DANACTIVEOlivia Clepper, Sean McIntyre, Amos Wheatley, Andrew Smith, Chris Rohman

Executive Summary

What is yogurt?

Yogurt is a dairy product produced by bacterial fermentation of milk

There are currently three overall classes of yogurt: Traditional

Yoplait, Dannon Original Diet friendly

Greek yogurt (low fat & high protein), Light & Fit (Low fat) Functional

DanActive (Immune), Activia (Digestive), YoPlus (Immune & Digestive)

What are yogurt benefits?

Yogurt is consumed primarily for its general health benefits Contains “good” bacteria

Nutritionally rich in protein, calcium, riboflavin, vitamin B6 and vitamin B12.

A study published in the International Journal of Obesity (11 January 2005) also found that the consumption of low-fat yogurt can promote weight loss, especially due to the calcium found within.

The current market

Positive correlation between high income/high education and yogurt consumption (2009 MRI+ Research) Generally, wealthier consumers can afford healthier

choices when shopping Generally, wealthier consumers remain healthy as they

age (Journal of Sociology, University of Melbourne) More likely to improve from poor health to good

Total yogurt sales equal $2.9 billion Total yogurt production: 74 million gallons/year 11% increase in US Dairy Market 2005-2010

DanActive and Activia represent 25% of Dannon’s overall sales (The Wall Street Journal, April 15, 2010)

Current trends & growth

Yogurt market increased from a $300 million dollar market in 1980 to a $3.5 billion market in 2005 (USDA Economic Research Service)

Market is continuing to rapidly expand– Greek yogurt is experiencing rapid growth– Established brands are emphasizing probiotic products– Functional yogurts with health benefits

Yogurt and yogurt drink sales have risen steadily over the past five years (Research and Markets)– Consumers are more concerned with healthy eating– Seeking out functional yogurts with health benefits

What is DanActive?

First introduced in Europe as Actimel in 1994 Introduced stateside in 2004 as DanActive

Released nationwide in 2007

A probiotic yogurt, taken as a drink, that builds and restores the body’s natural defenses

Utilizes a patented bacteria known as L. Casei Immunitas

What are DanActive's benefits?

Claimed benefits: Improvements in general digestion Reduces gastrointestinal and respiratory illness among

elderly Improved digestion among lactose-intolerant consumers Low-calorie and low fat supplement

70 calories per serving / 1g of fat per serving / 13g of sugar

Per European Journal of Clinical Nutrition: Incidences of common infections was 19% lower Incidences of gastrointestinal infections was 24% lower 638 participants administered both DanActive and

placebos

The British Medical Journal cites benefits as: Help avoid diarrhea symptoms associated with

antibiotics Some British hospitals have given DanActive to curb the

spreading of C. difficile “superbug”

Lawsuit & Settlement

January 2008 – class action lawsuit filed in the state of CA accusing DanActive of false advertising $21 million multi-state settlement “Dannon must stop deceptive hypes for health and

digestive benefits for DanActive and Activia.” (Attorney General of CT)

Repercussions: Must remove the word “immunity” from labels Must replace “improve” with “interact” FDA must approve any claim affecting cold and flu

symptoms Limits creative strategy

Current concept & ads Concept: Immune system booster Positioned as an ideal breakfast choice

and daily snack of a healthy diet Positioned well as an aid to healthy diet and not as

the “be all, end all” product of a healthy diet Utilizing television commercials to target

women constantly on the go Professional environment Family & home environment Constantly on the go, possibly being constantly

stressed leads to lowered immune system defense – DanActive restores.

Current advertising seeks to inform instead of persuade Using visual diagrams Spokeswoman is a certified dietitian and not a

celebrity

DanActive's consumer base

According to 2009 MRI research: The primary group of DanActive consumers is health-

conscious women ages 25-54

Committed to the well-being of herself and her family Enjoys health, home service, news/business/finance, &

feminine magazines and TV channels

Stub Total ‘000 Proj. ‘000 Index

Women: 25-54

56,445 1,428 121

Income: $75K-$149K

37,451 765 98

College Educ.

39,712 853 103

Children: 6-11

23,654 555 112

Why purchase DanActive?

The primary target market is generally the head homemaker Can replace a full breakfast when in a rush Provides health benefits to herself, children, and spouse Concept of immunity defense and digestive aid appeals to all

consumers

Consumers who experience personal benefits will remain loyal to the product despite lawsuit

Competitors: ActiviaStub Total ‘000 Proj. ‘000 Index

Women 25-54 56,445 4,326 114

Income: $75K-$149K

37,451 2,920 116

College Educ. 39,712 3,489 131

Children: 6-11 23,654 1,873 118

• Same parent company – Dannon

• Product concept is very similar to that of DanActive• Functional yogurt that appeals to health-conscious women

• Competing within same consumer base• Higher indexes for Activia within each MRI+ category

• More visible brand and higher recall & recognition• Current advertising campaign• DanActive hasn’t shown a commercial on-air since 2009

Competitors: YoPlus

Stub Total ‘000 Proj. ‘000 Index

Women: 25-54 56,445 619 109

Income: $75K-$149K

37,451 312 83

College Educ. 39,712 348 87

Children: 6-11

23,654 236 99

•Not just probiotic formula•Antioxidants A&E•Fiber for digestive health•Calcium and vitamin D for bone health•Unique selling points for YoPlus compared to one for DanActive

•Parent company with loyal consumer base•Yoplait and Dannon, as established brands, continue competition with probiotic product

Dannon's competing products

Activia poses the main threat to DanActive Similar target market (MRI+ table) Similar product concept

Both products position as functional, healthy yogurts

Lack of brand awareness Activia has top of mind awareness due to current campaigns DanActive has not created a campaign since early 2009

Name confusion Consumers are unable to distinguish the difference between

the two products’ titles

Limited creative strategy

Due to lawsuit, DanActive can no longer position itself based on its specifications Can no longer claim immunity defense

Brand Equity Future campaigns must rebuild perceptions about the product Cannot be so forthright in establishing what the product does

for the consumer “interact with immune system” not “improve immune system”

DanActive's Opportunities

Market is rapidly expanding There is room for growth as consumers switch to a more

health-conscious lifestyle

Functional yogurt provides specific health benefits Advertisements can showcase the positive correlation between

product consumption and good health

Future directions

Emphasize the differences between DanActive and Activia DanActive and Activia both target digestive tract DanActive offers other benefits as well

EX: immune system support

Create own identity for DanActive Will sustain longevity in the market Product design already geared to the “on the go“ consumer

Re-sealable cap on bottle