1. Evaluate the timing at which Activia entered the market.
2. In which stage of the product life cycle is Activia? Based on that stage, is Danone employing good marketing strategies?
3. Propose a strategy for Activia's next product life-cycle phase.
4. Discuss the potential threats to Activia's future success. What wii help Danone avoid a premature decline for Activia?
Show transcribed data
264 Part Three Designing a Customer-Driven Strategy and Mix VIDEO Case Electrolux ng the 1920s, Swedish company Electrolux has been mak has and selling home appliances worldwide. Decade after decade, the company, known for its vacuum been turning out innovative products in a that seems ucts. Because of its customer-centric approach, Electrolux refers to itself the stood behind the slogan sign innovator and has for years After viewing “Thinking of following the video featuring Electrolux ment questions about the company's new-product develop process o predict what work for consumers. The suc cess of new-product development proce results from more than just technological and expertise. insight. rooted the company “consumer 1. What is consumer nsight? What are some ways in which 2. Electrolux develops consumer insight? Describe how Electrolux might go about developing products f it were focused solely on engineering technology. What The concept of consumer insight is integrated into the Electrolux marketing strat involves starting with the omer and working egy.lt design the product. Electrolux employs various backward to and methods to get deep into the consumer's mind to understand consumer needs. Itthen boils that infor mation to form concepts and, fr 3. might be the result of this product-development process? with household appliances identify some consumer ends from the as well as hink of. how new could take advantage of each trend. concepts, it designs prod- COMPANY Case Activia in Egypt Egypt was still at the introduction stage, and Danone's aim to grow the market. On July 16, 2009, Danone Egypt introduced two flavors of Activa vanilla and honey DANONE AROUND THE WORLD Groupe Danone French the company company established in 1925. Initially duced produced dairy products gradually intro- about six brands in different product cat It sells and million cups of yogurt day in almost egories. styles, sizes. Activia is the 100 flavors. THE PROBIOTICS MARKET IN EGYPT BEFORE Prior to Activia's launch, probiotics comprised just 0.2 percent of the total yogurt market in Egypt. There were two k y players in fat-fr worldwide. Dannon 3 is the name of the yogurt and is associated US subsidiary company e names with one of brands over there It is sold sold in. Its Dannon or Danone, on the country it is itself on name in Egypt is The company prides and consistently delivering high-quality, wholesome products responding to consumers' with nutritious, innovative the market: Nestle, which introduced Nesita as a pro-digestion ree powdered milk with Actifibras and Juhayna, intro- duced Juhayna Digestive, the oldest player in the yogurt market Lactel th introduced Lactel B Active after Activ launch. en By June 2009, a year after the introduction of Act via, the probiotics market had witnessed growth, ncreasing from 0.2 percent to 5.7 percent, of which Activia captured more than 76 percent (4.3 percent of the total yogurt market). Activia main- tained its leadership in the probiotics market, reaching 84 percent market). 2010 (5.7 percent of 6.8 percent of the total yogur be the Also, consumer research revealed e taste of Activia to other best liked among all the yogurt brands Danone brands DANONE EGYPT Danone was introduced in Egypt 2005, after its acquisi tion of oait with its headquarters and factories. first aunched Danone core (the ain, Danone various flavors sugar regular yogurt in Og and 8og Danone Mixy yogurt, Danone lite, Danone fruits with duced Activia. for strawberry, pineapple, and apricot), and children. In June 2008, the company intro- ACTIVIA ENTERS THE MARKET Danone launched Activia or CHALLENGES IN THE MARKET the first time in 1986 not easy to grow and lead the probiotics market Europe. in Spain and it in Egypt because of the low awareness of probiotic yogurts in in the A group of researchers dis- general. But Danone nevertheless considered yogurt a digestion process and went business opportunity and began working to tackle those could culture the 'good' allenges. Danone soon becam available al over me covered the importance of bacteria on to develop a technique with which the bacteria and insert itinto the yogurt. The bacterium Actiregularis was custom-made for Danone. is now in 68 countries around the globe. is one of the fastest-growing products inno- vated by Danone. Its sales are estimated billion annually. hen via was introduced to the Egyptian market in .June 2008. with one product plain 0g. The probiotics market in yogurts, to raise awareness of thevicality of probiotic to show how they positively affect the digestive system, and ties, includ gestion To achieve these goals, Danone developed advertising campaigns and all available ampaign,” whereby the company used communication tools to reach target market.