After the market research of industry and generic yogurt trade names in Spain we came to a decision that the best three trade names are Carrefour. Danone and Carrefour Discount in the given order. One of the chief properties for the Carrefour’s first topographic point was the balance between low monetary value and good quality with attractive packaging even though Danone was the market leader when refering the market portion. The purpose of the selling scheme for Danone is to derive back the market portion it has lost during the old ages 2007 to 2013 and how Danone can accommodate to the economic state of affairs without damaging its premium trade name place.
SWOT of Danone in Spain
We decided to do Danone’s SWOT to find its strengths. failings. chances and menaces in Spain. By the analysis we named action that can be done in the hereafter in order to increase the market portion of Danone.
– quality ( packaging. construction of the yogurt.
– assortment of merchandise line
– good known for its good quality and healthy merchandises
– development of new merchandises & A ; invention
– advertisement ( attracts childs )
– known trade name
– web page price reduction + understandings with the stores
– strong fiscal state of affairs
– a figure of CSR activities and enterprises to profit and back up the stakeholders Failings
– high pricing scheme ( premium trade name )
– competition from large rivals in every section. which means limited market portion for Danone
– presence of many rivals means high trade name exchanging
– the market of healthy merchandises is turning
– utilizing price reduction vouchers
– street selling & A ; viral selling
– cooperation with Kellogg’s
– renewable packaging
– acquisitions and amalgamations
– new arrangement of healthy merchandises
– economic crisis
– lifting popularity of generics
– addition in cost of natural stuffs
– acquisition by rival
– though competition
As a market leader in footings of market portion. Danone’s merchandises present many strengths. and the trade name continues to better those strengths all the clip. Indeed. in footings of quality. Danone’s merchandises are the best in Spanish market with healthy. tasty and good structured merchandises. Furthermore. with a alone attractive packaging. Danone stands out from the other trade names on the market. The assortment of its merchandise lines give Danone the strength to run into absolutely the demand. In this manner the trade name can react to all the customers’ needs. in conformity with the different mark groups. wants and customers’ gustatory sensations.
All the merchandises can be seen on the web page: hypertext transfer protocol: //www. danone. es/Producto/danone/ # . UxzBm3kh5GM
Furthermore. the company is focused on research and development. and in this manner concentrates a big portion of its work on development of new merchandises and invention. This aspect makes Danone a trade name concerned about the hereafter and its consumers’ hereafter needs. This is why today Danone is a trade name with a world-wide repute. good known by most of the people. and an illustration for other food-processing industry trade names. In add-on to that. Danone has web page price reductions and understandings with stores which push new clients to purchase and current clients to purchase more.
Finally. Danone’s advertisement represents an of import strength for the company because they have strong selling runs. This manner. the trade name catches all customer’s attending depending on the mark endorsed. Ad random variables depending on the merchandise line and the chief mark market. For illustration. many of the brand’s advertisements are focused on childs and their demands. which is doing the merchandises for childs really attractive. At the same clip Danone is giving valuable properties for parents to do the concluding determination to really purchase the merchandise particularly when it comes to the good health or a day-to-day demand of certain vitamins and Ca. Furthermore. their advertizements are superb to pull new clients for their different merchandise lines.
High pricing scheme can be considered as a failing for Danone when sing the economical state of affairs. As a premium trade name Danone has a “label” of a better and more expensive merchandise that can drive clients to devour generic trade name merchandises. Furthermore. Danone has permanent competition from large rivals. like Kraft Foods or Nestle . in every section. and Danone’s gross revenues decline compared to those rivals. Finally. the presence of many rivals means high trade name shift. which can stand for an of import failing for Danone.
Danone is a good known trade name with a great repute worldwide that implies plentifulness of chances in the Spanish market. Peoples are more wellness concerned than of all time. and this tendency is doing its manner to the Spanish civilization as good. As mentioned before. Danone has a big merchandise line where healthy merchandises such as Actimel and Pro yogurts with added protein. Particularly in Spain where the conditions is good and the so called Bikini season is longer because of the warm conditions. people tend to take more attention of their organic structure form and good health. which enables Danone to advance and sell its advanced and wellness concerned merchandises to Spanish people. In add-on as shown in the transplant below. the demand of yogurt is increasing twelvemonth by twelvemonth significance that clients are willing to devour such merchandises.
