Exporting Final

8/3/2019 Exporting Final

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Vincent Cailler

Antha Malbequi

Sarah Pietrelli - 09037969

EXPORT PLAN

VITALINEA FROM FRANCE TO

NETHERLANDS

Mr. J. Veldman |


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SUMMARY

EXECUTIVE SUMMARY ..................................................................................................................................... 3

INTRODUCTION ................................................................................................................................................ 4

COMPANY DESCRIPTION .................................................................................................................................. 5

MISSION: ............................................................................................................................................................... 5

VISION AND CORE VALUES: ........................................................................................................................................ 5

DANONES GOALS: ................................................................................................................................................... 6

PRODUCT RANGE DESCRIPTION: .................................................................................................................................. 6

MARKET DESCRIPTION OF ONE PRODUCT ........................................................................................................ 7

POSITIONING .......................................................................................................................................................... 7

ABELL.................................................................................................................................................................... 7

INTERNAL ANALYSIS ......................................................................................................................................... 9

EXTERNAL ANALYSIS ...................................................................................................................................... 11

DEMOGRAPHICAL ASPECTS ...................................................................................................................................... 11

ECONOMICAL ASPECTS ............................................................................................................................................ 11

SOCIAL/ CULTURAL ASPECTS..................................................................................................................................... 12

TECHNOLOGICAL ASPECTS........................................................................................................................................ 13

ECOLOGICAL ASPECTS ............................................................................................................................................. 13

POLITICAL ASPECTS................................................................................................................................................. 13

FIVE FORCES OF PORTER ................................................................................................................................ 14

INDUSTRY ANALYSIS ...................................................................................................................................... 16

CUSTOMER ANALYSIS..................................................................................................................................... 17

COMPETITOR ANALYSIS ................................................................................................................................. 18

DISTRIBUTION ANALYSIS ................................................................................................................................ 19

SWOT ANALYSIS ............................................................................................................................................. 21

CONFRONTATION MATRIX ............................................................................................................................. 22

EXPORT MARKETING MIX: THE 6 PS .............................................................................................................. 23

PRODUCT:VITALINEA ............................................................................................................................................. 23PLACE /DISTRIBUTION............................................................................................................................................ 23

PRICE .................................................................................................................................................................. 24

PROMOTION /COMMUNICATION ............................................................................................................................. 24

PEOPLE................................................................................................................................................................ 25

PRESENTATION...................................................................................................................................................... 26

PAYMENT & DELIVERY CONDITIONS .............................................................................................................. 28

FINANCIAL DATA & PROJECTIONS .................................................................................................................. 29

CONCLUSION .................................................................................................................................................. 30

BIBLIOGRAPHY ............................................................................................................................................... 31


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EXECUTIVE SUMMARY


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INTRODUCTION

Deciding to export a product cant go without risks; there are two options for managing the risk. The

pro-active process: collecting data to anticipate on risks and the reactive process: managing the riskonce it comes up

Of course, the best process for the vendor is the pro-active one. That is why, to minimize the risk, the

vendor has to collect the maximum information about the buyer. If the vendor cant use the pro -

active process, he uses the reactive one. About this process, there are efficient remedies to reduce

the risk like:

Let the other take it, for instance, buyer, customs agent, distributor or assurance Well know your customer : his history, his products and his market Get well covered with assurance

The relation between the seller and the buyer could be sum up as the following:

Vendor ==> Goods ==> Bank/Credit/Coverage ==> Customs Agent/Buyer ==>

Market/Country/Currency

The company we choose is Danone, a very famous French brand and we decided to export one of the

most known products which are the Taillefine yogurt.

In 2008, Danone recorded an organic growth rate of 8.4% which proves that its business growth

model truly works. With its operating margin increasing for the 14th year running, the group further

strengthened its global standing: world no. 1 in fresh dairy products, world no. 2 in bottled waters,

world no. 2 in baby nutrition and European no. 1 in medical nutrition.

The groups performance is the result of a balanced strategy that builds on international expansion, a

growing commitment to innovation, and strengthening health-oriented brands. In order to reach its

ambition, Danone invests heavily in Research & Development, 208 million in 2008. One hundred

percent of their projects are focused on health and nutrition. The high position of Danone on its

market, and its products success (most of the time) since its creation, are the reason why we have

chosen to export product from this brand.But exporting isnt an easy thing to do and need a lot of

research; internal, external, on the products, market, customers, risk etc In order to succeed this

new challenge for Danone we decide to set up our export plan as detailed hereunder:

Company description Description of the market Internal Analyze External Analyze Five forces of Porter Swot analysis/Confrontation matrix Export marketing mix Payment and delivery conditions Financial data and projection


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COMPANY DESCRIPTION

Health has always been the main Danones concern, closely bound up with its history and brands. In

the 1920s Danone yoghurt was sold exclusively in pharmacies. It was the product of the research byNobel medicine laureate Elie Metchnikoff into lactic fermentation benefits (1908) and the

subsequent work of Isaac Carasso. Since then the group has focused on healthy products. An outlook

that has shaped innovation and strategy and prompted the company over ten years to divest and

concentrate on four key lines: Fresh Dairy Products, Waters, Baby Nutrition, and Medical Nutrition.

Three centuries after the benefits of Evian mineral water were discovered, over a century after

Bldine was first marketed, and nearly a century after the first Danone yoghurt was retailed in a

pharmacy, health innovation remains more than ever a driver of the groups business growth

2008 has confirmed that the previous years acquisition of the Dutch group Numico was strategically

effective. With this move, Danone incorporated into its strategy two profitable, fast-growing health-

oriented business lines: medical nutrition and baby nutrition. They naturally round off the groups

brand portfolio and are perfectly aligned with its mission. Today Danone is the only food group

totally focused on health.

