Danone Brand Portfolio: Performance

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Danone Brand Portfolio: International Delight

International Delight has reached sales numbers of up to US150.25 million in the US, making it the country's second leading refrigerated coffee creamer brand. They use the tagline "We Like How You Party" on their marketing materials and refer to their audience as "Creamer Nation." The findings as well as the methodology used for this research are available below.

SALES / MARKET PENETRATION / CONSUMER AWARENESS

NEWS ABOUT THE BRAND

  • International Delight entered into a partnership with Pets for Vets by contributing US$150,000 to the organization and featuring the Pets For Vets pawprint logo on every bottle of their new limited-edition S'mores flavor product.
  • International Delight revealed a 4x4-foot Easter diorama that featured a space travel- and exploration-inspired design for the launch of their new PEEPS® (marshmallow) Flavored Creamer.

MARKETING EFFORTS

RESEARCH STRATEGY:

In order to provide an in-depth analysis of International Delight's brand performance and marketing efforts, we leveraged company reports, websites, and publications; third-party analyses; press releases; media coverage; social media pages; and advertisements, among other sources. To find financial and performance details for the brand, we first performed a deep dive into Danone company publications such as annual and financial reports. Unfortunately, the company only breaks down its performance and financial data according to its three brand segments (Water, Specialized Nutrition, and Essential Dairy and Plant-Based Products), so we were not able to find specific data on International Delight. As a second approach, we proceeded to look for publications, press releases, or insights from International Delight, but these brands do not publish their own metrics; all reports come from the parent company, Danone. Third, we searched for third-party analyses of the brand's performance or financial data, such as media coverage or market research reports. We were able to find some proprietary market research that includes this brand as part of a competitive analysis but these were only accessible when the report is purchased. We were also able to find that the International Delight is ranked second as the leading refrigerated coffee creamer brand in the US in 2018 with US$150.25 million in sales, however, this information is only for the US and does not take into account the rest of North America. Based on these research strategies, we determined that specific financial and performance details of International Delight in North America are not publicly available.

To assess the marketing efforts of International Delight, we searched for company quotes, press releases, or reports on marketing strategy; referred to third-party analyses or media coverage of International Delight's marketing; and performed original analysis of their advertisements and marketing campaigns available online. From this search, we were able to determine the social media accounts of International Delight, as well as some marketing materials that they have used including television ads, however, no quotes from senior leadership regarding marketing strategy were found; nor were any marketing successes or failures specific to International Delight from the past six months. We were able to find that Lianna Capozzola is the Director of Marketing of Danone North America who is also in charge of marketing for International Delight, however, no quotes from her were found regarding the marketing efforts for the International Delight brand.

A screenshot of the Statista graph cited in this research is available in an attached Google document. A separate Google document is available for screenshots of the brand's current marketing.
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Danone Brand Portfolio: Silk

Silk is considered the number one plant-based beverage in North America. The Silk brand is also one of the largest brands in Danone's Essential Dairy & Plant-Based (EDP) division. They brought in over €500 million in sales in 2018. In 2019, Silk added a new range of oat milk yogurts and reformulated their coconut milk beverages. As a marketing effort, they created a campaign to celebrate its new coconut milk formula. More information on the brands' performance can be found below.

SALES, MARKET PENETRATION, AND CONSUMER AWARENESS

  • In 2018, Silk had a sales boost because of a growing demand for nut-based beverages and expansion in adjacent segments and formats.
  • Penetration of plant-based beverages (such as Silk) in the US is of 34%, while in Mexico it's of 11%.
  • The expected growth for plant-based beverages (such as Silk) from 2017-2020 is between 7% and 10%.
  • Silk is the number one plant-based beverage in North America.
  • Silk and Alpro are Danone's biggest brands, with over €500M in sales each.
  • Plant-based beverages (such as Silk) and yogurts are 78% of Danone's business.
  • Danone is addressing a €2 billion market in North America with its Silk plant-based coffee creamer product, with a projected growth of between 20% to 40% from 2018 to 2023.

BRAND NEWS

  • In 2018, Silk launched new protein milks and large-size bottle formats.
  • In 2019, Silk added a new range of oat milk yogurts to their Oat Yeah portfolio.
  • In 2019, Silk reformulated the taste of its "fan-favorite" coconut milk beverages.

MARKETING EFFORTS

  • At the end of May 2019, Silk launched a marketing campaign to "celebrate" the new taste of their coconut milk beverages by sending a customer to Thailand.
  • In April 2019, Silk launched a petition to establish "plogging" as an event at the 2028 Los Angeles Olympic Games, as part of a cause-related marketing strategy.
  • Silk's petition on the Change website wasn't that successful as it only gathered less than 100 signatures in 3 months.

MARKETING CHANNELS

  • Silk advertises its products through their Twitter account with campaigns with figures like Michael Phelps.
  • Silk also uses impactful activation campaigns, such as their advertising on bikes with the hashtag #ProgressIsPerfection.
  • At supermarkets, Silk uses print board ad's to promote its products.
  • On its website, Silk uses content marketing to promote its products, with videos and recipes that show creative ways to use the products.

MARKETING QUOTES

  • Chief Marketing Officer, Valérie Hernando-Presse: They launched 'The Collective', a marketing community that will "power the change by learning, inspiring and sharing cutting edge practices for brand building and innovation."
  • Senior Brand Manager for Silk, David Robinson: They focus on having great ingredients which sometimes come from tropical landscapes and they are looking forward giving a fan and their guest "the chance to experience some of Thailand's most exotic locales firsthand."
  • Brand Manager for Silk, Joshua Cook: "It was a natural step to create an oatmeal yogurt after the successful launch of the beverage."

USEFUL FINDINGS

  • Over 80% of households purchased both dairy and plant-based products.
  • 20% of Danone's sales correspond to its EDP division.
  • In 2018, approximately 15% of the EDP sales came from plant-based products.
  • During the first half of 2019, Danone reported strong, recurring growth in the EDP sales at 6.3%.
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Danone Brand Portfolio: Active

Activia contributes 7.3% of Danone sales. After a low performance in the past, the brand was rebranded and is seeing larger sales at the moment.

