Danone Yakult

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DANONE – FUTURE STRATEGY IN INDIA
Background:

Danone, a French company, is the world’s sixth largest packaged food company and the world’s leading dairy player. It believes in mergers and acquisitions in order to fuel its geographic and product-line expansion. It has positioned itself as a Health and Wellness company. It operates under four business divisions-
• Fresh dairy products,
• baby nutrition
• water and
• health nutrition

Danone’s brand strategy has been focused on health benefits and convenience.
Danone and the Wadia group own equal stakes in Associated Biscuits International Holdings, Britannia’s controlling shareholder. Both companies have been in discussions to untangle differences over issues that range from intellectual property rights(IPR) in Britannia’s popular Tiger brand, a minority stake purchase by Danone in Bangalore-based nutraceuticals firm Avesthagen, and Danone’s application to the Indian government to do business in India on its own.
Yakult, a Japanese player, is engaged in the manufacturing and selling of food and beverages, pharmaceuticals and cosmetics. It pioneered the concept of probiotics and its probiotic milk called yakult is its flagship product. It aims to provide a healthy life to as many people as possible
Danone brought in Yakult. The JV formed is restricted to the Indian market. The main reason for choosing Yakult was their unique product line. The 50-50 JV (equity alliance) was formed between Yakult and Danone in 2005 to manufacture and market probiotic curd in India.

Objective: By means of the project, we are trying to pursue the following learning objectives:
• To diagnose and solve the key issues ingrained in an international joint venture
• To apply the course takeaways in a practical scenario (the given case) such that the relevance/limitations of stated theories can be understood
• Formulate a comprehensive case, based on company and industry archives, for future analysis

Proposed

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