5. 1 Discount vouchers
One of the chief failings of Danone is the high pricing scheme that can do clients turn off to devour generic trade name merchandises. Thereby Danone could get down utilizing price reduction vouchers temporarily. The vouchers would be placed as portion of the packaging with a 10 % price reduction. Discounts will non be able to be combined with other price reductions and it could be used in the following purchase of any Danone merchandises. The chief thought is to give a little price reduction to take down the threshold for purchase without really diminishing the existent monetary value. At the same clip this sort of price reduction vouchers creates a uninterrupted circle of purchase and creates stronger client relation for the merchandises.
The existent difference of the monetary value would non be important sing to the loss of grosss of Danone but would give added value for the client to devour Danone merchandises. Since Danone would non take down the existent monetary values but use this sort of price reduction. it would non harm Danone’s premium trade name position.
5. 2 Street and viral selling
Spanish civilization is used to the street selling and passing out circulars particularly in the bigger metropoliss as Madrid. Alternatively of giving tasting of the Danone merchandises in the supermarkets. it could be a great chance for Danone to put a base into a centric topographic point of a large metropolis. give tastings and portion information particularly about the healthy merchandises. Thereby Danone can do its most advanced and particular merchandises familiar to the new clients. In add-on. Danone could publicize its trueness nine that offers plentifulness of price reductions.
To utilize all the beginnings of street selling it would be effectual to make something catchy that people would be able to do viral. It could be a little competition. flash rabble or a game where clients can be active and be portion of Danone.
In add-on. it is frequently disregarded or unknown that Danone is paying high attending to environmental issues and Acts of the Apostless socially responsible. Therefore street selling gives Danone an chance to pass on with clients and show the great work behind its merchandises. This sort of positive information is likely to go forth a grade to the clients and do them devour Danone’s merchandises in the hereafter.
5. 3 New arrangement
Danone offers healthy merchandises and concentrates its publicity on that facet. This is why we decided to garner some healthy merchandises in specific topographic points. on the first manus. For illustration. we want to put healthy merchandises. particularly merchandises with excess protein. in athletics nines. to familiarise sport-people who like holding a bite after their preparation. with the trade name. and to convert them to eat healthy merchandises. On the 2nd manus we want to set up particular machines in private universities to distribute Danone’s merchandises. In this manner. we distribute healthy merchandise to immature people. who are more concerned by the “healthy trend” than people of the older coevalss.
5. 4 Reclaimable Packaging
It is true that reclaimable packagings may be seen as a new construct. However. it is a necessary 1. Materials such as plastic. glass. metal. composition board or paper may be reduced. To replace this. some alternate merchandises may be used but still keeping stableness and quality. It is an economic benefit. every phase of the reclaimable packaging offers possible nest eggs that can do a great part to the environmental protection. Besides the economic factor. it besides encourages low energy production engineerings. reduced transits and waste minimisation.
After this analysis we may inquire ourselves. what about Danone? We recommend a packaging in green colour. which will hold a resemblance with the environment. In this packaging the consumer will be able to visualise written facts about the ecosystem. every bit good as quotation marks about nature. To increase the involvement in the merchandise an excess keepsake will be provided. a disposable spoon in the form of a leave. this will be attractive to our customers’ eyes. In this manner we can distinguish ourselves from the market and largely. from our direct rivals.