Activia sales

  • Activia sales in 2018 was $2 billion.
  • Activia's sales as a percentage of Danone's total sales in 2018 was 7.3%.

Market Penetration

  • As a result of a period of low sales, Activia has been working on rebranding itself as a female-positive brand.
  • Activia Dailies, a new Activia product, is the highest-selling product of the Activia brand since market entry in 2018.

News on the brand

  • According to CNBC, Activia's fourth-quarter sales in Europe were low in 2018.
  • In January 2019, Danone introduced two new Activia flavors in the US.
  • In March 2019, Danone re-launched Activia in the UK in a new packaging and recipe reformulation in an attempt to improve sales after several years of stagnating sales.

Marketing channels and messaging

Instagram
  • The brand has various Instagram accounts specific to regions (the US, Turkey, Brazil, Germany, France, etc.). Each account is different with posts and information specific to the region.
  • On the US Instagram account, the brand mainly posts advertising messages around holidays such as Womens' Day and Mothers Day, creating connections between the products and the ongoing holidays.
Twitter
  • Activia has multiple Twitter accounts specific to each region such as Activia US, Activia UK, Activia France, and others.
  • On the US account, they advertise their products during holidays such as St Patricks' Day. The brand also uses trending challenges as an opportunity to advertise its product. Also, the brand uses Twitter to attend to customer complaints.
YouTube
  • On YouTube, Activia also has multiple regional accounts.
  • On the US YouTube channel, they promote their ongoing TV commercials.
TV
  • Activia TV advertisements focus on promoting the products' positive effects on digestive health.
  • Activia's 2018 ad — “Don’t Tell Me I Can’t” — positions the product as an empowering food for women on the increasingly popular trend of overhauling a diet.

Research Strategy:

To provide an analysis of Activia, your research team commenced with a thorough search for reports on the brand performance and marketing strategies on their official website, social media pages, and third-party business publications such as CNBC, Business Insider, and others. While we found information on the brand's performance, there was no information on consumer awareness and any quotes from leadership on marketing strategies.

We searched for searched interviews granted by top Danone officers including Emmanuel Faber (Danone CEO) and Valerie Hernando (Danone CMO) on credible media pages such as CNN, Forbes, and others. No information related to either the marketing efforts or consumer awareness was found.

Activia's contribution to the total sales of Danone:
Activia 2018 sales: $2 billion
Danone total 2018 sales: $27,532,265,565 (€27,400,000,000).
2,000,000,000/27,532,265,565*100
=0.073*100 = 7.3%
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Danone Brand Portfolio: Danone

The Danone brand by Danone was one of the top three performing brands from the company by sales in 2017, the brand had the third-highest sales for the company, sharing 18% of the essential dairy and plant-based products, North America and 34% of the essential dairy and plant-based products, International. To celebrate its 100 years anniversary, Danone relaunched a “1919 Edition” Kefir range in Spain, an iconic drinkable product, considered as a great source of probiotics". We have attached a screen grab of the brand's current marketing in the provided Google Document. Below are our deep findings and methodology.


DANONE BRAND PORTFOLIO: DANONE

PERFORMANCE: SALES

  • In 2017, the Danone brand by Danone was listed as one of the top three performing brands from the company in terms of sales.
  • The same year, the brand had the third-highest sales, sharing 18% of the essential dairy and plant-based products, North America, and 34% of the essential dairy and plant-based products, International.
  • In 2018, the brand maintained the third spot while helping to increase the essential dairy and plant-based products to 20% in North America.
  • This helped the company retain the first spot in fresh dairy products and plant-based products worldwide.

PERFORMANCE: MARKET PENETRATION

  • In 2017, the Danone brand relaunched its campaign in Spain & France, helping the company penetrate more in the global dairy market.
  • Also, to penetrate more into the global market, the company improved its brands, this is, by adapting to new product innovation, advertising, packaging, and brand image.
  • In 2018, the company branch in France & Italy introduced the Danone Le Bio in France, a series of yogurts produced with 100% organic milk. (source 5)
  • Also, in the same year in Russia, the brand reinvented its classic sour cream recipe with a baked variant, providing consumers with a whole new taste experience.
  • The Danone high-protein yogurt YoPro brand is now available in Brazil, Spain, and Australia.
  • The yogurt meets the demand for high-protein, low fat, with zero sugar, and artificial sweeteners and it is also ideal for life on-the-move due to its formats from drinkable and handy pouches to single-serve pots.

PERFORMANCE: CONSUMER AWARENESS

  • In 2018, the Danone brand was one of the company's brand to donate a full day’s sales of over €5 million in support of regenerative agricultural projects.
  • About 1,500 Danone employees together with farmers and suppliers alike communed with supermarket consumers on regenerative agriculture as a technique towards soil protection, farmers support, & animal welfare promotion.
  • The hashtag #elfuturoesfree created with the launch of 0% fat and 0% added sugar yogurt light & free, the consumers are motivated to be proud of their consumption choices.
  • Analyzing the hashtag #elfuturoesfree: On the social media analysis, the site hashtagify showed that the hashtag performed poorly in terms of outreach to the targeted audience as there was no enough data to collate its performance.
  • Another Analysis of #OnePlanetOneHealth which was used to launch the 1919 Edition Kefir range in celebration of the company's 100 years anniversary showed an averagely low performance with most of the tweets being generated from France. However, the hashtag was not exclusive to the product launching alone.

BRAND NEWS/MARKETING EFFORTS


RESEARCH STRATEGY

To answer this request, we started by conducting a thorough search through the company website for all information regarding its brand marketing strategy & outreach. We looked at the company recent annual reports, recent news and publications, brand news, strategy & key figures, press releases, and impact created. From our search, we were able to extract statistical data and evidence regarding the brand.

Next, we looked into the company's social media profiles to see what progress they have made in terms of digital marketing with respect to the Danone brand. The search was fruitful as we found a Twitter media post on a re-branding done by the company to celebrate its 100 years anniversary of the Danone yogurt brand which was the first brand of the company at inception. The details of our research can be found in the key finding section of our research.
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Danone Brand Portfolio: Mizone

Mizone is the number one brand in Danone's water segment. The brand claims to empower youths and prides itself as "an everyday restoration drink. Screengrabs of the brand's current marketing are provided in the attached Google document.

