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Harsh Ruia Lin Qi Mathis Cohen Qian Cheng Wang Xiao nan Yang Yang.

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Presentation on theme: "Harsh Ruia Lin Qi Mathis Cohen Qian Cheng Wang Xiao nan Yang Yang."— Presentation transcript:

1 Harsh Ruia Lin Qi Mathis Cohen Qian Cheng Wang Xiao nan Yang Yang

2 Yogurt Yogurt seems to be paid more and more attention GlobalUnited Kingdom Why do we choose yogurt? Google Trend

3 Group Danone is in the 7 th place in global food companies, and the Danone yogurt (Activia) has second largest market share in UK. Rank of food companies In global market (by Oxfam) Top 10 Yogurt Companies in UK The food companies competition in global market and UK

4 POLITICAL/LEGALECONOMICSOCIAL/CULTURALTECHNOLOGICAL TREND Political stable. Law protecting from takeover. UK government has taken a proactive stance towards rising obesity levels. More strict regulations of food safety Inflation rate falls down Cash-strapped consumers Recovery from the recession Unemployment stabilized at7.7% GDP growth 0.8% last term Higher awareness about health High level of obesity Busy lifestyle Increasing consumer spending & confidence Increasing interest in sports club among kids Healthier ingredients Innovation of flavor IMPLICATION Steady domestic market Supporting activities held by the government enhance the domestic demand Increasing willingness to spend More price-sensitive consumers intensify price competition between companies Obesity & increasing health consciousness affect demand positively Increasing demand of yogurt as a healthy and convenient food Natural foods and exercise are strong substitutes More enjoyable and innovative products stimulate consumers’ demand PEST Analysis: Describing a framework of macro-environmental factors

5 The internal environment– The strength and weakness Making assessment in order to develop a realistic and achievable strategy for Danone yogurt in UK

6 The Strategic SWOT analysis – Achievable goals or objectives to be set Informing later steps in planning to achieve the objective

7 ??? Consultants 7 Differentiation Strategy  Create a close relationship with consumer (Yoghurt day, fidelity program,…) Product development strategy  Extend portfolio kids products  Create a pleasure focus products (less healthier, better taste)  Create man focus recipe  Make vegetarian range Market Penetration Strategy  Negotiate larger space in Yoghurt section in super market  Integrate Danone Yoghurt in lunch deal (Costa, Market Place, Food Truck,…) Cost Leadership Strategy  ‘Low-price/price promotions’ to increase market share thus strengthen position 3. The Strategic SWOT analysis – identifying the alternatives for future success

8 8 Product development : Launch a yogurt designed for kid Low cost of development as the product already exist in the Danone portfolio in other country. A very strong brand image in the children market on sport and healthy food (Danone World cup for kid, in 2013 in Wembley London). Less intensive competition in comparison with that of adult market. National awareness on the importance of a vary alimentation for children as a method to struggle against obesity. Good understanding of the importance of Calcium and vitamine D for growth of kids. A very good way to educate children and their mother on the important of Yoghurt in the healthy diet  Focus on the importance of nutrition (e.g calcium) for kids. Strategy choice: Product development strategy

9 % boys% girls 5 to 10 years old to 15 years old The percentage of children who did sport in the last 4 weeks, by age and sex, 2010/1 The percentage of children who need calcium and vitamin D to grow % boys% girls 5 to 10 years old to 15 years old100 Segmentation: How to segmenting a kid market? – Yogurt for kid 1/2 It is hard to segment kids

10 Segmentation: How to segmenting a kid market? – Yogurt for kid 2/2 The solution : family behavior (with a focus on mother) ! Cluster 1: lack time, money and knowledge Cluster 2: lack the knowledge and parenting skills to improve their family’s lifestyle Cluster 3: affluent, overweight families who over- indulge in unhealthy foods Cluster 4: live healthily Cluster 5: strong parenting skills but need to make changes Cluster 6: plenty of exercise but too many bad foods

11 ??? Consultants Segmentation: How segmentating a kid market ? - Yoghurt for kid 3/3 More details on our main cluster. Sources: Source: TNS Childhood Obesity Consumer Segmentation Research Custer 4Custer 5Custer 6 Family dietStrong interest in healthy diet. Strong parental control but diet rich in energy- dense foods and portion size an issue. Eating motivated by taste, diet includes both healthy and unhealthy foods. Physical ActivityFamily active although believe children not confident doing exercise. Know they need to do more: time, money, self- confidence seen as barriers Activity levels are high Social classABC1C2 Intent of changeLow intent to change but already leading a healthy lifestyle. Low intent on diet but significant intent to change on physical activity. Highest among the clusters for both diet and physical activity.

