Dannon Case Study Analysis

2013

Dannon Case Study Analysis

2013

CONTENTS

EXECUTIVE SUMMARY 2

PROBLEM STATEMENT 3

DATA ANALYSIS 3

KEY DECISION CRITERIA 4

ALTERNATIVE ANALYSIS 4

RECOMMENDATIONS 6

ACTION AND IMPLEMENTATION PLAN 8

Executive Summary In 2007 and 2008, Dannon, the #2 yogurt provider, was losing valuable market share to its top competitor Yoplait. Despite the growth opportunity in the domestic U.S. yogurt market, Dannon’s growth had surprisingly slowed. At the end of 2008 Yoplait was the U.S. yogurt market leader with 35.4% of the market dollar share while Dannon only held 28.9% of the market. Yoplait held a competitive advantage over Dannon
With Activia already a huge success, the increase in marketing is two-fold. It aims to generate new buyers as well as aiming to get current customers (such as Activia buyers) to purchase their products in other segments. The negatives of this are the cost. Dannon would be spending more money without having any differentiation or competitive advantage over Yoplait that would cause customer’s to switch. 3. The advantages to taste testing are self-explanatory because the hardest part of getting someone to buy a product is the fact that they need to be willing to try it first. Giving people a free chance to try it can give them a gauge to see if they like it. It also gives current Yoplait buyers the chance to see if they may like Dannon’s taste better. The biggest con is the cost because Dannon is giving away free product. For the promotion to have any chance of success, yogurt would need to be given free to thousands of retail outlets across America which is a huge initial hit on profit. Another con is that yogurt is not a staple of the American diet so new; non-yogurt eaters may not even be willing to try it in the first place. 4. Currently, Dannon advertises by their individual brand. By advertising on the corporate level it could give credibility to the Dannon brand altogether. This