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4. danone milky_start_bop_in_poland_helsinki
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4. danone milky_start_bop_in_poland_helsinki

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  • 1. Inclusive Social Innovation in ActionFighting Child Malnutrition in Poland Przemek Pohrybieniuk Danone Poland & Partnership for Health Finpro & Aalto University, Helsinki, 20 April 2012
  • 2. Per cent of children living below national poverty linesOECD Child PovertyLeague, 2011
  • 3. EU’s POOREST REGIONS + Poland heading
  • 4. Polish childrenare the poorest in The poorest EU region of Poland -Newsweek, 07.02.2010 łódzkie Gazeta Wyborcza, 24.02.2010 For many Poles meat is luxury Nowa Trybuna Opolska, 20.01.2010 80 mln EU citizens live in poverty, every 5th Pole cannot afford An increasing daily spend number of children Nowa Trybuna Opolska, live in poverty, Głos Nauczycielski, 06.01.2010 20.01.2010
  • 5. BOP consumers in Poland
  • 6. Not every Child in Poland starts a day with breakfast … • children aged 6 – 11 do not eat breakfast 24% every day during the week 1 • primary school children suffer from 134k undernutrition • school classes consist of children not Almost 40% consuming the second breakfast 2 • primary school children are not eating 220k properly enough for their development ² 27% • mothers claim breakfast to be a snack only 31. IQS "Share of Stomach" research, Dec 2009 for Danone.2. Źródło: Aprli 2011, Millward Brown 2009. Research in 300 primary schools in Poland, conducted by Danone and Federation od Polish Food Banks3. TNS OBOP Research. 7-8.2011 for Danone 6
  • 7. Almost 8 mio Poles (21%) still are from BOP Income Per EQU / € per EQU DAILY % HHs % Population monthly in PLN 2400 PLN + 23€ 14% 10% 1600-2399 PLN 15€ 28% 25% The lowest 800-1599 PLN 10€ 43% 44% income group among households is the so-called „D” 0-799 PLN 5€ 15% 21% group – which amounts to 21% of all households in EQU Pyramid Income Poland.Source: GfK HH Panel, Income Pyramid analysis, 2011 data (full year)
  • 8. What is our dream? Vision: Poland without child malnutrition & resulting exclusion problems Mission: To ensure that low income families and children from underprivileged social backgrounds have access to affordable, high quality, enjoyable nutritional dairy products. Ambition Reduce number of children suffering from malnutrition by half (from 2009) in 2015 Sales & Servings per day distributed to „D” income group
  • 9. Social Business project to tackle malnutritionVision & mission based on values PROVIDING. CHEAPLY. PROFITABLY.
  • 10. We got inspired…
  • 11. Shifting private sector thinking about the poor: the Danone Poland approach„ ... Traditionally multinationals have focused their attention on the needsof the affluent consumers of the developed world or at most theaspiring middle classes in the developing world. But many examplesand other evidence points to an increasing opportunity for forward thinkingorganizations to build interesting new businesses by focusing on the needsof people with the lowest incomes. /.../The Bottom of the Pyramid thinking redefines the traditionalconcept of who is a customer & who is not. To be able to capitalize onthe opportunities at the bottom of the pyramid we need to develop a widersocially inclusive view of who our customers are in line with our concept ofDanone as creating both social and economic value. /.../Bottom of the pyramid social innovation challenges many of theorthodoxies and conventions of our current way of thinking. The very factthat we consider poor people as consumers challenges a convention thatlow income people are not interesting. /.../Rather than just leaving the poor to the interests of governmentand NGO social nets the evidence is that partnerships with socialsector organizations can create social and economic value. /.../Much of the success of projects in this area is about real insightinto the societies, cultures and lifestyles of different communities...” Ramin Khabirpour, GM Danone Poland September 2002, Evian 11