MIZONE'S SALES, MARKET PENETRATION, AND CONSUMER AWARENESS

RECENT NEWS ABOUT MIZONE

MARKETING EFFORTS

  • Mizone brand has benefited from strategic partnerships with companies like Sappe to expand the reach in terms of the market for its products.
  • Mizone tried to gain a wider customer base by creating products that target customers with an active lifestyle, including being active in sports.
  • They made recent introductions of energy drinks and Mi-Pro, which contains sodium.

MARKETING CHANNELS

  • The company (Danone) advertises the Mizone brand on its website using images of the beverages and short videos.
  • The brand is also advertised using agencies such as Y&R Shanghai for products such as Mizone Core across the Chinese market, particularly for summer.
  • The focus of the campaign was on freshness, the authenticity of fruits, and cooling down in the hot summer temperature.
  • The brand is advertised on the website of other brands in the top three list for water segment, including Aqua.

MESSAGING

QUOTES FROM LEADERSHIP AND MARKETING SUCCESS

  • At the end of 2018, stakeholders in Danone's annual report stated that "In China, we created a new and surprising taste experience with Mizone Cactus and Tangerine. With two innovative flavors matching the adventurous spirit of urban teens, it has become a popular choice among young trend-seekers."
  • Therefore, the Mizone brand was successful in marketing to teens with its new flavors.

RESEARCH STRATEGY

We leveraged several sources to curate Danone's brand portfolio for Mizone. These sources included the company's official website, Danone's annual report, Mini Me Insights, LARIVE International, Aqua, Illusion and NUTRA Ingredients USA. We included a quote from stakeholders based on the information provided in the 2018's annual report, which we assumed to be about a month older than the six months old requirement. However, we believed that this quote could be insightful, especially since it's only a month out of scope.
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Danone Brand Portfolio: Aqua

AQUA is a leading brand within the Danone water division. The total sales for AQUA, Mizone, and Evian amounts to €4.5 billion.

SALES, MARKET PENETRATION, AND CONSUMER AWARENESS.

  • AQUA is in the top 2 brands within the Danone water division.
  • Total water sales comprising AQUA, Mizone, and Evian is of €4.5 billion.
  • In 2018, AQUA had strong growth in Indonesia.
  • AQUA's growth in Asia was boosted by its expansion into Indonesia.

BRAND NEWS

  • In March 2018, AQUA pledged to use more plastic from the Indonesian environment than it uses. It also committed to using 50% more recycled plastic in their bottles by 2025.
  • They received the Corporate Social Responsibility Healthcare Award from the Ministry of Health from the Republic of Indonesia in 2018.
  • In 2018, AQUA appointed Lion & Lion to be its digital agency for its beverage portfolio.

MARKETING EFFORTS

  • In 2018, AQUA launched a 100% recycled plastic bottle, as part of its efforts to raise consumer awareness about recycling and as part of its pledge to collect more plastic than it uses by 2025.
  • They teamed up with a popular movie character to launch a promotional campaign on Twitter in 2017.
  • One of AQUA's main marketing campaigns is the #BijakBerplastik, which goes hand in hand with their pledge to use more plastic than it uses.
  • They also use content marketing to raise awareness of healthy hydration by creating articles with useful information about hydration.
  • In the last 30 days, AQUA's Twitter account lost 229 followers and its official website dropped 13.8% of engagement.
  • In 2017, AQUA and H&M signed a pact to turn plastic into clothing.

MARKETING CHANNELS

MARKETING QUOTES

  • Gistang Panutur, Marketing Manager, Danone Aqua said that using Twitter and teaming up with a popular movie character allowed AQUA to position itself within the youth market.
  • Richard Roness, Managing Director, Lion & Lion Indonesia stated that campaigns with brands like AQUA will champion creativity and innovation in digital marketing. Adding that they are excited to "strengthen their digital presence through a strategic, data-driven approach to creative and social media".

USEFUL FINDINGS

  • Danone uses healthy hydration campaigns to raise awareness in their consumers which helps to promote their products as well.
  • Danone holds the #2 market position worldwide for packaged water by volume.
  • Water represents 18% of Danone's sales in 2018.
  • In the first half of 2019, the water division's sales were of €2,352 million.

Research Strategy:

To provide an analysis of the performance of Danone's Aqua brand, your research team scoured through Aqua's official sites, press releases, and reports. We also looked at marketing case studies and news articles for more insight into the brand's performances. However, we could not find the sales data of Danone broken down by brands.
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Danone Brand Portfolio: Neocate

Danone's Neocate brand is a core product in its Specialized Nutrition segment, which earned $7.9 billion in sales in 2018 and grew by 5.9%. The brand actively uses social media to market its products, with a marketing strategy that focuses on content including recipes, nutritional advice, product information, and customer stories.

BRAND PERFORMANCE AND NEWS

  • Danone's products are segmented into three categories: Essential Dairy and Plant-Based Products, Water, and Specialized Nutrition. Specialized Nutrition is subdivided into Early Life Nutrition and Advanced Medical Nutrition; Neocate falls under the latter. Nutricia is the Danone brand that includes Neocate as a core product.
  • Danone has a 12.3% share of the global baby food market, which was worth $50 billion as of 2017. Based on this, we can estimate that Danone's baby food business generates $6.15 billion in annual revenue (12.3% of $50 billion).
  • The Specialized Nutrition segment of Danone's business accounted for 29% of the company's total sales in 2018.
  • Total sales for the Specialized Nutrition segment were $7.9 billion in 2018. The segment grew by 5.9% last year.
  • Danone's sales for H1 2019 were $14,092 million, of which $4,118 million were generated by the Specialized Nutrition segment.
  • Sales growth for Specialized Nutrition accelerated during Q2 2019, driven by strong performance from Advanced Medical Nutrition and Early Life Nutrition products. All regions and all segments of Advanced Medical Nutrition performed strongly in 2019 so far.
  • In March of this year, Danone announced the opening of a new, innovative, and sustainable Nutricia production facility in the Netherlands, a $267 million investment. The facility will focus on the production of "specialized infant formula for children with specific medical conditions," which includes Neocate (designed for children with cow's milk allergy).
  • An exhaustive search of Google News, press releases, and company websites for Neonate and Nutricia (limited to the past six months) determined that the above announcement is the only news coverage for the brand from the past six months.

