CASE STUDY (20 Marks) DANONE MEANS DAIRY AND MORIE Although yoghurt, water and b

Question

CASE STUDY (20 Marks) DANONE MEANS DAIRY AND MORIE Although yoghurt, water and biscuits are entirely different products, Danone competes effectively in all three categories. The French company is the world's largest maker of yoghurt products; its brands include Actimel in Europe, Danone in South America and Danone in the United States. In addition to dairy products, the company markets bottled water (under Evian and other brands) and biscuits (under Jacob's and other brands). Clearly Danone's marketers cannot target every customer in every market, so they study the needs that drive consumer behavior and reach out to targeted segments through differentiated marketing.

Explanation / Answer

Danone's marketing research team found that the target consumer group is more inclined towards healthy food than towards diet products. 'Shape' as a brand was established as a diet product in the UK. Danone found that this particular position of 'Shape' is constraining the possibility of generating the potential cash flow. The marketing team focused on the 'positive association' of the brand by re-position it as a healthy food rather than a diet version of a regular yogurt which is considered a 'negative association' because it reduces the negative effect of the regular product. The re-positioning of 'Shape' resulted in more acceptability of the brand and a higher potential to reach a higher number of customers. Another reason for such re-positioning is perhaps protecting the regular brands from the emergence of a diet brand. There was a threat that when a diet brand emerges, a percentage of the target customers may perceive that the regular brands are unhealthy. Re-positioning reduces this threat.

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