MISSION:

The main mission of Danone is clearly to bring health through foodto as many people as possible.

The importance of nutrition and public health issues has prompted the group to elevate its health

commitment to the rank of principle of governance. Health governance builds on three group-wide

values: scientific rigor, obedience to the principles of self-discipline, and constant dialogue withstakeholders, which translate into action in the field.

One example is Danonino reformulated with added vitamins and minerals to counter specific

nutritional deficiencies affecting children in over ten countries.

VISION AND CORE VALUES:

The four main core values of Danone are:

Openness: Curiosity, agility and simplicity Enthusiasm: Boldness, passion, willingness for challenge Humanism: Sharing, responsibility, respect of the other Proximity: Know how to stay close to each person in the world: colleagues, consumers and

clients, suppliers, stockholders and society, become a part of their daily lives

In 2008, a year after the groups decision to focus exclusively on health and the intro duction of the

new business lines, Danone had to accept additional responsibility with respect to health

governance. Meeting the nutritional needs of the sick and the elderly, of babies and pregnant and

breastfeeding women, means caring for some of the most fragile members of society, and Danone is

obliged to do its utmost to ensure that its products are beyond reproach.


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DANONES GOALS:

Food and nutrition have become critical public health issues nowadays so Danones main goal is to

bring solution to these issues by delivering alimentary product with some medicine characteristics. It

is their way to combine medicine and nutrition to improve customers health.

PRODUCT RANGE DESCRIPTION:

As stated before, Danone has now four main business lines, as shown hereunder, with some of their

most famous brands for each line.

Fresh Dairy Products:Danone, Actimel, Activia, Danonino, Taillefine, Danacol...

Water:Evian, Volvic, Aqua, Bonafont, Font Vella, Lanjarn, Ser......

Baby Nutrition:Bldina, Gallia, Nutricia, Cow & Gate, Milupa, Mellin, Dumex...

Medical Nutrition:Nutricia, Nutrini, Nutrison, Fortimel, FortiCare, Fortisip, Neocate, Infatrini

In our case, we are interested in the fresh dairy products and especially in the product Taillefine


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MARKET DESCRIPTION OF ONE PRODUCT

Taillefine is a brand of the group Danone. The target group of this brand is especially women. The

range of Taillefines product includes yogurts, snacks, and water.

The product we have chosen for our export plan is Taillefine yogurt 0%. On the Dutch market the

brand is known as Vitalinea. Vitalinea yogurt is a yogurt with 0% fat matter, 0% of sugar. This yogurt

is source of calcium and improved in vitamin D and B12. Vitalinea helps consumers to take care of

their bone capital.

Vitalinea is available in different flavours blueberry, mango, apple, peach, blackberry and plain.

Vitalinea can suit any taste!

POSITIONING

Danone saw that many consumers wanted healthy yogurts and believed they should taste good.

Vitalinea combined the qualities of taste with specific health benefits. In fact, in our society, we have

to take care of our appearance and our health. But this is not without sacrifices. That is the reason

why Vitalinea yogurt is an ideal product for consumers who enjoy eating yogurt without the bad

effects of fattening. For more, Vitalinea can suit any taste with a large range of product. The

positioning of Vitalinea is in the yogurt 0% market. Vitalinea exists on the ducth market, in packs of 4

or 8 pots of 125G. After this success, we are going to export this yogurt in a different packaging, a pot

of 500g and with new flavours like blackberry or apple.

ABELL

Customer group:

Vitalinea is especially for active women between 25 and 45 years old. They have medium and high

revenues and a good self esteem because they give importance to take care of their line and

appearance. These women can be married or single and with or without kids.

Needs:Vitalinea is suitable for all women between 25-55 years old who like fruity and healthy yogurt. But

this yogurt is not ordinary; actually it is a 0% yogurt with fruity taste. The main needs for these

women are to eat healthy and to enjoy this food at the same time thanks to the fruity and unction

taste; they have to feel that it is pleasant to eat healthy. For more, Vitalinea is full of vitamin D andB12 and it helps women to get their daily portion in vitamins and nutritional elements in order to


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preserve their balance and vitality. All these reasons are the response why every woman needs this

product and it could be a plus in their life. Vitalinea is the perfect dessert for woman who likes

fresh, fruity and tasty yogurt but it can also be eaten at every moment of the day.

Technologies:All the products are developed according to Danones nutritionist and research. The expertise and

the knowledge of Danone certify the nutritional quality of the Vitalinea product. For more, these

researches had proved that these products fit with the women need who wants to take care of their

body but also of their health.


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INTERNALANALYSIS

++ + +/- - --

Strategy and

Marketing mix

X

Productions

capacities

X

Finance X

Organization X

(++ = very good; + = good; +/-= neither good or bad; -= bad; - -= very bad)

Strategy and marketing mix: Danone is the worlds leading producer of Fresh Dairy Products . Its

worldwide market share stands at around 28% (35% in some countries), and it is present in about

forty countries. In 2008, the Fresh Dairy Products business line posted sales of 8.7 million euro.

Growth in dairy products is largely driven by innovation and the introduction in new countries of

Danone brands with health benefits directly perceived by consumers. Danone has 4 main brands of

dairy product: Activia, Actimel, Danonino, and Taillefine. Activia, Actimel, Danonino are responsible

for more than half of the divisions sales. Danones group are exporting all over the world, and adapts

its product with a good marketing mix. For exemple, Actimel in the USA is called Danactive and has a

different packaging. Taillefine is well known for the water but the brand also has an important range

of dairy product. The demand for healthy product is always increasing because in our society, health

and appearance are more and more important, and people are preoccupied about it. For all these

reasons, Danone has already export Vitalinea in the Netherlands but not all the flavours and they

didnt adapt the packaging to the Dutch market like the competitors , pots of 500g. Danone has all

the qualities and elements to export Vitalinea yogurts in the Netherlands. However, some

modifications of the marketing mix will be necessary.

