11 March, 2010 Paris
2 Life stages Danone brings health trough food at all life stages Maintain
PRODUCT SAFETY PRODUCT CONFORMITY PRODUCT SUPERIORITY Commit to Food safety DeliverQuality Guarantee Brand Superiority Quality management system alignment with consumers expectations
4 OPERATIONS FROM PROJECT BRIEF TO Specs'’ FROM Spec's TO FINISHED PRODUCTS MARKETING FROM PRODUCT OFFER TO CONSUMERS FEEDBACK MARK./ R&D Feedback for continuous improvement Quality in product design Quality in execution QUALITY SCOPE THROUGHTOUT THE PRODUCT LIFE CYCLE
Fast Moving Consumer Goods Development Time Time to market between 6 months and 3 Years (Health Benefits) Development Costs Turnover 15 Billions – Development between 1.6% and 5% Headcount 90,000 – R&D Team: 900 Managers R&D spending / Blockbuster –breakthrough: €Mio10 up to 50 Patents 25/year (Product, process, logos, …)
Organizational Chart –Product Life cycle PRODUCT GOVERNANCE
Building an integrated System within all the company’s areas PRODUCT GOVERNANCE Contributor
Regulatory Conformity Evolving Consumer Demands Medical / Science Risk / Benefit Assessment Wide-ranging Consumer expectations Brand Image Reputation Marketing Surveys NGO Lobbying Official Marketing Authorization Claim Validation Get it Right First Time R&D Costs Listing Fees Advertising Capital Expenditures Stakeholders Trust Suppliers Development Withdrawal Recall Consumer associations Clinical Tests Law Suit Class Action Gross Loss
Food Regulation & Quality Systems HEALTH BENEFITS PRODUCT SAFETY NUTRITION ADVANCED NUTRITION FOOD REGULATION ON CONTAMINANTS REGULATION ON NUTRITIONAL & LABEL CLAIMS REGULATION ON ENRICHED PRODUCT REGULATION ON HEALTH CLAIMS Nutrition claim: low fat, no added sugar, high in fibre… enriched in vitamins & nutrients to compensate for deficiencies Label of quality: AOC/ Organic / GMO free Health claim: reduce blood cholesterol level, reinforce the body’s natural defenses…. increase in satiety… reduction in disease risk, contribution in children’s health… Contaminants: ALARA - as low as reasonability achievable in order to protect public health
SELECT DEFINE DEVELOP IMPLEMENTLAUNCH PROJECT MANAGEMENT SYSTEM
SELECT Project Brief Design: Product, Packaging, Environment, Health Claim Industrial Manufacturing processes, Warehousing, Engineering Regulatory In force, to come Supply Chain Sales planning, production planning, distribution planning Sales Distribution channel Supplying Raw material, Packaging Finance Marketing contribution FEASIBILITY STUDIES DESIGN INPUTS QUALITY
DEFINE Project Planning Critical Path and Time optimization DESIGN PLANNING PROJECT APPROVAL QUALITY
DEVELOP DEVELOPMENT DESIGN VERIFICATION BRIEF CLAIM DESIGN PACKAGING DESIGN PRODUCT DESIGN Validation process Product; Raw Material & Packaging, Health claim QUALITY
IMPLEMENT Specifications Product; Raw Material & Packaging, Process, advertising, health claim… Control Plan Monitoring Plan Launch Recommendation Project Team DESIGN OUTPUTS LAUNCH RECO QUALITY
LAUNCH LAUNCHING Launch Monitoring Product, Advertising Post launch Monitoring Product, Advertising “Post Mortem Analysis Product, Advertising Negative side effect QUALITY