1. Danone Yoghurt UK

2. 2. Capturing Marketing Insights – the internal environment
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2. Capturing Marketing Insights – the internal environment
The most relevant Strategic Capabilities – a resource audit of Danone Yogurt UK
Factor
Trend
Implication
Evaluation
Physical Resources
Production of Yoghurts is made in larges factories in a short amount of time due to the raw material characteristic (milk).
Warehouses have to be high quality standard and close to places of sales (nature of the product
Danone owns its yoghurts factories . But all Yoghurts are not made in the UK (Oykos are produced in France)
Warehouses and distribution sub contracting to two UK companies
+ 3 major strength
Human Resources
Three very different types of employees : worker, administrative employee (marketing, supply chain, finance), scientist (R&D labs).
Danone created three graduate programs to attire new employees. It has a learning and development center and offers the possibility to do sabbaticals.
+1 minor strength
Financial Resources
Access to capital is crucial for launch of new product and large marketing campaign
Strong financial position with parent Danone Group making EBITDA £2,445m
+ 2 significant strength
Intangible Resources
High brand awareness and customer trustworthiness essential in the mass market competition
Innovation and R&D are very important to produce new fashionable Yoghurt
‘Danone’ has a strong brand awareness and reputation for quality and innovative produce
Large portfolio of products not all present in the UK
Global Danone R&D for new product worldwide and UK lab to product adaptation to local taste
+ 4 significant strength
Mention limitations of the internal analysis: no recent analysis published after merger with D&A, Boots Opticians owned by Boots + D&A no detailed published information available

3. Ext. Opportunities and risks
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3. The Strategic SWOT analysis – identifying the alternatives for future success
Ext. Opportunities and risks
National campaign against obesity
Global trend to more healthy food
Emergence of new ingredients
Changes in consumer lifestyle (healthier behaviour)
UK shows sight of recovery (0,8% from July to Sept, strongest growth since 2010)
Internal Strengths
very innovative R&D labs
Excellent brand reputation for quality and taste
Among of cash available to launch of new products
Large portfolio of products not all present in the UK
External Threats
Strong competition in the adult Yoghurt market n°2 behind Muller
Price-sensitive buyer
High substitution possible in desert and snack segments
Increasing price of raw materials
Internal Weaknesses
New distributor (after a massive failure in June 2013)
Lack of flexibility (huge organisation)
Decrease in internal efficiency

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3. The Strategic SWOT analysis – identifying the alternatives for future success
Differentiation Strategy
Create a close relationship with consumer (Yoghurt day, fidelity program,…)
Product development strategy
Extend portfolio kids products
Create a pleasure focus products (less healthier, better taste)
Create man focus recipe
Make vegetarian range
Market Penetration Strategy
Negotiate larger space in Yoghurt section in super market
Integrate Danone Yoghurt in lunch deal (Costa, Market Place, Food Truck,…)
Cost Leadership Strategy
‘Low-price/price promotions’ to increase market share thus strengthen position

5. ??? Consultants 4. Strategic choose
Strategy choice : Product development and penetration strategy
Product development : Launch a yoghurt specialy design for kid
Low cost of development as the product already exist in the Danone portfolio in other country
National awareness on the importance of a vary alimentation for children as a mean to struggle against obesity
Good understanding of the population of the importance of Calcium and vitamine D to help the growth
A very good way to educate people to yoghurt (parents, habit in the childhood)
Focus on the importance of calcium for kids during growth and the healthy food
Use the very strong brand image in the children market(Danone World cup for kid, in 2013 in Wembley London)
Small number of competitor on the segment only two in comparison of the adult market

6. 3. Segmentation: How segmentating a kid market ? - Yoghurt for kid 1/3
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3. Segmentation: How segmentating a kid market ? - Yoghurt for kid 1/3
Kid market can sometime difficult to segment
The percentage of children who did sport in the last 4 weeks, by age and sex, 2010/1
% boys
% girls
5 to 10 years
87.8
82.9
11 to 15 years 97
91.9
The percentage of children who need calcium and vitamin D to grow
% boys
% girls
5 to 10 years
100
11 to 15 years
Sources: Office for National Statistics, National Records of Scotland and Northern Ireland Statistics and Research Agency

