Elsewhere in the world, Danone yogurt is almost synonymous. People see Danone Retractable Banners, the first thought is that Danone yogurt. As the world’s largest yogurt maker, Danone Group, the world’s most advanced manufacturing processes and research and development technology yogurt, yogurt products, its global market share of over 20 percent, more than twice as high in second place in the Nestle company.
However, Danone yogurt The Country Road but thorns and rough, since 1987 to enter the American now, Danone is still not a completely own yogurt production line, a completely their own milk base, the income of its yogurt business only accounted for less than 5% of its The Country business income. During Danone had even thinking about quitting, intends to completely withdraw from the American market. But this tortuous experience also allows up to fully recognize the special nature of the American market, explore a “American characteristics” The Country’s road Danone.
In 1987, when Danone smug in Guangzhou set up its first American yogurt company, ready to realize his plans when the Nuggets wonderful The Country, did not think he will be faced with a difficult and lengthy trek. Romantic nature of the French people in this country will play the role of the old preacher and leading soldiers.
Up strategy is able to play its yogurt production process advantages, the main high-yogurt market. However, when The Country’s dairy market has barely started. For most American consumers after 80 terms, all belong to the high price of milk nutrition, and Danone as a foreign brand, Geng Shibi your local yogurt on seven or eight percent. Although American consumers always have “the moon than the American round,” preference psychological tendency of foreign goods, but let them drink shelf life of only three or four days yogurt pay almost double the price certainly is unrealistic. In addition, the yogurt shelf life is very short, we must use the refrigerator storage, but that time, very few people at home with a refrigerator, and most people are used to eat with chopsticks, but it needs to be replaced yogurt spoon, very inconvenient . Worse, the impact of the traditional American diet by a lot of people suffering from “lactose intolerance” and can not digest the sugar contained in yogurt. Up to consider the deeper cultural habits, especially due to the American people pay attention to a healthy diet, for perishables such as dairy products, they are often more trusted local milk that foreign milk no local fresh nutritious.
Therefore, there is only one manufacturer Danone yogurt is good but no place to display their skills, years of losses since 1987 to enter The Country. Compared with Danone’s poor performance, The Country’s domestic dairy brands but the rapid rise in the 1990s. When Danone also stick in France “like salt, like milk, is a necessity, no advertising” concept, hugs their advanced technology, low-key high-priced to sell their yogurt, milk, local American manufacturers have used the overwhelming Retractable Banner advertising grab the attention of the people, their own branding to the north and south. Compared to such foreign Danone dairy company, these local brands to better understand The Country’s national conditions and diet. They played the “milk” campaign stressing the importance of the American milk fresh, nutritious and healthy. Soon, Bright Dairy, Mengniu, Yili, ternary and other local brands grew from a regional brand to a national brand, and gradually occupied the American dairy market in half.
No doubt, with The Country’s first round of the local milk market battle, Danone lost, and lost badly.
Danone turned to take circuitous strategy, with local dairy boss was bright alliances. First, in 1994, has established a joint venture with Shanghai Bright yogurt and fresh milk two projects. In 2000, Danone also get a 5% stake in bright, its Guangzhou and Shanghai yogurt plant facilities and management rights be given to the light, and the part of the “Danone” Trademarks and Designs by promising free use for 12 years. By the light of milk, production lines and channels and production technology Danone, Danone yogurt will soon occupy the eastern and southern The Country market, changing the situation in The Country for nine consecutive years of losses. Now Danone yogurt and light yogurt share sales channels, and gradually open up the market in The Country. According to Qin Peng said, the current management, including Shanghai bright light and two brand Danone yogurt products in The Country’s market share in the first, ahead of second place.
In order to better adapt to the American market, Danone has taken an interesting brand image adjustment with the massive use of Retractable Banners [https://www.retractable-banner-stands.com/cheap-retractable-banner.html] at POP. Danone yogurt on the side of the box is the English flag, the other side is the same mark was put on Danone’s American translation. In order to adapt to local markets, in the Guangdong region, Danone and even Cantonese translation of Danone affixed on the product. These details embody Danone positive adaptation efforts of the American market. In addition, Danone also for the convenience stores and distributors to provide free sign against Danone yogurt freezer storage, reducing the amount of sugar yogurt to adapt to the American people’s appetite for each box and accompanied by a transparent spoon yogurt easy for consumers to drink.
