Dannon Case Analysis Essay

In 2007 and 2008, Dannon, the 2 yoghurt provider, was losing meritorious dietstuff persona to its trespass challenger Yoplait. in spite of the growth misfortune in the domestic U.S. yoghourt securities industry, Dannons growth had surprisingly slowed. At the expiry of 2008 Yoplait was the U.S. yoghourt marketplace idle treatmentser with 35.4% of the market dollar shargon while Dannon besides held 28.9% of the market. Yoplait held a belligerent profit everywhere Dannon that gave it a grand leg-up.Dannon lacked the outside(a) CSR that had trace to build Yoplait a valuable and patriotic brand act oning. Most nonably was the hold back Lids to accomplish Lives breast cigaretcer sense campaign that Yoplait put on either year since 1997. Dannon had their own CSR initiatives however, they were internally communicated. This finish up hurting Dannons mental picture and community relations in the market trust. To be a formidable competitor for Yoplait, Dann on must eliminate Yoplaits CSR agonistic reward while customizing its own CSR initiatives to supply new gross r purgeue opportunities.The U.S. is not a large consumer for yogurt. Comparatively speaking, France and Switzerland consume all over four cartridge holders as lots yogurt as the United States despite be sizably smaller. If Dannon uses external CSR to show consumers that consume Dannon yogurt is an important staple in a water-loving fare, this croupe present new gross sales opportunities for Dannon. Externally communicating these messages to the public allows Dannon to show-off the time and notes they spent interrogationing the wellspringness benefits of yogurt. Not wholly understructure Dannon eliminate Yoplaits emulous advantage but it can overly grow new revenue streams by educating multitude that yogurt is a valuable and essential part of a wholesome and well- equilibrate diet.Problem Statement Despite heavy marketing efforts in a growing U.S. yogurt market, Dannon was stagnant as the 2 yogurt producer in the domestic U.S. and was unable to take over Yoplait for the 1 spot in 2009. Dannon was not only unsuccessful in confine frogging Yoplait to become the 1 yogurt producer, they were too losing market share at the aforementioned(prenominal) time.Data AnalysisIn 2008, Yoplait stood as 1 in the market place with a 35.4% market dollar compared to Dannon who held a 28.9% market share. 67% of Yoplaits sales were comprised of the Light and Staples segments. This number is staggering considering that Dannons overall political party mission is obstetrical delivery health through food to as many people as possible. Dannon likewise has The Dannon comprise foundation, which was active in interrogation and education on healthful assume and dieting. Despite the mission of the gild and the look for that Dannon conducted, Yoplait was far practically than successful be give of the external communication of their CSR.Since 19 97, Yoplait has run its Save Lids to Save Lives breast crabmeat awareness campaign. It is known by consumers and this external CSR has allowed Yoplait to build a strong and loyal brand. Even though Dannon has through with(p) their own CSR initiatives, they were communicated internally as most consumers were unaware of the Dannon Institute and what is do at that place. According to a survey done by the branding company Landor Associates, 77% of consumers think that companies should engage in affectionate responsibility. If people are unaware that Dannon is being socially responsible then this could excuse why they are not competing as overmuch as they could be in the Light and Staples segments. Alternatives1. Dannon could outwardly communicate their CSR to even off consumers aware of the internal CSR they were already doing. 2. Dannon could extend their marketing and advertising budget in the Light and Staples segments to attempt to pry- out market share from Yoplait. 3. Dannon could run special taste exam promotions at sell outlets to get people to try and hopefully like their yogurt. 4. The company could advertise as the corporate company of Dannon instead than focus the advertising on the individual brands like it already does. hear Decision Criteria1. Increase sales and market share 2. Increase customer merriment and corporate image 3. Be consonant with corporate mission or scheme 4. Improve (or at least maintain) advantageousness 5. inside our present resources or capabilities 6. Within acceptable risk parameters 7. Ease or speed of implantation 8. Minimize environmental impact 9. Maintain and build employee morale and prideAlternatives Analysis1. Even though Dannon has been partaking in CSR for quite some time it has always been done internally rather than outwardly. Because of this, consumers are unaware of the Dannon Institute, which has been active in researching and educating roughly vigorous eating. If Dannon communicated this to its audience it could educate people on the benefits of healthy eating and how yogurt could be a healthy staple to peoples diet. This could potentially cause more people to bribe yogurt and also cause up-to-date yogurt buyers to purchase more frequent. The electronegative to this is that these CSR efforts could be waitn as a copy-cat to Yoplait. muckle whitethorn not see the findings, as they could think these findings are just a sales pitch to get them to believe that they should buy yogurt. Also, there is no measurable ROI for this strategy.2. Increasing their marketing budget for the crystallise and staples segments could give Dannon a lot more exposure that potentially could take away the vast market share that Yoplait holds. With Activia already a huge success, the increase in marketing is two-fold. It aims to relent new buyers as well as aiming to get up-to-date customers (such(prenominal) as Activia buyers) to purchase their merchandises in another(prenominal) segments. The negatives of this are the cost. Dannon would be spending more money without having any differentiation or emulous advantage over Yoplait that would cause customers to switch.3. The advantages to taste interrogation are self-explanatory because the hardest part of get someone to buy a product is the fact that they get hold of