Danone Trust 7 TeamLeverage Winner Presentation

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Winning Presentation of Danone Trust 7 Turkish Final by TeamLeverage

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Danone Trust 7 TeamLeverage Winner Presentation

  1. 1. Danone TRUST 7 Final Presentation<br />Strategic Plan for Danone Turkey<br />
  2. 2. Ömer<br />Murat<br />Caner<br />Yigit<br />Burak<br />
  3. 3. Introduction and Landscape<br />Initiative 1 BrandExtension<br />Initiative 2 Line Extension<br />Initiative 3 CSR & Conclusion<br />Analysis and Strategic Direction<br />Murat<br />
  4. 4. Murat<br /><ul><li>4 types of retailers
  5. 5. Supermarkets ranked first in sales volume
  6. 6. Competitive pricing
  7. 7. Private labels – Delisting
  8. 8. 25% packed in dairy consumption
  9. 9. Turkey 43 kg vs EU 114 kg
  10. 10. Consumption imbalance
  11. 11. Propensity to VA Products
  12. 12. Milk supply is seasonal and vulnerable
  13. 13. Producer inefficiencies
  14. 14. Stable relationship with trained customers</li></li></ul><li>Danone<br />Founded in 1919<br />Groupe Danone after 1994<br />Operates in 5 continents, 120 countries, 160 facility, 80K employees<br />Focused on Dairy, Beverage, Cereals<br />Fortune 500 -> 15.2 Billion Euro<br />In Turkey, 1997 Hayat A.Ş. , 1998 Tikveşli A.Ş. <br />Murat<br />
  15. 15. The SWOT analysis reveals many threats to be defended against<br />SWOT Analysis<br /><ul><li> Recognized as healthiest brand
  16. 16. International expertise, trusted corporate brand
  17. 17. Blockbusters and value-added products
  18. 18. Distribution muscle
  19. 19. Top-notch production
  20. 20. Fastest growth in foods category
  21. 21. Sales and distribution adapted to SM/HM, however discounters are rising
  22. 22. Cannot import milk powder due to regulation
  23. 23. Supply demand imbalance
  24. 24. Unionized Suppliers</li></ul>Murat<br />Caner<br />W<br />S<br />O<br />T<br /><ul><li> Rising milk prices
  25. 25. Shortage of quality milk mostly due to small volume per supplier
  26. 26. Commoditized & aggressive branded base business markets (milk and yoghurt) w/price wars.
  27. 27. Consumers reluctant to abandon traditional tastes
  28. 28. The rise of the discounters and private label
  29. 29. Rising incomes, fast-growth categories
  30. 30. Consumer propensity for conversion to branded
  31. 31. Consolidation of retail space
  32. 32. Potential sales points without chilled sales (13%)</li></li></ul><li>Among our strategic priorities, the top three are: defending against the discounter threat, expanding the consumer base, and adjusting for supply demand imbalance<br />Strategic Priorities<br />HOW?<br /><ul><li>Get closer to people, increase community involvement in corporate brand, drive penetration for all.</li></ul>Through genuine innovation, introduce new market adaptive blockbusters. Sail away from the base business territory to gain edge.<br />Caner<br /><ul><li>Adjust product decisions accordingly, realign supply and demand. </li></li></ul><li>In general strategic direction, TeamLeverage has identified four main lines along which we can pursue our goals<br />General Strategic Direction<br />Caner<br />
  33. 33. Value Added<br />MILK<br />YOGURT<br />ICE CREAM<br />READY-TO-EAT<br />DESSERT<br />CHEESE<br />Supplemented, probiotic<br />Supplemented etc.<br />Blockbusters<br />Blockbusters<br />Flavored<br />Flavored, locals<br />Flavored/Kids<br />Blockbusters<br />Children’s<br />Light, skimmed etc.<br />Light, skimmed etc.<br />Light, skimmed etc.<br />Base milk<br />Base yoghurt<br />Base flavors<br />Base cheese<br />Category (Increasing Complexity)<br />Street Sales<br />Street Sales<br />Street Sales<br />
