SWOT analysis is a useful technique to analyze the present strength, weakness, opportunity, and threats alongside their impact on the current business model of the Danone group. Danone is the global leader in domains like the dairy products and bottled waters. It ranks number 2 in the baby food segment. The company strives to be globally recognized as a brand that provides healthy products of supreme quality.
The board portfolio of products is a major strength of the Danone group. Danone has the highest market share in the dairy segment but increasing raw material cost is leading to a rise in the cost of end products, affecting the overall revenue and dropping of sales. There is a huge opportunity for the expansion of the Danone company in markets with emerging economies, in western countries. People are preferring Greek yogurt over the regular one and are shifting towards healthier options, hence sales are expected to grow in future.
Increase in raw material cost, competition from global players of food and beverage industry, and cheap alternatives from local suppliers are some of the major threats to the Danone group. It performed especially well in Asia. This segment promotes synergies and space for further expansion as presently the products in this segment are limited to a few countries.
These attractive categories are aligned with the changing consumer trends which puts the group on a sustainable and broad-based growth path. The renewal of production lines across these categories increase its market penetration and consumption across the globe. It also gives the group expansionary advantage and scalability. Solid International footing: Danone is the global leader in fresh dairy products and plant-based products and second largest seller in early life nutrition and packaged waters by volume.
It has also increased the production capacity of Aptamil plants in New Zealand to tap the growing demand. Water sales in Latin America and North America remained strong, giving a fillip to the weak dairy segment performance in Europe. By far, the political factors that are conceivably affecting the Danone company are the laws passed by the French government in to safeguard the minority shareholders.
Nations are having in place stringent regulations for food safety and changes in taxation policy due to the global crisis. Economic stability has enhanced the demand of high-quality food products amidst audiences with standard living. A decline in the supply of plastic can affect the packaging cost, especially in the beverage segment.Both companies are striving to develop and grow nutrition and health and wellness businesses and face similar opportunities and challenges that emphasise their strengths and weaknesses.
Overall, The Coca-Cola Co continues to lead the global HW market in with its Diet Coke and Coca-Cola Zero brands; however, Coca-Cola saw its market share noticeably eroded overaffected by the sluggishness of low calorie cola. Second-ranked PepsiCo generally maintained its market share, thanks to its presence in both HW packaged food and HW beverages.
In recent years, Danone has faced problems in its traditional EU markets, including slow economic recovery, price pressure from chained retailers and tightening control on HW marketing and product development from the EC.
Increasing its presence in emerging markets will therefore continue to be a strategic priority. Latin America has emerged as an exciting market for Danoneunderpinned by several mega brands including Activia, Danonino, Paulista and Actimel. Similarly, Danone also has its two distinctive brand portfolios — mass market Aqua and premium Evian and Mizone.
As water filtering devices are increasingly used by households in both developed and emerging markets, bulk water sales could potentially be affected in the long-term.
However, natural mineral water with an emphasis on origin and specific source for on- the -go consumption, may continue their growth in the medium term. In terms of geographical coverage, both companies need to address their weakness in Nigeria which offers great long-term volume potential despite the high risk it may present. For example, the unit price of bottled water in Nigeria is extremely low and it will certainly take a long time to recoup the initial investment.
For example, some companies are looking for superfruits, super-grains or super-insects as potential food ingredients. All money spent on research and development cannot guarantee commercial success. It is at times a challenge to maintain the balance between taste and health. About Our Research Request a complimentary demonstration of our award-winning market research today.
Danone SWOT Analysis, Competitors & USP
Request Demo. Subscribe to our market research eNewsletter Subscribe Me.SWOT analysis is a strategic planning tool that can be used by Danone managers to do a situational analysis of the company. The Danone is one of the leading companies in its industry. Danone maintains its dominant position in market by carefully analyzing and reviewing the SWOT analysis.
SWOT analysis an immensenly interactive process and requires effective coordination among various departments within the organization such as — marketing, finance, operations, management information systems and strategic planning. As one of the leading firms in its industry, Danone has numerous strengths that enable it to thrive in the market place.
These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research — some of the strengths of Danone are —. Weakness are the areas where Danone can improve upon. Strategy is about making choices and weakness are the areas where a firm can improve using SWOT analysis and build on its competitive advantage and strategic positioning. Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations.
Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical. This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically.
Amazing Business Data Maps. Send your data or let us do the research. We make the greatest data maps. Based on Fern Fort University extensive research — some of the strengths of Danone are — Successful track record of developing new products — product innovation.
Automation of activities brought consistency of quality to Danone products and has enabled the company to scale up and scale down based on the demand conditions in the market.#SpecialAtDanone Series - Inside Human Resources (HR) -
It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain. Strong Brand Portfolio — Over the years Danone has invested in building a strong brand portfolio.
