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Activia in Canada.pdf

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Raluca Balan

ACTIVIA IN CANADAActivia brand of yogurt from Danone attained impressive results by the end of 2007 after a Quebec test market in 2004 and a national launch in 2005Market share reached 15 just ahead of Danones Silhouette at 12 and Yoplaits Source at 11Volume doubled two years in a row and reached 28000 tonsAwareness and brand knowledge levels showed strength due to extensive marketing communication during the national launch and spring campaigns during 2006 and 2007The managers faced the task of building upon Activias success while planning advertising and promotion for 2008 and 2009DANONEDanone is a multinational with 90000 employees and its mission Bringing health through food to as many people as possible is supported by wideranging international activities that promote health and nutrition with a keen responsibility towards sustainable developmentDanone operates in 40 countries with about half of its sales occurring in Western Europe and plans to expand to 80 countries in the near futureDanone sells products in four broad areas fresh dairy eg yogurt bottled water eg Evian baby nutrition and medical nutritionFresh dairy accounted for about half of its sales in 2007 which had grown about 10 per year since 2000 as the company moved beyond its basic yogurt base to include different types of yogurt yogurt drinks and fermented milkFuture plans included a greater number of healthy products developed through extensive product development and clinical researchDanone viewed its dairy products as an important part of consumers diet to help them live healthier and longer and strived to increase the per capita consumption of all dairy products in all countriesDanone established a Canadian division when the company acquired Delise yogurt in 1994 renamed Danone Canada in 1997Jude Delise began in Montreal during the 1930s and sold yogurt to those with European descent and to doctors who recommend it as a digestive remedy Leslie Jonas took over in the early 1960s and moved Delise from number four to number one in a few years as the company concentrated on quality innovation distribution and marketingDanone continues to be the leading yogurt producer in Canada with brands such as Danino DanActive Activia Silhouette Danone Creamy and DanissimoDanone Canada employs about 500 and about 80 of its sales occur in Ontario Quebec and the MaritimesYOGURTYogurt is a fermented milk product originating many centuries ago in Eastern European countries such as Greece Bulgaria and Turkey and various MiddleEastern culturesThe word yogurt is similar to thick or thicken or curdle in the Turkish languageBeyond the basic milk ingredient yogurt contains other dairy products to adjust the fat and milksolid content various types of stabilizers like gelatine that affects texture sweeteners such as glucose or sucrose and their substitutes eg aspartame and finally fruit or artificial fruit flavours for taste This case example was prepared from publicly available sources by Professor Michael GuollaCopyright2011 by The Telfer School of Management at the University of Ottawa Ontario CanadaIt is to be used by students registered in ADM3326 only and not to be distributed or disseminated The manufacturing begins with milk and other dairy products going through a number of stages clarified separated standardized pasteurized and homogenizedStabilizers and sweeteners are added during these stagesAfter which the fermentation process begins which requires a bacterial starter culture and without it this stage would be less stable and unpredictableBacteria is one of lifes great mysteries as some are quite deadly while others naturally occur in the human body and play an active role in normal healthThe bacterial culture in yogurt transforms the lactose in the dairy products to lactic acid and other acids giving yogurt its distinctive flavourMost yogurts use Streptococcus thermophilus ST and Lactobacillus bulgaricus LB with catalytic results as a single culture will not produce the same effectFruit and flavouring are added upon fermentation completionAs a lower fat dairy product 0 to 4 yogurt is a good source of protein and is rich in calcium phosphorus potassium Complex B vitamins Vitamin A and Vitamin D with minimal calories and carbohydratesThese healthy characteristics encourages consumers to eat yogurt at virtually any time of the day week etc and its smooth texture makes yogurt easy to consume for anyone from infants to geriatricsA wide variety of ingredients in terms of fat fruit sweetness texture and package formats and sizes provides an extensive product selection for even the most fickle consumerYogurts popularity also manifested in the emergence of yogurt drinks and softserve and hardpack frozen yogurt generally consumed as a treat or dessertThere are literally thousands of different types of bacteria and recently yogurt companies added new bacterial cultures such as Lactobacillus acidophilus Lactobacilus casei or Bifidobacterium LactisA quick biology reminder is required to grasp the significance of this innovationScientists use a hierarchical classification system that starts broadly and ends specifically to organize all living organisms including bacteriaThe system has these terms in order kingdom phylum class order family genus species and subspeciesBacteria falls under the term kingdomThe newly added bacteria cultures Lactobacillus and Bifidobacterium are further down in the hierarchy and fall under the term genusEach of these new genuses has dozens of species or subspeciesBoth of these genuses of bacteria are known as probiotic bacteriaOther bacteria within this genus are also known as probiotic bacteriaThe word probiotic literally means for life and these particular bacterial cultures are able to thrive in the digestive track and are consistent with existing bacteria in the human digestive systemResearch concludes that probiotic bacterial culture can help break down vitamins enhance digestion and boost the immune systemACTVIA which Danone Activia contains probiotic bacterial cultures bifidobacterium animalis lactisTMshortened to BL for marketing communication purposes to make it more consumer friendly and to signify that is was the only brand that used this strain of bacteria culture Exhibit 1The TMunique nature of BL is that the Danone was the only yogurt producer using this specific species and subspecies of bacteria under the bifidobacterium genusConsistent with other product launches Danone had clinical research supporting the probiotic benefits of Activia to assist in regularity and the healthy function of the digestive track something no other yogurt could claim
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