Danone

2 February 2017

This segment caters toward consumers who desire additional health benefits from dairy products. -The Diet segment which accounts for 13% of the market and caters for consumers who want very low or zero fat. Danone Vitalinea -The Standard Fruit segment represents 15% of the market and has been dominated by standard brands such as Yoplait. -The Full Taste segment accounts for 10% of the market and caters towards consumers desiring a more indulgent yogurt for example Muller Corner pots. The Children’s segment represents 21% of the fresh dairy market and traditionally comprises of fromage frais. Products in this segment are geared towards delivering unique nutritional benefits required for children.

Danone Gervais -The Drinks segment makes up 5% of the market and includes yogurt drinks such as Yop which are targeted towards young teenagers. -The Dessert segment accounts for 11% of the market. This segment is targeted towards consumers who desire a convenient and indulgent dessert for example chocolate mousse.When Danone analysed these market segments they saw that there were gaps in which they could fill within The Natural Health Segment, The Diet Segment and The Children’s Segment. Danone Actimel and Danone Activia were perfectly suited for The Natural Health Segment. Consumers were increasing seeking food products that offered additional health benefits. Danone Actimel contained an active ingredient which has been shown to help strengthen the body’s intestinal balance while Danone Activia helps improve digestion.

Danone Essay Example

Danone Actimel now commands 14. % of the market share. Danone Vitalinea is targeted towards consumers who are dieting. It is enriched with 6 essential vitamins, fibre and calcium and phosphorous. It is designed to replace important nutrients which can be lost through dieting. Danone Gervais range is marketed towards children and is formulated to meet baby’s nutritional needs from the age of 4 months upwards..

_________________________________________ 5. Visit the Danone website and the website of its main competitors. How would you describe Danone’s original positioning strategy?Comment on how the product has been repositioned today. Positioning is vital to the success of a product on the market and can determine whether a product succeeds or not. In order to properly position their products, Danone looked at their potential customer base and what they looked for when purchasing products. They saw that their potential consumers comprised of people of all ages and demographics who wanted products which offered additional health and nutritional benefits. Danone also found that consumers traditionally perceived yogurts predominantly as a dessert food.

Through key advertising, Danone set about changing those perceptions by highlighting the health benefits of their products. Danone’s entry into the Irish fresh dairy market started with a healthy yogurt drink but their range soon expanded to include products which cater towards both adults and children with a wide range of products which offered nutritional benefits in order to broaden their market share. Danone saw that they could position their products within three main segments: The Natural Health Segment, The Diet Segment and The Children’s Segment.Danone’s advertising highlighted the benefits that could be gained through consumers including Danone’s products to their diet and thus reinforced their position in the mind of the consumer and giving them an edge over their competitors. Danone targeted their future consumers from a young age by introducing Danone Gervais. By catering for consumers needs as they grow, Danone can gradually promote brand loyalty by catering to consumers from childhood right through to adult hood.For the purposes of this assignment, I spoke with a supermarket manager who informed me that shelve space given over to yogurt products have increased over the past few years.

The overall market has grown with a broad range of products introduced in order to cover all markets. When Danone first entered the Irish fresh dairy market, the market had a limited number of products. The market was predominantly dominated by standard fruit yogurt brands such as Yoplait. With the recent launch of Yoplait Essence, Glanbia have brought a major competitor to the market.Glanbia have positioned Yoplait Essence as a yoghurt shot with a full range of benefits including lowering blood pressure and cholesterol, improving digestion, strengthening the body’s immunity and even assisting with weight lose. This gives consumers the option of purchasing a yogurt with all the benefits in one shot. Glanbia have other strong contenders under the Yoplait brand such as Everybody and Everykid equally positioned as nutritious and health yogurt drinks.

Glanbia have well and truly positioned their products as threat to Danone within the Irish fresh dairy market place.With more and more products coming on the market the competition within the fresh dairy market grows stronger. The Natural Health sector (especially probiotics) is now the fastest growing segment within the market with annual growth at over 59% per year and accounts for 28% of the market share. Danone’s product range continues to grow with the launch of Danone Essensis in June 2007. However Danone Actimel still remains the number one fresh dairy brand in Ireland and Groupe Danone is a company at the forefront of innovative products.

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