Marketing Plan for Danone Flavored Yoghurt
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Danone is the world’s largest fresh dairy company with a thousand cups of Danone offerings being consumed every second around the world. It operated in India through a joint venture with the Britannia group till 2009. After the split, Danone India was setup as a wholly owned subsidiary of GroupeDanone with the aim of promoting fresh diary and milk products.
The dairy industry benchmark suggests that the packaged yoghurt market in India could be about 60,000 tonnes, while the indigenous market comprising curd sold in loose pouches by local dairies may be about 140,000 tonnes. The major players in the organized segment include Amul, Nestle and some smaller regional players like Nandini in Karnataka and Milma in Kerala.
Thus, India presents a promising opportunity to Danone especially with it’s differentiated emphasis on quality and freshness. With this in mind, Danone has launched it’s line of yoghurt in the select markets of Mumbai and Pune and is now targeting a market share of 12% in 5 years. This report outlines the marketing strategy decided by Danone to achieve these targets.
Groupe Danone is engaged in the marketing and production of fresh dairy product and beverages. It is headquartered in Paris and is the fifth largest packaged food company in the world with just over 1% shares of global sales – 1786 billion US$ in 2008. In recent years, the company has refocused it’s operation into three core markets – water, fresh dairy products, baby food and medical nutrition. Danone’s principle product is Yoghurt. It is the world’s leading company in yogurt with 24% value sales in product category.
Mission – Danone’s mission is to provide healthy food products to as many people as possible. Our rationale for choosing Danone yoghurt is based on the following alarming statistics – Under-nutrition contributes to 53 percent of the 9.7 million deaths of children under five each year in developing countries such as ours
Iron deficiency is the most prevalent form of malnutrition worldwide, affecting an estimated 2 billion people. It is impairing the mental development of 40-60 percent children in developing countries Vitamin A deficiency affects approximately 25 percent of the developing world’s pre-schoolers. It is associated with blindness, susceptibility to disease and higher mortality rates. It leads to the death of approximately 1-3 million children each year.
Iodine deficiency is the greatest single cause of mental retardation and brain damage. Worldwide, 1.9 billion people are at risk of iodine deficiency, which can easily be prevented by adding iodine to salt In light of the above, we found the following characteristics inherent in Danone yoghurt which made it more than just a convenient tasty snack:
DANONE YOGHURT is fortified with 4 micro nutrients : Vitamin A, Iron, Zinc and Iodine keeping in mind the sheer number of Indians who suffer from deficiency of some or all of these nutrients
Other benefits of yoghurt are:
The smooth creamy texture of yogurt comes from lactic acid, which is formed when milk ferments. Fermentation occurs using two lactic bacteria: Streptococcus thermophilus and Lactobacillus delbrueckii var. bulgaricus.
During fermentation, between 20 and 30% of milk's lactose is converted to lactic acid. Since yogurt contains bacteria such as ß-galactosidase, those who are lactose-intolerant can tolerate it better when they eat it. Yogurt's texture makes it easier to digest. Due to its thickness, yogurt takes longer to move through the digestive system, allowing the lactase enzyme to break down lactose...
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