Running head: MARKETING STRATEGY PROPOSAL 1

Danone Company Marketing Strategy Proposal

Name

Institutional Affiliation
MARKETING STRATEGY PROPOSAL 2

Danone Company Marketing Strategy Proposal

Introduction

Danone is a food and beverage company based in French which is seen as being one of

the most important supplies of dairy products on the international market. The future goal of

the company is to expand its business on the other markets too to reach the growth they

desire. Nevertheless, they focus on ensuring that they meet the needs of the clients which is

reflected through a continuous increase in the demands of their products. The purpose of this

paper is to analyse the current strategies the company uses and to determine new ways

through which they could improve their marketing activities.

Segmentation and Marketing

Business Need

This strategic proposal is going to address improvement needs. The proposal intends

to suggest ways through which Danone Company can improve efficiencies by reducing costs,

effort, and time-to-market. Danone has been doing poorly with inefficiencies. Currently, it is

spending higher amounts of money on production. The cost of production could be reduced

by lowering the various costs of elements of production.

Market Segmentation

As a multinational food products company, Danone should have two types of market

segmentation as follows:

Geographic segmentation: it involves dividing the customers based on the Geographic

borders. Danone should divide its customers regionally based on countries, cities, ZIP codes,

and urban and rural regions. It should produce food that meets the needs of every region

separately under the same brand. The rural-bound products may be produced to live longer
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than the products that target the urban areas because of the urban centers' ready market. The

city dwellers are more likely to spend higher amounts of money on Danone products than

rural residents.

Also, Danone should target countries such as Finland, Sweden, Netherlands, and

Switzerland more than any other country because of the following two reasons. Firstly, these

countries are the highest consumers of milk products. Therefore, they avail ready markets for

the products. These countries should be considered by reducing the time-to-market to ensure

that they do not run out of stock. By ensuring a continuous supply of the products, Danone

can keep up with competition within those countries and even establish its brand as a strong

one that all the consumers can rely on.

Behavioral Segmentation: Danone Company can consider the following aspects of

segmentation. Firstly, it should pay close attention to purchasing habits. This aspect involves

monitoring the willingness of the customers to spend money on Danone’s products. The

purchasing habit comes from market research. As the company tries to understand the

behavior of the customers, it establishes the products and the quantity of the products they are

likely to purchase. This knowledge puts Danone in the best position to understand how to

send products to consumers. The regions with unfriendly purchasing habits should receive a

lower amount of products.

However, Danone should conduct market research to establish ways of improving the

consumption of the products in these regions. If the consumers have specific expectations on

the products, Danone should incorporate the requirements in its products. On the other hand,

for the regions that register higher consumption levels of the Danone products, it should

maintain or even improve the consumption. It may closely monitor the units consumed per
MARKETING STRATEGY PROPOSAL 4

month of each product. After establishing the accurate figure, Danone should find better ways

to maintain the products' flow into such areas.

Secondly, Danone should divide customers, depending on spending habits. Here,

spending refers to how much money the customers are willing to use on the products. Danone

should understand that the customers will be willing to spend higher amounts on products

based on their products. Therefore, it should provide as much information as possible to the

consumers. The information leads to the third element, brand interaction. As Danone

provides information, it should couple it with product samples, the health benefits, and other

relevant information to ensure that the buyers are willing to spend based on the available

information.

Target Customers

Danone Company targets customers of all races, gender, and ages. The organization

understands the diversity and the unique needs of each consumer within and outside the

country. Depending on the age, status, and information that the consumers have regarding the

product, they are likely to show different purchasing patterns. However, Danone targets

everyone with its products; it does not intend to lock anyone out. Danone wants everyone to

enjoy the unique food products and make their decisions and judgment. Therefore, it opens

the products to everyone that can eat and all the people without medical restrictions. In its

advertisements, Danone ensures that it includes all the vital information to guide the

consumption of its products. The expiry information should be written to avoid confusion.

For example, Danone should include consumers who should not use its products based on

medical conditions. Also, it should include the dates before which the products are best and

the possible effects of using the products after the products the set dates.

Positioning
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Value Proposition

Danone Company- Eat sweet but healthy.

Danone is a food producer that cares about the health of the consumers. It wants to

ensure that the customers are aware of the health values of the products. Therefore, it

encourages consumers to consume its products while taking care of their health. However, it

intends to include all the consumers in using its products.

Opportunities with Potential Clients

Healthy

Aptamil
Alpro Evian Nutricia

Activia Actimel Volvic

Not
Very
Sweet
Sweet

Danette
Danio

Dannon Danonino

Unhealthy
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Sustainable Competitive Advantage

Danone ensures a sustainable competitive advantage in two ways. Firstly, it is a low-cost

provider to accommodate all the low, middle to the high-class consumers. It does so

intending to ensure a barrier to entry. Also, the consistent low prices of the products win

more consumers to the brand. As a result, loyalty to Danone rises significantly.

Secondly, Danone adopted product differentiation to ensure sustainability. It produces

unique products by combining what already exists with new products to create a new flavor.

The organization ensures that the products are of high quality in all dimensions from the

actual product to the delivery channels. Quick responses to the product reviews are vital to

ensure that the company maintains its high position in the international market.

Measurable Goals

i. Danone Company intends to expand its target market by at least ten more countries

within a year.

ii. Danone Company plans to reduce its prices even further by at least 5% to avail its

product to a broader market.

iii. Danone Company plans to introduce new products and delivery channels to ensure it

attracts a broader market, and the products reach this market in time.

Marketing Mix Model (MMM)

Based on the MMM, Danone proposes the following:

Product: Danone should produce products that are highly consumed by customers in large

quantities. It should do so to ensure that the products do not run out of stock at any particular

time.
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Price: Danone should reduce the price further to accommodate all the categories of

consumers. The current prices have locked out some potential consumers.

Distribution: Danon Company should increase the number and efficiency of the distribution

channels. The more efficient the channels become, the better the distribution.

Promotion: Danone should adopt social media marketing promotion above any other method

to reach a broader target audience.

References

Storchi, Alessandro. (2018). Critical analysis of Grameen Danone Food LTD case as a model

of sustainable private-NGO joint venture. 10.13140/RG.2.2.32675.09761.

Chou, S. F., Horng, J. S., Liu, C. H. S., & Lin, J. Y. (2020). Identifying the critical factors

of customer behavior: An integration perspective of marketing strategy and components of

attitudes. Journal of Retailing and Consumer Services, 55, 102113.

Rana, S., Prashar, S., Barai, M. K., & Hamid, A. B. A. (2020). Determinants of

international marketing strategy for emerging market multinationals. International Journal of

Emerging Markets.