According to the law of the dairy market, whole milk market after the basic coverage in cities, yogurt, high value-added products will usher in a period of explosive growth. Currently, the domestic dairy market dominated mainly whole milk, yogurt accounted for only about 15% of the total dairy market share. In foreign mature dairy market, the proportion of yogurt will generally reach 40%. Frank. Lee cloth insisted:. “From the concept of health, in terms of technical content, white milk are very limited,” he thought, “After five to ten years, The Country will become a pure white milk industry brand basically does not exist in the industry. That’s why we only focus on yogurt, not white milk.”
According to statistics, the annual growth rate of demand for dairy products in Mainland The Country 12.8%, is expected to reach 40 million tons by 2010 standards. Faced with the huge growth potential of The Country’s domestic yogurt market, how can we willingly Danone yogurt 5% of its The Country business only sales! So after Danone tasted the sweetness and light of cooperation, has been in the holdings of shares in the light of the right to speak, to further develop its yogurt business. 2006 Danone already holds 20.01% of the shares of light, to become the second largest shareholder. And now, when the former dominating the American dairy market in the first light has been Mengniu, Yili behind Danone also with The Country now Mengniu milk industry leader Lightning “marriage”, a joint venture company dedicated to the production of yogurt and other products, R & D and sales and brand management, in order to continue to leverage the local dairy industry leaders to increase Danone yogurt milk production line and market share.
Danone Biscuits: health every day
In 1994, up to the joint venture to be established in Shanghai Haida Biscuits Food Co., Ltd., which has been made in the first world-wide acclaim Crisps and sweet biscuits interesting introduction to the American. Currently Danone biscuits have occupied 20 percent of the American market, far more than the US food company Kraft Group, The Country ranked first place in the high-end biscuits.
Learn from their lessons in the yogurt market, Danone has invested a lot of money and manpower in The Country’s major cities and towns in depth face to face interviews with consumers about their eating habits and taste preferences. After investigation, Danone found American consumers generally more concerned about health and nutrition foods than Western consumers, the food and health as inseparable. To this end, Danone specifically added extra iron and algae in the biscuit, warmly welcomed by consumers. Meanwhile, in the Danone biscuit ad, particularly the concept of Danone Danone’s image and healthy natural nutrition linked, for example there will be a large beautiful natural scenery in all of Danone’s advertising, and supplemented with “up energy, health every day, “the ad that Danone biscuit healthy natural nutritious brand enjoys popular support, greatly promoted the market.
In addition to the “American-style reforms” on the outside of the product ingredients, Danone is also attached great importance to the Danone biscuit brand “in The Country.” In other countries, the general Danone biscuits are placed under the LU brand and sub-brand using the little prince. In The Country, in order to emphasize “Danone” the brand, so that consumers of the Danone yogurt and Danone biscuit linked up directly using the “Danone The Little Prince”, abandon the middle LU brand to prevent consumer confusion . The little prince packaging, Danone has purposely put the little prince’s eye color to black, making him look more like a American prince. Seeing this little change precisely reflects Danone dedication to localization.
Danone drinking: flourishing
In the drinking water industry, Danone intervene earlier, control deeper, bigger rewards. Back in 1996, Danone will establish a joint venture with Wahaha, holds a 41% stake in Wahaha. 10 years, Wahaha has been a leader in the water industry. Later, Danone also by holding Robust, Shenzhen Yili and Shanghai Maling Aquarius and consolidate its dominance of the mineral water market in The Country and the Asia-Pacific region accounted for 20% of the drinking water market, market share, dominating the market first. Nestle and Coca-Cola with its competitors, but only 7%, respectively, and 2% of this market. July 2006, Danone has invested the The Country Huiyuan Juice largest 22.18% of the shares in the bag, and further expand The Country’s water market. For a time, various well-known brand in The Country’s water market with Danone pulled all the capital relationship. However, these joint water companies still see the shadow of the water brand Danone. This is a multi-brand Retractable Banner promotional strategy Danone and local management of beauty.