7. 3. Segmentation: How segmentating a kid market ? - Yoghurt for kid 2/3
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3. Segmentation: How segmentating a kid market ? - Yoghurt for kid 2/3
The solution : the family behavior (with a focus on mother) !
Cluster 1: lacking time, money and knowledge
Cluster 2: lack the knowledge and parenting skills to improve their family’s lifestyle
Cluster 3: affluent, overweight families who over- indulge in unhealthy foods
Cluster 4: living healthily
Cluster 5: strong parenting skills but need to make changes
Cluster 6: plenty of exercise but too many bad foods
Sources: Source: TNS Childhood Obesity Consumer Segmentation Research

8. 4. Segmentation: How segmentating a kid market ? - Yoghurt for kid 3/3
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4. Segmentation: How segmentating a kid market ? - Yoghurt for kid 3/3
More details on our main cluster.
Custer 4
Custer 5
Custer 6
Family diet
Strong interest in healthy diet.
Strong parental control but diet rich in energy-dense foods and portion size an issue.
Eating motivated by taste, diet includes both healthy and unhealthy foods.
Physical Activity
Family active although believe children not confident doing exercise.
Know they need to do more: time, money, self-confidence seen as barriers
Activity levels are high
Social class AB C1 C2
Intent of change
Low intent to change but already leading a healthy lifestyle.
Low intent on diet but significant intent to change on physical activity.
Highest among the clusters for both diet and physical activity.
Sources: Source: TNS Childhood Obesity Consumer Segmentation Research

9. 76% of potential customers
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4. ‘Differentiated’ Targeting: Focus on the most promising segments!
A targeting strategy: Differentiated
Cluster 1
Cluster 2
Cluster 5
Marketing Mix 1
Marketing Mix 2
Marketing Mix 4
Cluster 6
Kids Yoghurt
Marketing Mix 3
Cluster 3
Cluster 4
Marketing Mix 5
76% of potential customers

10. 4. ‘Differentiated’ Targeting: Focus on the most promising segments!
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4. ‘Differentiated’ Targeting: Focus on the most promising segments!
A targeting strategy: Differentiated
Cluster 4: living healthily
Cluster 5: strong parenting skills but need to make changes
Cluster 6: plenty of exercise but too many bad foods
Distinct:
Strong interest in healthy diet, active but not focus on sport
Significant intent to change on physical activity and diet rich in energy-dense foods
Activity levels are high and diet drove by taste
Accessible
through multi-platform advertising campaign on importance of yoghurt in children healthy diet
through multi-platform advertising campaign on importance of yoghurt for healthy sport performance
through multi-platform advertising campaign on importance of yoghurt for healthy sport performance / store promotion
Measurable
through age groups of mums (mainly year-olds) and the social class (AB)
through age groups of mums (mainly and year-olds) and the social class (C1)
through age groups of mums (mainly year-olds) and the social class (C2)
Profitable
price premium for superior quality
segment stands for 19,1% of consumer market
Strong wiliness of change their diet

11. 5. Defining the Marketing Mix – the 7Ps for achieving success
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5. Defining the Marketing Mix – the 7Ps for achieving success
Cluster 4: living healthily
Cluster 5: strong parenting skills but need to make changes
Cluster 6: plenty of exercise but too many bad foods
Product
drinkable yoghurts (30g)
Rich nutrition (high quality)
Natural flavour
classic yoghurts (50g)
New flavour
In large batch
Generous flavour
Price
Premium Pricing
Market Pricing
Competitive Pricing
Place
Increase stores presence (on street and on line)
Promotion
Create a trendy brand for the children (“you’re cool if you have it”) with advertising campaign to support it
TV& online ads
Partnership with primary school. Take the Danone kids yogurt as a break time dessert
Public Relationship campaign on the importance of yoghurt to children healthy diet (campaign in children medical centre, special web site to help mother to cook healthy diet, specialized press )
Sales promotion of “family packs”(yogurts for all family members, including parents and kids) and 3 for 1 discount.
Public relationship on the importance of a daily yoghurts for kids to practice sport (explicative tv/radio spot with a moral support)
Provide free trial yogurt in Parks, sports club etc.
Public relationship on the importance of a daily yoghurts for kids to practice sport (explicative tv/radio spot with a moral support) and in sport club (which are frequently use by the mother.