dan active sa powerpoint
TRANSCRIPT
DANACTIVEOlivia Clepper, Sean McIntyre, Amos Wheatley, Andrew Smith, Chris Rohman
Executive Summary
What is yogurt?
Yogurt is a dairy product produced by bacterial fermentation of milk
There are currently three overall classes of yogurt: Traditional
Yoplait, Dannon Original Diet friendly
Greek yogurt (low fat & high protein), Light & Fit (Low fat) Functional
DanActive (Immune), Activia (Digestive), YoPlus (Immune & Digestive)
What are yogurt benefits?
Yogurt is consumed primarily for its general health benefits Contains “good” bacteria
Nutritionally rich in protein, calcium, riboflavin, vitamin B6 and vitamin B12.
A study published in the International Journal of Obesity (11 January 2005) also found that the consumption of low-fat yogurt can promote weight loss, especially due to the calcium found within.
The current market
Positive correlation between high income/high education and yogurt consumption (2009 MRI+ Research) Generally, wealthier consumers can afford healthier
choices when shopping Generally, wealthier consumers remain healthy as they
age (Journal of Sociology, University of Melbourne) More likely to improve from poor health to good
Total yogurt sales equal $2.9 billion Total yogurt production: 74 million gallons/year 11% increase in US Dairy Market 2005-2010
DanActive and Activia represent 25% of Dannon’s overall sales (The Wall Street Journal, April 15, 2010)
Current trends & growth
Yogurt market increased from a $300 million dollar market in 1980 to a $3.5 billion market in 2005 (USDA Economic Research Service)
Market is continuing to rapidly expand– Greek yogurt is experiencing rapid growth– Established brands are emphasizing probiotic products– Functional yogurts with health benefits
Yogurt and yogurt drink sales have risen steadily over the past five years (Research and Markets)– Consumers are more concerned with healthy eating– Seeking out functional yogurts with health benefits
What is DanActive?
First introduced in Europe as Actimel in 1994 Introduced stateside in 2004 as DanActive
Released nationwide in 2007
A probiotic yogurt, taken as a drink, that builds and restores the body’s natural defenses
Utilizes a patented bacteria known as L. Casei Immunitas
What are DanActive's benefits?
Claimed benefits: Improvements in general digestion Reduces gastrointestinal and respiratory illness among
elderly Improved digestion among lactose-intolerant consumers Low-calorie and low fat supplement
70 calories per serving / 1g of fat per serving / 13g of sugar
Per European Journal of Clinical Nutrition: Incidences of common infections was 19% lower Incidences of gastrointestinal infections was 24% lower 638 participants administered both DanActive and
placebos
The British Medical Journal cites benefits as: Help avoid diarrhea symptoms associated with
antibiotics Some British hospitals have given DanActive to curb the
spreading of C. difficile “superbug”
Lawsuit & Settlement
January 2008 – class action lawsuit filed in the state of CA accusing DanActive of false advertising $21 million multi-state settlement “Dannon must stop deceptive hypes for health and
digestive benefits for DanActive and Activia.” (Attorney General of CT)
Repercussions: Must remove the word “immunity” from labels Must replace “improve” with “interact” FDA must approve any claim affecting cold and flu
symptoms Limits creative strategy
Current concept & ads Concept: Immune system booster Positioned as an ideal breakfast choice
and daily snack of a healthy diet Positioned well as an aid to healthy diet and not as
the “be all, end all” product of a healthy diet Utilizing television commercials to target
women constantly on the go Professional environment Family & home environment Constantly on the go, possibly being constantly
stressed leads to lowered immune system defense – DanActive restores.
Current advertising seeks to inform instead of persuade Using visual diagrams Spokeswoman is a certified dietitian and not a
celebrity
DanActive's consumer base
According to 2009 MRI research: The primary group of DanActive consumers is health-
conscious women ages 25-54
Committed to the well-being of herself and her family Enjoys health, home service, news/business/finance, &
feminine magazines and TV channels
Stub Total ‘000 Proj. ‘000 Index
Women: 25-54
56,445 1,428 121
Income: $75K-$149K
37,451 765 98
College Educ.
39,712 853 103
Children: 6-11
23,654 555 112
Why purchase DanActive?
The primary target market is generally the head homemaker Can replace a full breakfast when in a rush Provides health benefits to herself, children, and spouse Concept of immunity defense and digestive aid appeals to all
consumers
Consumers who experience personal benefits will remain loyal to the product despite lawsuit
Competitors: ActiviaStub Total ‘000 Proj. ‘000 Index
Women 25-54 56,445 4,326 114
Income: $75K-$149K
37,451 2,920 116
College Educ. 39,712 3,489 131
Children: 6-11 23,654 1,873 118
• Same parent company – Dannon
• Product concept is very similar to that of DanActive• Functional yogurt that appeals to health-conscious women
• Competing within same consumer base• Higher indexes for Activia within each MRI+ category
• More visible brand and higher recall & recognition• Current advertising campaign• DanActive hasn’t shown a commercial on-air since 2009
Competitors: YoPlus
Stub Total ‘000 Proj. ‘000 Index
Women: 25-54 56,445 619 109
Income: $75K-$149K
37,451 312 83
College Educ. 39,712 348 87
Children: 6-11
23,654 236 99
•Not just probiotic formula•Antioxidants A&E•Fiber for digestive health•Calcium and vitamin D for bone health•Unique selling points for YoPlus compared to one for DanActive
•Parent company with loyal consumer base•Yoplait and Dannon, as established brands, continue competition with probiotic product
Dannon's competing products
Activia poses the main threat to DanActive Similar target market (MRI+ table) Similar product concept
Both products position as functional, healthy yogurts
Lack of brand awareness Activia has top of mind awareness due to current campaigns DanActive has not created a campaign since early 2009
Name confusion Consumers are unable to distinguish the difference between
the two products’ titles
Limited creative strategy
Due to lawsuit, DanActive can no longer position itself based on its specifications Can no longer claim immunity defense
Brand Equity Future campaigns must rebuild perceptions about the product Cannot be so forthright in establishing what the product does
for the consumer “interact with immune system” not “improve immune system”
DanActive's Opportunities
Market is rapidly expanding There is room for growth as consumers switch to a more
health-conscious lifestyle
Functional yogurt provides specific health benefits Advertisements can showcase the positive correlation between
product consumption and good health
Future directions
Emphasize the differences between DanActive and Activia DanActive and Activia both target digestive tract DanActive offers other benefits as well
EX: immune system support
Create own identity for DanActive Will sustain longevity in the market Product design already geared to the “on the go“ consumer
Re-sealable cap on bottle