Analysis of Danone (bottled water sector)
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The Danone Group has emerged as one of the leading names in agribusiness; the company's presence is hard to miss due to the diverse sectors it operates in: dairy products, bottled water, baby nutrition and medical nutrition. Its positioning is based on products of quality and centered on wellbeing and health; this has been achieved due to a strong commitment to research "Danone Research".
Is its success also due partly to its adaptation to the economic and competing scene, in the face of an economic situation in constant evolution, and if so, what will be the group's strategy to continue as the leader on its markets? To analyze this company, this report will initially study its history and its activities to determine the key factors of its success. In the second section of the document, it will examine its environment to determine its opportunities and threats, followed by a study of the strengths and weaknesses of the company. In the final part, it will study the future of the Danone Group.
The sector of bottled water was chosen to analyze since Danone is the leader on this market, with key success factors like innovation, high-quality of its products and the health factor of its products. The values that have stood the company in good stead over the past few years are enthusiasm, humanism and closeness.
The culture of Danone was illustrated in 2008 in the project entitled "New Danone". This project corresponds to the company's collective construction around several axes: health development, development of manpower and skills, the social and environmental responsibility. The group believes that diet plays a central role in promoting wellbeing and health. This conviction was reaffirmed year after year and inspired the Charter of Food Nutrition Health of Danone.
The strategy of the group thus rests on the development of products with strong nutrition/wellness bases via brands in various geographical areas. Moreover, the advertising and promotional policies constitute a key element in the success of the strategy of the group centered on innovation, the strength of the brands and leadership.
The group aims to seek maximum efficiency in all areas. It also wants to continue to improve margins and increase profits to manage their investments and future capabilities. In terms of growth, their goal is to get at it wherever it may be, and especially not to fight where growth is random, all this in order to widen the gap with its competitors.
The company Danone is a group that is heavily taxed on the food market, and with a leading position in most markets: fresh dairy products, water, child nutrition and medical support. Its research strengths but also geographical development gives considerable competition to its competitors that are certainly many, but not as developed and particularly appreciated by consumers.
The communication of the brand through advertisements, books and charters lends credibility to its brand. Strategy and good management of its resources allow it to generate high margins and profits. It then accesses its profits to achieve self-financing advantage of being able to settle with this funding.
The future does not seem threatened, even in times of economic fluctuation, its objectives are numerous and mainly based on the environment and the welfare of its consumers.
Tags: Danone Group, business analysis, communication strategy
[...] II- Strategic analysis of the company Danone in the water sector 1. Internal Analysis a. The business strategy The business values ?Danone include geographical openness, enthusiasm, humanism, and proximity. Danone illustrateed its culture in 2008 on the project entitled "New Danone." This project is a process of collective construction around several axes: health development, the development of people and their skills, and social and environmental responsibility. The group believes that diet plays a major role in promoting well-being and health. [...]
[...] The table below shows the number of employees and their distribution by geographical area and by business segment on 31 December 2007 and 2008. Using this table we can see that employee management is divided in several territories, with a higher percentage for America. Then, the distribution between the poles is evenly distributed between the fresh dairy products and water; the nutrition sector is smaller. c. marketing mix This is a coherent set of components (Product, Price, Promotion, and Communication) the marketing of a product, or service policy, a business concept developed by McCarthy and labeled under the 4P term in 1960. [...]
[...] Internal Analysis a. Business strategy b. Resources c. MIX Marketing d. ABC method e. Internal SWOT f. BCG Matrix 2. External analysis a. Porter b. [...]
[...] At the national level, we note the acquisition of Volvic in France. In 1994, in order to assert its status as an international group of food and beverage, BSN renamed the company "Groupe Danone", The group did not lose its goal of becoming a world leader In 1997, it decided to refocus its activities and decided to focus on three areas: fresh dairy products beverages biscuits and cereal products These three priority area have a global reach. In addition, the small number of businesses would enable the mobilization of domestic resources. [...]
[...] Finally, in the last part, we will study the future of Danone. I -The company Danone 1. The history of the group From its inception in 1966 to 1970: was created from the merger of two companies: Ice Boussois Glassware of Souchon Neuvesel The merger created the company BOUSSOIS Neuvesel Souchon specializing in flat glass and container glass. The company achieved a turnover of 150 million Euros in 1967. In 1970, the business press predicted market trends and anticipated the decline of glass. [...]