Danimal Management Across Culture

Herve Bisseck

MANAGEMENT 7017

MANAGING ACROSS CULTURES

Danimal in South Africa: Management Innovation at the Bottom of the Pyramid

The case of Danimal illustrates the challenges of creating and managing a project in a foreign country. Danone, an international dairy manufacturer created Danimal, a yoghurt specifically targeted towards children of low income families in South Africa. This product addresses the nutritional deficiencies of children by providing a low cost yoghurt with vitamins and other nutrients. Strategically, it helps build brand equity within a segment of the population that Danone is not usually able to reach. Maria Pretorius was in charge of this project, but she has just been promoted to a different position so the case explores how the company will keep Danimal operational and whether or not they can increase its impact beyond the current results. The main issue in the case is project management in a different country after a change in leadership. Specifically, how can the company continue to develop Danimal and expand it following Maria’s departure?

The case comprehensively describes the process of developing and managing a new product in South Africa. A key part Maria’s role is understanding the idiosyncrasies of South Africa as well as the changing aspects of the dairy industry. The target consumers are people at the base of the income pyramid (see Tier 4 exhibit 1). In South Africa, this group represents about twenty-three million people, or forty five percent of the population. They earn around six hundred and twenty Rand (fifty eight dollars) each month so low cost and high value is the most important quality of the product for them. Maria is a Brazilian expat and she was chosen for her experienced professional background but mostly because she previously worked with low income population in the favelas. Brazil and South Africa share some population similarities as both countries have high levels of income inequality....