The document summarizes Danone's strategic plan for its operations in Turkey. It identifies key threats like rising milk prices, shortage of quality milk supply, and aggressive competition from private labels and discounters. The top three strategic priorities are defending against the discounter threat, expanding the consumer base, and adjusting supply and demand imbalance. Four strategic directions are proposed: expanding value-added products, blockbuster innovations, base category leadership, and street sales expansion. Specific initiatives presented include a new cheese line and "Healthy Snacks" product line.

1. Danone TRUST 7 Final PresentationStrategic Plan for Danone Turkey

2. ÖmerMuratCanerYigitBurak

3. Introduction and LandscapeInitiative 1 BrandExtensionInitiative 2 Line ExtensionInitiative 3 CSR & ConclusionAnalysis and Strategic DirectionMurat

4. Murat4 types of retailers

5. Supermarkets ranked first in sales volume

6. Competitive pricing

7. Private labels – Delisting

8. 25% packed in dairy consumption

9. Turkey 43 kg vs EU 114 kg

10. Consumption imbalance

11. Propensity to VA Products

12. Milk supply is seasonal and vulnerable

13. Producer inefficiencies

14. Stable relationship with trained customersDanoneFounded in 1919Groupe Danone after 1994Operates in 5 continents, 120 countries, 160 facility, 80K employeesFocused on Dairy, Beverage, CerealsFortune 500 -> 15.2 Billion EuroIn Turkey, 1997 Hayat A.Ş. , 1998 Tikveşli A.Ş. Murat

15. The SWOT analysis reveals many threats to be defended againstSWOT Analysis Recognized as healthiest brand

16. International expertise, trusted corporate brand

17. Blockbusters and value-added products

18. Distribution muscle

19. Top-notch production

20. Fastest growth in foods category

21. Sales and distribution adapted to SM/HM, however discounters are rising

22. Cannot import milk powder due to regulation

23. Supply demand imbalance

24. Unionized SuppliersMuratCanerWSOT Rising milk prices

25. Shortage of quality milk mostly due to small volume per supplier

26. Commoditized & aggressive branded base business markets (milk and yoghurt) w/price wars.

27. Consumers reluctant to abandon traditional tastes

28. The rise of the discounters and private label

29. Rising incomes, fast-growth categories

30. Consumer propensity for conversion to branded

31. Consolidation of retail space

32. Potential sales points without chilled sales (13%)Among our strategic priorities, the top three are: defending against the discounter threat, expanding the consumer base, and adjusting for supply demand imbalanceStrategic PrioritiesHOW?Get closer to people, increase community involvement in corporate brand, drive penetration for all.Through genuine innovation, introduce new market adaptive blockbusters. Sail away from the base business territory to gain edge.CanerAdjust product decisions accordingly, realign supply and demand. In general strategic direction, TeamLeverage has identified four main lines along which we can pursue our goalsGeneral Strategic DirectionCaner

33. Value AddedMILKYOGURTICE CREAMREADY-TO-EATDESSERTCHEESESupplemented, probioticSupplemented etc.BlockbustersBlockbustersFlavoredFlavored, localsFlavored/KidsBlockbustersChildren’sLight, skimmed etc.Light, skimmed etc.Light, skimmed etc.Base milkBase yoghurtBase flavorsBase cheeseCategory (Increasing Complexity)Street SalesStreet SalesStreet Sales

34. Caner

35. CanerÖmer

36. PathVAP’sexpandingmoreExpanding MarketÖmer30%“HEALTHY SNACKS”25%BlueOcean

37. ImplementationÖmerAddcheeselineto Lüleburgaz FactoryCheeseSticks

38. FlavoredCheeseBalls

39. CreamCheeseDeveloptastesthatmeetconsumerdemandTargeted on children

40. Health is mainvalueclaim“HealthySnacks”Consumereducationinitiatives

41. TV ads, celebritiesetc.CriticalSuccessFactorsÖmer

42. Financial & SocialReturnSocialBringmorehealthtochildren“HealthySnacks” notionFinancialÖmer