marketing plan finaldanone

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