Executive summary

Product idea:
We are excited to announce our newest product concept, Danone Pourable Cereal Yogurt. This
distinctive product combines the creamy deliciousness of yogurt with the pleasant crunch of
cereal to give consumers with a handy and gratifying breakfast or snack choice. In this research,
we will go through the specifics of this product concept, emphasizing its distinctive features,
user advantages, and market potential.
Product Concept:
Danone's Pourable Cereal Yogurt is a game changer in the world of breakfast and snacking. It
combines the ease of a pourable yogurt with the texture and delight of cereal to create a
balanced combination of flavors and sensations. The product is intended to meet the demands
of busy, on-the-go consumers looking for a healthful yet readily digestible solution for morning
or on-the-go nutrition.

Identification of the need(s) and explanation of how your product

satisfy it (them):
Our Danone Pourable Cereal Yogurt satisfies both physiological and esteem needs of
customers, as identified in Maslow's hierarchy of needs.
Physiological Needs: Our product fulfills hunger and thirst by offering nutritious ingredients
such as protein, fiber, and vitamins in the yogurt. These essential nutrients provide sustenance
and contribute to a balanced diet, addressing the physiological needs of consumers.
Esteem Needs: In addition to meeting physiological needs, our product satisfies esteem needs
by providing a convenient and trendy snack option. The unique and innovative packaging of our
pourable cereal yogurt caters to the desire for a convenient on-the-go solution. It not only
allows for easy consumption but also reflects the latest trends in snack packaging, enhancing
the perceived value and satisfaction for consumers.
The added value of our product lies in its convenience, taste, and nutritional value. Busy
individuals can enjoy a quick and easy breakfast or snack with our pourable cereal yogurt. It
offers a harmonious blend of creamy yogurt and crunchy cereal, providing a delightful sensory
experience. Moreover, our product promotes a balanced diet with its nutritious ingredients,
appealing to health-conscious individuals seeking a wholesome and satisfying option.

Explanation of the competitive value that the product is offering:

Convenience: Our product is designed for busy people who want a quick and easy breakfast or
snack alternative. The pourable quality of our yogurt removes the need for separate dishes or
utensils, saving time and effort. This degree of convenience distinguishes our product from
typical yogurt and cereal options, delivering a simple and on the move alternative for
consumers.
Taste and Nutritional Value: Our pourable cereal yogurt not only provides convenience but also
a tasty and satisfying taste. The creamy yogurt coupled with the crunchy cereal produces a
unique and delightful eating experience. In addition, by employing high-quality, sustainably
derived components, our product guarantees nutritional value. It appeals to health-conscious
people looking for a balanced diet without sacrificing taste or quality.
Packaging Innovation: Our product distinguishes itself via unique packaging that reflects current
trends and consumer preferences. The use of 100% circular packaging is consistent with
Danone's environmental commitment and adds to their circular economy objectives. Our
solution addresses environmental issues and appeals to consumers who emphasize sustainable
choices by lowering carbon emissions and keeping materials in use and out of the environment.