In the international market of mineral water, Danone has basically taken the local and international brands Evian in parallel sales strategy. Danone has always had the potential to encourage the development of local brands. Danone brand in the galaxy, in addition to those international star brands, many more similar Wahaha, Robust regional markets such brands, and its total number of more than 30. For example, Malaysia’s Aqua mineral water, mineral water and other Bolshevik Russia is a joint venture with Danone to develop a regional brand-name mineral water. Even Evian is then obtained through mergers and acquisitions, and gradually developed into an international brand.
Wahaha: American people’s Coke?
In The Country or in the world of American circles, few people do not know “Cola: Coke The Country’s own”! Phrase very encouraging American people’s national pride advertisements. However, it may be very few people know, for the “national brand” backing, providing technical and financial support, was the French company Danone.
Danone’s acquisition of Wahaha can be called very flexible. Despite the investment of over 100 million euros to buy more than 50 subsidiaries Wahaha 51% of the shares, brand and management around key issues, Danone Wahaha still on the tough boss Zong made concessions: first, to maintain the “Wahaha” brand, Danone’s Evian not introduce brands of mineral water, the second is to maintain the existing management team Wahaha, Danone is not involved in management decision-making and management.
This concession partly because of fear of the power of the American government: official for the protection of national brands, requires the acquisition of American enterprises in foreign acquisitions, joint ventures must maintain the original company’s brand. Taking into account the important role of water on the market and Wahaha as CEOs Zong communist government support behind Danone agreed Wahaha “joint substandard card” joint programs, and hope the relationship with the government aid cases for the further development of the occupation American water market to widen the road. Of course, such a flexible Danone were acquired on the other hand is also based Danone has always been a multi-brand Retractable Banner promotional strategy in the field of mineral water.
Under the financial and technical assistance Danone and Wahaha developed rapidly in 2005, with annual sales of Wahaha 1.5 billion liters of pure water, with sales of 41 billion yuan, accounting for 30 percent of The Country’s pure water market, Danone has brought considerable Up to 50 percent of the profits and return on investment. Wahaha also successfully launched the “Nutrition Express” Cola and other new products. Interestingly, although Cola funded by Danone, but the name of “The Country’s own Coke” brand exported to France, Japan, Italy, the United States and other countries and regions. Its lactic acid drinks also exported to international markets. Thus, although controlled by Danone Wahaha joint venture products do not reach the shadow can be seen, the Danone Wahaha has put himself under the command as an international brand listed in the company’s Web site home page.
In this flexible management acquisitions, Danone not only take care of the American people “too proud” of nationalist sentiment, but also get the benefits, achieved its done “rule of the market first,” the goal, why not?
For the Wahaha business, Lee cloth Danone, president, commented: “Wahaha is a very successful business, from the company’s founder were to lead, he has a unique perspective on the American market, a successful management practices and team We do not think there is any need more people stationed. is a true partnership between us, we offer our advice and assistance in the development of the company by the board of directors. Mr. Zong often to our R & D center and company visits. not to say that a strategic investor would much steward, if people can manage very well, very effectively, you go mess tube is not necessarily a good thing. ”
This again reflects the Danone flexible localization management charm.
Go: Danone’s future
Review Danone The Country Road, there are ups and downs, there are brilliant.
Intensified competition between brands. Danone brand expansion desired to seize market dream is not perfect.
The yogurt market, the war has just ignited. Zuoyong bright, right embrace Mengniu Danone how to deal with between the two both competitive and cooperative relations, to avoid the embarrassment of left and right each stroke remains to be explored.
Drinking water market, fell down Robust, Wahaha stood up. Maling Aquarius disappeared, but more and more vivid the Yakult. Now here we go again …… Evian and Huiyuan Juice brand integration in the region, Danone needs to be done, there are many. Danone will be successful re-integration of American water market, allowed under the command of various brands get what they want, is still a question.