Productions capacities: Danone has factories in many countries all over the world. Danone is a

French company and has 5 factories in France: Bailleul, Pays-de-Bray, Le Molay-Littry, Saint-Just-Chaleyssin and Villecomtal-sur-Arros. The company also has 10 logistics platforms: Tours, Aix-en-

Provence, Toulouse, Chaponnay, Lesquin, Metz, Tremblay-en-France and Rungis. To export in the

Netherlands, Danone owns all the productions capacities their need. The company will deliver the

yogurts in the Netherlands by refrigerated trucks from a factory located in the north of France.

Finance: Danone is a giant multinational. In 2008, the sales of the company raise to 15.220 billion

euro, a increase of 8,4% compare to 2007. The underlying net income in 2008 is 1,313 million euro.
http://fr.wikipedia.org/wiki/Bailleulhttp://fr.wikipedia.org/w/index.php?title=Pays-de-Bray&action=edit&redlink=1http://fr.wikipedia.org/wiki/Le_Molay-Littryhttp://fr.wikipedia.org/wiki/Saint-Just-Chaleyssinhttp://fr.wikipedia.org/wiki/Saint-Just-Chaleyssinhttp://fr.wikipedia.org/wiki/Villecomtal-sur-Arroshttp://fr.wikipedia.org/wiki/Tourshttp://fr.wikipedia.org/wiki/Aix-en-Provencehttp://fr.wikipedia.org/wiki/Aix-en-Provencehttp://fr.wikipedia.org/wiki/Toulousehttp://fr.wikipedia.org/wiki/Chaponnayhttp://fr.wikipedia.org/wiki/Lesquinhttp://fr.wikipedia.org/wiki/Metzhttp://fr.wikipedia.org/wiki/Tremblay-en-Francehttp://fr.wikipedia.org/wiki/Rungishttp://fr.wikipedia.org/wiki/Rungishttp://fr.wikipedia.org/wiki/Tremblay-en-Francehttp://fr.wikipedia.org/wiki/Metzhttp://fr.wikipedia.org/wiki/Lesquinhttp://fr.wikipedia.org/wiki/Chaponnayhttp://fr.wikipedia.org/wiki/Toulousehttp://fr.wikipedia.org/wiki/Aix-en-Provencehttp://fr.wikipedia.org/wiki/Aix-en-Provencehttp://fr.wikipedia.org/wiki/Tourshttp://fr.wikipedia.org/wiki/Villecomtal-sur-Arroshttp://fr.wikipedia.org/wiki/Saint-Just-Chaleyssinhttp://fr.wikipedia.org/wiki/Saint-Just-Chaleyssinhttp://fr.wikipedia.org/wiki/Le_Molay-Littryhttp://fr.wikipedia.org/w/index.php?title=Pays-de-Bray&action=edit&redlink=1http://fr.wikipedia.org/wiki/Bailleul


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Furthermore, the scenario for 2009 remains that current consumption patterns in the company key

emerging and developed markets will continue over the balance of the year, with no significant

improvement or dramatic breakdown. In fact, the sales of the first semester of 2008 were 7.691

million euro and in 2009 7.520 million euro, so a variation of 1,6 %. However, regarding the world

economic crisis, this variation is really tiny. Danone is a healthy company and can export a new range

of product in the Netherlands without any financial problems

Organization: Danones workforce is 80.143 employees in 2009. The company has factories in many

countries of the world, and exports its products all over the world. Danone has the elements their

needs to export a new product in the Dutch market. Furthermore, Danone has all the skills necessary

for entering foreign markets.

(It has been a while since we are in the yogurt)


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EXTERNAL ANALYSIS

The branch analysis gives insight in different factors of the market which can be divided in macro-

environment factors (DESTEP). DESTEP stands for the demographic, economic, social, technological,ecological and political analysis. The country in which Danone is going to export its Taillefine yogurt is

Holland.

DEMOGRAPHICAL ASPECTS

The Netherlands is a relatively small country with a relatively high population. It has the ninth-largest

population in Europe, with about 16.4 million people concentrated on an area of 41,526 km; this

means that the country has a population density of 397 per km. The Randstad is the country's

largest conurbation located in the west of the country and contains the four largest cities:

Amsterdam, Rotterdam, The Hague and Utrecht in the province Utrecht. The "Randstad alone has a

population of 7 million inhabitants and is the 6th largest metropolitan area in Europe.

The age structure of the population is divided like

this: The persons between 0-14 years old represents

17, 6% of the population, between 15-64 years old

represents 67,7% and over 65 represents 14,6% of

the population. We can see that it is an attractive

country for Danone.

The life expectancy at birth in Netherlands is about 81 years for female and 75,6 years for male which

is higher than the average in Europe (78,2 and 70,1)

The adults literacy rate in Netherlands is 99% for both women and men, whereas the youth literacy

rate is 100% also for both genders. This is a good thing because, as we know, highly educated people

are more easily convinced to accept and buy new products.

ECONOMICAL ASPECTS

The Netherlands has a prosperous and open economy, which depends heavily on foreign trade. It has

always been looked upon as being a wealthy country with high potential for foreign investors. The

structure of the Dutch economy is characterised as open and outward-looking. Industrial activity

is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly

mechanized agricultural sector employs no more than 3% of the labor force but provides large


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surpluses for the food-processing industry and for exports. The labor force is 7.715 million people,

and the unemployment rate is around 5%.

In Holland the HID is very high: 0,958/1. Furthermore, in rich countries, consumers are more aware

of health problem and take care of their health. For more, it is easier to take care of your appearance

and body when you have some money to spend on it.

