Dannon Case Study Essay

The company that I chose for my final project is the Dannon Company. The Dannon Company was established in the United States in 1942 in New York City. Dannon is a subsidiary of global company Groupe Danone, whose headquarters are in Paris, France. Danone has operations in the United States, France, and Canada and is one of the largest health-focused food companies in the world today. Danone has four major business lines: fresh dairy products, water, early life nutrition and medical nutrition.

This initial setback with dairy products drove Danone to copy in China the alliance strategy used with great success to expand into Italy and Spain in the 1980s. Danone decided to capitalize successful local businesses rather than build its own businesses from scratch, resulting in a strong focus on joint ventures and acquisitions. Unlike most multinationals, Danone gave these acquired local businesses a great deal of autonomy. The joint ventures and acquired firms continued to sell their products under their own brands. Until late 2002, 80 per cent of Danone’s sales in China were under local brands. Furthermore, Danone let the former executives run the businesses and didn’t get involved much in daily operations. In fact, Danone functioned more like a capital investor, linking its joint ventures through capital investment rather than joint products. This expansion strategy in China worked very well. In 2001, Danone had become one of the largest food concerns in China, with $1.2 billion in sales, more than 50 plants and around 25,000 employees.14 Accounting for 9 per cent of Danone’s international sales in 2003, China became Danone’s third largest

Before describe and discuss prior social marketing campaign, we understand that social marketing is the focus on behavior, not awareness or attitude change. Besides, social marketing results in benefit to individuals or society, not just focus on organization benefit and profits. Organization runs social marketing

According to The History of Danone (2009), Isaac Carasso was inspired by the research of Elie Metchnikof, and in 1919 he began using ferments from the Pasteur Institute to manufacture yogurts to sell on prescription to pharmacies in Barcelona, Spain. Carasso began this work, because he saw an opportunity to help the number of children suffering from intestinal disorders, due the lack of healthy nutrition following the First World War. By 1929, Daniel Carasso, Isaac’s son, continued to grow the company by launching the company Danone in Paris. Business for Danone continued to prosper in Paris until 1941, when Daniel

Danone felt that the U.S. was an emerging market for yogurt and hence, Dannon focused its marketing strategy on increasing the yogurt consumption and expanding the category. Dannon had to follow Danone and maintain a strong commitment to CSR. At Danone, local decision making and was trusted and encouraged. Also, Dannon had a responsibility to its parent company and was accountable for a set of deliverables and data for reporting purposes. It believed in collaborative decision making and therefore major strategy

The Dannon Company is a subsidiary of Danone whose heritage dates back to 1919 and founded by Isaac Carasso in Spain. When Carasso immigrated into the United States in 1942, he established Dannon Milk Products, Inc. in New York, changing Danone into “Dannon” to make the name sound more American. Like most startup companies, Dannon faced challenges as a company until several decades after, in 1988, when Dannon capitalized on the advantages of having an FDA approval that they had one of their first most successful product launches. Since

You will also notice that terms like “fair trade,” “gluten free” and “organic” are brazenly displayed across hundreds of different products—far more than there were only a few years ago. That is the effect of a large and growing LOHAS consumer base. Ultimately, businesses are driven by what large consumer bases like LOHAS are doing, and have shifted their products (and marketing schemes) to accommodate this burgeoning desire for sustainable/eco-friendly goods. Many businesses have taken this further, and are revolutionizing their CSR tactics to appeal to the increasingly discerning

Danone is a yogurt company, which was founded by Carasso’s father, Isaac Carasso in Barcelona, Spain, in 1919. Danone first introduced an innovated

The parent company Danone, as part of its social activity teaches and educates Corporate Social Responsibility initiative across its subsidiary. Internal and external communication program help blend corporate global culture and shapes the best practices in the U.S where Dannon operates. Dannon views U.S market as a growth oriented with per person consumption, which is much less than other part of Europe. Dannon executives identified this opportunity as a high growth area and used its Corporate Social Responsibility programs in its communication with customers. According to Arevalo, & Fallon (2008), corporate citizenship initiative is to embrace, support, and carryout values in the areas of human development and environment within the business

This recent reality, combined with globalization, is forcing companies to forge new kinds of relationships with buyers and countries. The financial valuation of companies are taking ever greater account of intangible elements, such as brands, patents and the company’s general image, with companies being bound to take account of these things in an effort to satisfy their shareholders. Environmental protection has become a highly motivating factor, and companies are being pressed to identify stakeholders with whom to team up. With brand value and reputation increasingly being seen as one of a company’s most valuable assets, CSR is now seen as building loyalty and trust amongst shareholders, employees and customers ( Tssa, (n.d.)).

CSR or ”Corporate Social Responsibility” is a very important keyword for companies these days. Consumers are being more and more aware and conscious about where their clothes come from and how they are made. Consumers also put a lot of thought into where their food comes from, and how it has been produced and treated before it is served at the dinner table. With other words, consumers are demanding better quality and greater responsibility from the companies, than ever before. The consumers of the companies have never demanded as much as they do today from them, and never have companies needed put so much thought in their supply chains and to take this much responsibility for their production and their products. But improving sustainability

Danone’s ultimate goal is to take over the Chinese beverage industry. Therefore it needed to acquire or merge with competition. Danone remained quiet and turned a blind eye when it knew of Wahaha Group’s use of the trademark and breach of the non-compete agreement. This could be in part due to the fact that Danone was acquiring other companies such as Wahaha’s direct competitor, Robust. I consider this a “give and take” strategy used by Danone. Danone did not want to rock the boat with Wahaha as it was pursuing its own interests separately too. Therefore, rather than confront Wahaha Group about the

Therefore, corporate’ activities have strong influences to the stakeholders. Hildebrand,D,et,al (2011) argued that under a specific but identifiable situation, a company’s CSR actions are able to satisfy stakeholders’ higher-order and self-related demand, meanwhile enabling the stakeholders to identify with the company. On the other hand, Piercy, N. and Lane, N.(2009) indicated that CSR seems to be the most efficient way for the corporate marketing efforts of most firms. It may enable the stakeholders to be loyal even life-long customers of the companies.

Danone Group is a French-based company that specialized in producing qualified dairy products worldwide. Danone South Africa (Danone SA) is established in 1997 as one of Danone Group’s country business units (CBUs), located in the heart of local economy and market attraction in South Africa. However, despite considerable R&D and flexible organizational structure has performed, several internal and external problems still limited Danone SA to a fully successful business.

DANONE is one of the largest multinational companies in the food and beverage industry. By the end of 2016, counting from the consolidated companies to the sub-divisions in more than 130 countries, DANONE has 99,187 people as full-time employees (Danone, 2016). Base on the geographical area, majority of the employees, they work in European countries