Essay on Poverty and Danone - 908 Words

Week 5 Assignment 1 Danimal in South Africa Case Study Assignment MEGHAL SHAH 7/20/2012 Why Danone developed Danimal yogurt for the South African market South Africa had a big income inequality gap with its market being at the bottom of the pyramid with more than half of the population in the 4-5 tier range having less than $1500 in purchasing power parity in US dollars. Danone wanted to capture the market by introducing a low priced product to the low income people. With research by local Universities and the SA Medical Research Council, the benefits of of Danimal were promising. It was found that the probiotic cultures in yoghurt were beneficial for children and also that a product needed to be produced†¦show more content†¦Is Danone successful in addressing the needs of the bottom of the pyramid? What can they do better? Pretorious had the 4P’s in mind when product was developed. The price was initially set at R1.00 in 2005. This was beneficial since the transaction would require one coin interaction which made it simple and valuable for the targeted children’s market. To avoid additional margins added onto the final price, the price was printed on the lid. Danone themselves just broke even with no profits. To address nutritional shortcomings in the typical diet of a child from a poor family — especially vitamin A, iron and zinc — the company wanted to enrich the yoghurt with these nutrients. The yoghurt also needed an extended long shelf life due to lack of electricity and fridges. Danone promoted their product, by associating the name â€Å"Danimal†. Danimal was combination of â€Å"Danone† and â€Å"animal†, which gave a sense of pride in Africa. A colorful energetic leopard as the logo appealed to children, while the nutritional facts appealed to the adults. They created a product for the bottom of the pyramid that was initially introduced into the Gauteng province but later expanded into two other provinces, Kwazulu-Natal and the Free State. I think that Danone did a great job by providing the needs of the bottom of the pyramid. They spent little money and used existing equipment with no marketing. They made a product that wasShow MoreRelatedReflection Of The Learning Journal740 Words   |  3 Pagesdownloaded the reading materials. I read all the reading material for the week: what is social entrepreneurship written by One Magazine in October, 2011 and Social business enterprises – Maximizing social benefits or maximizing profits? The case of Grameen-Danone Foods Limited written by Ghalb, A. K., and Hossain, F. in 2008. In the course of reading, I noted the unfamiliar words down in the learning journal and I started the discussion assignment. Friday 07/07/2017 N/A Saturday 07/08/2017 N/A Sunday 07/09/2017Read MoreDanone - Key Issues Essay2197 Words   |  9 PagesDANONE – INDIVIDUAL CASE STUDY ANALYSIS Dax Foley – 10520701 Groupe Danone is a world leader in the production of diary products being one of the largest dairy food and water produces in the world. With 90,000 employees in 120 countries of the world the company is very much knowledge-intensive and innovation-driven. Growing to become one of the most successful food and beverage companies in the world has not been without its challenges, primarily for Danone this has been successful knowledge managementRead MoreMicrocredit and Poverty Alleviation Essay example2253 Words   |  10 Pagesdeveloped his revolutionary micro-credit system with the belief that it would be a cost effective and scalable weapon to fight poverty. For his work, Muhammad Yunus received the Nobel Peace Prize in 2006. Also, he has been awarded with a number of other national and international honors. 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High foreign direct investment and free-trade agreements have opened up channels for companies like Coca cola, Nestle, Danone, PepsiCoRead MoreThe World Wildlife Fund ( Wwf ) Essay1387 Words   |  6 PagesAnother article from Spiegel said: â€Å"Last year, WWF along with the German retail group Rewe, sold almost 2 million collectors albums. In only six weeks, the program raised $1.1 million, which Rewe turned over to the WWF.† Companies like Coca-Cola, Danone (yogurt company), airlines, and clothing companies pay seven-figure fees for the privilege of using the Giant Panda logo. WWF partnered with British airlines to reduce their travel budgets and their carbon footprints at the same time. An article byRead MoreThe World Wildlife Fund ( Wwf ) Essay1393 Words   |  6 PagesAnother article from Spiegel said: â€Å"Last year, WWF along with the German retail group Rewe, sold almost 2 million collectors albums. In only six weeks, the program raised $1.1 million, which Rewe turned over to the WWF.† Companies like Coca-Cola, Danone (yogurt company), airlines, and clothing companies pay seven-figure fees for the privilege of using the Giant Panda logo. WWF partnered with British airlines to reduce their travel budgets and their carbon footprints at the same time. An article byRead MoreOption Evaluation ‚Äà ¬ Stakeholder Expectations7684 Words   |  31 Pagesincreased spending power will emerge [10.]. The result of this is projected 13% annual growth rate in spending on food beverages [05.]. Competitive Situation Double-digit growth will attract multinationals to the Russian food drink market, e.g. Danone, Unilever. Strategic customers such as restaurant and supermarket chains e.g. Tesco will assume a significant role in the market. Food Drink Trends Growing westernisation of Russian culture will take place in the upper and middle classes.Read MoreExecutive Summary on Nestle3129 Words   |  13 PagesNestle to penetrate into Russia’s market and tap into its rapidly evolving market. Nestle was attracted by the strength of the consumer buying power. Nestle has invested $500 million in Russia for its food and beverages. As soon as people step out of poverty, they become potential Nestles’ customers, says Bernard Meunier, country manager for Nestle. Nestles’ most recent foray is a $120 million instant coffee factory in Krasnodar in southern Russia. With an average of 250 cups per person per year, Russia