MARKETING

  • Danone is committed to the principles of the International Code of Marketing of Breastmilk Substitutes. Danone's marketing policy for breast milk substitutes is outlined in this publication.
  • The company is committed to responsible marketing practices for its health and nutrition products. Danone has signed the E.U. pledge on responsible marketing to children, as well as 11 other pledges to date. The company's television advertising is 98% compliant with the E.U. pledge and its website and brand profiles are 100% compliant.
  • Neocate's marketing strategy includes Neocate Footsteps, a comprehensive support program for Neocate customers that includes informational videos, blogs, guidance from nutrition experts, and community support and resources. It also includes a free service to guide customers through the process of applying for and receiving insurance reimbursement for Neocate. Footsteps also has its own mobile app featuring recipes, a symptom tracker, and other tools for managing allergies.
  • Neocate focuses heavily on content marketing, with resources and tools for Neocate customers that focus on helping parents navigate their children's allergies. These resources include recipes, allergy information, tracking tools, etc.
  • Nutricia also features a resource for customers called Nutricia For You, a context marketing tool that provides information and resources to customers during the various stages of the child's development. The resource keeps marketing personalized and context-specific depending on the family's circumstances. Nutricia For You uses a multi-channel approach, targeting customers through the website, email, mobile app, e-commerce shop, and helpdesk.
  • Neocate's YouTube channel focuses on content marketing, with the majority of videos either providing information (using the product, managing allergies, recipes, etc.) or telling customer stories. One of the most popular videos (over 15,000 views) tells the story of a family whose baby was diagnosed with cow's milk protein intolerance and who successfully managed the condition using Neocate Syneo.
  • Neocate is also active on Instagram, Twitter, and Facebook. Advertising on these pages is similar to YouTube in that it focuses on content marketing through medical and nutrition information, recipes, and customer stories and testimonials.
  • Screenshots of the brand's current marketing efforts are included in the attached Google Doc.

RESEARCH STRATEGY

In order to provide an in-depth analysis of Neocate's brand performance and marketing efforts, your research team leveraged company reports, websites, and publications; third-party analyses; press releases; media coverage; social media pages; and advertisements, among other sources. To find financial and performance details for the brand, we first performed a deep dive into Danone company publications such as annual and financial reports. Unfortunately, the company only breaks down their performance and financial data as far as their three brand segments (Water, Specialized Nutrition, and Essential Dairy and Plant-Based Products), so we did not find specific data on Neonate. As a second approach, we looked for publications, press releases, or insights from Nutricia or Neocate, but these brands do not publish their own metrics; all reports come from the parent company, Danone. Third, we searched for third-party analyses of the brand's performance or financials, such as media coverage or market research reports. We did find some proprietary market research that includes this brand as part of a competitive analysis, but all the sources of this kind are only accessible if you pay for the report. Based on these research strategies, we determined that specific financial and performance details on Neocate are not publicly available, so we used the closest available information (such as financials for the Specialized Nutrition segment overall) as a proxy.

To assess the marketing efforts of Neocate, we searched for company quotes, press releases, or reports on marketing strategy; referred to third-party analyses or media coverage of Neocate's marketing; and performed original analysis of their advertisements and marketing campaigns available online. No quotes from senior leadership regarding marketing strategy were found; nor were any marketing successes or failures specific to Neocate from the past six months.
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Danone Brand Portfolio: Nutrison

Danone's Nutrison brand is one of the top three brands selling in Advanced Medical Nutrition category of the Specialized Nutrition Division. We could not find the screen grabs to attach on this Google Doc. Below are our helpful findings and detailed methodology.

DANONE BRAND PORTFOLIO: NUTRISON- USEFUL FINDINGS

1. NUTRISION BRAND:

2. PERFORMANCE OF SPECIALIZED NUTRITION DIVISION: (NUTRISON BRAND DIVISION)

  • Danone holds the first market position in Europe for Advanced Medical Nutrition.
  • The top three countries the products of Advanced Medical Nutrition are performing include China, UK, and Germany.
  • The Specialized Nutrition sales division delivered sales amounted to €7.1 billion in 2018 which saw a growth of +5.9% compared to 2017.
  • To increase the sales in Advanced Medical Nutrition category, the company improved patient-centric innovations and increased awareness of medical nutrition for patients' recovery journey.
  • The Advanced Medical Nutrition products category registered a strong double-digit growth in China which was mostly driven by an excellent performance of allergy treatment products.
  • The Specialized Nutrition division sales growth accelerated in Q2, up +3.2% which was driven by the performance of Advanced Medical Nutrition and Early Life Nutrition categories.

3. DANONE COMPANY IN NEWS:

  • According to Chief Executive Officer Emmanuel Faber, “Danone’s U.S. plant-based business could become as big as its traditional yogurt business there in 10 years.”
  • In 2019, the company formed a new brand "Nutricia Commercial Master Brand" after combining the portfolio of products in Australia and New Zealand.
  • The Managing Director, Nutricia Oceania Rodrigo Lima quoted “Combining our specialized nutrition offerings under Nutricia as a single brand will enable us to work even more effectively with healthcare professionals as well as direct research and innovation activities with greater focus.”


RESEARCH STRATEGY

We could find some information pre-compiled in the public domain, however, we could not find information on the overall performance of Danone's Nutrison brand like sales, market penetration, consumer awareness, news on the brand (past six months), and marketing efforts (past six months). We used the following strategies trying to find the missing information.
To find the information, we began our search by going through the website of Danone. We looked for information on annual reports, press releases, brand page links, among others, but we could not find any information on the performance of the brand exclusively. At most, we could find information about the performance of the overall category/division of the Nutrison brand, its sales, among others. We had thought that this strategy may work as company websites publish information about their revenues, performance of the company’s products, marketing strategies on their annual reports, press releases, among others. Also, we checked the company's social media channels like YouTube, Twitter, among others hoping to find the brand performance and marketing efforts in the last six months, but we could not find any information.

