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Danone global strategy

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  1. General presentation of Danone: past and today's position.
    1. Danone's position in the food market.
    2. Background history of the group.
    3. Division by sector.
    4. Geographical division.
  2. Danone global strategy.
    1. Internationalisation to take over.
    2. Concentration on three core businesses.
    3. China: An exception to Danone's strategy.
  3. Strategy of communication.
    1. To bring health through food.
    2. External communication: Dialogue with consumers.
    3. Danone's values.
  4. Conclusion.
  5. Bibliography.

Danone is one of the world leaders in the food industry. The group focuses on three worldwide business lines: Fresh Diary Products, Beverages, and Biscuit & Cereal Products. Its turnover in 2005 was 13.02 billion Euros. We have chosen this group because Danone seems to be a very dynamic firm. In 2005, the group had one of its best organic growths ever: 6.7 %. Moreover, the food market is deeply involved in globalisation. This leads to two different trends when turning to the global market: the homogenization of behaviors (more and more people eat the same products) and the adaptation of firm's strategy to various local markets. Danone was created in 1966, and at the beginning, the focus was not on food but on glass containers. Then, little by little, Danone diversified its production in several food sectors. In 1996, a new impetus was given with the arrival of Frank Riboud at the head of the group. He introduced new methods and strategies to meet the expectations of consumers. Indeed, today, consumers expect from food industries not only to feed them but also to cure them, to help them become finer, younger and more beautiful, which is the reason why Danone's core business is ?to bring health through food?. This demand has led Danone to dedicate an increasing influence and part of budget to intellectual capital at the expense of financial capital. Moreover, Danone has to find a balance to satisfy a growing market while at the same time remaining close to consumers.

[...] The strategy of Danone to present its products as healthy seems to be effective since MacDonald's, which wants to increase its emphasis on health, has decided to become partner of Danone. Today, MacDonald's offers Danone's yogurt ?Fruit&Yogurt? in 6200 European restaurants. In the beverage sector, Danone's strategy to ensure new sources of growth is based on the development of market segments. In traditional countries, Danone has developed flavoured waters to attract health- conscious consumers with refreshing and low sugar beverages. [...]

[...] Recently, Danone changed its logo in order to be more appealing for consumers and to have a more positive identity based on health and well-being. According to Danone group, a new logo has been necessary because the identity of Danone fresh diary products had evolved: challenge for designers was to combine warmth and immediate appeal in a format attuned to the spirit of the times without weakening brand recognition, since consumers see Danone logo as a sign for quality, trust and health.? smile suggestive of appetite, pleasure and the well-being associated with health that shows?. [...]

[...] Then, we will analyse the global strategy used by Danone to conquer new markets. Finally, we will focus on its communication strategy with consumers. I. General presentation of Danone: past and today's position 1. Danone position in the food market On global market: - Number 1 worldwide in fresh dairy products - Number 1 worldwide in bottled water (in volume) - Number 2 worldwide in Biscuit and Cereal Products (after Nestlé) Main competitors: Kraft Foods (turnover 2004: 32 billion Euros) Nestlé Coca Cola (turnover 2004: 20 billion euros) Pepsi Unilever 2. [...]

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