Danone Case Study
1. Using suitable marketing terminology, identify and describe the Irish market place Danone aimed at during the market entry stage.
Despite agriculture being one of Ireland’s main industries, in the past the consumption of fresh dairy produce was remarkably low. Even today, there is only 10.2 kilos of fresh dairy products consumed per capita as compared to that of France where 33.2 Kilos of fresh dairy products are consumed.
When Danone researched the feasibility of entering the fresh dairy market in Ireland, they found an untapped market. They saw there was potential within the fresh dairy market where there was a minimum of competition and thus the opportunity for high sales, profits and product growth.
In order to enter the Irish fresh dairy market, Danone needed to understand the market segments within the industry and set about finding gaps in the segmentation. Market gap analysis includes looking into various segments such as geographical segmentation, (which showed Irish consumption of dairy products was low in comparison to mainland Europe), demographic, psychographical and behavioural segmentation. It was the analysis of the behavioural segmentation in Ireland which proved most useful in identifying where the opportunities lay for Danone.
Consumers were becoming more and more motivated by health concerns and were seeking out products which helped to maintain physical health and well being. Danone targeted the consumers growing desire for the healthy option by offering the Actimel brand as a healthy way to start the day.
Danone’s advertising set about positioning the Actimel range as a healthy option for breakfast by highlighting the clearly defined benefits of eating yogurts with the subtext of the advertising changing the traditional perception of yogurt being just for dessert.
___________________________________________________________
2. Define and explain what is meant by the terms R&D and Marketing Research. Use examples form
Despite agriculture being one of Ireland’s main industries, in the past the consumption of fresh dairy produce was remarkably low. Even today, there is only 10.2 kilos of fresh dairy products consumed per capita as compared to that of France where 33.2 Kilos of fresh dairy products are consumed.
When Danone researched the feasibility of entering the fresh dairy market in Ireland, they found an untapped market. They saw there was potential within the fresh dairy market where there was a minimum of competition and thus the opportunity for high sales, profits and product growth.
In order to enter the Irish fresh dairy market, Danone needed to understand the market segments within the industry and set about finding gaps in the segmentation. Market gap analysis includes looking into various segments such as geographical segmentation, (which showed Irish consumption of dairy products was low in comparison to mainland Europe), demographic, psychographical and behavioural segmentation. It was the analysis of the behavioural segmentation in Ireland which proved most useful in identifying where the opportunities lay for Danone.
Consumers were becoming more and more motivated by health concerns and were seeking out products which helped to maintain physical health and well being. Danone targeted the consumers growing desire for the healthy option by offering the Actimel brand as a healthy way to start the day.
Danone’s advertising set about positioning the Actimel range as a healthy option for breakfast by highlighting the clearly defined benefits of eating yogurts with the subtext of the advertising changing the traditional perception of yogurt being just for dessert.
___________________________________________________________
2. Define and explain what is meant by the terms R&D and Marketing Research. Use examples form