Danimal in South Africa: Management Innovation at the Bottom of the Pyramid

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1) How does the Danimal project shed light on and the challenges to manage the base of the pyramid? The Danimal project shed light on the business management to the BOP market especially in terms of innovation. They introduced many procedures to manage the BOP business. I state that the most important one is the introduction of new distribution channel, Danimamas and Daniladies. Since Danone should SA make profits and the main target of Danimal were low-income people, Danone avoided the distribution through traditional channel, supermarket. It aimed not only to create new distribution channel but also to empower the women; and therefore introduced Danimamas and Daniladies channel. The management procedure is quite innovative. The two-tier distribution relationship between Danimamas and Daniladies allowed Danone SA to manage its distribution channel by a few numbers of management. The two-day training event covering sales, marketing and finance created 20% withdrawal of participants. However the company allowed the withdrawal in long-term perspective. It also allowed the distributers to acquire first crate of product for free, based on trust. And finally it introduced virtual money process to avoid full financial risk related with danimama. The focus of the procedures conducted by Danone SA was very obvious, achievement of both sustainability and financial success. Therefore it successfully creative innovative management styles and also succeeded in operation. 2) How would you measure the success of the Danimal project? I would like to emphasize that the Danimal project is not only support, but also the sustainable product to the BOP. The autonomy of Danone SA contributed its success. In terms of various effects, I believe that the project was very successful. As I have already mentioned in question 1, it encouraged local women to become independent and provided education with well-pondered recruitment. The Danimal itself originally aimed to...
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