Danone in India

Résumé du document

Danone India is today, a huge part in the work of internationalization of the French group Danone. It was established in two steps. Danone was first established in 1989, a merger with an Indian group called Britannia. Then in 1993, they took control over Britannia, so that Britannia became a Danone subsidiary. It was said that this had required an investment of RS 150 cores. After this merger, Danone became number one in biscuit and water manufacture on the Indian market due to their three principal brands, Aqua, Britannia and Tiger. The fact that these three brands were already well known and appreciated by the Indian consumers, permited Danone to win over the market quickly.

Extraits

[...] Since independence, India has maintained cordial relationships with most nations. During the Cold War , India tried to maintain its neutrality and was one of the founding members of the Non-Aligned Movement Recent overtures by the Indian government have strengthened relations with United States, China and Pakistan. In the economic sphere, India has close relationships with other developing nations of South America, Asia and Africa, especially Brazil and Mexico. In recent years, India has played an influential role in the ASEAN, SAARC and the WTO, and it is a signatory to the landmark South Asia Free Trade Agreement. [...]

[...] announced plans for a joint venture in India. Held equally by the two partners, the new company, to be called Yakult Danone India Private Limited, will be developing the Indian market for probiotics. India has enormous potential, with a fast-growing population of one billion and a long tradition in dairy products. Yakult Danone India has initially market Yakult brand products, beginning at the end of 2005, and Danone probiotics products and brands have been added late. Production For products, Danone is developing the products exclusively for Indian market in an R and D centre located in India. [...]

[...] Market entry Danone has progressively entered the Indian food market. So in 1989 Danone established a venture with the Indian firm Britannia. This strategy of penetration takes an important place in the Danone's international strategy. This strategy first permit to the group to enter the market easily even if the market is very competitive. Thanks to the firm it mergered, Danone can win very easily the market shares which belongs to the former firm. In India Danone, thanks to Britannia, won in 1993 when the group finally re buys Britannia the market share it had won. [...]

[...] Almost 70% of its population resides in rural areas. India's largest urban agglomerations are Mumbai, Kolkata, Delhi, Chennai and Bangalore. Efforts to eradicate illiteracy have little success since India's independence with only of its population able to read or write. Although of the people are Hindus, India is also home to the third- largest Muslim population in the world ( 13.4 Other religious groups include Christians ( 2.3 Sikhs ( 1.84 Buddhists ( 0.76 Jains ( 0.40 Jews, Zoroastrians and Bahá'ís.[5] The number of mother tongues in India is estimated to be as high as 1,652.[6] Most of these languages are derived from two major linguistic families: Indo-Aryan (spoken by about 74% of the population) and Dravidian (spoken by about 24%). [...]

[...] Media and rights owners needed to act more collectively, not in isolation. Research would play an important role. Sponsors needed to enlighten the audience about the event and their contribution. Rights owners and sponsors needed to have shared goals. Danone also use sport events to promote its products. Britannia was one of the official sponsors of the Cricket World Cup in 1999 and is going to be partner of the 2007 edition. Exhibit Comparison between the firms of the food sector in India between 2002 and 2004. [...]