Danimal in South Africa Management Innovation at the bottom of the Pyramid Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Danimal in South Africa Management Innovation at the bottom of the Pyramid Case Solution

Introduction

This case sheds light on Danone group, which is a company engaged in the production of yogurts for the bottom of the pyramid customers to provide economic benefit to the organization by increasing their profitability by providing an affordable and high-quality product to the underprivileged and malnourished children of South Africa.

Mission

The company's mission is to provide an affordable product for the malnourish children of South Africa while providing benefit to the organization as well.

Vision

The company's vision is to provide nourishment to the children of South Africa by uplifting and providing them with the daily nourishment content, which is required by an average human to lead a healthy and fulfilled life so that the African people could benefit and the standard of their living could enhance. Moreover, it increases the customer loyalty to that level that the client demands the company's product because of its high quality and nourished value.

Core value

The core values of the company are to provide customer centered products in the market to increase customers’ loyalty and retention rates so that the company could gain a competitive edge to increase its market share and further improve its profit margins.

Strategy

The company had positioned itself in such a way that the corporation could take benefit from the weak and malnourished people mostly children of South Africa. South Africa is a country with the highest income gap in the world. The South African market was segregated into two segments wherein one section, the people required excellence and high quality, whereas the public required affordable and cheap products where the second segment had a lot of potential for any company trying to engage in it. Hence, the company targeted the bottom of the pyramid where the demand was high, and the company could potentially benefit in increasing its economies of scale and profit margins. However, the company could formulate and implement effective and efficient corporate strategies, which would support in achieving its strategic objectives set by the senior management of the enterprise. The senior management decided to formulate a plan assessing the condition of the South African population and the internal and external factor faced by the corporation and devising a product that best fulfills the needs of the targeted customers as well as performing its operations to provide economic benefit to the enterprise.

Mostly people of South Africa were reduced attributed to the enormous income gap present in the country, whereas the company targeted the bottom market, the demand was high for the income was low. Hence, the company decided to produce a product that would appeal to the white collar people of the country having good quality while being affordable for the underprivileged people of the country.

As mostly the underprivileged people lived in slums where there was little to no electricity, hence the company needed to develop a product that could store for longer without power. This approach could possibly result in the company gaining a competitive edge to survive in the market where other had failed.

The company developed and established effective distribution channels, which could reduce the transportation of the product from the factory to the shelf of the market, which would increase the shelf life of the product increasing its appeal to the underprivileged customers.

The company found innovative ways by conducting research and development to determine what was needed in the market and deficiencies were present in the underprivileged children of South Africa. Moreover, the company provided just the right amount of nourishment in their product while assessing and evaluating the taste of the underprivileged customers.......................

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Danimal in South Africa Management Innovation at the bottom of the Pyramid Harvard Case Solution & Analysis