12 Cluster1 Cluster2 Cluster3 Cluster4 Cluster5 Cluster6 ‘Differentiated’ Targeting: Focus on the most promising segments! Targeting strategy: Differentiated Targeting Cluster 4: living healthily Cluster 5: strong parenting skills but need to make changes Cluster 6: plenty of exercise but too many bad foods Distinct: Strong interest in healthy diet, active but not focus on sport Significant intent to change on physical activity and diet rich in energy- dense foods Activity levels are high and diet drove by taste Accessible through multi- platform advertising campaign on importance of yoghurt in children healthy diet through multi- platform advertising campaign on importance of yoghurt for healthy sport performance / store promotion Measurable through age groups of mums (mainly year-olds) and the social class (AB) through age groups of mums (mainly and year-olds) and the social class (C1) through age groups of mums (mainly year- olds) and the social class (C2) Profitable segment stands for 17% of consumer market segment stands for 19,1% of consumer market segment stands for 17% of consumer market 52% Potential consumer

13 Typical Values Per 100g Tiny-TimsMuller Little Star Yeo Valley – Little Yeos Yoplait Kids Energy405kJ/97Kcal411kJ/98Kcal457kJ/109Kcal405kg/96kcal Carbohydrate(of which sugars) 11.7g (of which sugars 10.8g) 13g (of which sugars 12.1g) 11.9g (of which sugars 10.4g) 12.6g(of which sugars 12.2g) Protein4.7g3.7g5.1g5.3g Fat(of which saturates) 3.5g (of which saturates 2.2g) 3.1g (of which saturates 1.9g) 4.6g (of which saturates 3.1g) 2.3g (of which saturates 1.6g) Fibre0.1g Trace0.1g Sodium0.08g0.1g Calcium140mg108mg200mg150mg Positioning: Developing the image of our product in consumer’s mind Nutrition information of our main competitors

14 Positioning: Developing the image of our product in consumer’s mind Nutrition-Age Axes – Where are our competitors and Where do we want to be 0-5yrs5-10yrs Nutrition Age Focusing on kids from 5-10 Offering nutrimental Lifestyle Developing energetic kids

15 Positioning: Developing the image of our product in consumer’s mind Nutrition-Price Axes – Where are our competitors and Where do we want to be Nutrition Price HealthyPositiveOptimistic We worth it !

16 SMARTT Long term and Short term objectives for our strategy Increase Danone’s market share in the UK to and better market penetration., brand loyalty and equity,and increase in the total turnover by 10%. Long-term objectives Reenforce the R&D lab on nutrition raising number of products in the uk from 5 to 6 Be the first kid yoghurts company (aiming to 50% of the market share) Increasing the Product Awareness in the uk through market penetration and marketing Maintenance / increase in the market share by 40-50% Short-term objectives Achieved through product development and segmentation as the quality leader by targeting 1. Kids 2. Mothers

17 Cluster 4: living healthily Cluster 5: strong parenting skills but need to make changes Cluster 6: plenty of exercise but too many bad foods Product  drinkable yoghurts (30g)  Rich nutrition (high quality)  Natural flavour  classic yoghurts (50g)  Rich nutrition (high quality)  New flavour  In large batch  Rich nutrition (high quality)  Generous flavour Price  Premium Pricing  Market Pricing  Competitive Pricing Place  Increase stores presence (on street and on line) Promotion  Create a trendy brand for the children (“you’re cool if you have it”) with advertising campaign to support it  TV& online ads Partnership with primary school. Take the Danone kids yogurt as a break time dessert Public Relationship campaign on the importance of yoghurt to children healthy diet (campaign in children medical centre, special web site to help mother to cook healthy diet, specialized press ) Sales promotion of “family packs”(yogurts for all family members, including parents and kids) and 3 for 1 discount. Public relationship on the importance of a daily yoghurts for kids to practice sport (explicative tv/radio spot with a moral support) Provide free trial yogurt in Parks, sports club etc. Public relationship on the importance of a daily yoghurts for kids to practice sport (explicative tv/radio spot with a moral support) and in sport club (which are frequently use by the mother. Marketing Mix: What does our product offer Product – Price – Place – Promotion

18 Implementation Control: Assessment of the overall strategy Continuously questions the basic direction of the strategy

19 Appendix

20 1919, Barcelona, Spain, Isaac Carasso, · Named after his son Daniel. · Manufacturing Yogurt 1929, Daniel Carasso launched Danone in Paris and business was good. 1941, entrusted Danone France to Norbert Lafont and Danone Spain to Luis Portabella · Founded Dannon US 1945,rebuilding French and Spanish businesses. · Lost interest in the US market; · Back to BSN Gervais Danone in , fusion with Gervais, · Gervais-Danone company. 1972, Daniel Carasso and Antoine Riboud. · Merged their two companies. · Making Danone into a world brand Danone: History of the group

21 Fresh Dairy Product --- Yogurt Water Baby Nutrition Danone : some information over the range of brands

22 Segmenting more information on the Cluster

23 Positioning : price information


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