marketing plan finaldanone
TRANSCRIPT
MARKETING PLAN
Nikhil (03)Mohit Borakhade (05)
Krunal Shah (50)
Group Danone
• Founded in 1919 by Isaac Carasso in Barcelona as
a small factory producing yoghurt.
• French company having head quarters in Paris.
• $25 billion revenue in 2011.
• Danone is present in four businesses:
FRESH DAIRY PRODUCTS, PACKAGED WATER
DRINK, BABY NUTRITION AND MEDICAL NUTRITION.
• Danone is No. 1 in fresh dairy product and No. 2 in
Bottled waters in world.
• Emerging countries account for 51% of Danone
sales
World Wide Presence
Corporate Startegy• Danone has adopted a strategy of growth through joint
ventures, particularly in fast-growing emerging
markets, because it lacked the management depth and
size to grow quickly.
• In its markets, Danone has built an attractive portfolio
in emerging markets over the past 10 years which
represents above 50% of its sales.
• Danone had JV with Britania (1995) which ended in
2010.
• JV with Yakult as Yakult Danone India (P) Ltd (is a
Japanese probiotic milk-like product) in 2005
• JV with Narang Group for Flavoured water as Danone
Narang Beverages in 2011.
Danone Narang Beverages• Danone Narang Beverages is a joint venture of Rahul Narang
Group with the Danone Group, to manufacture and market health & wellness beverages in India.
• The company aims to revolutionize the Indian consumers' drinking habits through new product ranges, innovative ideas and swift execution. High standards of quality, functionality & design form the core of our portfolio.
• Narang Danone Access handles beverage sales & distribution, leverages top-notch minds and world-class partners to create the most efficient marketing team in the country.
EXECUTIVE SUMMARY• The marketing operations are an integrant part in the activity
of every company.
• The current plan is focused on developing strategies and
conducting research prior to the launching of new segment of
bottled water.
• French major Groupe Danone is bringing fortified water and
flavoured beverages to the Indian market for the first time.
• Danone has entered into a JV with Mumbai-based Rs. 300 crore
Narang Group to form Danone Narang Beverages for
manufacture and marketing of flavoured mineral water.
• Launch of Blue in two flavours.
• The flavored drink market in India is at the introductory stage,
so Danone need to market its product effectively so that it can
achieve the objective of becoming market leader in this
segment.
• Narang Group will provide the support of manufacturing,
distribution and marketing of the product.
• Setup plant in Pune.
• To position as a health and rejuvenating drink.
• The marketing campaign will be based on the benefits of
drinking the new water which contains increased levels of
nutrition and flavors and it will take an environment
friendly approach.
• This plan guides about the product attributes, boosting its
phase to penetrate through target market identification
and segmenting it to different location, planning for market
positioning, effective pricing strategy, how to promote it to
the public through different mediums and resources.
CURRENT SITUATION AND TRENDS
• Flavoured water is the new phenomenon.
• The introduction of flavoured water into the bottled
industry is to diversify business and to satisfy the
growing consumer needs by introducing value
addition to the Drinking water.
• It is expected to serve as a refreshing alternative.
• The flavoured market in India is small (nascent
stage), only about Rs 11-20 crore out of the total
bottled water market of about Rs 1,100 – 1,200
crore.
• The concept is not new.
• Availability of more flavours will provide more choice to
the consumers.
• Potentially Flavoured water can promote a healthy
lifestyle.
• Demand-supply scenario suggests that the flavoured
water industry has great potential for investment.
• With rising consumer concerns over health and increasing
shelf spaces in the institutional channels, flavored water
comes as a blessing in disguise.
• The bottled water industry in India has been growing
steadily and is dominated by certain brands in the market.
• So far, north India-based D S Foods, has some market share
with the introduction of brand “Catch”.
• Coca-Cola, PepsiCo, Nestle and Tata Tea, Bisleri –already
dabble in bottled water – will soon try to trip Catch.
• The rapidly growing market for packaged drinking water
comprises 90% and natural mineral water 10% of the total
market just leaving enough space for launching new
flavours of drinking water for new entrants.
Performance Review• Since the Blue water drink is recently launched,
performance of the same is difficult to measure in India.
Still its performance is good in cities like Pune, Mumbai,
Bangalore, Hyderabad etc.
• World wide it is No. 2 Brand in Water business.
• It is No. 1 in Bottled water in Asia-Pacific.
• Danone is performing well in Dairy Products with
Yogurts, Flavoured milk, Lassi etc.
• Due to introductory phase of the product the
performance is not
• Aqua which is similar to Blue has good performance in
Indonesia with 60% market share.
Key Issues
• Opportunities
– Huge market for flavored water
– Flavored water tastes better than normal water
– It is an new product category to quench thirst
• Threats– Competitors
• DS Foods Catch flavored water in North
• Future competitors like Bisleri, Tata Tea, Coca-Cola, Pepsico, Nestle
• Tata Tea acquired Himalyan water brand which they want to extend to flavored water
• Pepsico wants to extend Aquafina brand to flavored water
• Bisleri wants to introduce flavored water.
• Strengths– Presence in 125 cities with around
1,00,000 outlets
– Direct and indirect distribution
– Excellent supply chain
Objectives
• For Danone, innovation is way forward in India.
• To become the market leader in this industry and to bring new flavours suitable for the Indian Consumer and taste.
• To increase consumption of healthy drinks.
Marketing Strategy
• Marketing it in Pune and then Pan-India basis
• Flavors – Apple and Guava
• Packaging – 500 ml
• M.R.P – Rs. 30
• Marketing Strategy – New Market Development
Product Strategy
• Product Positioning Strategy: Positioning by Attributes– Health drink– Energy drink– Refreshing drink
• Product Scope Strategy: Multiple Product– Flavored water with apple and guava– Yoghurt - Cremix – Dahi– Lassi
Promotional Strategy
• Promotion Mix Strategy
• Advertising
• Sales Promotion
Pricing Strategy
• Pricing Strategy for New Product : Skimming
• Price Flexibility Strategy: One Price Policy
Distribution Strategy
• Distribution Scope Strategy : Selective Distribution
• Multiple Strategy : – Complimentary Distribution – Competitive Distribution
Action Plans
• The company will be opening 150 to 200 outlets in
India in the next two years.
• Considering the response in Pune, we will launch
this drink across India.
• Introduced in two fruit flavours of Apple and
Guava, B’lue is available in 500ml pet bottle priced
at Rs 30.
• Launch in different cities in future.
CONTROL
• The plan will be controlled by continuous
monitoring by Danone and also by Narang group.
• Step by step implementation of the plan with
regular monitoring.
• Step by step monitoring sales of cities.
CONTINGENCY PLANS• There should be continuous eye on the competitors brands
during summer or festive season since all are waiting for the
right time to offer value added flavoured water to the
consumers.
• Even if they hit the market Danone should look into gaining
larger market share by distribution rather than the brand
promotion.
• The final product should have low production and supply
cost so that it can compete with the bottled water category.
• There should be product promotion activities like seasonal
discounts in organised retail.
• If companies are entering with more flavours then Danone
Narang Beverages must be ready with other flavours to
increase the line and to tap more customer.
THANK YOU