international competitiveness thru innovation yves rey corporate quality general manager danone
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International competitiveness thru Innovation Yves Rey Corporate Quality General Manager Danone. From Breakdown to Breakthrough. International Competitiveness Thru Innovation Focusing on “Research and Development” Focusing on Stakeholders’ satisfaction High quality products. - PowerPoint PPT PresentationTRANSCRIPT
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International
competitiveness thru Innovation
Yves ReyCorporate Quality General Manager
Danone
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From Breakdown to Breakthrough
International Competitiveness Thru Innovation
Focusing on “Research and Development”Focusing on Stakeholders’ satisfaction
High quality products. Free Trade ad Domestic Liberalization are the best way to encourage higher quality standards Create a Quality Culture
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Social Pyramid
Poor
Middle Class
Upper Class
3
COFCO Corporate Mission- Offer nutritious and healthy foods and superior quality life services;- Establish industry leadership; and- Maximize the interests of customers, shareholders and employees
International Companies
National Companies
Danone Corporate Mission- Bring health thru food to as many people as possible
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DANONE 2010 – Key Facts
About Danone:Danone is present in over 120 countries on 5 continentsMore than 160 production plantsAround 100,000 employeesSales of € 17 billions, of which half were in emerging markets
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A world leader in healthy food industry
N°1 worldwide in Fresh Dairy Products
N°2 worldwide in Bottled Water
N°2 worldwide in Baby Nutrition
N°1 in Europe in Medical Nutrition
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Growth/ Building Capital
Maintenance/ prevention
Ageing process/ Problem solving
Spec
ific
nutr
ition
/ Fo
od n
eeds
Infants/Children Teenagers Adults SeniorsLow
High
A coherent products portfolio covering needs and demands at every age
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Bringing health through food to as many people as possible
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A unique mission based on 4 axes
For All
Nature
Health
People
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Half of business in emerging markets
1. France2. Russia 3. Spain4. USA5. Mexico6. Germany7. Indonesia8. UK9. China10. Argentina
49%Emerging markets
10%North America
2%Japan + ANZ
Sales breakdown in 2010*
39%Western Europe
Top 10 countries FY 2010*
8
Account for 64%
of the company growth
Innovation account for 40% of the Total sales over the past 3 years
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Social Pyramid
Poor4,75 Billion
people
Medium0,95 Billion
people
Rich1 Billion people
$25K
$10 - 25
< $10
GDP/hab Usually companies only target this part of the social pyramid
9
Gross Domestic Products
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Business Evolution
Danone is increasingly:Tailoring its products for emerging-market consumers
Making the products in the markets in which they are sold
Adapting thee products to local nutritional requirements, tastes and … budgetConsumers are Ready to pay if there is a value
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Covering the full pyramid with portfolio management
Dairy Romania Baby Nutrition IndonesiaPrice Points
280
70
180
100
11
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Business Risk & Opportunity
Danone’s challenge
Work with local raw materials, source and produce locallyGuarantee product safety to these low-income consumers in countries where Quality & Food Safety processes are in their infancy While supplying affordable products meeting Danone Quality standards to consumers…
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Consumer’s hierarchy of needs
PRODUCT SAFETY
PRODUCT CONFORMITY
PRODUCT SUPERIORITY
Commit to Food safety
Deliver Quality
GuaranteeBrand Superiority
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Food Security program in Emerging Countries
Non-Negotiable requirementsIn Emerging countries, it is accepted that our products/processes do not comply 100% with our corporate standards.
Normal procedure is to have an action plan in place how to reach the standards Some requirements however are so crucial for food safety reasons that we do not accept a non-compliance
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Bringing Health thru food to as many people as possible
Codex / National Regulation / Danone Non-
negotiable criteria
Codex / National Regulation / Danone
Corporate Standards & Systems
Codex / National Regulation / Danone Corporate/Local*
Standards & Systems
* Consumer Driven requirements
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International competitiveness
International competitiveness is built up on:Product quality
Ability to innovateCapacity to adjust rapidly to customers' needs
Absence of restrictive practices in the labor market and local regulations
WarningInternational norms, standards, rules, and practices may drive businesses toward harmonization…
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What can create competitive edge
Innovation product quality and international competitiveness
Higher product quality helps differentiate and gain market share in “reference-priced” and “homogenous” products
Breakthrough innovation is especially relevant in creating new consumers’ experiences and ensuring consumers’ loyalty
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Chinese Industry
Chinese industries have made tremendous progress since China opened its door to the world. China’s national economic competitiveness has been improved significantly over the past 25 years. Competition only based on lower labor cost will not put Chinese industry in a competitive position in long run.What are the things that should be done to make Chinese industry stay competitive in the future world market?
Innovation and Product Quality
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Social Pyramid
Poor
Middle Class
Upper Class
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International Companies
National Companies
From commodities to added value products
Speed to innovateProduct Quality
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Provocative QuestionsIs « Made in France » an international guarantee of high quality standards?Has France still the capacity to innovate?Do we have the educational infrastructure for supporting it
Is France a quality trend setter?... Just like Japan wasDo The Authorities help promote this image “Due to the bad image of French politicians”…State-run companies don’t help promote “made in France” as label of qualityAs French-based international companies, what do we do in this field?Can IRIS play a role in this field?
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Consumer Good Forum: The Consumer Goods Forum (CGF) is a global, parity-based industry network. It brings together the CEOs and senior management of over
650 retailers, manufacturers, service providers across 70 countries and reflects the diversity of the industry in geography, size and product
category . Forum member companies have combined sales of EUR 2.1 trillion.
Global Food Safety InitiativeThe Global Food Safety Initiative (GFSI) is a international multi-
stakeholders platform collaboration bringing together the world's leading quality experts from retailer, manufacturer and food companies
associated with the food supply chain. It is coordinated by The Consumer Goods Forum
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GFSI: A unique multi-stakeholder platform across the world
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GFSI Board Members
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GFSI Technical Committee
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GFSI Advisory Council