  • 12. Mleczny Start „on the road” to reduce child malnutrition Poland without child malnutrition & resulting exclusion problems 1. Make the public aware of the significance of the problem and its social consequences 2. Educate the society about the rules of healthy nutrition 3. Provide specific solutions based on the Partners expertise & experience to facilitate elimination of the most important bariers to healthy nutrition Reduce no of children suffering from malnutrion by two in 2015 Mleczny Start provide low income families and children from underprivileged social backgrounds, an access to affordable, high quality, enjoyable nutritional dairy products, for their children A. Mleczny Start tons sold B. Servings per day distributed to „D” income group
  • 13. Mleczny Start „on the road” to reduce child malnutrition Poland without child malnutrition & resulting exclusion problems 1. Make the public aware of the significance of the problem and its social consequences 2. Educate the society about the rules of healthy nutrition 3. Provide specific solutions based on the Partners expertise & experience to facilitate elimination of the most important bariers to healthy nutrition Reduce no of children suffering from malnutrion by two in 2015 Mleczny Start provide low income families and children from underprivileged social backgrounds, an access to affordable, high quality, enjoyable nutritional dairy products, for their children A. Mleczny Start tons sold B. Servings per day distributed to „D” income group
  • 14. Mleczny Start is a result of works of an unusual Partnershipacting as a unique social innovation framework…The Partnership for Health is a joint initiative of three companies: Danone,Biedronka, Lubella and a research/medical institution(Institute of Mother and Child) who cooperateto effectively counteract the problem of malnutrition among children in Poland& its dramatic health and social consequences. 14
  • 15. The project is developed in a Partnership, where all partnersagree to follow social business principles Based on unique business principles – business as unusual: o Lowest possible price with the highest nutritional quality o Minimum margins & open P&L statement o Outside annual nego or of any "usual" parameters o Exclusivity within Biedronka with full distribution in all outlets o Joint community & educational activities o Shared "PR" activities for the whole time
  • 16. All Partners contributing their competencies & resources • Owner of the concept • Nutritional profile /product formulas • Fuels cooperation • Expert opinion & advice on • Business / marketing/ nourishment standards comms • Distribution & sales • Production know-how • In-store execution • Production
  • 17. Launch 2006 17
  • 18. Mleczny Start „on the road” to reduce child malnutrition Poland without child malnutrition & resulting exclusion problems 1. Make the public aware of the significance of the problem and its social consequences 2. Educate the society about the rules of healthy nutrition 3. Provide specific solutions based on the Partners expertise & experience to facilitate elimination of the most important bariers to healthy nutrition Reduce number of children suffering from malnutriton by half in 2015 Mleczny Start provide low income families and children from underprivileged social backgrounds, an access to affordable, high quality, enjoyable nutritional dairy products, for their children A. Mleczny Start tons sold B. Servings per day distributed to „D” income group
  • 19. Mleczny Start „on the road” to reduce child malnutrition Poland without child malnutrition & resulting exclusion problems 1. Make the public aware of the significance of the problem and its social consequences 2. Educate the society about the rules of healthy nutrition 3. Provide specific solutions based on the Partners expertise & experience to facilitate elimination of the most important bariers to healthy nutrition Reduce number of children suffering from malnutriton by half in 2015 Mleczny Start provides low income families and children from underprivileged social backgrounds, an access to affordable, high quality, enjoyable nutritional dairy products, for their children A. Mleczny Start tons sold B. Servings per day distributed to „D” income group
  • 20. Affordable, high quality, enjoyable nutritional dairy product
