Online strategy of danone essay

Summary

After the researching the market of produce and common yoghurt brands in Spain we came to a conclusion the fact that best 3 brands happen to be Carrefour, Danone and Métissage Discount in the given order. One of the main features for the Carrefour’s start was the harmony between low price and high-quality with desirable packaging although Danone was your market head when regarding the market share. The purpose of the online strategy for Danone is to regain the market share it has misplaced during the years 2007 to 2013 and just how Danone can easily adapt to the economic situation without damaging the premium manufacturer position.

SWOT of Danone vacation

We chose to make Danone’s SWOT to ascertain its talents, weaknesses, options and risks in Spain. By analysis we all named actions that can be done down the road in order to increase the market share of Danone.

Strength

” quality (packaging, structure of the yoghurt

” variety of production

” well known due to the good quality and healthy goods

” development of new releases & creativity

” advertising (attracts kids)

” well-known brand

” website discount & agreements with the shops

” good financial situation

” numerous CSR actions and initiatives to advantage and support the stakeholders Weaknesses

” high charges strategy (premium brand)

” competition from big competitors in every segment, meaning limited business for Danone

” presence of countless competitors means high company switching

Opportunities

” the marketplace of healthy products is growing

” using discount coupons

” street marketing & viral marketing

” co-operation with Kellogg’s

” renewable the labels

” acquisitions and mergers

” fresh placement of healthier products

Risks

” overall economy

” rising demand for generics

” embrace cost of raw materials

” acquisition by competitor

” nevertheless competition

a few Strengths

Like a market head in terms of business, Danone’s products present many strengths, as well as the brand continue to be improve these strengths on a regular basis.

Indeed, in terms of quality, Danone’s products are the best in Spanish marketplace with healthy and balanced, tasty and good structured products. Additionally, with a one of a kind attractive the labels, Danone stands out from the others on the market. All of the its catalog give Danone the strength to fulfill perfectly the need. In this way the brand name can reply to all the customers’ needs, according to the different concentrate on groups, wants and customers’ tastes.

Many products can be seen on the internet page: http://www.danone.es/Producto/danone/#.UxzBm3kh5GM

Moreover, the corporation is focused about research and development, in addition to this way focuses a large part of its focus on development of new releases and advancement. This element makes Danone a brand concerned with the future as well as consumers’ foreseeable future needs. This is exactly why today Danone is a manufacturer with a around the world reputation, recognized by a lot of people, and an illustration for additional food-processing market brands. In addition to that, Danone features webpage discounts and deals with shops which push new clients to buy and current clients to get more.

Finally, Danone’s advertising represents an important strength to get the company because they have strong marketing campaigns. That way, the brand grabs all customer’s attention depending on target endorsed. Advertising variates depending on the products and the key targetmarket. For example , many of the brand’s advertisings are focused on kids and the needs, which can be making these products for kids very attractive. At the same time Danone is offering valuable attributes for parents to help make the final decision to really buy the product especially when considering the state of health or a daily need of certain nutritional vitamins and calcium. Moreover, all their advertisements will be brilliant to draw new clients because of their different product lines.

4 Disadvantages

High charges strategy can be viewed as a weakness for Danone when considering the economical scenario. As a high grade brand Danone has a “label of a better and more high-priced product which could drive clients to consume universal brand products. Moreover, Danone has long term competition by big competitors, like Energi Foods or perhaps Nestle, atlanta divorce attorneys segment, and Danone’s product sales decline when compared with those opponents. Finally, the presence of many rivals means excessive brand switching, which can signify an important weak point for Danone.

5 Opportunities

Danone is actually a well known manufacturer with a great reputation worldwide that implies plenty of chances in the The spanish language market. Individuals are more health concerned than in the past, and this trend is moving to the Spanish culture as well. As mentioned prior to, Danone contains a large products where healthy and balanced products including Actimel and Pro yoghurts with added protein. Specially in Spain in which the weather great and the so called bikini season is for a longer time because of the the sunshine, people usually take more care of their body shape and healthiness, which will enables Danone to promote promote its progressive and wellness concerned products to The spanish language people. Additionally as demonstrated in the graft below, the need of yoghurt is increasing year by year and therefore customers are willing to consume this sort of products.