Situation Analysis:
Environmental Aspect: Danone's commitment to environmental sustainability is evident
through its circular economy of packaging. The use of 100% circular packaging with low carbon
production demonstrates their environmentally friendly approach. By keeping materials in use
and reducing fossil resource use, Danone aligns with sustainable development goals (SDGs)
such as numbers 2, 6, 7, 12, 13, 14, and 15.
Sociocultural Aspect: Danone has built a strong reputation in the yogurt industry, particularly
among children. They are recognized for providing energy and being an exemplary product. The
established marketing and prestige associated with the Danone brand have contributed to their
current customer base and can continue to attract customers in the future.
Technological Aspect: Technological advancements can significantly impact the viability of
Danone's pourable cereal yogurt. Utilizing more efficient production processes, automation,
and embracing online channels can reduce costs, improve productivity, and enhance
distribution channels to reach a wider customer base.
Economic Aspect: Economic factors play a crucial role in Danone's business. A high
unemployment rate can reduce consumer spending power, affecting demand for products.
Conversely, low-interest rates can be beneficial by reducing borrowing costs and encouraging
investment. Economic cycles can also impact sales and profitability.
Legal and Political Aspect: Danone faces legal and political considerations across different
markets. Compliance with food regulations, differences in corporate taxes, and government
regulations on farmers and milk standards can impact product quality, pricing, and potentially
lead to the loss of customers.
• Examining the PESTEL variables that may affect the success or failure
of your idea
Political Factors:
Government regulations: Compliance with food regulations in different markets can impact the
production, labeling, and marketing of the product. Ensuring adherence to relevant regulations
is crucial for market entry and ongoing operations.
Tax policies: Differences in corporate taxes across countries can affect profitability and pricing
strategies. Understanding and managing tax implications is essential for financial planning and
competitiveness.
Economic Factors:
Consumer spending power: Economic conditions, including factors like employment rates and
disposable income, can influence consumer purchasing behavior. A high unemployment rate
may lead to reduced spending, affecting demand for the product.
Interest rates: Low-interest rates can positively impact businesses by reducing the cost of
borrowing, encouraging investment, and potentially fostering growth opportunities.
Sociocultural Factors:
Consumer preferences: Understanding consumer preferences and behaviors is crucial for
product development and marketing strategies. Danone's reputation for providing energy and
being an exemplary product can be leveraged to attract and retain customers.
Trends and lifestyles: Staying informed about changing trends and lifestyles helps identify
opportunities for product innovation and positioning. Emphasizing the convenience and health
benefits of the pourable cereal yogurt aligns with the needs of busy, health-conscious
individuals.
Technological Factors:
Production processes: Embracing technological advancements, such as more efficient
production processes, automation, and robotization, can reduce costs and improve
productivity. Leveraging technology can enhance competitiveness and profitability.
Digital channels: The increasing internet penetration rate and changes in consumer habits
towards online shopping present opportunities to reach a wider customer base. Developing
effective online marketing and distribution strategies can boost brand visibility and accessibility.
Environmental Factors:
Circular packaging: Danone's commitment to a circular economy of packaging aligns with
environmental sustainability goals. The use of 100% circular packaging with low carbon
production reduces environmental impact and appeals to consumers who prioritize eco-friendly
choices.
Sustainable development goals (SDGs): Danone's alignment with SDGs, including numbers 2, 6,
7, 12, 13, 14, and 15, demonstrates their dedication to contributing positively to global
sustainability efforts. This alignment can enhance the brand's reputation and attract
environmentally conscious consumers.
Legal Factors:
Food regulations: Compliance with food safety and labeling regulations is essential for market
entry and ongoing operations. Adhering to these regulations ensures product quality, consumer
trust, and legal compliance.
Trade agreements and barriers: Changes in trade agreements or the introduction of trade
barriers can impact the import/export of ingredients and finished products. Monitoring and
adapting to trade-related developments is crucial for international operations.

• Define your target customer: Identifying and analyzing your

customers – Competitive analysis:
Target Customers:
Profile 1: Tomas
Age: 7 years old
Location: Barcelona
Interests: Tennis, reading (e.g., The Lion King), watching Doraemon and TikTok
Family and friend influence: Highly influenced by family and friends
Online presence: Owns an iPad for playing video games, limited online purchasing
Clothing style: Traditional brands such as Zara, Gap, Abercrombie, H&M
Key Characteristics:
Curious: Enjoys experiencing different tastes and sensations
Energetic: Needs to be active for a balanced diet
Minor awareness of health: Requires some awareness of health benefits

Profile 2: Montse
Age: 38 years old
Location: Barcelona
Occupation: Travel manager and planner
Annual income: €35,000
Education: BBA in tourism
Values: Family, nature, helping others
Online presence: Owns a Samsung phone, shops online
Clothing style: Hipster, casual, regular
Religious affiliation: Religious, not politically inclined
Key Characteristics:
Middle-aged mother: Cares for her children's well-being
Health-conscious: Seeks healthy and flavorful products
Motivated by sustainability: Values sustainable and high-quality products

Our target customers include:

Primary school students, like Tomas, are curious, enthusiastic, and affected by friends and
family. They appreciate trying new flavors and sensations. To satisfy their demands, we provide
a range of tastes and healthful selections.
Middle-aged mothers like Montse who value their family's health and look for goods that are
both nutritious and tasty. They place a premium on sustainability and excellence. Our goods
correspond to their health-conscious and environmental-conscious tastes.

How is the market segmented?

