1.1 Company & SBU Analysis
The Danone Group is a Fortune 500 company, with its headquarters located in France, is one of the most successful healthy food companies in the world. Its mission is to “bring health through food to as many people as possible” (Group Danone). Fulfilling this mission is a major contributor to Danone’s continuous rapid growth. Danone is an internationally recognized company with 160 plants, around 80,000 employees, and has a presence in all five continents located in over 120 countries. In 2008, Danone recorded € 15.2 billion worldwide in sales. Danone enjoys leading positions on healthy food in four businesses: fresh dairy products (number 1 worldwide), water (number 2 on the packaged water market), baby nutrition (number 2 worldwide) and medical nutrition (Group Danone). The group's leading fresh dairy brands include Danone, Actimel, Activia Danacol, Danonino and Vitalinea. It is the world's top manufacturer of such products in terms of volume, achieving sales of 3.2 million tonnes in 2008. This division accounts for approximately 60 per cent of the firm's sales. Its worldwide market share is approximately 28 per cent and its dairy products are available in around 40 countries (Group Danone). Danone Canada
Although Danone is a huge international success, their presence in the Canadian market is not nearly the monopoly it is on a global scale. Danone Canada focuses the majority of their attention to the dairy market, where they produce, distribute, and market their many different yogurt products. Today, with brands such as Danino, DanActive, Activia, Silhouette, Danone Creamy and Danissimo, Danone is the top yogurt producer across Canada possessing a majority 52% market share (Danone Canada). They have doubled production in four years to some 340 million tubs annually, which is over 75,000 tons of yogurt. With 52% market share, the growth rate is steady and revenues are at over $250 million a year. Danone Canada’s mission is to “encourage Canadians to eat fresh dairy products by offering them the select brands they enjoy” (Danone Canada). “The goal is to maintain profitable growth for our associates, partners, and shareholders and to help make the world a better place. But our ambition doesn’t stop there; we want to become the undisputed industry leader by offering strong brands that meet the highest quality standards” (Danone Canada). Danone Canada produces thirteen different types of yogurt within their five brands, and with each type of yogurt, there is anywhere from five to fourteen different flavours to choose from (See Chart in Section 1.2 for brand listing). Their leading “Activia” brand is the company’s claim to fame as they offer numerous health benefits as a result of consuming this product. Activia differentiates itself from the competition due to the pro-biotic nature of the product; Activia yogurt has all the great flavours and rich, creamy texture of its other yogurts, however it contains BL Regularis strain (Bifidobacterium lactis); which is a friendly bacteria that remains active in the digestive system (Danone Canada). Each serving contains over a billion of these live BL Regularis bacteria, which makes Activia so exceptional and attractive to consumers.
1.2 Current Company Product Analysis - Activia
Danone Canada sells many brands of yogurt, each with unique consumer target and position. Each brand of yogurt is infused with different types of probiotics and vitamins depending on the target market. Different brands of yogurt offered by Danone Canada along with their health benefits are as follows: Brand of Danone Yogurt
Activia (regular, and fat-free)
| Contains the probiotic: BL Regularis Strain; good for digestive system
| Contains unique bacteria: L. casei Defensis; helps strengthen the body’s natural defenses
| Made especially for kids; contains twice as much calcium as most other yogurts and is a good source of...
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