STUDY CASE

Grameen Danone
Pour Caroline Monteiro, Alexandre Ribera et Hichem Taouaf
STRATEGIC MARKET
 ● Production processes and technology used to manufacture
the yogurt products

01 Technical ●
●
●
Quality control and assurance processes
Research
Donec and porta
risus dolor development
venenatis activities to improve product
Lorem ipsum dolor sit amet at nec
01 at adipiscing
●
●
qualityluctus
Pharetra and innovation
felis
Proin in tellus felis volutpat

●
● Funding
Donec risusand
dolorinvestment strategies
porta venenatis
Lorem ipsum dolor sit amet at nec
02 02 Financial
at adipiscing
●
●
●
●
Revenue
Pharetra
Proin in
streams
luctus
tellus
Cost management
felis and financial performance
felis volutpat
and budgeting

● Donec risus dolor porta venenatis

Lorem ipsum dolor sit amet at nec
03Commercial
at adipiscing
●
● Sales strategies
Pharetra luctus felis and distribution channels

03 ●
●
●
Proin in tellus felis volutpat
Partnership and collaboration opportunities
Supply chain management and logistics

● Branding and advertising strategies

04 Marketing ●
●
Market research and analysis
Product positioning and differentiation strategies

● Employee training and development programs

05 Human ●
●
Workplace culture and employee satisfaction
Diversity and inclusion initiatives
Choice of growth: internal or external
• Internal growth: focus on expanding its existing product lines or developing new ones to increase
market share and revenue. Involving investing in research and development, marketing, and
distribution channels to improve brand awareness and reach new customers.
• Strategic partnerships: form strategic partnerships with other companies in the food and beverage
industry to expand its product portfolio or distribution network. As joint ventures, mergers and
acquisitions, or licensing agreements.
• Geographic expansion: focus on expanding its geographic presence by entering new markets, either
domestically or internationally. It gives the possibility of establishing new production facilities or
distribution channels, as well as adapting products and marketing strategies to meet local
preferences and regulations.
• Diversification: pursue a diversification strategy by expanding into related industries, such as
nutrition supplements, or by developing new business models, such as direct-to-consumer sales.
Help the company reduce its dependence on any one product or market, and take advantage of
emerging trends and opportunities.
Choice of international development: export,
internationalisation, globalisation
• Export strategy: The company's approach to exporting its products to foreign markets. Topics might
include the countries or regions where GDFL has established export relationships, the challenges
and opportunities associated with exporting, and any unique considerations for marketing and
distributing products in these markets.
• Internationalization strategy: the company has sought to enter new foreign markets through various
means. Including joint ventures or partnerships with local companies, establishing wholly owned
subsidiaries in other countries, or licensing arrangements with foreign firms. The benefits and risks
associated with these approaches could be discussed, as well as any specific experiences or
challenges Grameen Danone Food Ltd has encountered.
• Globalization strategy: Grameen Danone efforts to create a global brand and presence, rather than
just establishing a presence in a few select foreign markets. Also, he company's decision to
standardize or adapt its products and marketing to different cultures, and how it has leveraged its
international presence to create synergies and efficiencies across different markets.
Choice of international development: export,
internationalisation, globalisation
• Regulatory and legal considerations: GDFL international expansion may be influenced by
various legal and regulatory factors, such as tariffs, intellectual property protection, labor
laws, and import/export regulations. This topic could examine how the company has
navigated these issues and any challenges it has faced.
• Cultural considerations: GDFL has adapted its products, marketing, and business practices
to different cultural contexts around the world. This might include topics such as product
localization, cross-cultural communication, and human resource management.
• Financialconsiderations: financial aspects of GDFL’s international development, such as
the costs associated with entering new markets, funding growth initiatives, and managing
foreign currency risk. The company's approach to financing its growth, as well as any
challenges it has faced in this area, could be explored.
 Purpose Quantitative Qualitative

Improve nutrition Reduce malnutrition and stunting Increase access to nutritious food

Create social impact Provide economic opportunities and empower women Alleviate poverty and social inequality

