Dannon Case Analysis
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 that gave it a huge leg-up. Dannon lacked the external CSR that had come to build Yoplait a valuable and loyal brand following. Most notably was the “Save Lids to Save Lives” breast cancer awareness campaign that Yoplait put on every year since 1997. Dannon had their own CSR initiatives; however, they were internally communicated. This ended up hurting Dannon’s exposure and community relations in the market place. To be a formidable competitor for Yoplait, Dannon must eliminate Yoplait’s CSR competitive advantage while customizing its own CSR initiatives to generate new sales opportunities. The U.S. is not a large consumer for yogurt. Comparatively speaking, France and Switzerland consume over four times as much yogurt as the United States despite being sizably smaller. If Dannon uses external CSR to show consumers that eating Dannon yogurt is an important staple in a healthy diet, this can generate new sales opportunities for Dannon. Externally communicating these messages to the public allows Dannon to show-off the time and money they spent researching the health benefits of yogurt. Not only can Dannon eliminate Yoplait’s competitive advantage but it can also grow new revenue streams by educating people that yogurt
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 that gave it a huge leg-up. Dannon lacked the external CSR that had come to build Yoplait a valuable and loyal brand following. Most notably was the “Save Lids to Save Lives” breast cancer awareness campaign that Yoplait put on every year since 1997. Dannon had their own CSR initiatives; however, they were internally communicated. This ended up hurting Dannon’s exposure and community relations in the market place. To be a formidable competitor for Yoplait, Dannon must eliminate Yoplait’s CSR competitive advantage while customizing its own CSR initiatives to generate new sales opportunities. The U.S. is not a large consumer for yogurt. Comparatively speaking, France and Switzerland consume over four times as much yogurt as the United States despite being sizably smaller. If Dannon uses external CSR to show consumers that eating Dannon yogurt is an important staple in a healthy diet, this can generate new sales opportunities for Dannon. Externally communicating these messages to the public allows Dannon to show-off the time and money they spent researching the health benefits of yogurt. Not only can Dannon eliminate Yoplait’s competitive advantage but it can also grow new revenue streams by educating people that yogurt
References: Marquis, Christopher, Pooja Mehta Shah, Amanda Elizabeth Tolleson, and Bobbi Thomason. "The Dannon Company: Marketing and Corporate Social Responsibility (A)." Harvard Business School Case 410-121, September 2011. (Revised from original April 2010 version.) Natural Products Foundation. Web. 7 June 2013. <http://www.naturalproductsinfo.org/index.php?src=news&srctype=detail&category=DSIB%20Releases&refno=181&view=DSIB_Releases_Detail>.