Finally, the country provides lots of opportunities for aspiring exporters. With a vibrant economy that

is mainly based on processing the primary produce and exporting it to the neighbouring countries

and many other countries in the world, it is a prefect place to set up and start an exporting business

with Vitalinea yogurts. The strategic location of Netherlands also helps exporters to trade

internationally and in Europe.

SOCIAL/ CULTURAL ASPECTS

The official language is Dutch, but English is also spoken by a majority of the inhabitants. Concerning

religion; 45% of the Dutch arent members of any religious community, the other 55% are divided

into a diversity of religions. 31% are Catholic, followed by Christians at 21%, Muslims at 5%, and

others such as Hinduism and Buddhism with 4%

According to Hofstede the cultural dimension of Netherlands is display as the following:

The Netherlands highest Hofstede Dimension is

Individuality (IDV) at 80, which determined a

society with more individualistic attitudes and

relatively loose bonds with others. This fact is part

of the daily lives of the population and must be

considered when travelling and doing business in

this country. Moreover, privacy is considered the

cultural norm and attempts at personal ingratiating

may meet with rebuff. This dimension shows the

importance of the individual (pride and respect)

within the society.

Masculinity (MAS) is the lowest Hofstede dimension at 14. This low MAS Index shows a low level of

differentiation and discrimination between genders. In this culture, females are treated more equally

to males in all aspects of society. Netherlands are displayed as a more openly nurturing society.

Finally, Dutch are important consumers of milk and milk products .This is part of the Dutch culture.

For more, in Holland there is also a problem of obesity and people are aware of it so the attention on

their health status increase, which is a good thing concerning our product. In our society, appearance

is very important and more and more people are trying to take care of themselves and of their body

especially women. The Vitalinea product fits perfectly in the needs of the consumers because it is a

yogurt and Dutch people love milk product but it is also 0%, so it is healthy and not fattening.


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TECHNOLOGICAL ASPECTS

The pots format are going to be bigger; 500g instead of 125g in France. There will only have a

primary packaging (for selling) because it going to be sale by unit. There are 4 different tastes. Then

the cover plate has changed; from a plastic one to an aluminium one, which fit more with the Dutch

habits of consumption. Moreover, a plastic cover is on the top, it allows opening it and closing itwhile keeping it fresh and well preserved. Danone also has to change the name because Taillefine is

not appropriate for the Dutch market (difficult to pronounce for Dutch people), so the new name is

Vitalinea.

ECOLOGICAL ASPECTS

The packaging is entirely recyclable; this is the Danones way to help preserving the environment.

POLITICAL ASPECTS

In Netherlands the type of government is a constitutional monarchy based on parliamentary

democracy. Phenomenon growth of primary industries is mainly attributed to the industrial

economies that surround the country and require the enormous amount of food supplies. However,

this doesnt imply that the Dutch economy is weak. In fact, it is ranked sixteenth among the leading

world economies and listed 10th in terms of GDP per capita. These rankings demonstrate that its

economy is quite stable and strong.

With its European Union membership, the country is part of a large world power. This has certain

advantages, like the use of the internationally strong Euro and the lack of trade barriers. Basically,

import and export have become less complicated. Actually the open economy policy adopted by

Netherlands attracts entrepreneurs from all over the world. Its easy to set up and conduct a

business in the country as the government interference is very limited. The lenient and liberal

approach was adopted by its government in the early 1980s, and it has contributed a lot in the

overall growth of the Dutch economy.

Danone should not have many difficulties to export their yogurts. However there are laws that we

should respect from the European Union like for example the respect of ISO norms but also be aware

of all the laws that concerns the dairy product
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FIVE FORCES OF PORTER

In the Five Forces Model, Porter explains that in any industry there are five forces that influence

what happens within the industry: Existing companies, potential new companies, substitutes forproducts offered, suppliers, and customers.

Porters Five Forces model

CompetitorsThe threat of competitors has to be taken into account. Various players in the Dutch yogurt market

are locally acknowledged and some of them are very well established such as Campina. Considering

competition, Danone has an advantage with its worldwide brand awareness. However Danone is a

food company oriented on health with its yogurt 100% fat free and for the moment only few

competitors are on this specific market (Campina, Alpro soya, Almhof and store brand as Albert Heijn

or Super de Boer). However, some of these competitors have light product but not 0%)

Potential new entrantsNot only do the existing competitors pose a threat to Starbucks. The potential new entrants in the

yogurt market could have a certain influence on the success of Danone as well. Company like Nestl

can be a threat because its Danones most important competitor in France and is already set in

Netherlands with its brand related to food, excepting concerning yogurt where they are still not

present. With the new entrants and the current players in the Dutch market, there is a good chance

that competition will be strong and eventually lead to a survival of the fittest scenario.


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SubstitutesThe lighten products are not alone on the market. They are in competition with a large number of

other food-processing products which are often not discredited by most of the consumers. Productsstemming from the organic farming or organic products (such as Alpro soya) as well as functional

products or of active health as nutriceuticals and probiotics represent products substitutes for the

lighten market. But usually biological

SuppliersDanone depends in part of its suppliers, it doesnt count so much because Danone manufactured its

products almost itself; but suppliers can have an impact on the company mostly about the pricing

policy because if suppliers price increase, Danones price increase too and it can have a bad or goodinfluence on sales according to many thing including the buyers power.

BuyersThe demand for product based on milk is high in the Netherlands. New entrants in the market may

appear and current company are well doing business. The power of consumers is supposed to

increase every year, because of the rise of choice. This has an impact on the pricing policy of

powerful sellers such as Danone and its competitor Campina in Netherlands.