  • 21. Solid & nutritious breakfast for kids, fortified with vitamins & minerals crucial to child development• Nutrition:• Covers 25% daily recommended intake for vitamins & minerals• Consumption target:• kids 6-11 yo. from low income families• Effort level:• 11% at the launching phase 4.6% currently• Price: 0,18 €
  • 22. Mainline 24
  • 23. Mleczny Start „on the road” to reduce child malnutrition Poland without child malnutrition & resulting exclusion problems 1. Make the public aware of the significance of the problem and its social consequences 2. Educate the society about the rules of healthy nutrition 3. Provide specific solutions based on the Partners expertise & experience to facilitate elimination of the most important bariers to healthy nutrition Reduce number of children suffering from malnutrtion by half in 2015 Mleczny Start provides low income families and children from underprivileged social backgrounds, an access to affordable, high quality, enjoyable nutritional dairy products, for their children A. Mleczny Start tons sold B. Servings per day distributed to „D” income group
  • 24. Mleczny Start „on the road” to reduce child malnutrition A. SALES
  • 25. Sales results (in T) in 2011: +42 vs. 2010 1 621 1 135 389 +42% 368 +177% +11%2008 2009 2010 2011
  • 26. „2nd breakfast on the go” Milky Start cereal breakfast • Very positive nutritious opinion due to high content of cereals and fiber• Co-creation of product concept with – IMID – Kids• Sandwich shape & name – to minimize relation with cereal bars or sweets• Same pricing as semolina;• 0.69 PLN (40g)
  • 27. MONTHLY SALES BY FORMATS (TONS) Jan & Feb-Mar Jan – Mar Apr– May Aug-Nov 1st wk Aug-Sep Mar250 2010 2011 2012 TONS200150 4+1 GRATIS 4+1 4+1 4+1100 GRATIS GRATIS GRATIS 50 060g monthly (t) 4+1 Stand 2010 3+1 (240G) MIX 60g strawberry test caramel (60G) 300g monthly (t) 2011 60g green apple 60g chocl&nuts Sandwich 2012 SOURCE: INTERNAL DATA JMD MAR 2012
  • 28. 65 000 000breakfast portions in 5 years
  • 29. 80 000portions sold a day!
  • 30. Mleczny Start „on the road” to reduce child malnutrition B. SERVINGS
  • 31. 27 % = 22 000 portionsto D households daily!
  • 32. 27% of volumegoes to D Households 45% 56% 66% 20% 27% 7% 2008 2009 2010
  • 33. SEMOLINA & CEREAL SANDWICH SERVINGS SOLD PER DAY (MONTHLY AVERAGE) Servings150,000 % of MS VOL. PLN/CAPITA DISTR. TO „D” MONTH INCOME GROUP125,000 2008: 16% 0 - 599 2009: 20% 0 - 799100,000 2010: 27% 0 - 799 75,000 50,000 27% 25,000 20% =14 675 =3 734 no servings to „D” income group data yet ,0 Mar Oct Oct Oct Oct Oct Oct Feb Feb Feb Feb June Jun Aug Jun Aug Feb Jun Aug Jun Aug Aug Feb Apr Apr Avr Apr Apr Dec Dec Dec Dec Dec Dec 2006 2007 2008 2009 2010 2011 2012 SOURCE: INTERNAL DATA JMD MAR 2012 GFK income pyramids – new coverage
  • 34. Mleczny Start „on the road” to reduce child malnutrition REALISATION
  • 35. Ambition: Contribute to reduce child malnutrition by half (till 2015) via providing Milky Start to children from low income HH80 000 180,000 170 000 70 264 170,00070 000 160,00060 000 150,00050 000 140,00040 000 130,000 120,00030 000 99 736 110,00020 000 100,00010 000 90,000 981 0 80,000 2006 2007 2008 2009 2010 F 2011 2012 2013 2014 2015 # servings per day sold to low-income HH Children suffering from malnutrition
  • 36. „Breakfast gives power”
  • 37. BREAKFAST GIVES POWER & BREAKFAST CLUBS –SCHOOLS ACTIVATION Healthy Breakfast Day Class breakfasts as a habit Nov 8th 12 edu-breakfasts THE BREAKFAST CLUB Breakfast gives power Breakfast clubs • One day, low effort edu-event • Long term, creative education available for all schools proposal for highly motivated & • Target: +50% vs 2011 (3600 engaged teachers schools) • Target: 1000 schools
  • 38. Key Success Factors Dedication and resilience Leader makes its continuous mark People fill jump in New ways of working -> Partnerships …require humbleness & patience Co-Creation is a painful process Beware of idealism and do-gooding - Price per pack is key for the BOP - A well designed TV ad can boost success - In-store operations are powerful Malnutrition impact measurement requires specific approach and tools to assess growth and cognitive child development
  • 39. VISION: POLAND WITHOUT CHILD MALNUTRITION COOPERATION TO COUNTERACT CHILD MALNUTRITION SINCE SINCE 2006 2011 ?