5. 5 Association with Kellogg’s
5. 5. 1 Kellogg’s Brand diagnosing
Parent Company: Kelloggs
Class: Food processing
Sector: Food and drinks
Tagline/ Slogan: Bring out best to you
USP: First company to come in into readymade cereal breakfast section
Section: Food- cereal breakfast and drinks
Target Group: Family and kids looking for healthy tasty breakfast
Positioning: Healthy and tasty breakfast
Product Portfolio – Trade names:
1. Corn Flakes
2. Coco Pops
6. Frosted Snowflakes
7. Froot Loops
8. Particular K
10. Fiber Plus
Kellogg’s chief rivals
3. General Millss
6. Uncle Sam
5. 5. 2 Kellogg’s SWOT Analysis
1. Geographic Diverseness: The company’s merchandises are marketed and sold in more than 180 states around the universe ; the company will non be earnestly hurt by economic jobs sole to one market or state
2. Great selling enterprise through assorted runs
3. “Kellogg’s little alterations large differences” earth twenty-four hours jubilation
4. “Fighting hunger” enterprise with Walmart
5. Kellogg’s “heart healthy selection”
6. Have a planetary work force of over 30. 000
7. High trade name consciousness and top of the head breakfast cereal trade name globally 9. Solid Gross Growth: Kellogg reported gross stand foring twelvemonth over twelvemonth one-year growing of 3. 89 % . a stable and unafraid rate that is projected to prolong into the future 10. Brand Loyalty: Kellogg’s iconic ruddy logo can be found on the bulk of the cereal boxes in your local supermarket. and drives clients back once more and once more
1. Impregnation of Market: Kellogg’s merchandises are already in about every market around the universe. so there is small room left for geographical enlargement 2. Some merchandises are high in sugar content
1. Development of distribution channels in other states with aid of other company
2. Change in life style of consumers. deficiency of clip addition ingestion of ready-made-food
3. Affiliation with eating houses and hotels
4. Merchandise Invention: Kellogg has for old ages innovated and created new trade names and merchandises. and farther merchandise invention is likely and should fuel gross revenues growing
1. Increasing competition in readymade breakfast section
2. Food ordinances by authorities
3. Due to the addition of white labels and shop trade names. consumers have a batch more picks and a lower monetary value section to take from.
4. Strong rivals
5. 5. 3 Description of the scheme dwelling in tie ining with Kellogg’s
After this broad market research of Kellogg’s company. we came to a decision that an association with Kellogg’s to establish a new merchandise would be a great enrichment for both Danone and Kellogg’s. Indeed. Kellogg’s believes that with every forenoon comes a new beginning. The company believes that when we start with a great breakfast. great things can go on. That’s why they make more of the nutrients that we and our household know. trust and enjoy. A assortment of great-tasting. good for our front-runners that get us traveling so that we can do the most of every minute. That is how Kellogg’s will convey extra quality. gustatory sensation and power to our trade name.
5. 5. 4 Marketing mix of the new merchandise
4-pack Danone yogurt with Kellogg’s cereals attached to the yogurt. On one side. Danone yoghurt. on the other. Kellogg’s cereals. It offers cereal lovers an option to milk.
This merchandise is directed towards health-conscious consumers. household and
kids looking for healthy. tasty and quality breakfast.
~2. 30ˆ / 4-pack yogurts
Danone’s distribution scheme is to ever be available to everyone. This means the merchandises are distributed widely. in a assortment of shops and locations so that it’s easy for clients to buy it. everyplace. Danone warrants easy accessibility thanks to a great web of distributers. Their merchandises are available in legion supermarkets all over spain such as Mercadona. Dia. Carrefour. Eroski. Super nucleus. etc… .
For the publicity of this new merchandise. Danone ( and Kellogg’s ) will perforate the consumer’s head utilizing the undermentioned agencies:
1 ) Television Commercials
2 ) Social Media ( Facebook and YouTube )
3 ) Discount vouchers
4 ) Radio
Danone’s publicity scheme is besides known for utilizing strategic ways to expose their merchandises in supermarkets. so this scheme will of class be used every bit good for the new merchandise.
5. 5. 5 Decision
With this scheme. the launching of a new yoghurt/cereal merchandise. Danone wants to lend to the development of the ingestion of ultra-fresh merchandises at breakfast. This merchandise will be introduced as a test in the first topographic point. If this merchandise turns out to be a success. we will widen this merchandise line by presenting new spirits of this type of yogurt with cereals. such as strawberry. vanilla. cocoa. etc. Another enlargement of this new line could every bit good be Kellogg’s authoritative cereals coated with Danone yogurt.
As mentioned before the economic crisis give a challenge for premium trade name as Danone. There can be seen a alteration of ingestion where the low monetary value goes over the quality of the merchandise. Therefore generic trade name are deriving more and more market portion. Year by twelvemonth at that place the monetary values of the natural stuffs tend to increase which gives an excess challenge for manufacturers to maintain the concluding monetary value client friendly but still acquire grosss.