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INDUSTRY ANALYSISFocus on:

Profitability Competition Power distance

Information:

Branch reports http://www.marketlineinfo.com/library/Default.aspx

Summarizing

Suppliers, names Customers, names
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CUSTOMER ANALYSIS

The customers are the Dutch population because Vitalinea wants to enter on the Dutch market.

However, the products target group are woman between 25 and 45. Perhaps, this product suit toevery woman that wants to take care of her health and her body. The dairy product market is very

important in the Netherland, dairy products are in the Dutch culture, the Netherlands is one of the

most important consumers of milk product in Europe.

The Milky Way:

User= the target group, so women between 25 and 45 years old. Buyer= the target group or the person in the family how goes to the supermarket. Decider= the target group, they choose the product and buy it our ask someone to buy it for

them

Influencer= the actual society in which we are conditioned with health product and the needto be thin, friends who tasted and like the product, but also women and healthy magazine.

Attribute Coeff

Brand 7 9 6 6 3 8

Quality 6 8 7 6 5 8

Effectiveness 6 8 6 6 4 8

Packaging 3 7 6 5 5 7

Price 4 4 6 6 8 5

Total 196 162 153 122 193

The rating in this table starts to 0 up to 10. 10 is the best grade.

These figures show us that Campina arrives first for the customer, but our company is really near.

These results could be explained by the fact that Campina is the leader of the Dutch Market for the

dairy product. However, Danone is the leader on the European market and already has product it the

Netherlands which are very successful like Actimel and Activia, so with the new product Vitalinea,

Danone brand image will be increased and more present on the market. For more, the product has

all the quality and the elements to enter the Dutch market. The direct competitor of Vitalinea is

Optimel, but Vitalinea has more vitamins and it is cheaper than Optimel.


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COMPETITOR ANALYSIS

Marketing Innovation Management Brand

image

Price Added

value

Total

Optimel

9 7 7 7 4 7 41

Almhof

7 6 6 7 5 5 36

Alpro

soya6 5 5 6 6 5 33

Albert

Heijn

4 4 5 3 8 4 28

Our

Product

9 8 8 8 5 7 45

The rating in this table starts to 0 up to 10. The product which counts most points and the most close

to us is the most competitor for our product than its rivals.

As we can see with these figures, our main competitor is Optimel, it is a direct competitor. Optimel is

a brand of the Campina Company. Campina is the best-selling brand in Dutch supermarkets for thesixth year in a row. An important factor in the consolidation of Campina's position is due to higher

sales of Campina extra healthy dairy products. The Optimel product is very similar with our product,

both are fruit 0% yogurt, but ours has more vitamins D and B12.

The other competitors like Almhof and Alpro Soya are indirect competitors because the product is

not really the same. In fact, these yogurts are healthy product because there are fat less but not 0%

so they dont really have the same target group. Furthermore, for example Alpro Soya is more a

biological product, so in fact it is healthy but not 0%. In fact, there are different segment in healthy

yogurt, the 0%, the light product but also all the biological product. So even if those brands are

yogurt brand, with a packaging similar and some similar elements, we can see that our maincompetitor is really Optimel.


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DISTRIBUTION ANALYSIS

Agent: Export agent organizes the day-to-day running of a business selling goods to other countries.

They often work on an exclusive basis; it means that they are the only representative in a country fora product or one manufacturer. A good agent has to be member of a professional organisation and

registration with the local chamber of commerce.Usually agent bases his fee on quota sales.

Advantage: they are willing to put in the effort to sale, and thus expand the market share ofthe company

Drawback: even if the agent cant fulfil the commitment we will still have to pay acommission on the quota. Breaking off an agent agreement is hard to do and may be very

expensive for the company.

Importer: they buy goods, such as raw materials, foodstuffs and manufactured goods produced in

foreign countries for distribution in the domestic market. They often want to exporter to a third

country. Or they buy goods from different countries selling packages to third parties local and

abroad. The importer works on his name and for his account, he takes risks and profits.

Advantage: administration and logistic are simplified (invoicing, custom clearance, freight)It also allows a reduction of currency and non payment risks and finally the market approach

requires little investment since the exporter has the importers market knowledge.

Drawbacks: there is total loss of control of the marketing policy and the company depend alot on the distributor performances and it also can reduce the margin profit.

Foreign distributor/wholesaler:

He buys and sells on his own account. It is harder to force competitive restriction on a distributor.

The foreign distributor purchase good from an exporter to resell for profit. He generally provides

support and service for the product, thus relieving the domestic company of these responsibilities.

He carries an inventory of products and a sufficient supply of spare parts and he also maintains

adequate facilities and personnel for normal servicing operations.

Advantages: less risks and costs; reducing travelling expenses, and reaching a broaderaudience.

Drawbacks: loss of control on the product and brand image because they are owned by thewholesaler.

Foreign sales office:

To ensure sales, delivering and invoicing in a foreign market. It works without structure or

intermediaries such as agent.

Advantages: limited financial investment, increase of margin and profitability which allows apossible decrease of the price.


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Drawbacks: Its difficult to understand foreign consumers without having representativesthere, and it is going to take more time to be familiar with the market. A supplementary cost

can occur if trade negotiations are less affluent and so longer.

Piggy back:

It is an arrangement in which one manufacturer or service firm distributes a second firm's product or

service. Often, the first company doesnt produce all of the products it is under contract to provide,

and it turns to other companies to provide the remaining products. The second company thus

piggybacks its products to the international market, generally without incurring the marketing and

distribution costs associated with exporting. Successful arrangements usually require that the

product lines be complementary and appeal to the same customers.

