Report on Launching a new product of Danone

October 2021
Anastasiia Pechorina

Summary

This report into launching a new product of Danone will address concerns about the
recent decline in sales and show how to manage them.

Introduction

This report addresses brand managers’ concerns with the decline in sales of Activia brand
which is known as a popular trademark of Danone. This downward trend pushed our
team to launch a new product. It has been suggested that we should be focused on
creating different ideas in our working groups: this report will assess the current situation
and make recommendations for what action could be taken.

Method

Three teams of brand managers analyzed the situation, had brainstorm sessions and
presented the results. This process took 2 weeks.

Findings

1. Lactose-free dairy products

As the health and wellbeing trends grow in popularity, new business opportunities arise
for food and beverage manufacturers. For example, the retail value of lactose-free dairy
is growing by 8% annually.
Today consumers with lactose intolerance are interested in alternative dairy products.
First team suggested to launch a new product line which consists of lactose-free versions
of cheese, clabber, yogurt, butter etc. They also suggested new flavours and adding
another bases of plant components to milk as almonds, pine nuts, hazelnuts, sesame
seeds, poppy seeds, flaxseed. For launching these new products, we will face production
and marketing expenditures.

2. Sport beverage
Today people believe that the level of their life depends on their health. A lot of people
regularly do sports and monitor the nutrition. However, we live in a fast changeable
world and we must adapt fast. Our consumers don’t have enough time for preparing
food. Our target audience has a stake in a healthy snack. Second team suggested brand
extension for Activia brand. New Activia sport consists of the same ingredients as
Activia and protein supplement. New drinkable yogurt, Activia sport, requires marketing
expenditures. The advertising campaign is divided into two parts: TV advertisement and
social media. We are going to attract influencers who positions themselves as a person
who thinks about their nutrition and regularly do sports.

3. Ice-cream

Ice-cream is well known as the most favorite treat for all generation. There is a problem
that you can’t find healthy ice-cream in the supermarket. There is a scarce choice of
sugar free ice-cream on the market. Third team believe that Danone can bring up various
kinds of ice-cream: sugar-free ice-cream, almond milk ice cream, non-dairy ice-cream,
ice-cream for children with fruit pieces, frozen yogurts, and many others. They suggest
using alternative kinds of sugar due to allergy.

Conclusions

Due to decline in sales and our competitors who launched new lines of healthy yogurts
we should launch something new. There are three possible courses of action:

1. To launch a lactose-free line of dairy products to conquer new market.

2. to launch Activia sport to attract new consumers.
3. to produce ice-cream for expanding our product line.

Recommendations

1. Danone is an innovative company which follows new trends. We should focus on

launching a new product. Decision should be taken as soon as possible.
2. New strategy should be focused on the needs of our consumers.