in 2003, with of turnover dedicated to advertising. The products of Danone are developed and searched in a research center: Vitapole. We can illustrate by the example of Actimel. For this product, the communication strategy is based on consistently strong investment on spots in television and a regular presence in the store shelves. With this strategy, the product was known and recognized quickly by the general public and has been especially appreciated. [...]
[...] - Scientific backing of Vitapole. - 10% reduction in weight through the bioplastic packaging. - Packaging suitable for different countries. Justifications: - Attract customer's attention - Consider the expectations of consumers and their specific consumption - Express the group's involvement in the different cultures in different countries - Reducing the weight of packaging can reduce production costs while taking into account the obligations of respect for the environment Pricing Policy Aims: - Reach the largest number when a third or half the population lives below the poverty line - Pricing power of the brand Actions - Affordability program that attracts very moderate income consumers, including India and China - The project launched in Bangladesh in association with Grameen, the initiative of Muhammad Yunus, Nobel Peace winner - "Danone.communities" Justifications - Reach the largest number of consumers with different income at prices tailored to each market - Be present in many countries as possible to maximize profits Distribution Policy Aims: - Be present on most distribution networks - Establish itself in catering Actions - Presence in supermarkets and catering-homes - Partnership agreements with "McDonald's", "Fleury Michon", "Club Med", "Sodextax", "Schell" . [...]
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