company produced and sold six million cups of yogurt per day with almost 100 flavors, styles, light verities, fruit blends and sizes. To keep up with competitors Dannon introduced its line of kid’s yogurt products called Danimals, Dan-o-nino, and more health benefit product in DanActive to attract different demographics. Dannon has launched Activia which is the leading proactive health brand, and reached 100 million in net sales. Dannon can be seen marketing their products in TV ads, in-store shopper marketing tactics, and branded websites.
Challenges
The Dannon Company faces many challenges that management must address to keep the firm an industries leader.
Creating more of a yogurt market is in the United States is a top priory for the firms feature success. The yogurt category is not as popular in America as other reagos of the world and with a market growing by 15-18% per fiscal year there leaves an enormous market to be taped into. Keeping up with global compotation, and still providing industry leading products is a challenge management must contend with. Product diversification; and first to market product placement will give the edge to Dannon over rival firms. If the company decided to take more time in developing a domestic market in the US there could be large net gains for both the company and …show more content…
industry.
The industry is concentrated and dominated by two large firms both controlling over 70% of the market combined. The main competitor is the market leader Yoplait. Rivalry within in the yogurt industries is highly competitive within rival companies; although there are a low number of competitors. With few firms controlling the majority of market competitors must be innovative with new products and marketing plans. With the US as a new emerging market firms must be aggressive and successfully in revamping products, and marketing ideas to fit American consumers. The top competitor to Dannon is Yoplait a portfolio band of the US food conglomerate General Mills. There are other niche companies that exist but are not near the size of the two industry leaders. Both Dannon and Yoplait control 62.9% of the market, while other such as Columbo, Fage make up 20.6% of the market share.
The Dannon Company is one of the largest health-focused food companies in the world.
The global business is focused on fresh dairy, bottled water, medical nutrition and baby nutrition. Dannon manufactured and marked fresh dairy products in the US and abrde and was seen as the number two player in the domestic yogurt market. The company has expanded into different segments such as drinks, kids, light core, proactive health, indulgent. Dannon leaded the industry in Proactive Health category with 40% of the 1.1 billion coming from there Activia Brand. Over the past couple of years The Dannon Company has seen the US as an emerging market and is looking to capitalize on the new market. With a strong marketing campaign the industry leader looks to make a big push on the new market. The current growth of the US market is at 3.7+ billion growing at about 1.5% per year leaving a huge resource to tap into.
Production of mass quantities of yogurt in a fast and cost efficient manner, high employee morale, global power house, health promotions,
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