  34. 34. Caner<br />
  35. 35. Caner<br />Ömer<br />
  36. 36. Path<br />VAP’sexpandingmore<br />Expanding Market<br />Ömer<br />30%<br />“HEALTHY SNACKS”<br />25%<br />BlueOcean<br />
  37. 37. Implementation<br />Ömer<br />Addcheeselineto Lüleburgaz Factory<br /><ul><li>CheeseSticks
  38. 38. FlavoredCheeseBalls
  39. 39. CreamCheese</li></ul>Developtastesthatmeetconsumerdemand<br /><ul><li>Targeted on children
  40. 40. Health is mainvalueclaim</li></ul>“HealthySnacks”<br /><ul><li>Consumereducationinitiatives
  41. 41. TV ads, celebritiesetc.</li></li></ul><li>CriticalSuccessFactors<br />Ömer<br />
  42. 42. Financial & SocialReturn<br />Social<br />Bringmorehealthtochildren<br />“HealthySnacks” notion<br />Financial<br />Ömer<br />
  43. 43. Abstract<br />Ömer<br />Yiğit<br />
  44. 44. Path<br />FierceCompetition<br />PrivateLabelRising<br />Yiğit<br />“Differentiation”<br />EscapePriceWars<br />Market Leader StreetMilk<br />60%<br />
  45. 45. Implementation<br />Yiğit<br />
  46. 46. CriticalSuccessFactors<br />Yiğit<br />
  47. 47. Financial & SocialReturn<br />Financial<br />Social<br />Bringmorehealth, tohealth-seeking, awareconsumer<br />Yiğit<br />
  48. 48. DanoneKardeş<br />
  49. 49. Goals<br />Yiğit<br />Burak<br />
  50. 50. Milk<br />Healthy Dairy<br />Expertise<br />Burak<br />Labor<br />
  51. 51. Critical Success Factors<br />Burak<br />
  52. 52. Financial and Social Return<br /><ul><li>Profit after 5 years
  53. 53. 250K children reached in 2 years
  54. 54. Access to healthy dairy at low prices</li></ul>Burak<br />
  55. 55. Conclusion<br />Burak<br />
  56. 56. Compliance with strategic axes<br />
  57. 57. Wrap-Up<br />Profit after 4 years<br />250K children reached in 2 years<br />Access to healthy dairy at low prices<br />Bring better health to children<br />“Healthy Snacks” notion<br />Bring better health, tohealth-seeking, awareconsumer<br />
  58. 58. Thank You!!<br />
  59. 59. Milk Financial<br />
  60. 60. Cheese Financial<br />
  61. 61. CSR Financial (costs)<br />
  62. 62. CSR Financial (costs)<br />
  63. 63. Factory Cost<br />
  64. 64. Fall of “SütlüTatlı”<br />
  65. 65. Steep increases in milk prices are expected in the short run according to Winter’s method forecast<br />Analysis of Milk Prices<br />In months to come, milk prices may drop to around 0.70, however, in 2yrs horizon; prices over 1 TL are expected.<br />
  66. 66. The root cause of rising milk prices is supply shortage<br />Analysis of Milk Prices<br />The primary reason behind the price rising is the shortage of milk supply, according to industry unions<br />
  67. 67. A conventional SWOT analysis reveals important threats on both ends of the supply chain, as well as key strengths to defend against these threats.<br />SWOT Analysis<br />
  68. 68. Grameen Danone Foods, a danone.communities initiative, still provides specially designed yoghurt to rural Bangladeshis at low costs in conjunction with Grameen Bank.<br />Danone CSR Initiatives Around The World<br />
  69. 69. Laiterie du Berger is a local dairy in Senegal supported by Danone to locally source milk, and grow milk supply in the region<br />Danone CSR Initiatives Around The World<br />
  70. 70. Danone funds 1001 Fontaines, a social venture that funds small-scale water purification systems in remote villages of Cambodia and Madagascar. The project expects to be brought to scale soon.<br />Danone CSR Initiatives Around The World<br />

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