Advantages: limited risk, low financial costs, logistic and administration operations arereduced. It gives to the company a fast and easy access to the market completed by a good

knowledge of this market. Finally the structured sales force is immediately available. Drawbacks: difficulty to find partners with a compatible product and a distribution network,

risk of loss of control market but it can be reduced through the complementary products and

by monitoring the trade between partners. There are potential conflicts of interest or a lack

of mutual trust and involvement between the partners. It can have very strict requirement to

access to the commercial network of large companies.

Cost Network

Knowledge

of the

market

Control

export

process

Risks for the

distributor

Involveme

nt in salesTotal

Agent 4 7 6 7 3 8 37

Importer 5 6 6 3 8 7 35

Foreign Distributor 4 8 7 7 7 8 841

Foreign sales office 8 6 6 5 5 7 37

Piggy back 8 6 8 3 8 7 40

o Cost: 1 means very high cost for the exporting company, 10 stands for low costs.o Network: 1 means a poor network, whereas 10 represent a full oneo Control of export: 1 represent an important loss of control for the company and 10 shows

that the control is maintained

o Risks: these risks are for the distributor, more they take risks, more the figure is important,and vice versa.

o Knowledge of the market: an high grade shows a good knowledge of the market, a low oneindicate a bad or poor knowledge

o Involvement in sales: more the distributor is involved in sales more the grade is important.In the case of Vitalinea in Netherlands, the best thing to do is choosing an wholesaler or foreign

ditributor in order to distribute this product, because this is the one who have the highest grade

according to the table, which means that it is the more suitable for our product and according to thecontext.


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SWOTANALYSIS

Strengths Weaknesses

Leader on the world market of freshdairy products High quality of knowledge: know-how is

kept in-house

High profit margin Strong marketing policy (copied by

Unilever and Nestl)

Strong and quality brand image Good credibility supported by scientific

report and nutritionist advices

Worldwide known brand Product oriented on health allows higher

prices

Good balance in the turnover divisionand high financial capacity which allows

self financing

Strong innovation capacities and goodadaptation to foreign trends of

consumption

Sane financial structure and goodgrowth rate

Competitive advantages (brand,distribution network...)

Pot are suitable for re-use

Danones subsidiary in US has beenaccused of misleading advertising Increase of raw materials in France =

increase of products price

Difficulties to adapt Danones culture toforeign market

Policy of products standardisationdoesnt allow taking in account cultural,

social and tasting differences.

Important market share and notoriety =high bargaining margin

Lobbying of some ex employee in orderto boycott Danones product

Opportunities Threats

Daily consumption products is asuccessful market

Loads of countries have to be initiated tomilk and yogurt (or are already

convinced with high demand such as

Netherlands)

Goods related to food doesnt know thecrisis

Nowadays health is an important issue:obesity

Increasing demand for bigger packaging People are concerned by environmental

issues

Wide range of brand and product on thismarket = competitive

Food market is characterised by a weakgrowth and the increase of mass-market

retailing

Direct competition with hard discounts


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CONFRONTATION MATRIX

How can strength be used to participate in an opportunity? (Attack strategy)

How can strength be used to defend ourselves from a threat? (Defence strategy)

How can a weakness be improved to participate in an opportunity? (Strengthening strategy)

How can a weakness be improved to defend ourselves from a threat? (Withdrawal strategy)

Strengths Weaknesses

Opportunities

High financial capacities allow a self

financing and so its easier to enter the

market and adapt the Taillefine yogurt to the

Dutch market as Vitalinea with a new

format: 500g more adapted to Dutch

standards and demand. Danones innovation

skills combines with its good marketing

policy are strong points to help fitting with

Dutch tastes and wants.

Danone bring an answer to health issues

such as obesity with a yogurt 100% fat free

and rich in D vitamins and calcium. Another

important issue is about environment, and

Danone respects that with its 100%

recyclable pots. Finally, the daily

consumption market is always successful

and Danone is a worldwide known brand

with a strong and good image which is

already well-established in Netherlands.

Switch from a standardisation policy to

an adapted one, by this way Danone can

enter the market more easily. Then,

improving Danones ability to adapt its

products to foreign market would allow

them to capture new market in new

countries and so expend themselves.

Threats

The most important threat is about

competition, actually Campina has a position

of leader on the Dutch market but Danone

can face that with its strong notoriety,

worldwide brand awareness and quality

image.

Because of the wide offer and the

saturation on this market, Danone has to

improve its policy of adaptation in order

to outperform its competitor and win

market share.

This matrix allows us to choose two strategies, in this case the best strategy are the attack strategy

because Danone enjoys of a lot of strength and the strengthening strategy because by improving its

weaknesses Danone can benefit of good opportunities


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EXPORT MARKETING MIX: THE 6PS

PRODUCT:VITALINEA

Format:Danone have decided to adapt the format to the Dutch standard; it means that rather than having a

pot of 125 grams like in France, we are going to make pot of 500g, because we have noticed that in

Holland the quantities (concerning food) are bigger than in France, this is the reason why we want to

increase our pots size. For more, our competitors are present on the market with pots of 500g.

Instruction leaflet:There is no instruction leaflet, but information is written on both the primary (plastic pot) and

secondary packaging: there is the list of the ingredients with which the yogurt is made. Other

information are about calorific or energetic values; the benefits of the yogurt (very rich in calcium

and D vitamins), total weight, date of lapsing, and obviously its mentioned which taste is it.

Taste:The taste of our yogurt is fruity, different kind of fruits are used: blueberry, apple, peach and mango

but also the yogurt exists with plain flavor.

Package:For the packaging we decided to adapt it to the local market, by giving to the

customer a packaging that he already know and use. It means some significant

modification such as a cover plate in aluminium rather than in plastic and an opaque

plastic pot instead of a transparent one. Finally these yogurts are sold by unit and not

in pack.

