Poverty and Danone

904 words 4 pages
Week 5 Assignment 1
Danimal in South Africa Case Study Assignment



Why Danone developed Danimal yogurt for the South African market

South Africa had a big income inequality gap with its market being at the bottom of the pyramid with more than half of the population in the 4-5 tier range having less than $1500 in purchasing power parity in US dollars. Danone wanted to capture the market by introducing a low priced product to the low income people. With research by local Universities and the SA Medical Research Council, the benefits of of Danimal were promising. It was found that the probiotic cultures in yoghurt were beneficial for children and also that a product needed to be produced
…show more content…

They did not distribute them traditionally but by using the locals to sell them as “franchise” units.

Danone needs to make a profit on this product. Maybe they can expand their product at a higher price to other tiers. Even better would be to make other dairy products that appeal to the specific market. Another idea would be to market them at schools or hospitals, where diet and nutrition are very important.

When Maria Pretorius leaves her current position in S. Africa, what are the implications for sustaining the Danimal yogurt project and product line? What do you recommend?
The initial problem is that Pretorius had no other person that shared her values and mission. She seemed to be doing all the work. A training program should be put into place for the top management, with a clear goal set and expectations for the next 5 years. As the case stated, each business unit is provided a budget to use as they see fit. This will be a hurdle for the new replacement. Joelle Berry should be hired to take over, since he really is the only person, besides Pretorius, that has knowledge on the product and Business model. More employees should be trained on the product and also all management should be on the same page in terms of future expectations and goals. Danone should start expanding the Danaimal product by introducing new flavors and maybe producing a product appealing to adults. Distribution should be expanded to