Reinvest profits into social and environmental

Generate profits Achieve financial sustainability and profitability
causes

Promote sustainable development Implement environmentally friendly practices Foster sustainable communities and ecosystems

Innovate new products and business Develop innovative approaches to social

Create new product lines and diversify portfolio
models entrepreneurship
HIGH BCG Matrix – Slide Template
Stars Question Marks

Shokti Doi yogurt

MARKET GROWTH
LOW

Dogs Cash Cows

LOW MARKET SHARE HIGH
 Environment

P
POLITICAL
E
ECONOMIC
S
SOCIAL
T
TECHNOLOGICAL
E
ENVIRONMENTAL
L
LEGAL

Bangladesh is a • The social • The company's • The company's • The company needs
• The political low-income country, environment in operations are operations can have to comply with local
environment in which means that the Bangladesh is dependent on an impact on the laws and regulations
Bangladesh can be company needs to price characterized by a technology, such as environment, such as related to food safety,
unstable, which may its products high poverty rate and equipment used for waste generated from production, and labor
impact the operations appropriately for the limited access to production and production. practices.
of Grameen Danone. local market. nutritious food. distribution, and • Grameen Danone has • The partnership with
• The government's • Focus on providing a technology can be been implementing Grameen Bank, a
policies and nutritious product at costly to maintain and sustainable practices, microfinance
regulations related to The company's focus on an affordable price upgrade. such as using organization, is
food safety and providing economic can help to address • Has been exploring renewable energy and subject to regulations
production can opportunities for this social challenge. innovative solutions, reducing waste, to related to financial
impact the company's women entrepreneurs • The company's such as small-scale minimize its services.
operations and sales. can contribute to the business model, can yogurt production environmental
development of the have a positive facilities, to overcome impact.
local economy. impact on gender the limitations of
equality in the region. technology.
Direct and indirect competitors
• No direct competitors that offer exactly the same product and business model as
Grameen Danone Food Ltd, there are some indirect competitors that operate in the
broader food and beverage market in Bangladesh.
• Nestle is one of the main indirect competitors of Grameen Danone Food Ltd,
producing a range of food and beverage products, including yogurt, that are available
in urban and rural areas throughout the country.
• PRAN Dairy, a subsidiary of PRAN Group, is another indirect competitor that produces
a range of dairy products, including yogurt, that are available throughout the country.
• Other indirect competitors in the broader food and beverage market in Bangladesh
include local and regional companies that produce dairy and other food products, as
well as other multinational companies that operate in the country, such as Coca-Cola
and PepsiCo.
 Porter's Five Forces Summary

Moderate, as barriers to entry are relatively high due to the need for significant investment in production facilities, supply chain management,
Threat of New Entrants
and distribution networks. However, local competitors with existing infrastructure and resources could pose a threat.

Bargaining Power of Suppliers Low, as Grameen Danone sources its raw materials from local farmers and cooperatives, reducing dependence on individual suppliers

Moderate to High, as the company's target market includes low-income consumers who may be price-sensitive and have a limited ability to pay a
Bargaining Power of Buyers
premium for products. However, the company's social mission and unique value proposition may give it some pricing power.

High, as there are many other affordable food options available in the market, including homemade food and street food. Additionally, there is a
Threat of Substitutes
risk of consumers switching to alternatives if they perceive a lack of variety or taste in the company's products.

Rivalry Among Existing High, as Grameen Danone Food Ltd faces competition from both local and multinational companies operating in the same market segment. The

Competitors industry is highly fragmented, and there are many players competing for market share.
 Characteristics Target

Social responsibility Low-income communities in Bangladesh

Focus on nutrition Mothers and children

Community-oriented Small, rural communities

Innovative Development of specialized yogurt products

Accessible Affordable pricing and distribution through micro-entrepreneur model

Collaborative Partnership with Grameen Bank and Grameen Telecom

 + -
MIX
Product line, which includes affordable, fortified The limited product line may not
Product yogurt products, meets the needs of rural
communities in Bangladesh that may not have
appeal to consumers in more urban
areas who have a wider range of
access to other sources of nutrition. options available to them.