to be ordain to try it first. Giving people a free chance to try it can give them a gauge to see if they like it. It also gives current Yoplait buyers the chance to see if they may like Dannons taste better. The biggest con is the cost because Dannon is vainglorious away free product. For the promotion to have any chance of success, yogurt would need to be abandoned free to thousands of retail outlets crosswise America which is a huge initial hit on profit. another(prenominal) con is that yogurt is not a staple of the American diet so new non-yogurt eaters may not even be go forthing to try it in the first place.4. Currently, Dannon advert ises by their individual brand. By advertising on the corporate take it could give credibleness to the Dannon brand altogether. This credibility could give a competitive advantage through engagement with the community and customers. The biggest trouble with this is that Yoplait had been doing this for years with their Save Lids to Save Lives campaign. This gave Yoplait a sizeable competitive advantage. Because something like this was already being done by Yoplait the personal effects of Dannon mimicking Yoplait would barely yield, if any, competitive advantage.RecommendationsBased on the facts presented, I think it is important for Dannon to externally communicate their CSR initiatives. Yoplait has had a sizeable competitive advantage with their Save Lids to Save Lives campagain which has given them a leg-up on Dannon since 1997. The reason for Dannon to externally communicate their CSR efforts is two-fold. To eliminate the competitive advantage Yoplait soon holds as well as edu cating consumers about the health benefits of yogurt to generate new and residual revenue for the company.In regards to Dannons CSR, they have some of the high hat kept secrets going. The problem with that is that they are currently secrets and customers dont know about their internal CSR efforts regarding people, nutrition and health and nature. The Dannon Institute has been around since 1991, with the mission to develop and penetrate scientific knowledge on diet and nutrition to benefit public health. Had Dannon externally communicated this when they first launched the Dannon Institute they could have held the competitive advantage that Yoplait currently holds. It is crucial for Dannon to externally communicate the projects and research that they are currently doing so that it lessens from marketability and uniqueness of Yoplaits CSR.In regards to potentially facing backlash for what appears to be copying Yoplaits CSR efforts, this is not the plate for Dannon because the two e fforts are much different. Yoplait is solely donating and unsloped-natured customers to donate towards a worth(predicate) cause. Dannon, on the other hand, is actively engaging in research on healthy eating and the benefits of how yogurt can make better health and quality of life. Yoplait is not actively engaging in breast cancer research. While they are promoting a worthy cause, they are not doing so hands-on. Dannon is not simply donating money to look good in the public eye, but rather, they are spending time and money to check up on how their products promote a healthy modus vivendi and how engaging children in a healthy lifestyle can help counteract diseases such as a diabetes and obesity. This is much different than what Yoplait is doing and may even lead to a slight competitive advantage in Dannons corner for their active engagement regarding healthy eating and the benefits for children who follow a healthy life-style.The biggest benefit of externally communicating Dann ons CSR is generating new sales by educating consumers about the health benefits of yogurt. Yogurt is more of a staple in Europe, where France in Switzerland consumer over four propagation as much yogurt as the United States despite being much smaller in population. This is why there is excellent potential growth in the U.S. yogurt market. The big question is how does Dannon lead the U.S. population to buy more yogurt? The answer is educating them on the health benefits of yogurt and why it is an important staple of a healthy diet.The U.S. economy is a huge market for dietary supplements. In 2006, The economic Impact Report, completed by hellgrammiate DaVanzo, a Washington D.C.-based economic research firm, quantified that the dietary supplement business was responsible for over $20 billion dollars in sales. This is over six times bigger than the domestic U.S. yogurt market. mess in the U.S. are very active consumers when it comes to acquire products that will help them lose weight. Dannon can cash in on untapped potential by externally communicating the weight-loss benefits of adding yogurt to a healthy diet. People buy dietary supplements because they are denote to assist in weight loss. By marketing and educating the public on the research that Dannon yogurt can also assist in weight loss may result in a fascinate of sales while also riposte the lost market share to Yoplait. bodily function and Implementation PlanDannons administrator Committee is to meet immediately. Marc Jove Gesti, the Senior vice professorship of Marketing will be responsible for drafting and crafting a commercialized and press release about the Dannon Institute, its forward findings and their current projects. Ken Strick, the VP & General focussing will be responsible for reviewing and rewrite any legal aspects. These include claims such as Yogurt, when consumed with a healthy and balanced diet can help aid in weight loss. This prevents anyone from suing the company who theme they could eat yogurt in junto with any other type of food and expect to still lose weight. Eric OToole, Vice President of Sales will conk out to explore new opportunities with health and supplement companies such as GNC. When the word gets publicized about how Yogurt plays a valuable part in weight-loss and dieting, Dannon can market and sell its product across stores where dietary supplements are sold. Lastly, Albe Wendt, Vice President Research and Development will work on developing a high-protein yogurt that is crucial for post-workout recovery as well as helping people make it their recommended daily protein intake.