Grameen Danone Foodsfood corporation (1)

GRAMEEN DANONE GRAMEEN DANONE

FOODSFOODS: A joint venture : A joint venture

social business to serve social business to serve

Bangladesh’s BoPBangladesh’s BoP

Presented by:-Dharma Penugonda

(103951627)- Mengjiao Fu (103989454)- Muhe Shang (103787129)

- Preethi Naravar (104087583)

BangladeshBangladesh, one of the world`s , one of the world`s “developing” countries“developing” countries

Grameen BankGrameen Bank

Groupe DanoneGroupe Danone

What is a social businessWhat is a social business, , according to Mohammed Yunus, according to Mohammed Yunus, founder of Grameen Bank and 2006 founder of Grameen Bank and 2006 Nobel prize winnerNobel prize winner

“A business designed to meet a social goal, pays no dividends. It sells products at prices that makes it self-sustaining. The owner of the company can get back the amount invested in the business over a period of time, but no profit is paid to investor in the form of dividend. Instead any profit made is reinvested in the business to finance expansion, create new products and do more good for the world.”

Mission: To reduce poverty by a unique

proximity business that will provide daily

health nutrition to the poor of Bangladesh.

Objectives:

- Health through nutrition at a very affordable price

- Improve living conditions of the poorest in the

community by involving them in all stages of the business

model

- Preserve natural resources as much as possible

- To ensure a sustainable activity while seeking

profitability.

Components of business model / Marketing Components of business model / Marketing StrategiesStrategies

1. Strategic Orientation: Joint venture agreed that product and production would be as green as possible. The factory covers 7500 square feet, only one percent of Danone`s standard factories elsewhere. Equipped with latest equipment like treating of incoming and outgoing water, and solar panels to generate renewable energy.

2. Product Policies: The plant only makes yogurt, a high nutrition value with 30% of the daily need for vitamin A, zinc and Iodine. The joint venture also acquired a Chinese technology so that containers can be converted to fertilizer.

3. Pricing: To keep prices low and still be profitable, the plant must keep its costs low. The plant obtains all ingredients locally, mainly from small suppliers. Avoids expatriate`s compensation by training and employing local personnel

4. Promotion: Most promotion is word of mouth

5. Branding: The joint venture puts Grameen before Danone because the former name was already well recognized in Bangladesh.

6. Distribution: Bangladesh`s high under employment attracted more than enough women to work part time selling yogurt thereby contributing to the objective of reducing poverty by providing employment. Maintaing yogurt quality is important because of the lack of refrigeration in hoes and negative consequences if customers become ill from eating spoiled product. So, it provided insulated bags to saleswomen and give a minimum inventory so as to reduce spoilage.

Does DanoneDoes Danone’’s decision to set up a social s decision to set up a social business was motivated by wanting to be business was motivated by wanting to be socially responsible or believing the move socially responsible or believing the move would help its performance ?would help its performance ?

Marketing pitfalls that might Danone face Marketing pitfalls that might Danone face if it tries to duplicate its Bangladesh if it tries to duplicate its Bangladesh experience to serve BoP customers in experience to serve BoP customers in another countriesanother countries

Advantages and disadvantages Advantages and disadvantages might encounter by first might encounter by first serving the BoPserving the BoP

How to improve their How to improve their performanceperformance

What could be Danone’s What could be Danone’s next next products products to the to the BoP?BoP?

The Benefits of The Benefits of Oatmeal:Oatmeal:

The feasibility of providing The feasibility of providing oatmeal:oatmeal:

Companies that might not Companies that might not be suitable for social be suitable for social businessbusiness

Political influences on a social Political influences on a social businessbusiness