The Dannon Company: Marketing and Corporate Social Responsibilities GROUP- 2

“Dannon’s mission is to bring health through food to as many people as possible”.

Company’s ProfileHistory

• Dannon is a US Subsidiary of Danone.

• Nearly 75 years old.

• As World War II engulfed Europe,it moved to the United States.

• Its a first American yogurt company, located in the Bronx, New York City.

• Danone founded in 1919 by Isaac Carasso, Barcelona, Spain• 1929, Daniel Carasso, founded Danone in Paris.• Entered U.S. Markets in 1941 as Dannon Milk products Inc, NY, USA• in 1966, With its merger with Boussi Souchon Neuvesel (BSN) it became

BSN-Geravis Danone, reached to 30 countriesMISSION STATEMENTDannon’s mission is to bring health through food to as many people as

possible.

Organisational structure of DANNON• Nationwide Dannon had 1150 employees.

• Company has three plants at Ohio, Texas and Utah.

• Ohio plant is largest yogurt manufacturing plant in U.S. and among the largest in the world.

• Company has collaborative decision making.

What company does ?• Dannon manufacture, market and deliver high-quality, wholesome,

nutritious and innovative products in the dairy category.• Dannon makes a diverse and comprehensive range of approximately 200

types, styles and flavours of fresh and frozen dairy products to satisfy the evolving needs and desires of consumers.

• Dannon has global presence in following four area-dairy products, bottled water, baby nutrition and medical nutrition.

• Danone and The Dannon Company are committed to being socially responsible companies and good corporate citizens.

• Dannon produce the products which address issues related with obesity and poor nutrition.

• Achievements-In 2008, Danone posted net revenue of $21.2 billion and employed 80143 people worldwide.

• Dairy and medical nutrition business ranked No.1 worldwide, with bottled water and baby nutrition holding no.2 position.

The Products

Having a capacity of 6million cups of yogurt/day with almost 100 different types of flavour, style and size.

Its different product categories includes:• Kids (12%)– Danimals and Dan-o-nino

• Proactive Health (13%) – Activia and Danactive

• Light (27%)– Light and Fit

• Staples/Quarts (39%) – Fruit on the Bottom

and Fruit Blends

• Indulgent (6%)

• Drinks (3%)

12%

13%

27%

39%

6%3%

% Share

KIDS

PROACTIVE HEALTH

LIGHT

STAPLES/QUARTZ

INDULGENT

Drinks

Product Portfolio

Dannon and competitors

35.40%, 47%

28.90%, 38%

11%, 15%

MARKET SHARE OF FOOD INDUSTRY 2008

YOPLAIT DANNON PRIVATE BRANDS• In 2008, Yoplait was the market leader with 35.4% market share and

Dannon was 2nd and had 28.9% market share.

• Other main segment of competitors consisted of small, niche players

catering to specific consumers of greek.

• Another niche player focused on organic yogurt, stonyfied, was 85%

owned by Danone.

• Yoplait was the market leader in light and staples segments and these

segments represent sales of 67%.

• Dannon was market leader in proactive and represents 40% of there sales.

Mode of OperationDannon is obliged to meet annual targets for profitability ,operating free

cash flow ,manufacturing safety ,and environmental sustainability.

it has 1150 employees working in Ohio, Texas and Utah.

It ensured cultural cohesion and training to its leaders by initiating certain programs such as Dannon Way.

The company values are referred to the acronym HOPE.

Major strategy and resource allocation decisions were presented to the executive committee, and decisions were strongly influenced by Danone’sglobal strategy and mission.

White Plain was home to executive committee as well as to departments such as marketing, finance, HR, and CSR.

As a part of marketing strategy, they spent on TV ads, in-store shopper marketing tactics and branded websites.

Management Vision

• Vision-“Our ambition is to foster healthier eating practices that are reflective of local cultures and agricultural systems, in balance with nature’s ecosystem and that can be maintained for generations to come”.

• To convince all the US citizens to make use of yogurt and to become as a nutrition expertise.

• To increase not only the number of Americans who consume yogurt, but also how frequently they consumed it.

CSR Issues

• Should Dannon make use of CSR activities as a part of marketing or not! In what way they should do?

• Would speaking about Dannon’s CSR efforts pull the people towards health & nutrition and hence to the Dannon products!

• Is there any requirement of change in activities related to CSR!

• Difficulty to calculate return on investment after implication of the program

• Dannon’s competitors could take advantage of potential halo effect if consumers were confused about which company had been promoting these CSR activities.

• To communicate its CSR programs to consumers, it would require a change in fundamental commitments with its parent company DANONE.

CSR Strategies

• As yogurt is not yet relevant to Americans diet like other geographic regions and they don’t yet understand that what yogurt is providing. When consumers decide to pursue yogurt, after that talking about CSR would be more fruitful. So first strategy is to educate the Americans on the properties of yogurts and health benefits, and to convince them to move for high yogurt consumption.

• Showing consistency in marketing efforts (marketing of products with focus on health benefits) and CSR activities, Dannon can earn the confidence of consumers.

• Through nutrition focussed CSR efforts Dannon can stand for nutrition expertise, and this will give further credibility to the health benefits promised by its products.

• Opening Dannon up to additional scrutiny by publicising its CSR efforts. Critics would be able to analyse Dannon’s CSR activities and also they can give recommendations as well as appreciate the efforts which help the company to be defensive against disingenuous perception by its customers.

CSR activities of Dannon• The Dannon Institute equipped doctoral graduates with a broad perspective and leadership skills. It

also created a nutrition education curriculum, specifically designed for school children in day care settings.

• In 2002, the company started donating excess product to Feeding America, the nation’s leading domestic hunger relief charity.

• Unlike many of its competitors Dannon joined the Children’s Food and Beverage Advertising Initiative in 2008 and pledged that 100% of its advertising to children under age 12 would be for products that met key nutritional guidelines reviewed and approved by the Council for Better Business bureaus.

• Dannon supported local community organisations Through donations and volunteer work.

• Dannon also worked to enrich the health and well-being of its employees through the development of a comprehensive work-life wellness program.

• During the years 2004-09, Dannon reduced the quantity of its primary packaging (on a per-ounce basis) by 15% and plants and offices had regular recycling programs

• Dannon also participated in a program aimed at reducing carbon dioxide through improvements in its truck designs which carried its products.

Conti…• In 2010, Dannon partnered with National Breast Cancer Foundation and launched “Give

Hope with every cup campaign”

• Raised $1.6 Million exceeding planned amount of $ 1.5 Million

• Company did not lose any share in the month of October which was breast cancer awareness month.

• Save Lid to save life each October the breast cancer awareness month.

• Give hope with every cup.

• 75% people buy Danon product due to Danon partnership with national breast cancer.

• Cupfhope.com

Viewpoints of group

• Danone’s social responsibility centered on the main areas that involved the nature, the people and the nutrition and health.

• In terms of the people, the company focused on the development of employees via various activities and it enabled the employees to assess performance along the multiple dimensions.

• On the other hand, the company expects the suppliers to promote environmentally friendly practices.

• They also contain the marketing strategy that involves advertising the corporation Dannon brand.

• Dannon values collaborative decisions making and hence they make the major strategy and resource allocations decisions. Such decisions are strongly influenced by the corporate parent(Danone).