Brand Management

DANONE
Introduction
The original company bearing the corporate name was founded in 1919 by Isaac Carasso in Barcelona as a small factory producing yoghurt. The factory was named DANONE, a Catalan diminutive of the name of his first son, Daniel Carasso. DANONE is a French food-products multinational corporation based in the 9th arrondissement of Paris. It claims world leadership in fresh dairy products, marketed under the corporate name, and also in bottled water. In 2007 it swapped its world number two position as producer of cereals and biscuits for the same position in baby foods, having sold the biscuits division to Kraft Foods and acquired Numico. In the United States, the DANONE brand is marketed as Dannon, a subsidiary of Groupe Danone (under the name The Dannon Company).

Salient Feature of DANONE

These are the salient features which make DANONE a brand and they have communicated these points regularly in their promotional campaigns making their brand recognition strong. 1. Sustainable, High-Quality Dairy Supplies at Stable Prices A childs health depends in part on what they eat. Thats why DANONE make sure they have a healthy lifestyle and a balanced diet. 2. Helps improve your Immune System DANONE makes delicious, creamy yogurts and smoothies that taste good and help feel good inside. All of DANONE products-from classic Activia, to Activia Drinks, to new Activia Selects French and Greek yogurts-are made with the exclusive probiotic culture, Bifidus Regularis (Bifid bacterium lactis DN-173 010) and help naturally regulate digestive health. 3. Helps maintain your bone density 4. Good Source of Calcium Calcium is a critical mineral that kids need to build strong bones. It also serves other vital functions such as nerve transmission and regulation of muscle function. All DANONE provide a good source of Calcium. 5. Protein to build muscles* DANONE Danimals Crush Cup offers a good source of protein, which is important because growing children require protein to help strengthen their muscles and to help maintain a healthy skeletal and muscular system.
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Brand Management 6. Only the good stuff DANONE contains only natural colors and flavors.

SWOT Analysis 1) A globally recognized brand 2) An employee strength of about 100,000+ 3) World leader in dairy products and bottled water, number 2 in infant foods division Strength 4) Strong financial muscle 5) Strong R&D and innovation 6) Known for its good quality and healthy products 7) A number of CSR activities and initiatives to benefit and support the stakeholders

1) Competition from bigger players in each segment means limited market share Weakness 2) Presence of many players means high brand switching

1) Acquisitions and mergers Opportunity 2) Product line extension 3) Increase market share in developing countries

1) Increase in cost of raw materials Threats 2) Acquisition by competitor 3) Stiff competition

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Brand Management

Wrigleys
Introduction
The William Wrigley Jr. Company is a company headquartered in the Wrigley Building in Chicago, Illinois. The company was founded on April 1, 1891, originally selling products such as soap and baking powder. In 1892, William Wrigley, Jr., the company's founder, began packaging chewing gum with each can of baking powder. The chewing gum eventually became more popular than the baking powder itself and Wrigley's reoriented the company to produce the popular chewing gum. The company currently sells its products in more than 180 countries and maintains 140 factories in various countries, including the United States, Mexico, Australia, the United Kingdom, Canada, Spain, New Zealand, the Philippines, Czech Republic, Germany, South Africa, Argentina, Tanzania, Tunisia, Somalia, North Korea (Only US Enterprise to have one) France, Kenya, Taiwan, China, India, Poland, and Russia.

Salient Feature of DANONE

These are the core qualities which make Wrigley a brand. They have position these points in consumer minds regarding them. Thus made their brand equity. 1. Great taste confectionary that meet uncompromising safety standards. 2. Some products improve oral health. 3. Wide range of quality confectionary products Including them are candies chewing gums, mints, bubble gums. Sugar free confectionary. 4. Variety of flavors 5. Sophisticated & Innovative packaging.

SWOT Analysis Strength 1) Market leader position

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Brand Management 2) Strong revenue growth Weakness Opportunity Threats High cost of R&D International/Geographical expansion

Highly competitive market

Strengths
1) Market leader position In the gum segment Wrigley's is the single largest dominant player with more than 97% market share over the last three years, with Extra leading the way with67.2% share. In the mint segment Wrigleys have achieved the market leader position after an impressive 25% growth which was brought about by Eclipse mint which saw13. A staggering 80% value growth and is the largest brand in the segment with 26.7%value share. 2) Strong revenue growth Wrigleys revenue has grown strongly with time but the growth from 2007 to 2008 saw a rise of 10% from a $ 109.3m to a $ 120.54m which wasdrivenbyconsumersupgrading t o b i g g e r p a c k s i z e s b r o u g h t a b o u t b y W r i g l e y b o t t l e a n d e n v e l o p e innovation.

Weaknesses
High cost of R&D Wrigleys presently are the leaders in the mint and the g u m s e g m e n t , a n d w i t h NICOGUM they are entering a new segment. To develop the product it would require a high research and development cost.

Opportunities
International/Geographical expansion After the success of Nicogum in Australia, Wrigleys ha s a n o p p o r t u n i t y f o r geographical expansion. A study by WHO shows that at present more than 5 million people around the world die prematurely from tobacco related diseases and the figures are likely to
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Brand Management go up to almost 10 million by 2020 which is a rising concern. Therefore, Wrigleys has an opportunity to expand their reach to other countries especially where the smoking population is very high. Countries like China 42% smokers, Russia 41%,India 37% (Euro monitor International 2005) to name a few.

