Danone Strategy

This case study was written in close collaboration with Danone's general manager. Mr. Laurent SACCHI, chairman and Charlotte PASTERNAK, who is in charge of news and external communication, made a great contribution to the development of case studies.

Starting organization: Strasbourg University EM Strasbourg Business School, Jean Moulin Lyon 3 University IAE Lyon

The main purpose of this partnership is to reach a marginal scale to endure competition in Europe. Activities are mainly focused on packaging glass and glass. Since its founding, the BSN Group has been managed by Antoine Riboud, president and managing director of family-run Souchon-Neuvesel. In order to achieve ambitions in the glass manufacturing industry, the BSN group acquired Compagnie de Saint-Gobain in 1968 but the acquisition attempt failed.

In 1969, the BSN Group decided to enter the food processing industry by acquiring three important customers in the glass packaging business. As a result of these three projects, it became the market leader of French beer and mineral water. This shows that companies are trying to expand to make products easier while using complementarity between activities.

In 1973, the BSN group merged with Gervais Danone (see Box 1). Antoine Riboud aims to become one of the world leaders in the food processing industry by Daniel Carasso, director of both companies. After the merger, food processing accounted for 52% of the sales of the new BSN Gervais Danone group.

"Targeting malnutrition" is the main marketing strategy for Danone to sell yoghurt in Bangladesh. It was a joint venture between Grameen and Groupe Danone, founded a factory for poor people to produce nutritious yoghurt. The picture shows that about 50% of the children in Bangladesh are malnourished. This project is further integrated into the rural community through links with rural communities. Farmers work in the factory. Farmers can earn $ 60 a week - this is equivalent to the total amount in rural areas of Bangladesh. Every day, a small three-wheel transport vehicle from a local village brings milk and mixes with locally produced sugar and other ingredients. It is then poured into cans and tested to ensure that it does not contain any harmful bacteria. To maintain freshness, nutrients are added to the yoghurt. A week outside the fridge

Danone's main marketing strategy is to build a brand in India and expand market share, so Danone needs to adopt market penetration pricing technology. The price of this product is competitive, guarantees a wider range of consumer products and ensures significant growth. The operating costs related to retailing of manufacturing, marketing, distribution, seasoning 100 grams are as follows. - The purpose of the advertising program is to increase awareness of the brand and emphasize product quality, taste and nutritional value. . Because Danone is a newcomer in India and flavor yogurt is in the introduction stage of the Indian market, advertising creates adequate product category recognition among customers and does not stimulate enough interest to promote product testing There is no doubt. Advertising will also raise the brand awareness of Danone Group and tell consumers that Danone is the world's largest dairy company.