DANONE Focuses on Health NutritionA Report

Products

Activia is a great-tasting low fat yogurt that contains the unique probiotic culture bifidus regularis and is clinically proven to help naturally regulate your digestive system.

Smooth and made with only natural ingredients, Dannon All-Natural is a delicious yogurt to enjoy. Additionally, its also a great cooking substitute for many of your favorite recipes.

Dan-o-nino from Dannon is power-packed with essential nutrients to help little ones grow up healthy and strong when consumed as part of a balanced diet and healthy lifestyle.

As well as being a healthy choice, DanActive and DanActive Light have all the great taste you'd expect from Dannon. Ideal for breakfast, but a real treat for any time of the day.

Childs health depends in part on what they eat. Thats why making sure they have a healthy lifestyle and a balanced diet is so important. You can help by including nutritious snacks like Danimals.

Dannon Fruit on the Bottom has a great balance of smooth low fat yogurt and flavorful fruit pieces. A great feature is with Dannon Fruit on the Bottom you can enjoy it anyway you want.

The most delicious yogurt imaginable! Rich, and creamy-thick, it's an indulgent eating experience that you'll want to savor and enjoy. Plus, with 0% Fat, you'll feel good knowing this heavenly taste is good for you.

Whether you're counting calories, carbs, or fat, DANNON Light & Fit has what you need to stay on track.

Competitors

HEALTHY GROWTH# Rs 250 cr Size of the value-added, flavored milk market in India# 60% Share of Amul# 2nd largest block: Saras (Rajasthan), Verka (Punjab) and Nandini (Karnataka)# Other players: Britannia, Nestle

The milk based beverages market in India is still in a nascent stage and is pegged at around Rs 200 crore. Experts predict a growth in this segment because of inherent qualities associated with milk products. The total dairy market in India is estimated to be Rs 230,000 crore.

Choco plus milk is a flavored milk beverage which will be competing with brands like Amul Kool, Nestle Milkmad Funshake andHorlicks Chill Doodh.Chocoplus Milk is currently running its launch campaign in certain channels.Watch the ad here: http://indianbrands.blogspot.com/2010/04/danone-choco-milk.htmlThe brand has the tagline "Its not a drink, its chocolate smoothie". The brand is priced at Rs 15 for 200 ml.

Market Demand (Across the Globe)The word "probiotic" simply means "for life" and the term "probiotics" is used to describe conventional foods or dietary supplements that contain these "friendly", "beneficial" or "good" bacteria.The most active area within the functional foods market in Europehas been probiotic dairy products, in particular, probioticyogurts and milks. In 1997 these products accounted for 65%of the European functional foods market, valued at US$889 million,followed by spreads, valued at US$320 million and accountingfor 23% of the market. In a recent study undertaken byLeatherhead Food RA, the market for functional foods in theUnited Kingdom, France, Germany, Spain, Belgium, Netherlands,Denmark, Finland, and Sweden was reviewed. The results of thestudy showed that the probiotic yogurt market in these 9 countriestotalled >250 million kg in 1997, with France representingthe largest market, having sales of90 million kg, valued atUS$219 million. The German market for probiotic yogurts is growingrapidly; for example, during 19961997, it increased by150%, whereas the UK market grew by a more modest 26% duringthe same period. On average, probiotic yogurts accounted for10% of all yogurts sold in the 9 countries studied, with Denmarkhaving the highest proportion (20%) of probiotic yogurts, followedby Germany and the United Kingdom (both at 13%) and then France(11%). On the lower end of the scale were the Netherlands and Belgium (both at 6%) and then Finland and Sweden (both at 5%). Seen as crucial to market expansion in Europe is furtherclarity on the use of health claims. The market for functionalfoods in Europe could ultimately account for5% of total foodexpenditure in Europe, which, based on current prices, wouldequate toUS$30 billion.

Customer Requirements

The positioning of the brand is nothing much to talk about. Every brand now is talking about health and taste. The only difference that Chocoplus has done is to call itself a Chocolate Smoothie.In such kind of products, taste has lot of importance. Kids need to hook up to the brand and chocolate flavor rules the taste attribute. Another critical factor is the brand recall. Most of the existing milk beverages are not aggressive enough in this front. Kids needs to be constantly bombarded with brand messages. The usual strategy of retail visibility and dependence on spontaneous purchase may not be sustainable in the long term .Without building a strong brand pull, these products will be at the mercy of the retailers.

The value added milk beverages have a potential in the Indian market. Milk has lot of positive associations with health and nutrition. Mothers would like their children to take milk based beverages rather than soft drinks. But it is the pricing that is restricting the growth of this market to a certain extent. Rs.15 for a pack makes such beverages a luxury rather than a regular product purchase. These brands need to make consumers stock these products at home. The brand needs to experiment with product packaging and SKUs to find the right mix.

On the promotion side also, milk based beverages are not aggressive enough. Since these brands target kids (except Amul Kool) sales promotions have lot of strategic importance. But seldom have I seen a good sales promotional campaign for such a product.

Danone is a global force to reckon with. The company has deep pockets and the capacity to shake up Indian market. It will be interesting to see how the company will build this brand in Indian market.THANX!!