The low pricing may not be sustainable

The affordable pricing of Grameen Danone
Price Food Ltd's products makes them accessible to
low-income consumers in rural areas.
for the company in the long term, and
may limit its ability to invest in research
and development or other areas of
growth.
Grameen Danone Food Ltd has developed an The limited reach of these channels may
Distribution extensive network of distribution channels,
including partnerships with local retailers and
limit the company's ability to expand its
market share or reach new consumers.
NGOs, to reach consumers in remote rural areas.

Grameen Danone Food Ltd has built a strong
Communication brand around its mission of improving nutrition
in rural communities, which has helped to raise
awareness of the company and its products.
Limited advertising and marketing may
hinder the company's ability to expand its
reach and build brand awareness beyond
its current market.
Swot analysis
Strength:
- Social mission: Grameen Danone Food Ltd has a
strong social mission to improve the health and
nutrition of rural communities, particularly children
and women.
- Brand reputation: The company has a strong
reputation for social responsibility, sustainability,
and innovation.
- Collaborative partnerships: Grameen Danone Food
Ltd has established collaborative partnerships with
local communities, NGOs, and government
organizations, which has helped to build trust and
legitimacy.
- Localized products: The company's products are
tailored to local tastes and preferences, which has
helped to differentiate them from competitors.
- Operational efficiency: Grameen Danone Food Ltd
has implemented efficient production and
distribution processes, which has helped to reduce
costs and increase profitability
Weaknesses:
- Limited product portfolio: The company's product
portfolio is limited to only a few dairy products,
which may limit its growth potential in the long
term.
- Dependence on partnerships: Grameen Danone
Food Ltd relies heavily on partnerships with local
organizations for distribution and marketing,
which may limit its control over these functions.
- Limited market reach: The company's products
are primarily sold in rural areas, which may limit
its ability to reach urban markets.
- Limited financial resources: Grameen Danone
Food Ltd is a small company with limited financial
resources, which may make it difficult to scale up
operations.
Swot analysis
Opportunities:
- Growing demand for healthy and sustainable
products: The global trend towards healthy and
sustainable food products presents a significant
opportunity for Grameen Danone Food Ltd to
expand its product portfolio and reach new
markets.
- Expansion into urban markets: The company
could expand into urban markets by adapting its
product portfolio to appeal to urban consumers.
- Diversification into other food categories:
Grameen Danone Food Ltd could diversify into
other food categories, such as plant-based
products, to expand its market reach and appeal
to a wider range of consumers.
- Technology innovation: The company could
explore new technologies to improve its
production processes and reduce costs.
Threats:
- Competition: Grameen Danone Food Ltd faces
competition from both local and international
dairy companies, which may limit its market
share and profitability.
- Political instability: The company operates in
Bangladesh, which has a history of political
instability and corruption, which may affect its
operations and profitability.
- Economic challenges: The company operates
in a country with limited infrastructure and
economic challenges, which may limit its
growth potential.
- Supply chain challenges: Grameen Danone
Food Ltd faces challenges in sourcing raw
materials and transporting products to remote
areas, which may limit its ability to scale up
operations.
Choice of market: Mac Kinsey model

Strategy Shared values Style

Staff Structure
Skills Systems
 Choice of access ways
Access Way Description Pros Cons

Utilizing Grameen Bank's network of micro-entrepreneurs Access to established network, low startup
Micro-franchising Limited market reach, lower profit margins
to distribute and sell products costs

Employing local individuals to distribute products in Access to remote markets, increased brand
Rural Sales Agents High operational costs, training and management of agents
remote areas recognition

Utilizing the principles of social business to address Positive social impact, access to funding and Limited profitability, potential conflicts between social mission
Social Business
malnutrition and poverty partnerships and profit goals