Trade mark:The logo is the same that the other Vitalinea products, the colours used by Danone

for this product are white, dark purple and green. White is used for the pot, dark

purple for the original logo and things written on the pot are green. Moreover fruit

(according to the taste) are printed on the pot. And last but not least, our best sales argument is the

fact that this yogurt is free of added sugar and fatty matter, so 0% have to be visible on the cover

plate, the pot and the secondary packaging.

PLACE /DISTRIBUTION

Which channels?In the case of this yogurt, the best system of distribution is the indirect one, and more precisely the

single-party selling system. It means that the marketer engages another party who then sells and

distributes directly to the final customer. Here, the other party is the supermarket.

Which distributors?


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First of all we decided to distribute Vitalinea only in big chain of supermarket in Holland such as

Albert Heijn and Super de Boer, located in the biggest city of Netherlands: Amsterdam, Utrecht,

Rotterdam and The Hague. If our product this yogurt is successful in these cities, then we will extend

it to other cities. Moreover the proximity of these cities is an advantage considering the fact that the

time between production and delivery cant be more than 48h.

Physical distributionThe physical distribution is made by refrigerated truck from our French factory (located in Bailleul,

Pays-de-Bray, which is in the North part of France) to Dutch supermarkets by using Euros-pallets of

120x80 cms. This is the best way to distribute our yogurt considering that our factory our pretty close

to the city we are targeting and this is less expensive than other means of distribution.

IncotermsBecause our distributors are supermarket, and our products are yogurt, we have to deliver the

merchandise directly to the physical shop. So here, the DDU incoterm is required. The downside is

that Danone is responsible for everything from the production to the place of distribution. It doesnt

come without risks such as delay (and so lapsing), damaged product etc. Moreover its more

expensive because transport costs and all additional costs are supported by us (except clearing); but

this is the incoterms we have to take in accordance with our distributor.

PRICE

Cost price per yogurt 0.70

+ transport cost (8%) 0.56

+ custom fee (5%) 0.84+ promotion (10%) 0.924

+insurance (5%) 1.386

+ distributor margin (5%) 1.455

+ profit margin (15%) 1.673

Final Export sales Price 1.69

The price of the product Vitalinea will be 1, 69 for a pot of 500g

PROMOTION /COMMUNICATION

Choice media: Field marketing: creating an event directly on the point of purchase, in order to make the

consumer experienced the product and the brand. Creativity is needed in order to surprise

consumers, so they can try the product directly in the supermarket on a stand with a sales

person in order to inform and convince them.

Magazines: feminine and mothers magazines, targeting women between 25 and 45 Television: spot on TV with Dutch women playing in the advert (consumers have to recognize

themselves in these persons)

Radio: short spot to remind people the products name and its benefit (sug ar free, fruity,healthy, tasty)


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Internet: launching a website is a way to create a positive attitude towards our company andto establish a positive image of the product, within the target group. This website is

composed with interactions, information, and video report of people who used the product,

quizzes, and a place for commenting. Advertising video can also be seen.

These media are the best to reach the people we target, who are active women between 25 and 55,with a good self esteem (they want to eat healthy food in order to stay - or become - slim) and

medium and high revenues. These women can be with or without children and husband.

The field marketing is the best way to reach our target; most of the time women (rather than man)

are going to the supermarket, so its the best place to meet them. Because our product is a yogurt, it

has to be tested by the target group, indeed if they are used to buy a certain kind of yogurt; the only

way to make them changed is to convince them that the taste and the properties of ours are better.

In order to achieve that, experienced the product is the best solution.

Concerning magazines and TV advert, these are only ways to make people aware about the entranceon the market of this new product and try to give them envy to purchase.

Then, radio is a solution to remind these women the brand, the name and the benefits of the

product.

Finally, internet is more an after-purchase way to communicate. After having tried the product,

women will probably want to get more information about it and especially about the benefits on

health of this yogurt and maybe read some advices of the Danones nutritionist. In order to make

consumers aware, the websites adress has to be printed on the packaging.

PEOPLE

How to solve language problems?In order to solve language problems we decided to use English and Dutch. First of all, we changed the

products name, which was initially Vitalinea which is quite difficult to pronounce by Dutch people;

so we pitch on an English name Slender Waist which is understandable by everyone and allows us

to dont mistake with a bad Dutch translation. Then we translated every written thing in Dutch in

order to show that Danone is an internationally-oriented company, and to prove its effort to adapt

itself to the Dutch market. (Loads of French products are sold in Netherlands but they are rarely

translated even in English.)

Finally, our communication plan is going to be in Dutch, with the help of interpreters, because even if

other nationalities than Dutch can purchase this yogurt at the supermarket, only Dutch can look at

Dutch TV, this is the reason why our advert are in Dutch and our website can be read in Dutch or in

English.

How to solve cultural differences?In order to solve cultural differences, Danone made a lot of investigation about the Dutch market and

the Dutch habits of consumption. Results of these studies have shown that; Dutch yogurts have a

cover plate in aluminium rather than in plastic, the pots format are bigger than in France and final ly


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pot are opaque instead of transparent. In order to fit Dutch needs and habits we have changed and

adapted all of these elements.

Etiquette, Customs and ProtocolMeeting and greeting:

Handshake is the common form of greeting Shake hands with everyone individually including children. Wait until invited before moving to a first-name basis.

Building Relationships & Communication

The important thing is to demonstrate how your relationship would be beneficial forboth sides.

The Dutch take a long-term perspective when looking at business, so be clear what yourcompany's intentions are.

They do not touch one another and appreciate it when those they do business with maintainthe proper distance, do not demonstrate emotion or use exaggerated hand gestures.

The Dutch are extremely direct in their communication. In general, ideas will be discussed quite openly at meetings, with everyone entitled to their

opinion.

Information is shared across departments and corporate strategies and goals are usuallycommunicated to all employees, especially in more entrepreneurial companies.

