GROWING AND CREATING A NEW MARKETThe Irish Dairy Market The Danone Way The origin of yogurt
Did you know that yogurt was first sold in pharmacies as an aid to digestion? In 1919, the sight of so many children in Barcelona suffering from intestinal disorders surprised the entrepreneur Isaac Carasso.At the time he was very interested in the research of Metchnikoff, the 1909 Nobel Prize winner, on yogurt lactic acid bacteria. Carasso brought some bacterial ‘cultures’, from the Pasteur Institute in Paris and launched the first yogurts in Barcelona. Cultures, or bacterial families, when added to milk and under the right conditions result in a yogurt substance. Carasso called his product ‘Danone’, his son Daniel’s nickname. Doctors helped the success of yogurts by prescribing them for intestinal disorders. Pharmacies distributed the first yogurts exclusively, clearly positioning the product in the mind of the consumer as a health food.
Research & Development At Danone
Research & Development (R&D) into new products is a vital part of the business process. Consumer eating habits and dietary needs are changing all the time and R&D needs to keep pace with such changes. As lifestyles become more hectic, people are becoming more aware of the importance of a healthy diet. Danone’s success in the market place is largely underpinned by its ongoing commitment to this process of R&D. Its dedicated centre of research excellence in France called Danone Vitapole focuses much of its research into trying to understand how to help people be healthier. At this centre new strains of cultures, or bacteria, are identified. Nutritional solutions for solving common problems such as strengthening the body’s immunity are explored.This research has led to an increasingly rapid flow of new products and ideas to the market and has positioned Danone as the most advanced and innovative producer of health oriented dairy products in the world today.
The DANONE GROUP
From these early beginnings, Danone has grown to become a global business that makes yogurts, yogurt drinks and fromage frais, designed to make it easy for all the family to live a healthier life. Danone now employs in excess of 100,560 people worldwide and has a turnover of 14,470 (2001) million. It is the world market leader in the dairy products market where it controls 15.5%. It is also the market leader in the bottled water market with its Volvic and Evian brands and number two in sweet biscuits with Jacobs and Lu. Market Dairy Products Market Bottled Water Market Biscuits Market World Position Market Leader Market Leader 2nd
Psychographics Segmentation: Consumers are segmented according to the different lifestyles or according to their social class groupings or different personality types. In Ireland for example, research into young consumers between the ages of 18 and 24 years of age found that they could be segmented according to different lifestyle groups. ◗ Behavioural Segmentation: This involves segmenting consumers according to their knowledge of a product or the way in which they react towards a product. One such way is by grouping consumers according to the benefits that they look for or the occasion on which they use a product. By looking at the breakfast market Danone could see a gap for its ACTIMEL® brand. Danone has, through its advertising, highlighted the benefits of a yogurt each morning, thus changing some traditional perceptions of yogurt as only for dessert. Danone also adapted advertising messages to suit different European market expectations. In France, yogurt is typically sold as a plain yogurt, a symbol of good health. Fruit and flavourings come later as advertising emphasises the health logic. In the UK, the product is often associated with indulgence. Fruits add to the pleasure of eating yogurt. In Spain or Portugal, where fruit is abundant, consumers prefer plain yogurt, eaten as much by children as by adults. In Italy,...
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