Utilizing e-commerce to sell products directly to Limited access to rural areas without internet access,
Online Sales Wide market reach, low overhead costs
consumers competition with established e-commerce platforms
STUDY CASE
Grameen Danone JITA
 Purposes
What JITA Does :
Quantitative Qualitative
• Women Empowerment • Awareness and access for rural consumers
Rural Supply
Chain System
• Employment Creation • Creating a rural Consumer Life Style Model:
✔ Health (Nutrition & Hygiene)
✔ Agriculture
• Consulting and marketing research ✔ Household Energy
over 60 percent of the revenues in 2012 ✔ Information (social and empowerment)

• Technical support, bringing knowledge and • Creates market and access for products
expertise
• Research and Development Projects
 Means

51 450+ 300+
DISTRICTS COVERED ACTIVE HUBS ACTIVE APARAJITA
(RURAL MICRO-DISTRIBUTORS) (DOOR-TO-DOOR & STORE
BASED)

Contracts with partner companies

30,000+ 17M 3000

RURAL RETAILERS BOP CONSUMERS WOMEN TRAINED
(50% WOMEN)
TILL DATE
 Choice of development External

Internal

Commercial partners
Companies who are interested in accessing the BoP market
Partner companies / Third party ask JITA for market research, product development
creditors Service people
Partners supply products to be sold and pay a commission to The hub manager helps JITA recruit service
the aparajitas and to JITA people who are in charge of delivering
the good to the aparajitas by bicycle.

CARE Social Hub managers

Ventures
CARE piloted the Rural Sales
Program (RSP) in 2005 by
addressing the problem of
highly informal rural
marketing and distribution
system of Bangladesh
JITA is looking into creating this model
JITA recruits hub managers for
every area it operates in to
oversee product
distribution.
Grameen Danone Foods
Ltd
Danone Communities partnered with Care Aparajita
International to make RSP into a separate
Social Business JITA recruits and forms aparajitas with product specific sales
training with basic accounting knowledge as well as door to
Research and Development door marketing techniques necessary to be an aparajita. After
training aparajitas are directly involved in rural hub based
Projects supply chain system.

in other countries (JITA is collaborating with JITA changes over time from a social business perspective to
care Ethiopia to start empowering a few women) support both Private sector & NGO’s rural intervention.
HIGH BCG Matrix – Slide Template
Stars Question Marks

Consulting and
marketing research
MARKET GROWTH

Training and
distribution of
products
LOW

Dogs Cash Cows

LOW MARKET SHARE HIGH
 Environment

P
POLITICAL
E
ECONOMIC
S
SOCIAL
T
TECHNOLOGICAL
E
ENVIRONMENTAL
L
LEGAL

• Government policies • Bangladesh is a • JITA's business model • The use of technology • JITA's products and • Compliance with local
and regulations affect developing country focuses on in supply chain services are designed laws and regulations,
the company's with a large empowering rural management and to be environmentally particularly in areas
operations, population, providing poor women as product distribution is sustainable, with an such as labor and
particularly in terms a large market door-to-door sellers, crucial to the success emphasis on employment, is
of product opportunity for JITA's promoting gender of JITA's business promoting renewable important for JITA's
distribution and products and services. equality and women's model. energy and reducing operations.
supply chain empowerment. waste.
• Economic instability • The rapid pace of • Intellectual property
management.
and inflation can • JITA's products and technological change • Climate change and laws and regulations
• Political unrest and affect the purchasing services are designed and innovation can natural disasters can can affect the
instability can pose a power of JITA's target to meet the basic pose a challenge for affect JITA's company's ability to
threat to the safety market, particularly needs of the bottom JITA in keeping up operations and supply innovate and protect
and security of JITA's those in the bottom of the pyramid, with the latest tools chain, particularly in its products and
personnel and of the pyramid. particularly in the and trends. terms of product services.
operations in the areas of health, availability and
country. hygiene, nutrition, transportation.
and agriculture.
 Strategic marketing : Market Demand
Demands
Hinders poor’s market participation opportunity as
entrepreneur or employee
Need of informations about accessing the BoP market
No access to healthy nutritious products
and services

Rural market penetration targeting BoP (Bottom of the

Pyramid) consumers, requires significant investment and
development of the appropriate distribution and sales
structure

● Unemployed
● Consumers ● Companies
● Entrepreneur ● Governments
or employee
Strategic mkt
• Market: offer ( competition)
The main competitors of JITA Bangladesh depend on the categories of products it sells.
For food products:
- traditional supermarkets such as Shwapno, Meena Bazar, Agora, etc.