Next, we tried looking for information on media publications about Danone’s Nutrison brand performance. We checked websites like the Globe News Wire, PR News Wire, among others. However, we could not find any information about the brand. These media publications only have information on the company's overall performance and sales about the Nutrison brand’s division. We had thought that this strategy may work as sites like these publish information about the companies performances, marketing strategies, among others on their publications and would have published the information about the brand. We also searched for information about the Nutrison brand’s marketing efforts in last six months in advertising databases like Creative Brief, Effie, Brand Intelligence channels like Moat, but we could not find any information about Nutrison brand’s marketing efforts.

Further, we looked for the interviews of C-suite executives of Danone company. We looked for information on sites like Bloomberg, Business Insider, CEO Magazine, among others. We had thought that this strategy may as work as the company's executives may have disclosed information about the Nutrison brand details like performance, marketing, among others in their interviews and media sites would have published the excerpt. Also, we checked for information about the brand at the global level and regional level like Europe, Australia, Asia, among others to see if there is any information about the Nutrison brand performance, marketing efforts at global or regional level, however, the information we could find was about the overall company sales, future outlook, among others.
Finally, we went through the websites publishing articles about the food industry like Food Bev, Food Marketing, The Food Group, among others. This strategy did not work as there was no information found on the Nutrison brand performance. Instead, we found information about the Specialized Nutrition Division of Danone. We had thought that this strategy may work as sites like these publish news and trends about the global food industry and may have published information on Danone Nutrison brand performance. To check the marketing efforts of Danone Nutrison brand, we checked the sites that publish details about marketing campaigns like Adage, Adweek, among others. However, this strategy did not work as there were no marketing campaigns found on Nutrison brand in the last six months. We had thought that this strategy may work as sites like these publish news on marketing, advertising, digital, of various brands and may have published information about Nutrison brand.
NOTE: There is no information about the Danone’s Nutrison brand published on the company's reports, press releases, and media articles. This is because the company publishes the brand's overall division performance on its reports.


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Danone Brand Portfolio: Aptamil

Danone's Aptamil is its top brand with the highest percentage of 2018 sales. Aptamil provides the most advanced formula in the market with 19 packs of milk sold every minute.

DANONE BRAND PORTFOLIO - APTAMIL

Sales / Market Penetration / Consumer Awareness

News on the brand from the past six months

  • This article from the Irish Times addresses Danone’s early-life nutrition items within China, stating the brand is experiencing a downfall in its sales. However, the company profits from the overall demand for its medical nutrition products and ultra-premium infant formula products (e.g., Aptamil).
  • This article from The Telegraph talks about the National Health Service's (NHS) acceptance of funds from the milk formula industry. Leaked documents from Danone, uncovered a "£4 return on investment for every £1 spent on marketing."

Aptamil Marketing Effort

Messaging:

  • Aptamil's marketing message is to convince consumers that they have four decades of breast milk research, enhanced with their innovative mix of ingredients such as vitamin D, which promotes the natural performance of an infant’s immune system.

Channel:

Quotes from Senior leadership (Past Six months)

  • According to Danone Early Life Nutrition's marketing director Emmanuelle Grimbert, the company utilizes creativity, data, and insights to facilitate more suitable and personalized interactions with parents, which helps to assure that they are leading customer engagement. To achieve the company's ambition, he states that MullenLowe Open provides an exceptional combination of brand creativity and data mastery.

Marketing Failure/Success (Past Seven months)

  • One of Aptamil's marketing failures is their advertisement for Aptamil Follow On Milk, which was called sexist. It could be considered a part of the "inappropriate gender stereotyping zone" described by the Advertising Standards Authority (ASA). The advertisement portrayed males as performing math and females as striving to become dancers. For children, these types of depictions can be detrimental as they negatively influence how people observe them and how they view other individuals.

RESEARCH STRATEGY:

Our research began by examining Danone's Aptamil website, annual reports, social media accounts, press release, online media publications, etc. We searched through Danone, Campaign Live, YouTube, Pinterest, Irish Times, Telegraph, etc. We found some information to answer the criteria concerning the brand's current performance in terms of its sales, market penetration, consumer awareness, and marketing efforts. We have also identified the brands marketing messaging, marketing channel used, quotes from senior leadership, and any news within the past six months. However, we did not locate any significant indicators of either success or failure in the past six months. We leveraged the brand's website, annual reports, social media channels, press release, company statements, and case studies of its marketing effort, which yielded no notable result. Fortunately, by broadening our research criteria up to seven months, we were able to identify some information from The Drum for the brand's marketing failures, such as its advertisement for Aptamil Follow On Milk.

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Danone Brand Portfolio: Nutrilon

Nutrilon is one of the leaders in the baby food market in the Ukraine and also the number 1 recommended formula by pediatricians in the country. More information is presented below.

DANONE BRAND PORTFOLIO — NUTRILON

Nutrilon (Sales/Market Penetration/Consumer Awareness)

