Reference no: EM133340275
Case Study: Danone takes cues from the beer branding world
On the one end of Danone's yogurt portfolio is protein-packed Oikos; on the other is probiotic-packed Activia. While the yogurts differ in ingredients, they share a similar health-focused unique selling proposition (USP) and older adult target. So, when it brought Light & Free to market, it was finally able to broaden its reach. Now its portfolio is complimented by a product that is geared toward a younger segment of the market.
At launch, Danone used paid Instagram-popular illustrators to paint murals and create social content for Light & Free. The brand is about "self-expression, no compromise, being yourself," so this strategy was a more modern and relevant way to connect with millennials and Gen Z."
Canadians are less calorie-conscious, instead seeking foods that pack a powerful nutritional punch with clean ingredients. So, the marketing strategy has also been to demonstrate the simplicity of the yogurt, which contains high protein and low sugar as it's naturally sweetened without artificial ingredients.
Packaging for the yogurt's snack and family-sized tubs are adorned with animated fruit in bright hues. "The flavours that we chose are also a bit more exotic, and they're more [forward-looking] in allowing us to go after a younger consumer that might be looking for something other than a strawberry or a vanilla yogurt," says Oxley.
Those flavours - like Cucumber, Watermelon and Lime - were chosen after the marketing team decided to explore new research tools, like social listening. For years, the brand primarily used focus groups and research reports to feed its product pipeline and thinking. "[But] getting consumers in their native language and seeing how they talk about food and beverages, how they speak to one another, is a little bit truer to life than traditional market research," says Oxley.
COVID-19 might have delayed us but "that has not stopped our innovation agenda." It took 12 to 18 months to bring Light & Free to Canada as Danone had to develop the technology to create the low sugar offering using ultrafiltered milk. "It did slow us down a bit... but we are able to maintain the level of innovation that you would expect in the first and the second half of the year."
The campaign will include paid digital and paid social content, as well as PR handled by National. At launch, limited-time packaging will debut with custom artwork while the brand will also participate in the Mural Festival in Montreal.
Light & Free is currently sold at Loblaws, Metro, Walmart and Sobey's. It is priced at $3.99 per four pack, the same as other Danone yogurts and their competitors.
Adapted from:
Horn, Jennifer. "Danone takes cues from beer branding world" Strategyonline.com. Brunico Communications, 15 July 2020. Web. 8 April 2021.
Questions:
A. During the Product development of Light & Free product, which three steps would have played a key role in coming up with flavour choices?
B. Describe three sources they could have come up with flavour choices?
C. Using terms discussed in class and in the text, list two factors that can enhance the rate of adoption of this new yogurt and explain why they apply to this situation?
D. Describe using the terms discussed in the book or weekly slides, the types of Distribution channel Danone used to distribute Light & free Yogurt and what factors affected their choice?
E. What key functions Danone expects these intermediaries to perform?
F. Name one non-traditional channel Danone could use to make its product available to customers.
G.Name the different Promotional Mix Danone used in this case study?
H. Explain why they selected this Promotional mix considering the stage in the PLC?
I. What promotional goal in the AIDA concept they planned to achieve for the respective Promotional mix adopted by Danone.
J. What was the type of product discussed in the case study and why?
K. What is the Branding strategy adopted by Danone?
L. Using terms discussed in class and in the text, explain why Danone opted this Branding strategy and which market they targeted?
M.Using terms discussed in class and in the text, Describe the PLC stage of Light & Free in the case study.
N. What is pricing strategy being used by Danone and why?
O. Explain two pricing tactics that Danone could use during this PLC and explain why you have recommended those tactics