For non-food products:

- local retailers and local markets..
It should be noted that JITA Bangladesh focuses on low-income consumers, and there are not many
direct competitors that specifically target this market segment. However, there is indirect
competition from street vendors and small retailers who sell similar products at a lower price, but
without the added benefits such as guaranteed quality and the convenience of home delivery
offered by JITA Bangladesh.
PORTER ANALYSIS
The threat of new entrants: the
infrastructure required to enter this market is
relatively large, which may reduce the risks
of entry.
In addition, JITA Bangladesh holds good
reputation and a big pool of clients

Bargaining power of suppliers: Bargaining power of customers: JITA

JITA Bangladesh has a strong
bargaining power as it buys large
quantities of products from different
local suppliers.
Rivalry among competitors: Competition is
relatively strong in the low-cost consumer products
market in Bangladesh. However, JITA Bangladesh
differentiates itself from its competitors by offering a
unique shopping experience, high quality products at
an affordable price, and by working closely with local
suppliers.
Bangladesh's customers are mainly
low-income consumers, they have
relatively low bargaining power.
However, JITA Bangladesh offers quality
products at an affordable price, which is
an advantage for customers.

The threat of substitute products: In the

consumer products industry, substitute
products are numerous. Customers can easily
choose low cost alternatives, which can reduce
the demand for the products offered by JITA
Bangladesh. However, JITA Bangladesh stands
out from its competitors by offering high quality
products at an affordable price
 + -
MIX JITA offers a range of good quality
products, including food, personal
Product care and hygiene products, and
home products. The company
Low innovation in term of production
technology
focuses on quality

Affordable pricing strategy for

Price consumers. The company focuses on
reducing costs to offer by employing
Low price so low profit
small local suppliers

JITA uses a distribution model based on a network

of women entrepreneurs called "Aparajitas" who
No use of online marketplaces
Distribution sell JITA products in rural communities. The
company also uses partnerships with distributors
and retailers to increase the reach of its products.
JITA Bangladesh focuses on promoting its
products through digital and physical channels, Although its communication is smart enough to
Communication using social media, influencer marketing and include events in addition to digital, it can be
difficult to reach remote rural areas
organizing community events and outreach
activities to promote its commitment to
sustainability and social inclusion.
Swot analysis
Strength:
- JITA Bangladesh is the first for-profit
social enterprise in the country
- The use of women entrepreneurs
employments called "Aparajitas", to sell
its products in rural communities.
- Commitment on sustainable
development and social inclusion,
- The quality and sustainability of JITA
Bangladesh's products
Opportunities:
- can expand its product range to meet
the growing demand for
environmentally friendly and
sustainable products.
- JITA Bangladesh can explore new
online distribution channels to reach a
wider audience and increase its reach.
Weaknesses:
- JITA Bangladesh's products may be
considered too expensive - even if they
are considered by many as affordable-
for some customers who may prefer
cheaper products offered by
competitors.
- JITA Bangladesh's geographic reach is
limited to certain regions of the country,
which may limit its future growth
Threats:
- Competition in the Bangladesh retail
market is very strong, with both local
and established international players.
- Economic and political conditions in
Bangladesh may impact the company's
financial results.
- Changes in consumer preferences may
affect the demand for JITA
Bangladesh's products.
Choice of market: Mac Kinsey model

Consulting and International expansion Invest in advertising

marketing research
Development of the Increase in local market Penetration of new
"Aparajitas" network on share market segments such
new products as luxury
Geographic expansion to Reduction of production Training and distribution
unaffected rural areas costs of products