Always appear modest and do not make exaggerated claims about what you or yourcompany can deliver.

Business Meeting Etiquette

Punctuality for meetings is taken extremely seriously. Cancelling a meeting at the last minute could jeopardize your business relationship. Meetings are rather formal in nature. Little time is spent on pleasantries. Meetings adhere to strict agendas, including starting and ending times. Do not attempt to

deviate from the agenda.

Negotiations

The Dutch prefer to get down to business quickly and engage in relatively little small talk. Communication is direct and to the point, and may seem blunt. Make sure your arguments are rational as opposed to emotional. Use facts and figures to confirm your statements. Business is conducted slowly. The Dutch are detail-oriented and want to understand every

innuendo before coming to an agreement.

Once a decision is made, it will not be changed.PRESENTATION


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Networking: Mainstay of the Danones collective efficiency is the networking attitude which

consists in the following points:

Attitude and behaviour: good exchange between giver and taker Put in place marketplaces: since 2003, 21 marketplaces have been organised and 7000

transactions have been made.

One rules: the rules of exception. Danone is a company which really want to be locallyadapted, in order to be more nimble.

To conclude Danone is a global company with the willingness to be socially oriented, because

better the employee feels, better are the results, so the culture in this company is really important.


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PAYMENT &DELIVERY CONDITIONS

In which currency the payment is made?Because France and Netherlands are two countries within the European Union, payments are made

in euro.

Form of payment:In this case two forms of payment are available:

The first one is the documentary draft; its usually used in such business relations, because the

importer cant pay cash so both exporter and importer can decide about the date of the credit

period. Advantages of this form of payment are that the exporter is guaranteed to be paid and he

can retain control of the goods until the acceptance of the documents. Drawbacks are that thepayment doesnt match with the time of delivery and document first needs to be presented for

approval to the foreign buyer.

The second one is the letter of credit and more precisely the sight draft. The advantage is that this

form of payment is the most secure for both importer (sure to receiving goods) and exporter (sure to

be paid) and there is a direct receipt of payment on delivering required documents to the bank. The

disadvantages are that it is cumbersome and quite expensive (1 or 2% of the credit amount)

Here, the letter of credit would be irrevocable (because revocable brings too many risks) but not

transferable because there are no intermediaries between Danone and supermarkets. Finally this

letter of credit is also confirmed because a second guarantee of payment is needed, especially

because it deals with a foreign country.


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FINANCIAL DATA & PROJECTIONS

2010 2011 2012

Product sales 70 000 000 72 000 000 75 000 000

Price of the yogurt 1,69 1,69 1,69

Gross profit 115 500 000 118 800 000 123 750 000

Production cost (0.7) 49 000 000 50 400 000 52 500 000

Advertising 5 000 000 4 000 000 4 000 000

Other expenses 500 000 500 000 500 000

Total Expense 54 500 000 54 900 000 57 000 000

Net profit 61 000 000 63 900 000 66 750 000

As we can see in this table, we are expecting 70 000 000 pot of yogurt sell for the first year, then an

increase when the product will be on the market and knew but the consumers.


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CONCLUSION

Yes the company should export to.and why?Rollout schedule to enter the market

No the company shouldnt exporttoand why not?


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BIBLIOGRAPHY

Danone websites:

http://www.danone.com/

http://www.danone.ca/fr/entreprise/historique.aspx

http://www.danone.nl/

http://www.vitalinea.nl/default.asp?page=vitalineaassortiment&cat=1

Websites:

http://www.fita.org/countries/nl.html

http://www.articlesbase.com/ask-an-expert-articles/export-import-in-netherlands-

1207399.html

http://earthtrends.wri.org/pdf_library/country_profiles/pop_cou_528.pdf

http://www.geert-hofstede.com/hofstede_netherlands.shtml

Danones press release :

http://finance.groupedanone.fr/phoenix.zhtml?c=95168&p=irol-

newsArticle&ID=1255304&highlight=
http://www.danone.com/http://www.danone.ca/fr/entreprise/historique.aspxhttp://www.danone.nl/http://www.vitalinea.nl/default.asp?page=vitalineaassortiment&cat=1http://www.fita.org/countries/nl.htmlhttp://www.articlesbase.com/ask-an-expert-articles/export-import-in-netherlands-1207399.htmlhttp://www.articlesbase.com/ask-an-expert-articles/export-import-in-netherlands-1207399.htmlhttp://earthtrends.wri.org/pdf_library/country_profiles/pop_cou_528.pdfhttp://www.geert-hofstede.com/hofstede_netherlands.shtmlhttp://finance.groupedanone.fr/phoenix.zhtml?c=95168&p=irol-newsArticle&ID=1255304&highlight=http://finance.groupedanone.fr/phoenix.zhtml?c=95168&p=irol-newsArticle&ID=1255304&highlight=http://finance.groupedanone.fr/phoenix.zhtml?c=95168&p=irol-newsArticle&ID=1255304&highlight=http://finance.groupedanone.fr/phoenix.zhtml?c=95168&p=irol-newsArticle&ID=1255304&highlight=http://www.geert-hofstede.com/hofstede_netherlands.shtmlhttp://earthtrends.wri.org/pdf_library/country_profiles/pop_cou_528.pdfhttp://www.articlesbase.com/ask-an-expert-articles/export-import-in-netherlands-1207399.htmlhttp://www.articlesbase.com/ask-an-expert-articles/export-import-in-netherlands-1207399.htmlhttp://www.fita.org/countries/nl.htmlhttp://www.vitalinea.nl/default.asp?page=vitalineaassortiment&cat=1http://www.danone.nl/http://www.danone.ca/fr/entreprise/historique.aspxhttp://www.danone.com/

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