Having set up independent operations after its split with the Wadia group, Danone India's biggest challenge would be to set up a new distribution network to sell its curds and yogurts. Currently the dairy major has a single plant in Baramati servicing certain markets in Pune, Mumbai and Hyderabad but having a pan-India presence may take a while with its limited distribution muscle. In fact, the brand is still missing from certain South Mumbai outlets and retailers claim its late entry is the main reason why the brand cannot be stocked, especially when early entrants such as Amul, Mother Dairy and Nestle have already occupied shelf space in the packaged curd category. Besides, Danone is currently offering a ‘me too' product with its range of low-fat curd and flavoured yogurt, which its competitors already have.

But the $17-billion Danone Group's new marketing manager has a strategy in mind. “We have the potential to grow and there is shift in consumer preference towards convenience. Today consumers treat yogurt like snack. There is still room in the mass market for yet another brand,” says Ms Swati Jain, Marketing Manager, Danone India. Today Danone's operations in India are overseen by the local marketing manager while its MD continues to be based at the company's office in Munich.

“We have to adopt a local strategy and while our MD is based in Munich, the base for the marketing operations is here in India. We have our own distribution now and have severed ties with Britannia and are in the process of establishing the cold chain for the brand,” added Ms Jain.

In its two years of independent operations, Danone has also launched a smoothie brand, Danette, in cartons. It is also looking forward to launching some of its global brands such as Activia, a probiotic yogurt.

Besides, Danone would be using more of BTL (below-the-line communication) to build its brand. For instance, it recently organised a fitness drive across Mumbai as a part of its ‘Stay Fittum Fit Campaign'. Danone had transformed few bus queue shelters into mini-gyms, aiming to garner awareness amongst Mumbaikars on the significance of exercising to stay fit. Bus shelters at Andheri Lokhandwala, Bandra Lilavati Hospital and Joggers Park have been identified for this on-ground activation, with maximum footfalls. Beginning this month, Mumbaikars will get an opportunity to do a quick workout at these mini-gyms, while they wait to board buses.

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