Our major audience consists of health-conscious people of all ages and socioeconomic levels. A
big section of our client base consists of parents who aim to offer nutritious snacks for their
children, people who are devoted to living a healthy lifestyle, and elderly who are looking for
nutrient-rich meals for general well-being. These clients frequently select our cereal yogurt as a
nutritious snack or meal replacement. Those who have previously benefited from our products
are more inclined to be loyal to our brand.
We may use numerous segmentation elements, such as geographic, demographic,
psychographic, and behavioral features, to successfully segment our market. Danone may
strengthen its market segmentation techniques by targeting parents of young children who
emphasize health and wellbeing, persons of all ages who are devoted to preserving their well-
being, and older people who require nutrient-dense alternatives.
Furthermore, we may target customers who have shown brand loyalty by purchasing our goods
on a regular basis and incorporating them into their daily routines as healthful snacks or meal
alternatives. Danone can increase its market position by utilizing this devoted client niche.
Who and how are your competitors?
We faces competition from various competitors in the yogurt industry. These competitors can
be categorized based on form, category, and generic factors.
In terms of form, Mercadona's brand Hacendado is a direct competitor to us. Hacendado holds
the third position in brand share, with a 13.4% market share in Yogurts and Sour Milk Products.
They offer similar flavored yogurt products, posing a significant challenge to Danone's market
position.
Within the category, El Pastoret and Kaiku are notable competitors. El Pastoret positions itself
as a premium yogurt brand, targeting gourmet food stores. It holds a 1.5% market share,
appealing to consumers seeking high-quality yogurt options. Kaiku focuses on quality and
organic products, capturing a 1.3% market share. Although not directly competing with us or
Hacendado, Kaiku's offerings can still attract health-conscious consumers.
In the generic category, we face competition from Carrefour and Nestle. While they don't
specialize in yogurt production, they do compete in other industries such as milk and other
beverage alternatives. These competitors leverage their brand reputation and diverse product
portfolios to attract consumers away from our offerings.
Analyzing the market data, the yogurt and sour milk products industry in Spain has experienced
a slow decline in sales volume due to inflationary pressures, making consumers more price
sensitive. However, the retail value of the industry has grown by 3.7% compared to the
previous year, driven by the appreciation of the health benefits offered by yogurt products,
including regular/flavored yogurts and Kefir. This positive trend indicates a promising future for
the industry, with an estimated increase in retail value of 100 million euros in the next three
years in Spain.
Regarding market share, we hold a dominant position, capturing 55.5% of the market share.
This share is higher than the combined market share of all its competitors. In terms of brands,
we have four out of the top five brands sold in the yogurt industry: Danone (17.2%), Activia
(15.9%), Actimel (10.2%), and Vitalinea (7.1%). This success is attributed to our diversification of
products and extensive market presence, enabling them to minimize losses in case of
unsuccessful product ventures and establish ourselves as a yogurt giant.
– Marketing Mix Strategy

• Design the product strategy: define the dimensions; decide the brand;
product lines?
Dimensions:
Convenience: A ready-to-eat breakfast or snack option for consumers.
Healthiness: Positioned as a healthier alternative to the typical "milk and cereal" breakfast,
providing nutritious ingredients and supporting overall health and wellness.
Variety: The line includes a range of flavors, such as strawberry, vanilla, blueberry, honey,
mixed berry, chocolate, banana, and coconut, catering to different taste preferences.
Customization: Offers potential variants, such as regular, low-fat, Greek, organic, and other
flavor variations, allowing consumers to choose according to their specific needs and
preferences.
Scalability: The product has the potential for growth and expansion, with the potential to sell
cereal separately and increase market share.
Brand Name: Yogi Crunch
Tagline: Fuel Your Day with Delicious Yogurt and Crunchy Cereal!
The Yogi Crunch brand highlights the delicious and healthful mix of creamy yogurt and crunchy
cereal. The brand will be presented as a reliable and high-quality option for consumers looking
for a quick and nutritious breakfast or snack. The phrase expresses the brand's pledge to
energize consumers' days with delectable flavors and a pleasing texture.
Product Lines:
Breakfast Yogurt with Cereal: This line offers yogurt with cereal specifically designed for a
fulfilling breakfast experience.
Snack Yogurt with Cereal: This line focuses on providing a convenient and healthy snack option
with the goodness of yogurt and cereal.
Product Types:
Within each product line, various yogurt flavors are offered with the inclusion of cereal,
including:

Strawberry Yogurt with Cereal

Vanilla Yogurt with Cereal
Blueberry Yogurt with Cereal
Honey Yogurt with Cereal
Mixed Berry Yogurt with Cereal
Chocolate Yogurt with Cereal
Banana Yogurt with Cereal
Coconut Yogurt with Cereal

Marketing Product Potential Variant:

To cater to different consumer preferences and needs, potential variants can include:

Regular Vanilla Yogurt with Cereal

Low-Fat Vanilla Yogurt with Cereal
Greek Vanilla Yogurt with Cereal
Organic Vanilla Yogurt with Cereal
And more, with variations in yogurt flavors and cereal types

Product Items:
Different sizes and packaging options can be offered for each specific flavor and variant, such
as:

Regular Vanilla Yogurt with Cereal in a 500g tub

Low-Fat Vanilla Yogurt with Cereal in a 200g cup
Greek Vanilla Yogurt with Cereal in a 750g tub
Organic Vanilla Yogurt with Cereal in a 400g cup
And more, with different sizes for each specific flavor and variant
Packaging and Labeling:
Product packaging should be visually appealing while also preserving product freshness and
avoiding contamination. Using ecologically friendly materials, such as cardboard, may set our
product apart from the competition. Clear labeling on the box should also include accurate
information about the ingredients, nutritional data, storage instructions, and any essential legal
information. It should be made to be simple to read, understand, and dispose of.