  • Nutrilon is one of the top brands that contributed most to Early Life Nutrition's sales growth as a percentage of 2017 sales.
  • Nutrilon is under Nutricia which has the largest research center for breast milk in Germany, as well as large research centers in Singapore and the Netherlands.
  • Nutrilon is a leader in the baby food market in the Ukraine and was listed as the also number 1 formula recommended by pediatricians.
  • In Europe, manufacturers have a strong foothold in the Russian milk powder market where Nestle’s NAN and Nutrilon from the Netherlands are quite popular.
  • According to CIRN, Aptamil, a German-based manufacturer, has the highest market share at 12% with Nutrilon coming in at second place with a 6% market share in the Chinese market.
  • The sales of Danone’s ‘Early Life Nutrition’ products in China experienced a slow third-quarter sales growth due to the slacker demand for baby food in China and a consumer boycott in Morocco; but the company was still able to stick to its earnings growth targets due to continued demand for its ultra-premium infant formula products such as Nutrilon and Aptamil.
  • The sales of Danone’s ‘Early Life Nutrition’ products in China fell 20% in the third quarter following a period of strong growth and amid signs of changes in market dynamics.
  • "The sales for Danone’s indirect e-commerce infant formula had also benefited last year from China’s decision to delay regulation of cross-border e-commerce, which led to stocking up by traders."
  • A statistic shows a "breakdown of B2C e-commerce milk powder sales in China during Q2 2015, by brand where Nutrilon held a share of 7.9% of milk powder sales on B2C platforms in China."
  • There has been a strong demand for baby formula products in China due to a sharp rise in birth rates tied to the end of the one-child policy, growth of urbanization and the affluent middle class by which Danone has benefited from this demand for its high-end formula brands such as Aptamil and Nutrilon.

News on Nutrilon (Past 6 months)

  • This is an article about Danone investing a new sustainable Nutricia plant in the Netherlands to produce more than 600 different products—including the well-known Aptamil and Nutrilon brands—for customers in over 90 countries, feeding more than 3.5 million babies daily.
  • An article about Nutrilon's new packaging design and brand character of its nonmilk cereal.

Nutrilon Marketing Efforts

  • One marketing efforts of the brand is to create new packaging designs and brand characters for Nutrilon nonmilk cereal to avoid identification of porridges and nutrition mixes. In this new design, they added emotionality and taste to a strict medical image of Nutrilon (i.e., the bear on porridges "grew" and looks older and happier).
  • In September, Danone announced marketing measures in Morocco to regain consumers’ trust for its ‘Early Life Nutrition’ products including price cuts, but sales in Morocco were still down by 35% in the third quarter.
  • In China, Danone's marketing efforts of its high-end formula brands such as Aptamil and Nutrilon includes a strategy of developing direct distribution in the country.
  • Nutrilon's marketing efforts include using the Facebook platform where they marketed their two products such as Nutrilon 3 and Nutrilon 4 on their Facebook page Nutricia Club. In this effort, they showcased the products nutritional ingredients containing a unique complex of pronutra+: request prebíotiki, polínenasičení fatty acids, vitamins, minerals and míkroelementi (Iron, Calcium, Zinc, Magnesium, and Vitamins D, C and B) which are necessary for the full development of the body of the baby. The brand also provided a link of where to order the product online with free delivery.
  • "Danone appointed Lion & Lion as its digital agency to handle duties for its early nutrition milk brands in Indonesia, namely Nutrilon Royal, Lactamil and Nutrilon Tailor Nutrition."

Nutrilon Marketing Messaging

  • Nutrilon's marketing messages include convincing consumers that they have 30 years of research to create the equal food that nature has created from mother's milk; and that Nutrilon today is one of the leaders in the market of baby food for the Ukraine and other countries showcasing the unique pronutra+ complex, expertise and quality within the product and the top recommendation of pediatricians.

Nutrilon Marketing Channels

  • Danone Nutrilon uses Pinterest as one of its marketing channels to showcase its products.
  • Danone Nutrilon uses YouTube Platform as one of its marketing channels to showcase the brand's products.
  • Nutrilon uses the Facebook platform as one of its marketing channels to market two products (Nutrilon 3 and Nutrilon 4).
  • Danone Nutrilon uses its website as one of their marketing channels to showcase its products.

Nutrilon Quote from Senior Leadership (Past 6 months)

  • “At Danone, we believe the health of people and the planet are interconnected, as expressed through our company vision ‘One Planet. One Health’. Our new Nutricia Cuijk facility is a significant investment towards achieving that vision. At this facility, we’ll be producing food for vulnerable babies; and we’re also doing everything we can to preserve a healthy and clean environment for future generations,” said Veronique Penchienati-Bosetta, Executive Vice President, Danone Specialized Nutrition.

Nutrilon Marketing Success (Past 6 months)

  • Lion & Lion used the #10yearchallenge for premium infant milk brand Nutrilon Royal to showcase that the bond between a mother and child remains the same throughout the years and resulted in more than just higher engagement as followers of the Instagram account also shared their own mother-child photos.
Please follow this link to access screenshots of Nutrilon's marketing endeavors.


Part
11
of twelve
Part
11

Danone Brand Portfolio: Essential Dairy & Plant Based Products

Danone's Essential Dairy & Plant-Based Products are marketed by building unique daily expertise by offering natural, sustainable, and simple dairy portfolio to meet the consumer's expectation for healthy and delicious locally-produced foods. Finance chief Cecile Cabanis stated that Danone has long-term objectives which are accelerating its plant-based brands' performance and the goal of tripling the plant-based sales by 2025.

DANONE'S MARKETING OF ESSENTIAL DAIRY & PLANT-BASED PRODUCTS

  • Danone's Essential Dairy & Plant-Based Products are marketed by building unique daily expertise by offering natural, sustainable and simple dairy portfolio to meet the consumer's expectation for healthy and delicious locally-produced foods.
  • The company embraced the consumers' yearn for a variety or range of healthy products by acquiring WhiteWave portfolio to move into plant-based food and beverages which reflected Danone's goal of providing a growing number of products that targeted consumers' preferences and dietary constraints.
  • The company continues to promote healthy eating with their product launches by producing zero-added yogurt and products enriched with fruits and grains.
  • They also developed products that popularized by ferments and probiotics.
  • They are also developing innovative packaging and offerings with new retail channels in answer to consumers' demands.

CURRENT MARKETING EFFORTS BY DANONE (LAST SIX MONTHS)

Messaging

  • Danone considers itself as the leading and number one producer of fresh dairy and plant-based products globally with their Activia and Prostokvashino brands.
  • They offer dairy and plant-based products which is not only healthy but also delicious.
  • They give importance to the health and well-being of their consumers by continuing their product innovation and showing that it is an organization which is transparent, credible, and trust-worthy.

