Shokti

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Introduction:

Shokti Doi+ was first introduced by Grameen Danone with join collaboration with Frank Riboud
and Muhammad Yunus during their visit in Paris on October 2015. Following their visit in Paris,
they decided to do a business which will help children in Bangladesh who’s suffering from
malnutrition. In the beginning, they had decided to a workshop in Dhaka on October 2005 which
involved both parties from Grameen Danone and Muhammad Yunus’s team. After few months,
with some successful meeting between each other, they decided to launch a new company named
“Grameen Danone Foods Ltd”. In 2006, they opened a new factory in Bogra for the production
of Shakti Doi+. In 2007, they manufactured the first edible Shokti Doi+ which was commercially
produced.

The team focused on reducing malnutrition in Bangladesh. Their product included yogurt based
item which includes nutritional value containing fresh cream cow milk, fermenting raw
materials, molasses and sugar. This will help to reduce the malnutrition in Bangladesh, among
poor people.

Their main business motto was to reduce poverty by significant margin by charging lowest price
possible and providing item which is full of nutrient. It will also bring the daily need of nutrition
to the poor people. Their main aim was to decrease the malnutrition of poor children who cannot
afford to eat nutritious food daily. They experts of the corporation advanced the protein, calcium
value and micronutrients of the yoghurt and fortified it named “energy yoghurt plus’’ means
‘’Shokti Doi +”. As mentioned before, GDF enterprise model is a social innovation method in
order that the company lessen poverty and brings each day healthful nutrition to the poor[8].
Its aims to improve malnutrition scenario among poor youngsters in rural and slums with the
aid of selling fortified yoghurt at an affordable rate and percentage the blessings with
its community of stakeholders. The agency’s enterprise has to be self-maintaining and the
owners ought to remain devoted to by no means take any proportion past the go back of the
innovative quantity they invested. Eventually, the success of the organisation’s
yoghurt enterprise ought to be judged not only by the
amount of earnings generated, however also by the amount of kids who dispose
of malnutrition each year. It’s a Dr. Muhammad Yunus social business concept. Shokti Doi
or electricity yoghurt fortified with a high dose of micronutrients with nutrition A, zinc, iron,
and iodine. It is also includes a herbal supply of calcium and protein. The yoghurt
developed by using the vitamins professional specialists of GAIN NGO and Group Danone.
This fortified yoghurt develops the nutritional fame of poor children (aged three to
fifteen years), who consume the yoghurt on a regular foundation or as a minimum one
cup twice a week. A 60 gram cup covers 30% of children’s each day desires of nutrients.
Identifying the challenge through research:

 Here are some reasons that yogurt is considered a luxury item and is not eaten by low-
income people on a regular basis.
 Yogurt is made more commonly in the home in South Asia than it is purchased from a
supermarket.
 Yogurt requires proper storage to maintain the same quality level. While the Shokti
yogurt is healthy for a period of time without refrigeration, the yogurt

Shokti Doi has severely low shelf life. Normally they can store it for around 2-3 days maximum.
As we know, village people could not afford refrigerator which ultimately resulted in expired
product and which led to hundreds of children being sick.

From our research we have learned that Shokti Doi+ does not have any distribution channel.
They distribute their product by their own network and distribution channel. This resulted in,
they could not meet the expectation by delivering the product on right time. There are many
researches which suggested that they have failed to distribute the Shokti Doi+ to the proper
channel. This means they could not overcome the challenges to penetrate the proper market. The
raw milk supply chain of the company doesn't change much relative to the other competition.
Then the raw milk is taken by bicycle / rickshaw to a chilling center / facility for collection in the
morning and evening and deposited in the center / facility until it is picked up by a truck and
delivered to the plant. The company combines sweeteners and nutritional supplements to make
the yogurt at the time of manufacturing. The raw milk is then taken to the chilling center /
facility in the morning and evening by bicycle / rickshaw and processed in the center / facility
until the truck picks it up and takes it to the plant. The company combines sweeteners and
nutritional supplements to make the yogurt at the time of manufacturing. Now a days, Dhaka,
Sylhet and metropolis cities account for fifty p.c of sales volume, rural sales through village
saleswomen represent regarding twenty p.c. of sales, and cities and cities within the Bogra space
account for regarding thirty percent. Competition to this point of the corporate has been low
thanks to its completely different product attributes like style, texture, color, packaging, and
worth additionally because the rural customers perceives Shokti+ executive department. Snack-
producing corporations like Pran, Unilever and Nestlé and then on square measure the indirect
competitor’s of GDF in terms of people’s share-of-wallet for children’s sweets and snacks. in
step with the sales girls of the GDF the customers, United Nations agency have an idea of
nutrition, tend to match this fortified yoghourt with pure milk. No alternative yoghourt
corporations in People's Republic of Bangladesh supply fortified yoghourt however GDF

In the beginning, they campaigned the product as a free product and till now people believe it is
the product of the government which was giving for free. This means people thought this is a
free product and they are not ought to pay for it. So when Shokti Doi+ started to charge for the
product, they were surprised and decided not to buy it. So, their initial strategy which was giving
free sample simply backfired on them.
They focused mainly on poor children and people who are living in suburban area. But they
failed to campaign in those area. They focused mainly on national newspaper and radio. But as
we know, people who are living in rural area can’t afford to buy newspaper or radio. It should
have been on personal selling and local school functions. This is why, people are still ill-
informed about the product even though it is the cheapest option they have for their daily
nutritious need.

Their main target was the children but they failed to capitalize on some other market which is the
farmers and older people who needs nutrition. Through our research we have found that they
even failed to reach their target market which are poor children living in rural areas. Even though
the people in big cities knows about the product and the frequent users of the product but the
rural people are still oblivious of the product.

Although revenues have been effectively improved by these marketing and promotional
campaigns, bad press and political illness will challenge the brand equity of Grameen. In 2006,
Yunus announced that he intended to start a party and run for prime minister. This decision
made him some powerful enemies, including Sheik Hasina, the current prime minister.

SWOT analysis:

Strength

 Cheapest available option in the market


 Does not have any major competition in the local or foreign market within the price
range.
 Brand image
 They are aiming to reduce malnutrition not to earn huge profit from the venture

Weakness:

 They do not have third party distribution channel


 Low shelf life
 Unhygienic manufacturing process
 Initial product view

Opportunities:

 Since they are the initiator of the cheapest available option in the market. They have the
largest market share still, if they can capitalize on the opportunities
 Both companies associated with the product have other project which are earning high
revenue, so they can afford to expense of this project which will boost their company
image
Threats:

 Energy Plus biscuit from the local market and Horlicks, Complan drinks
 Negative press regarding the product due to unhygienic manufacturing process

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