• Design the pricing strategy: what is the correct price for your
product? Why?
We are going to address the price approach for YOGICRUNCH, a yogurt product containing
pourable cereals. Our goal is to find the right price that covers our costs, achieves the required
margin, and successfully puts our goods in the market.
Cost Analysis:
Cost of Production: 40 cents
Packaging Cost: 30 cents
Transportation Cost: 80 cents
Total Cost: 150 cents or 1.50 €
Minimum Price Calculation:
To cover costs and achieve a desired margin of 20% on the total cost, we added the desired
margin (30 cents) to the total cost (1.50 €):
Minimum Price: 1.50 € + 30 cents = 1.80 €
Profit Margin Calculation:
Assuming the company produces 10,000 units of yogurt with cereal per month, with total costs
of 15,000 euros (including 3,000 euros of fixed costs and 12,000 euros of variable costs), we can
calculate the unit costs:
Variable Cost per Unit: 12,000 euros / 10,000 units = 1.20 euros
Fixed Cost per Unit: 3,000 euros / 10,000 units = 0.30 euros
Total Unit Cost: Variable Cost per Unit + Fixed Cost per Unit = 1.20 euros + 0.30 euros = 1.50
euros
To achieve a profit margin of 40% off the total unit cost (1.50 euros), we can calculate the
desired profit margin:
Profit Margin: 40% * 1.50 euros = 0.60 euros
Selling Price Calculation:
Adding the profit margin of 0.60 euros to the total unit cost of 1.50 euros gives us the selling
price of the product:
Selling Price: Total Unit Cost + Profit Margin = 1.50 euros + 0.60 euros = 2.10 euros per unit
Competitive Analysis:
When analyzing competitive prices, we found that our price of 2.10€ for a package of 2 is
similar or slightly higher than some of our competitors' offerings. For instance:
Chocobolas from Reina: 1.54€ for a pack of 2
Yogomix Hacendado: 3.07€ for a pack of 6
Nestle's Mix-in Smarties: 1.99€ for a pack of 2
Justification for Pricing:
We feel that our pricing of 2.10€ is reasonable in light of our additional value, such as the
excellent nutritional content and unique mix of yogurt and pourable cereals. Because of its
health advantages and high quality, our product distinguishes out in the market.
Product Quality: We provide clients with a better product by offering high-quality yogurt made
with fresh and nutritious ingredients.
Packaging: Our product has an appealing and eye-catching appearance that makes it stick out
on supermarket shelves while being functional.
Brand: We've built a strong brand that communicates the quality and health advantages of our
products, distinguishing us from rivals.
Perceived Value Pricing: We feel that based on perceived value is the optimal pricing
mechanism for our goods. While prices and competition are taken into account, our primary
focus is on the value our product gives to customers. We may justify a higher price point by
stressing the health advantages and convenience element.

• Design the distribution strategy: how would you make the product
available to your customers?
This hybrid distribution method improves reach, control, and flexibility. Here's an example of a
distribution strategy:
Direct Routes:
Online Shop: Create an e-commerce platform or online shop where people may buy the yogurt
with cereal directly. This enables direct client contact, control over the distribution process, and
customized experiences.
Company-Owned Retail outlets: Think about establishing company-owned retail outlets in key
places. This creates a tangible presence for customers to interact with the goods and allows for
the creation of a distinct brand experience.
Indirect Routes:
Wholesalers: Work with wholesalers who can buy in huge numbers and distribute them to
retailers. This aids in broadening market penetration and gaining access to existing distribution
networks.
Distributors: Collaborate with distributors who are knowledgeable in reaching specific market
categories or locations. They can aid in the efficient and successful distribution of the goods to
merchants.
Retailers: Form alliances with retailers in Spain who have a strong market presence and reach.
Some of the previously stated probable possibilities are Mercadona, Carrefour, and El Corte
Inglés. These merchants have extensive distribution networks and diversified consumer bases.
The yogurt with cereal product may be made available to a wide variety of clients by combining
direct and indirect channels, ensuring accessibility and convenience. Control, personalization,
and direct client engagement are provided by direct channels, whereas indirect channels give
larger market reach, cost-efficiency, and access to established distribution networks. Regular
monitoring and assessment of the distribution plan will aid in making required modifications
and ensuring the product's optimal reach and availability.

• Design the communication strategy: how would you communicate

your innovation?

-Conclusions
-References