Amendment of Essay in Multinational Management

Danone Multinational Company

Nicole Jensen

Grantham University

8/16/2019

Multinational Management

Project: Multinational Company Project

Danone Multinational Company

Danone company is a multinational company that is located in North America. Headquarters of the Danone company are located in Paris. Recently, the company focuses on the production and distribution of the following products: water, baby food, dairy products which are fresh as well as well as medical nutrition. Vision of the Danone company one planet, one health. This means that the company is believes in the provision of foods as well as water to the ecosystem in a manner that promotes harmony between the people, the environment inclusive of the community. Generally, the Danone company is aimed at changing people in a positive way through the provision of healthier food.

Marketing Strategy of the Danone Company

Danone company uses different marketing strategies for the promotion of their products. Some of these strategies used by the company include the following: product attributes, cultural attributes, economic attributes and technological. Product attributes used by the Danone company include the production and manufacturing of its products such as yoghurts by experts (Payaud, 2014). Key strategy and figures used by the Danone company with regard to product are: concern about the health and the wellbeing of their consumers, inclusive of taste and preferences, innovation for adapting to the needs and preferences of the consumers, aspects of transparency, credibility and even trust.

Cultural attributes that can be associated with the Danone company is the Spanish culture which is normally used in street marketing inclusive of handling flyers in cities which are big such as Madrid. Sharing information about healthy products of the Danone company creates opportunities by providing knowledge about the various products. As a result of innovation in marketing, Danone is able to familiarize their products to its consumers and attract new buyers as well. Advertising of their products in the Spanish culture through techniques such as loyalty clubs offers discount to the company. To add on this, the cultural attributes of the company in addressing issues such as the environment (Humberg & Braun, 2014). As a result, street marketing in the Spanish culture creates opportunities for the Danone company to pass information to their customers as well as ability to advertise their products.

Economical attributes

Economic attributes and factors greatly influence the marketing strategy of the Danone company. Some of these factors include the increment in the demand of food product which are better than the products of Danone in some parts such as Brazil impact the company. Additionally, the raw material increases in prices such as the plastics for packaging due to the supply and demand criteria greatly influence the cost of packaging mostly in the bottled water. Economically, variation and the fluctuation in the exchange rate of Euro, Yuan or even Dollar significantly affect the profit margins of the company.

Technological attributes on the other hand influences aspects such as the product promotion and advertising. Technological advancements such as the introduction of new biotechnologies help in improving the credibility as well as the effectiveness of the company in the delivery of healthy and quality products. Change in the techniques and strategies of marketing influences the distribution through ways such as plastic recycling of the packages used.

Distribution Strategy of the Danone Company

Distribution strategy of the Danone company can be best described using the competitive index, which incorporates aspects such as promotion, place, price and the product. Due to the existence of competitors of the Danone such as the Kraft, Coca-Cola and the PepsiCo, the Danone has to develop a distribution strategy for outstanding its competitors. Product mix involves the incorporation of varied healthy ingredients in the products of the company, provision of quality products and the manufacturing of healthy products (Kraak, Rincón‐Gallardo Patiño & Sacks, 2019). Provision of other products such as snacks which are healthy is a distribution strategy used by the company.

Place as a distribution strategy involves the company supplying and distributing their products in different parts of the world. Being an international company, which is largely based in America, includes the delivery and distribution of products in different parts of the world. Availability of large market in the United States creates larger distribution channels to supply the products.

Pricing Strategy of the Danone Company

Provision of quality products by the Danone company means that their prices are high. However, as a way of attracting new buyers and marinating the existing ones, the Danone company uses the policy of premium pricing. Different ranges of prices have been developed depending on the product. Pricing of products in the Danone company is done in a manner which sustains competitiveness for the reaching of wider consumers and securing growth rates which are high (Melewar, Badal & Small, 2006). Operational costs are normally catered for in the pricing and this is done through ways such as the development and initiation of advertising techniques for creating awareness about the brand, quality and the nutritional benefits of the products.

Communication Strategy

Danone company uses a communication strategy which aims at informing their consumers and the target market the brand and the products, the health and nutritional benefits of the products and the quality. Generally, communication strategy incorporates varied mix by the creation of different elements, for instance advertising, direct marketing, personal selling, event marketing and public relations (Aakhus & Bzdak, 2015). Other communication strategies such as television ads educate the consumers on features of the products, health benefits and the taste.

Barriers in International Advertising

When it comes to international advertising, there are some barriers faced by companies such as the trade barriers, for instance distance and the language barrier, tariffs or even taxes on goods which are imported, regulations, exchange controls and the imposition of import quotas (Heinberg, Ozkaya & Taube, 2016). Uncertainties and problems such as cultural diversification and political issues affect the advertising or even countries wars.

Marketing Mix of the Danone Company in International Arena

Marketing mix of the Danone in the international arena pays attention and addresses aspects such as the environment, competition, quality products, place, pricing, products and the promotion mix. All these marketing mix educate and sensitize the consumers on the health benefits of the Danone products, the ingredients used and the flavors as well. Promotion mix as a marketing strategy involves the development of a strategic which is appealing and reaches a wider market (Ghalib, Hossain & Arun, 2009). Most of the marketing techniques used by the Danone ae aimed at penetrating new markets and maintaining the existing consumers.

References

Aakhus, M., & Bzdak, M. (2015). Stakeholder engagement as communication design practice. Journal of Public Affairs, 15(2), 188-200.

Ghalib, A., Hossain, F., & Arun, T. (2009). Social responsibility, business strategy and development: the case of Grameen-Danone Foods Limited. Australasian Accounting, Business and Finance Journal, 3(4), 1.

Heinberg, M., Ozkaya, H. E., & Taube, M. (2016). A brand built on sand: Is acquiring a local brand in an emerging market an ill-advised strategy for foreign companies?. Journal of the Academy of Marketing Science, 44(5), 586-607.

Humberg, K., & Braun, B. (2014). Social business and poverty alleviation: Lessons from Grameen Danone and Grameen Veolia. In Social Business (pp. 201-223). Springer, Berlin, Heidelberg.

Kraak, V. I., Rincón‐Gallardo Patiño, S., & Sacks, G. (2019). An accountability evaluation for the International Food & Beverage Alliance's Global Policy on Marketing Communications to Children to reduce obesity: A narrative review to inform policy. Obesity Reviews.

Melewar, T. C., Badal, E., & Small, J. (2006). Danone branding strategy in China. Journal of Brand Management, 13(6), 407-417.

Payaud, M. A. (2014). Marketing strategies at the bottom of the pyramid: Examples from Nestle, Danone, and Procter & Gamble. Global Business and Organizational Excellence, 33(2), 51-63.