Threats
Highly competitive market For Wrigleys competing in NRT Smoking Cessation Aids, have a big task ahead of t h e m w i t h G l a x o S m i t h K l i n e w i t h t h e i r s u b - b r a n d N i c a b a t e w h i c h h a s a l m o s t 4 9 % share and Johnson & Johnson with their brand Nicorette with 35.3% share are two big c o m p e t i t o r s .

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Brand Management

Dairy Land
Introduction
Dairy based company in Karachi, Pakistan making Pasteurized milk for the local market. The pasteurizing unit was purchased in 2009 From Gea. Manufacturing UHT milk in TetraFina or Tetrapack. Dairy Land is in the process of installing 1T/hrs. milk powder plant + AMF plant from 175,000 liters of milk /day. Mission is to bring the best quality milk within the reach of the common man at an affordable price because they believe that the health of our nation and especially the younger generation depends to a large extent on the accessibility of quality milk as part of the overall nourishment factor. The Vision of Dairy land Pvt ltd is to play a part in the development of a thriving dairy sector across Pakistan. Dairy Land recognize that there is a vital need for quality sources of nourishment and the need is even more critical because of the prevailing economic conditions and the inflation factor which have affected millions of households in the country. Dairy land realizes that the availability of quality milk at affordable prices is a long-term situation requiring a long-term solution.

Key Points of Dairy Land

1. Dairy land also provide home delivery to his consumers 2. Pure and clean milk provided to the consumer 3. Dairy land offer membership card for consumers and give discounts on it. 4. They use new technology to kill harmful bacteria 5. They package high quality milk that is also germ free.

Marketing Mix
Dairy land has edge over DANONE in Pakistan regarding placement and price and thats why it has captured a market share against DANONE which is an international brand

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Brand Management

Placement
Dairy land have distribution network throughout Karachi (its market). They have their own outlets. They have total ten outlets. They also offer home delivery system. All these placement efforts make their product easily accessible for customers as compared to DANONE which is only available at supermarket shelves.

Price
The dairy land also competes with branded products as of DANONE with respect to price. They have low prices as compared to DANONE and thus acquire market share because the Pakistani market is highly price sensitive. The dairy land is able to compete on price because it have its all operations in Pakistan giving its competitive advantage on costs as they bear less labor cost, etc. and no import duty as compared to international brands like DANONE.

SWOT Analysis 1) Strong distribution network and process. Strength 2) Increasing sales 3) Recognized as high quality dairy provider Less number of cows They have only five hundred Australian cows right now Weakness which limit them to fulfill the increased demand than supply. 1) Product line extension 2) Expand its operations nation wide Opportunity 3) Government of Pakistan and state bank of Pakistan priority sector 4) Dairy needs are 30 higher than supply. 1) Increased competition in dairy products Threats 2) Increased cost of raw material

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Brand Management

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Brand Management

Kidco
Introduction
KIDCO Confectionery (Division of P. A. C. L) they are one of the leading manufacturers of confectionery in Pakistan. Kidco have state-of-the-art factories and the most sophisticated process technology in Pakistan. They recognize the importance of efficiency and creativity to achieve growth in a competitive environment. Kidco also realize its responsibility towards society and contribute to our environment as good corporate citizens. We have also achieved ISO 9001-2000 certification benchmark. Kidco have a wide confectionery range in Candy, Toffee, Bubble Gum, Chewing Gum, Chocolate Coated Biscuits, Chocolate Coated Peanuts, and Chocolate Bars & Chocolate Beans. Kidco can make quality private label brands exclusively for you as it is making for its other valuable customers.

Key Points of Kidco

1. They use most sophisticated process technology in Pakistan 2. Innovative and taste venturous. 3. Manufacturing of quality confectionery items. 4. Day by day improve his product to fulfill the customer need. 5. Kidco provide reliable quality hygienically clean products.

Marketing Mix
Kidco have edge over Wrigley with respect to price and promotion thats why it is still surviving in the market in the presence of international brand like Wrigley.

Price
The Kidco is using market penetration pricing strategy to capture market share because most of the Pakistani families have low purchasing power thats why they are unable to provide their children with costly confectionery items. Kidco is able to cut prices because of low labor cost, low material cost and no import duties as compared to Wrigley.
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Brand Management

Promotion
Wrigleys do not run TV commercials in Pakistan and also do not display billboards. In contrast, Kidco run promotional campaigns at full pace directly on their target market that boost its sales.

SWOT Analysis 1) Sub-brands have high awareness 2) Consistent quality Strength 3) Catering multiple categories 4) Attractive promotional campaigns for the kids (target market) Facing tough competition in bubble gum segment 1) The industry is price sensitive as the majority of the consumers are kids. Opportunity 2) Existing companies are increasing their product lines that can prove to be a threat in the coming years 1) With the devaluation of the local currency and an increase in the pegged us dollar, significant potential in venturing into export market. Threats 2) Studies have proved that during the recessionary phases, sales of candies and chocolates are increasing in us, primarily because it is the only affordable luxury over there.

Weakness

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