5. 1 Discount coupons

One of the main weaknesses of Danone is the excessive pricing strategy that can make customers turn down to consume generic brand goods. Thereby Danone could start employing discount coupons in the short term. The discount coupons would be placed as part of the packaging with a 10% discount. Savings will not be able to be combined with various other discounts and it could be utilized in the next acquiring any Danone products. The key idea is to give a little discount to lower the tolerance for purchase without actually lessening the real price. At the same time this type of discount coupons makes a continuous group of friends of buy and makes stronger client relation for the products.

The real difference of the selling price would not become significant regarding to the decrease of revenues of Danone nevertheless would give added value for the customer in order to Danone goods. Since Danone would not lower the real rates but utilize this kind of low cost, it would not really harm Danone’s premium company status.

5. 2 Streets and virus-like marketing

The spanish language culture is used to the avenue marketing and offering flyers especially in the bigger urban centers as This town. Instead of giving tasting with the Danone goods in the supermarkets, it could be a great opportunity for Danone to place a stand in a centric place of a big town, give tastings and share information especially regarding the healthier products. Thereby Danone can make its most innovative and unique products familiar to the new clients. In addition , Danone could advertise its loyalty club which offers plenty of discounts.

To use all the sources of streets marketing it might be effective to produce something different that people would be able to make virus-like. It could be a small competition, adobe flash mob or a game exactly where customers may be active and be part of Danone.

In addition , it is sometimes forgotten or unknown that Danone is definitely paying large attention to environmental issues and acts socially responsible. Therefore street promoting gives Danone an opportunity to communicate with customers and possess the great function behind its products. This kind of positiveinformation is likely to leave a mark to the consumers and make them consume Danone’s products in the foreseeable future.

5. 3 New position

Danone presents healthy products and concentrates the promotion in that factor. This is why all of us decided to accumulate some healthy products in specific areas, on the first hand. For example , we wish to place healthy products, specifically products with extra healthy proteins, in sport clubs, to familiarize sport-people who like having a snack after their training, with the company, and to persuade them to consume healthy goods. On the second-hand we want to establish special equipment in personal universities to spread Danone’s products. In this way, we disperse healthy merchandise to young people, who are usually more concerned by “healthy trend than people of the older generations.

5. some Recyclable Packaging

It is true that recyclable packagings can be seen as a new concept. Even so, it is a required one. Components such as plastic-type, glass, material, cardboard or paper can be reduced. To change this, a few alternative items may be used but nevertheless maintaining stableness and top quality. It is an monetary benefit, just about every stage in the recyclable the labels offers potential savings that may make a great contribution to the environmental security. Besides the monetary factor, in addition, it encourages low energy creation technologies, reduced transportations and waste minimization.

After this research we may ask ourselves, think about Danone? We recommend a packaging in green color, which will include a resemblance with the environment. In this the labels the consumer can visualize created facts about the ecosystem, along with quotes regarding nature. To increase the interest inside the product extra souvenir will probably be provided, a disposable tea spoon in the shape of a leave, this will end up being attractive to our customers’ eyes. In this way we can differentiate themselves from the market and mainly, from our immediate competitors.

five. 5 Affiliation with Kellogg’s

5. five. 1 Kellogg’s Brand analysis

Parent Organization: Kelloggs

Category: Food processing

Sector: Food and refreshments

Tagline/ Slogan: Bring out far better to you

USP: First company to enter in readymade cereal breakfast section

Segment: Food- cereal breakfast and drinks

Target Group: Family and children looking for healthful tasty lunch break

Positioning: Healthier and yummy breakfast

Merchandise Portfolio ” Brands:

1 . Hammer toe Flakes

2 . Coco Pops

3. Chocos

5. All-Bran

5. Krave

6. Frosted Flakes

six. Froot Loops

8. Special T

on the lookout for. Eggo

10. Fibers Plus

11. Crispix

Kellogg’s key competitors

1 . Quaker

2 . Post

3. General mills

4. Torto

a few. Tilo

6. The government

six. Nestle

8. Cadbury

on the lookout for. Familia

five. 5. a couple of Kellogg’s SWOT Analysis

Strong points:

1 . Geographic Diversity: The company’s goods are promoted and sold in more than one hundred and eighty countries all over the world; the company are not seriously damage by economic problems special to one marketplace or country

2 . Great marketing initiative through various campaigns

several. “Kellogg’s small changes big differences the planet day special event

some. “Fighting hunger initiative with Walmart

5. Kellogg’s “heart healthy and balanced selection

6. Includes a global staff of over 30, 000

six. High company awareness and top of the mind breakfast cereal brand worldwide 9. Sturdy Revenue Development: Kellogg reported revenue addressing year more than year annual growth of a few. 89%, a stable and safeguarded rate that is projected to sustain into the future 10. Company Loyalty: Kellogg’s iconic red logo are available on the most the cereal boxes in the local supermarket, and drives customers back again and again

Disadvantages:

1 ) Saturation of Market: Kellogg’s products already are in practically every market around the world, so there exists little area left to get geographical development 2 . A lot of products are high in sugar content

Possibilities:

1 . Development of syndication channels far away with by using a other firm

2 . Change in life-style of consumers, insufficient time enhance consumption of ready-made-food

3. Tie-up with eating places and resorts

some. Product Advancement: Kellogg provides for years innovated and produced new brands and products, and further item innovation is probable and should fuel product sales growth

Risks:

1 ) Increasing competition in readymade breakfast portion

2 . Food regulations by federal government

three or more. Due to the increase of white labels and store brands, consumers have got a lot more choices and a lesser price part to choose from.

4. Strong competitors

your five. 5. a few Description from the strategy consisting in associating with Kellogg’s

After this vast market research of Kellogg’s organization, we found a realization that an relationship with Kellogg’s to launch a new merchandise would be a wonderful enrichment to get both Danone and Kellogg’s. Indeed, Kellogg’s believes that with every morning hours comes a new start. The company believes that when we all start with a great breakfast, wonderful things can happen. That’s why earning more of the food that we and our family find out, trust and enjoy. A variety of great-tasting, good for each of our favourites that get all of us going to ensure that we can get the most from every moment. That is how Kellogg’s will bring additional quality, taste and power to each of our brand.

five. 5. some Marketing mix of the new product

Product:

4-pack Danone yoghurt with Kellogg’s cereals attached to the yoghurt. Using one side, Danone yogurt, on the other, Kellogg’s cereals. It offers cereal lovers a substitute for milk.

Persons:

This product is aimed towards health conscious consumers, family and

kids looking for healthier, tasty and quality lunch break.

Price:

~2, 30¬ / 4-pack yoghurts

Place:

Danone’s distribution strategy is to continually be available to everyone. This means the items are allocated widely, in a number of stores and locations in order that it’s simple for customers to acquire it, just about everywhere. Danone assures easy availability thanks to an excellent network of distributors. Goods are available in quite a few supermarkets all over spain just like Mercadona, Dia, Carrefour, Eroski, Super main, etc¦.

Promotion:

Intended for the promotion of this cool product, Danone (and Kellogg’s) can penetrate the consumer’s brain using the following means:

1) Tv set Commercials

2) Social websites (Facebook and YouTube)

3) Discounts

4) Radio

Danone’s promotion strategy is additionally known for applying strategic strategies to expose their products in supermarkets, so this technique will obviously be used as well for the newest product.

five. 5. 5 Conclusion

With this strategy, the launching of any new yoghurt/cereal product, Danone wants to help the development of the intake of ultra-fresh goods at lunch break. This product will probably be introduced being a trial to start with. If the product turns out to be successful, we will widen the product line simply by introducing fresh flavors of the type of yogurt with cereals, such as blood, vanilla, chocolate, etc . An additional expansion with this new line could be Kellogg’s vintage cereals lined with Danone yoghurt.

Threats

As mentioned ahead of the economic crisis provide a challenge intended for premium brand as Danone. There can be viewed a change of consumption where the low price goes over the quality of the item. Therefore common brand happen to be gaining increasingly more market share. Yr by season there the prices of the recycleables tend to increase which gives an additional challenge pertaining to producers to hold the final value customer friendly but still obtain revenues.

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