This brand portfolio can be extremely useful if the organization wants to expand into new product categories. Superb Performance in New Markets — Danone has built expertise at entering new markets and making success of them. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in. High level of customer satisfaction — the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers.Our planet is faced with a pandemic that affects all of us.
In this difficult context, every day, Danone's teams demonstrate exceptional commitment in all the countries where we are present and are united for the same cause: to protect our supply chain so that we can continue providing you with your daily food supply.
Our top priority is to ensure the safety of ouremployees around the world as well as that of our partners. Danone is taking radical measures to strengthen the resilience of our teams and our value chain :. COVID information. Extensive coverage health, childcare, quarantine for all employees worldwide. Specific bonus for all employees working on site during the pandemic. Each time we eat and drink, We can vote for the world we want. Latest Stories.
Danone SWOT Analysis / Matrix
Science-Based Targets for water stewardship in almond cultivation. Alimentando el Cambio — The change starts early. Zoom on Danone's news. Our collective of water brands, including evian, Volvic, AQUA and Bonafont, is acting on responsible packaging, climate neutrality, watershed preservation and access to safe drinking water. Zoom on Danone's Full Year results. Zoom on Danone's innovations. Discover our Innovations Click on the image to learn more.Marketing standards were never very high in the UK, but they are on the slide as this competition reaches our shores.
Therefore, it falls to everyone who cares about infant health and the right of parents, carers and health workers to receive accurate, independent information to join us in saying these minimum requirements should be respected. He had a budget to wine and dine, buy gifts, pay for travel and to fund seminars. It should not come as a surprise that there is an ulterior motive to company largesse.
Companies have a legal obligation to maximise shareholder value: any expenditure has to benefit the company. Put yourselves in the shoes of a company executive. Why are you using money from your budget for this purpose — why do you even have this budget? Where does the money come from? In the case of baby food companies targeting midwives, health visitors and others involved in mother and child health, the money comes from a premium on the price of formula and the expectation is the expenditure will result in greater sales.
Baby food companies obviously have a conflict of interest in funding such events. All health care workers including health professionals and their associations to avoid accepting any donations or funds, offers of assistance in cash or kind from companies with a commercial interest in infant and young child health and development, particularly in the feeding of babies.
India has implemented the WHA Resolutions in legislation, outlawing such sponsorship. The company gains in several ways from this relationship:. Many organisations do look to corporate sponsors and where to draw the line is something that requires careful and open debate.
Some members have moved in this direction. Some have dropped advertising from formula manufacturers from their publications, for example. Some still have to take this step and some are even drawn into sponsorship deals: I have recently seen on Twitter that one member, the Royal College of Midwives, has a legal conference on 11 July sponsored by Danone.
Danone steps up targeting of health workers. Danone has long targetted midwives. This includes encouraging midwives to work for it off the books: Danone offers to pay midwives to work for its formula-branded telephone carelines through an agency so they can claim to be doing bank work without mentioning they are working for a baby milk company.
For example, it is sponsoring Feeding for Life magazine, distributed to health visitors. Danone has also been organising events for health workers under the title of The Learning Curve. There was an event on 8 May aimed at midwives and healthcare professional.
Competing with independent sources of information. Companies are not attempting to fill a vacuum in taking on a role of health and nutrition education: they are supplanting independent sources.
Danone SWOT Analysis, Competitors & USP
At the moment there is a holding page on the domain.In the following 4 chapters, you will quickly find the 27 most important statistics relating to "Danone". The most important key figures provide you with a compact summary of the topic of "Danone" and take you straight to the corresponding statistics. Feel free to contact us anytime using our contact form or visit our FAQ page.
Popular Statistics Topics Markets Reports. Published by Jan ConwayMar 19, In its latest annual report, the company reported net sales amounting to about The dairy division includes well-known brands such as Actimel and Activia. The probiotic yogurt Activia is sold in more than 70 countries. Raising interest and awareness about their various products appears to be a matter of high priority for Danone.
In the United States alone, Danone spent approximately million dollars on advertising in Additionally, Danone ranks as one of the leading advertisers in RussiaBelgiumand Spain. This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Interesting statistics In the following 4 chapters, you will quickly find the 27 most important statistics relating to "Danone". Statistics on the topic. Annual per capita dairy product consumption in the U. Overview Most valuable brands worldwide Leading new food and beverage pacesetters in the U.
US market U. Company facts Global net sales of Danone Advertising Danone: ad spend in the U. Go to report. Important key figures The most important key figures provide you with a compact summary of the topic of "Danone" and take you straight to the corresponding statistics.
Key figures Danone's net sales. Sales of Danone's essential dairy and plant-based products. Number of Danone employees. Fastest growing region for Danone's revenue.
Rest of the World. Status quo Danone's water sales. Danone's European and North American sales.Get free, customized ideas to outsmart competitors and take your search marketing results to the next level with Alexa's Site Overview tool.
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