Marketing 16th Edition by William Pride,Ferrell

تمرين 14

When Groupe Danone launched Activia yogurt, it started a new and highly successful marketing chapter in the Paris-based company's long, profitable business life. With annual revenues topping $18 billion, Danone was already a major global force in the. yogurt industry, responsible for such well-known brands as Dannon and Stonyfield Farm. It also marketed bottled water under Evian and other brands. Danone's marketers were aiming to boost sales and profits when they developed Activia as the firm's leading yogurt for consumers interested in healthy eating. In recent years, consumers have been increasingly aware of the health implications of eating properly. Studying the
market, Danone's marketers found that many consumers would be willing to pay premium prices for foods with special nutritional benefits. They decided to position Activia as a yogurt that aids digestion, thahlcs to its patented probiotic bacteria. They also secured the right to label Activia as having live and active bacterial cultures, based on the National ' Yogurt Association's standards. This labeling reassures consumers of the high quality of Activia's bacterial ingredients. Activia's health message struck a chord with consumers, and the brand became an instant sensation, ringing up more than $100 million in sales during its first year alone. Within a few years, Activia was delivering $2 billion in sales worldwide and spearheading Danone's aggressive expansion into healthy foods. Company research suggests that with the right marketing, Danone can unlock even more profit potential in the U.S. market for yogurt products.
Today, the average annual per capita consumption of yogurt in the United States is 12 pounds. In Europe, how-ever, where consumers are accustomed to yogurt's tangy taste and its health benefits, yogurt consumption is significantly higher. For example, the average annual per capita consumption of yogurt is 35 pounds of yogurt in Germany and 40 pounds in France. If U.S. consumers start to eat more yogurt, Activia's sales are very likely to grow as the market expands. In fact, retailers have noticed higher demand for yogurt, causing them to devote more shelf space in refrigerated sections to such products and set up special displays in high-traffic areas to attract attention.
Danone is doing its part to fill that added shelf space in supermarkets and grocery stores worldwide with new Activia flavor and size variations. In the United States, Danone offers Activia yogurt with extra fiber and a wide range of Activia fruit-flavored yogurt drinks, all enriched with the brand's patented probiotics. In Brazil, Danone appeals to novelty seekers with limited edition flavors such as Activia yogurt with cashews, honey, and oats. In Europe, Danone is selling Activia in single-serving containers for on-the-go convenience. Despite challenging economic circum-stances, healthy competition, and a premium price, Activia has succeeded in boosting its sales throughout the Americas and Europe.
Danone targets consumers with television, print, and online advertising messages about the Activia brand and the health benefits of its probiotics. It also targets health profes-sionals with messages that cite scientific studies showing the effects of probiotics on digestion. By sending Activia represen-tatives to major medical conferences, Danone gains valuable opportunities to discuss the health benefits of probiotics with doctors to encourage them to continue the discussion with consumers.
Activia and two other yogurt brands, Actimel and Danonino, have now become indispensable ingredients in Danone's portfolio of products and its corporate recipe for continued success. Already the global market leader in fresh dairy prod-ucts, the company has established 16 Danone Institutes to study nutri-tion and pursue health-related patents for new dairy foods. It also main-tains a "biobank" with 3,500 strains of bacteria for research purposes. Moreover, Danone has stepped up its sustain-ability efforts by changing some of Activia's packaging to reduce waste without com-promising either safety or quality.
Looking ahead, Danone's dairy unit, which includes Activia, will continue to be the company's biggest revenue generator and the driving force in its strategy of focusing on foods and beverages that enhance health and wellness. New Activia yogurt products geared to local and regional tastes are in the works, based on research into consumer prefer-ences and purchasing patterns. Danone's marketers are also preparing new communications to explain how Activia's pro-biotics work and why they're important to a healthy lifestyle. What additional marketing activities are needed to push Activia to new market-share heights in the coming years?"

1. Describe the target market for Activia probiotic yogurt.
2. What forces in the marketing environment represent possible opportunities for Danone's Activia brand? What forces represent potential threats to the Activia brand?
3. How might a customer assess the value of Activia yogurt? Be as specific as possible in your answer.