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Danone's Shifting Strategy
Transcript of Danone's Shifting Strategy
High sales target would put undue pressure on managers, risking mistakes, and shortcuts to achieve growth
Downgrading growth forecasts
Shifting to volume growth
Cut the price
Deepen sales in new markets
Transformed into a streamlined business
Oikos and Mon Premier
Danone's Shifting Strategy
Global recession made Danone realized that it had decreased emerging market countries' ability-to-pay for goods (even though it was not the main concern that Danone has shifted it's strategy). Based on Antoine W. Van Agtmael (of International Finance Corporation of the World Bank), countries of emerging market constitute approximately 80% of global population.
Low ability-to-pay will cause low willingness-to-buy and this will impact Danone's sales growth. Regarding this problem, Danone shifted strategy from sales growth to volume growth to construct solid and sustainable future of Danone's group.
Who behind the scene??
Isaac Carasso invented yogurt's first industrial manufacturing, named Danone.
Isaac's son, Daniel Carasso, moved to France and brought Danone yogurt to the place where the headquarters are today.
Daniel Carasso moved to the United States, changed the name Danone to Dannon.
Dannon's westward expansion, the acquisition of a second manufacturing facility in Minster, Ohio.
Dannon moved its headquarters from Long Island to White Plains, NY.
Dannon announces it has successfully reduced the total sugar of its most popular kids product - Danimals Smoothies
1. What environmental factors is Danone responding to by shifting strategy to volume growth rather than sales growth?
2. Explain why Danone is focusing on only three main sectors. Why these sectors?
- One of FMCG company
- Focus on 3 main sectors:
yoghurt, spring water, baby food
e.g.: Activia, Evian, Oikos, Mon
1 of the best organic growth rates in the industry
Stock market darling
To maintain business sustainability through global recession
To invest and expand its business in emerging market economy country
Caroline Chrisbyanti (9693)
Isabelle Sarah Astari (9395)
Gina Fizriyaningsih (10260)
Danone focused on three main sectors in order to achieve its mission "bring health through food to the largest number of people". Focusing in yoghurt, spring water, and baby food will help Danone to expand its business in emerging market countries by selling affordable and healthy products.
Moreover, Danone chose these low-growth products in order to achieve organic growth in the sector