Grameen Danone Foods Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Grameen Danone Foods Case Study Solution

Addressing of Challenge by the Company

The Grameen Danone Foods addressed the challenge of increase in prices of milk by increasing the price of their product which was intended to target to the poor population who couldn’t afford to avail the nutrient and healthy diet. Thus, the increase in price of their product resulted in the decrease in demand of the product which declined the revenue of the company. Although, the company had intended to serve poor peoples at low price without the intent of profit maximization but the company couldn’t afford to run on losses to provide benefit to the society. Therefore, to address this challenge, the company adopted the strategy to decrease the size of the cup and maintained the price for the people in poor areas whereas the company offered the previous large size of cup at high prices to the people of Dhaka so that the company could save itself from incurring huge losses. In this way the company addressed the challenge by eliminating losses from selling at low prices in underprivileged areas.

Assessment of the Result

The idea introduced by the Danone group CEO to Muhammad Younus, the founder of Grameen group of companies, successfully targeted underprivileged population and managed to survive in the market by competing with the companies which offered their products for the profit maximization. Although it was forecasted by the company that it will start generating profit by the year 2011 this means that the company was still under loss and was reaching to its breakeven level. However, revenue and sales of the company were increasing and the product was recognized by people living in Bangladesh whether they were rich or poor, because the product targeted every type of the population living in Bangladesh, at different prices according to the region or area where the people were situated. Hence, the strategy of the business and the capability of reducing the costs by the company enabled the company to sell their products at the price greater than the cost. Moreover, the company is serving its purpose to provide social benefit without any grant or charity but purely through managing the operations of the business.

Conclusion

In this case of Grameen Danone Food, it is identified that the company’s sole purpose to enter in the Bangladesh market was to cater the underprivileged people so that they could be saved from malnutrition by offering them a healthy product i.e. yogurt at considerably low price in comparison to the companies which offered the same product at high price because of profit maximization model applied by those companies. Moreover, the Grameen Danone Foods purpose is to target the poor areas where the problem of malnutrition is present as compared to other companies whose main objectives were profit maximization for which they targeted all the population including the people living in rural and urban areas............

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