Published by MBA Skool Team, Last Updated: December 14, 2016
Marketing Strategy of Danone analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Danone marketing mix, help the brand succeed.
Danone marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Danone Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Danone Product Strategy:
The product strategy and mix in Danone marketing strategy can be explained as follows:
DANONE has always focused on quality products. In Spain, DANONE products are considered to be the best food products. It is a combination of healthy, tasty and structured product. One of the unique features of its product is the attractive packaging. It makes it to stand out when compared to other brands. Another strength of the company varied product lines. This helps them to meet the demands of the customers. If we carefully see the brands under DANONE, it consists of both international and local brands as a part of its products marketing mix strategy. Fresh dairy products include Danone-Danone US, Activia, Actimel, Yocrunch and many more. Early life nutrition products include Karicare, Cow&gate, Bebelac, Bebiko and many more. Water product includes Aqua, Font Vella, Damavand and many more. The best part is that company spends most of its money on research and development of new products. Thus, it makes DANONE company that also sees customer future needs.
Image: company website
Danone Price/Pricing Strategy:
Below is the pricing strategy in Danone marketing strategy:
DANONE is considered to be a premium brand.
It has always maintained a high price for its product as compared to its competitors. They have always followed a high pricing marketing mix strategy compared to its competitors. This can be considered as a weakness for the company when there is economic downturn. This can shift the customers to consume more generic products. With this, DANONE came up with discount coupons. The motive behind introducing discount coupons to reduce the sales price but at the same time maintains profit margins. Therefore, introduction of coupons helps to generate more sales and create strong customer relationships.
Danone Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read Danone SWOT Analysis, STP & Competitors
Danone Place & Distribution Strategy:
Following is the distribution strategy in the Danone marketing mix:
DANONE has been using intensive distribution channel. The company makes sure that products are available to everyone. Therefore, there should be widely distribution of products so that it is easy accessible to customers. They have a great network of distributors. As a result, the products are available in most of retail stores and supermarkets. In order to expand internationally, they follow the strategy of joint ventures. They have been following this strategy for quite a long time. They have jointly combined with Yakult in India to expand its business.
Similarly, Al safi in Saudi Arabia, Yakult in Vietnam, Mengniu in China.
Danone Promotion & Advertising Strategy:
The promotional and advertising strategy in the Danone marketing strategy is as follows:
In the food industry, promotions and advertisements plays an important role in order to connect with customers. DANONE knows about the essence of advertisements and they have come up with strong marketing campaigns. Advertisements are based on products and target audience. DANONE has products for both groups i.e. kids and parents. But, it has mainly focused on parents as they have the decision making power in case of children. Generally, they have brilliant advertisements that excite the clients to come and work with DANONE. This explains the marketing mix of Danone.
DANONE, one of the world famous food product based company is based in Paris. It was founded in the year 1919, in Barcelona Spain. Currently, chairman of the board is Franck Riboud and chief executive officer is Emmanuel Faber. It’s headquarter is Boulevard Haussmann 9th arrondissement, Paris, France. The company has around 1, 00,000 employees working under the same belt. DANONE is spread worldwide and has presence in over 130 markets. In 2015, the company generated € 23 billion through sales. About half of the sales came from the emerging countries. DANONE has presence in four categories i.e.
Fresh Dairy products, Waters, Medical nutrition and early life nutrition. Their mainly sales comes from fresh dairy products followed by early life nutrition, waters and at last medical nutrition.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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