Channel

  • In the last six months, Danone has used its social media accounts such as Twitter and Facebook to reveal their goals and sustainable practices in its essential dairy & plant-based products business/unit.

Quotes

  • Finance chief Cecile Cabanis stated that Danone has long-term objectives which are accelerating its plant-based brands' performance and the goal of tripling the plant-based sales by 2025.
  • To achieve this goal, the company is continuing in expanding their geographies such as in central and southern Europe and Russia.
  • They also have plans to grow their US brands .
  • They are leveraging innovation and adjacency by exploring other plant-based ingredients via R&D team.
  • Cabanis also mentioned upcoming launches are expected in boosting dairy business sales with leveraging organic ingredients and product development of probiotics.

SUCCESS/FAILURE (LAST SIX MONTHS)

  • About overall category marketing, the report shows that Danone’s essential dairy & plant-based unit has failed to meet its market expectation for this year due to slow growth in its performance.
  • This was verified by another report which stated that the slow growth was due to Danone's essential dairy and plant-based business plagued by the ongoing Morocco boycott and reducing dairy portfolio in the region of North America.
  • The boycott started in 2018 in which protesters claimed of the hiking product prices that were beyond the boycotter's purchasing power.
  • These issues were said to be adversely affecting Danone's global performance.

MARKETING IMAGES (LAST SIX MONTHS)

  • The link to the marketing images is here.
Part
12
of twelve
Part
12

Danone Brand Portfolio: Low Performing Products

After an extensive search through Danone's company website, annual reports, investor documents, industry-related websites, food industry publications, and associations' websites, and industry statistic portals, details about the lowest-performing brands in each of Danone's three primary product categories was not available in the public domain. However, the research team was able to gather valuable insights about the sales on some of Danone's three primary product categories.

HELPFUL FINDINGS

  • In 2018, Essential Dairy and Plant Based International sales decreased in the second quarter by 2.4% on a “like-for-like New Danone” basis, including 8.0% decline in volumes and a 5.6% rise in value.
  • In 2019, EDP International reported sales up +0.8% on a like-for-like New Danone basis, including a –3.2% decline in volume and a +4.0% rise in value, reflecting an improvement in all regions.
  • In North America, Yogurts sales declined slightly.
  • Market dynamics remained challenging for Premium Dairy as a result of the industry oversupply of organic milk and sales continued to decline strongly in the first quarter.
  • In Europe and North America, the soy category is declining.
  • Danone, the biggest yogurt maker in the United States with brands that include Dannon and Oikos, saw unit sales decline through March, according to Nielsen data provided by a packaged-food company.

RESEARCH STRATEGY:

We commenced our research into the lowest-performing brands in each of Danone's three primary product categories by scanning through data, and annual reports published by the company as we reckoned such reports will include financial data on each category the company operates in. These reports did not, however, include any bifurcated info on the low performing products. What we found was information about the high performing products. We considered this as an approach because the company is publicly traded and the data was expected in the reports.

We then moved on to look for the required data on external media publications on Danone's performance brands wise, on sources like Forbes, The Times, Economic Times, Livemint, Business Today, Wall Street Journal, and Dairy Reporter, through which we found data that cited the growth or decline in Danone's products like essential dairy and Plant Based International. For example, sales decreased in the second quarter by 2.4% on a “like-for-like New Danone” basis or the fact that sales in the soy category is declining in Europe and North America. However, the available data did not cover the categories broadly enough to make any quantitative comparison between the brands across the three categories.

We then moved on to check for the interviews of all the possible C-suite level management where we were hoping to find some bit of information on the lowest-performing products for the given categories. We looked for interviews with Chief Executive Officer, Emmanuel Faber; Bertrand Austruy, Executive Vice President, Human Resources, and General Secretary; Henri Bruxelles Executive Vice President, Waters and Africa; Cécile Cabanis, Executive Vice President Chief Financial Officer, IS/IT, Cycles & Procurement; Francisco Camacho, Executive Vice President Essential Dairy and Plant-Based; and Véronique Penchienati-Bosetta, Executive Vice President Specialized Nutrition. Checking into interviews on food journals like Just Food, Capital.fr, Food Dive and listening to interviews on YouTube, we were unable to trace any such statement that talks about the lowest-performing brands within the specified categories.

Lastly, we checked for Global food industry reports where we were hoping to find the top Global players in the space and a list of their top and bottom performing brands- category wise. We came across reports from Market Research, Deloitte, Mintel, etc which did not include any relevant info on Danone. Some reports were behind paywalls and mostly covered topics like food manufacturing, bakery related products, sports drink, food industry’s categories, their size, segmentation, and forecasts. Using this strategy, we also came across paid case study by Globenewswire, which we believe has some related info as it cites data about Danone's growth sectors and identifies factors driving the changes.

Data or alternate data to identify or estimate the lowest-performing brands in each of Danone's three primary product categories was not available in the public domain. It is likely that Danone does not publish the data bifurcating each category or does it only in a qualitative way. No quantitative data is available. Also, according to this source, Danone does not publish like-for-like changes for prior periods given the way they are computed. This statement led us to determine that the required data may be available for public access by the end of 2019. With the above strategies in place, we have determined that the data or the alternate data to identify the lowest-performing brands in each of Danone's three primary product categories, may not be available publicly.


Sources
Sources

From Part 01
From Part 03
Quotes
  • "PARIS, July 25 (Reuters) - French food group Danone said sales growth accelerated in the second quarter in all its business lines, beating expectations, and baby food products sales in China were back into positive territory after three quarters of decline."
Quotes
  • "Activia’s new-look ditches all mention of the dairy giant on the front-of-pack, in favour of a “more modern” look, with double stacked packaging and transparent pots. Danone said the launch would be backed by a “heavyweight” marketing push. "
  • "It comes as the third revamp in as many years for Activia, which recently returned to value growth after years of stagnating sales. But despite adding £2.7m to its sales, according to the 2018’s Grocer Top Products survey, the brand struggled to maintain volume sales, dropping in excess of 13 million units."
Quotes
  • "However, the "stabilisation" of the business in Europe was notable, given the amount of work Danone had carried out in the region, especially on Activia, and the ups and downs it had endured. Europe was, of course, helped by Alpro but the "roughly flat" performance of Activia should be seen as a relative success."
Quotes
  • "Danone in January added two new flavors to its popular Dannon Activia Probiotic Dailies line, launched last year in the US; this time fortified with prebiotic fibers. Served up in a convenient “daily shot” format, the yogurt-based dose promises to deliver billions of live and active probiotics and on-trend flavors: Lemon & Ginger and Honey & Ginger."
Quotes
  • "Hours before the Kraft Heinz Co.’s announcement, Emmanuel Faber, the chairman and chief executive officer of Danone S.A., took the stage at the Consumer Analyst Group of New York (CAGNY) conference in Boca Raton, Fla., and walked the audience through his company’s experience reinvigorating Danone’s flagship Activia yogurt brand, which generates approximately $2 billion in sales. "
  • "“Quarter after quarter, the performance of Activia improved so that last year in the third quarter we were positive (and in) the fourth quarter we were even more positive,” Mr. Faber said. Mr. Faber did not disclose how much Danone invested to turn around Activia, but the brand’s performance will contribute to the company’s forecast top-line growth of 3% in fiscal 2019 and 4% to 5% in fiscal 2020 when compared to Danone’s fiscal 2018 sales of $28 billion."
Quotes
  • "With more than 100,000 employees, and products sold in over 120 markets, Danone generated €24.7 billion in sales in 2018. Danone’s por tfolio includes leading international brands (Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, among others) as well as strong local and regional brands (including AQUA, Blédina, Bonafont, Cow & Gate, Horizon, Mizone, Oikos, Prostokvashino, Silk, Vega)"
Quotes
  • "The convenience aspect of a “daily shot” may also be important to the success of Activia Dailies, which was the strongest yogurt category launch in the latest 52 weeks of 2018, achieving highest dollar sales and highest dollar velocity, Alessandra Simkin, Senior Manager of External Communications at Activia, tells NutritionInsight. "
Quotes
  • "Arguably, Activia’s biggest downside that it has been positioned as a diet food, and diet culture has shifted dramatically in recent years, eschewing manufactured diet products, like Special K, for more healthful, natural foods. Meanwhile, Activia has been working on rebranding itself as a female-positive brand. Its winter ad “Don’t Tell Me I Can’t” riffs on the increasingly popular (and bizarre) trend of overhauling a diet food as an empowering food for women."
From Part 07
From Part 09
Quotes
  • "The power of crowdsourcing and taking an outside-in approach to digital campaign creative has helped Danone Nutricia’s toddler milk brand, Aptamil Toddler, chalk up triple-digit brand awareness and purchase intent in A/NZ."
Quotes
  • "While there were relatively fewer births in China, Danone has said it would continue to benefit from demand for its ultra-premium infant formula products such as Aptamil Platinum and for its medical nutrition products."
Quotes
  • "The programme also says it has obtained leaked documents from the marketing agency of Danone, which dominates the UK formula industry with its brands Cow & Gate and Aptamil, revealing a £4 return on investment for every £1 spent on marketing."
Quotes
  • "Discount retailer E-mart began exclusively selling the European baby formula brand Aptamil in its stores Wednesday, according to the company. "
From Part 10
Quotes
  • "Once fully operational, the new Nutricia Cuijk facility will employ close to 500 staff and will – through indirect employment – support up to an additional 2,000 jobs. With the support of on-the-job training, the entire local workforce will transfer from the legacy plant in Cuijk to the newly-opened facility. At full capacity, Nutricia Cuijk will produce more than 600 different products – including the well-known Aptamil and Nutrilon brands – for customers in over 90 countries, feeding more than three-and-a-half million babies daily."
Quotes
  • "We created a new packaging design and brand character for Nutrilon nonmilk cereal. It was very important to avoid difficulties of identification of porridges and nutrition mixes. It was necessary to add emotionality and taste to a strict medical image of Nutrilon also. Therefore we "grew" the bear on porridges, it is not similar to a bear from the main line of mixes at all. It looks older and happier. His mom will be pleased."
Quotes
  • "Earlier this year, Danone Aqua appointed Lion & Lion as its digital agency for its entire beverage portfolio of Danone Waters in Indonesia. The appointment is for one year and follows a pitch in December 2017. Before that, Danone appointed the agency to handle digital duties for its early nutrition milk brands in Indonesia, namely Nutrilon Royal, Lactamil and Nutrilon Tailor Nutrition."
Quotes
  • "This statistic shows a breakdown of B2C e-commerce milk powder sales in China during Q2 2015, by brand. During that time, Nutrilon held a share of 7.9 percent of milk powder sales on B2C platforms in China."
From Part 11
Quotes
  • "Through dairy, plant-based products and coffee creamers we offer nutritious, delicious and convenient choices, as well as tasty treats for moments of indulgence."
Quotes
  • "We continue to disrupt our innovation models through an ongoing connection with consumers. We keep challenging ourselves to stay one step ahead of emerging trends and tastes. "
  • "In the U.S., U.K. and Mexico, we produce zero-added-sugar yoghurts through Oikos, Light & Free and Vitalinea, and across Europe, the Activia range has been expanded by a product enriched with grains and fruits."
  • "We have developed new options and formats to suit individual needs, including Horizon Organic vitamin D-rich milks, protein rich single-serve milk formats and lactose-free. "
  • "We are launching innovative, convenient formats appropriate for consumption throughout different ages, moments of the day to meet the needs of this new food generation."
Quotes
  • "Danone’s waters division had a solid first quarter, while growth at the essential dairy and plant-based business was hit by the ongoing Morocco boycott and the pruning of the premium dairy portfolio in North America."
Quotes
  • "The boycott Moroccans launched in April 2018 against Central Danone is still affecting the company’s sales in Morocco and its global performance."
  • "The boycott targeted two other companies, mineral water company Sidi Ali and Afriquia Gas oil company. Boycotters claimed the companies were hiking prices and their product prices exceeded boycotters’ purchasing power."
  • "In response to the boycott, Central Danone promised Moroccans solutions to reduce its product prices."