Bop Case Study

Case Study 7- BoP

1. How much do you think Danone’s decision to set up a social business was motivated by wanting to be socially responsible versus believing the move would help its performance? Does the answer to this make any difference?

I do believe Danone’s decision was motivated by wanting to be socially responsible. Danone wanted to help fight poverty by reducing malnutrition and also promote local employment. However there were business reasons as well. For example as BoP consumers move upward economically they now have brand loyalty to Danone and have more money to spend on them.

2. What marketing pitfalls might Danone face if it tries to duplicate its Bangladesh experience to serve BoP customers in other countries?

Not all BoP customers in other countries may like Danone’s products. Other countries may find Danone’s products fit poorly with their normal eating habits and find the products visually and flavorfully distasteful. Also, there may be other competition in other countries who are also providing efforts to help the poor.

3. Assume a company, such as Danone, wishes eventually to serve all income segments within a country. What advantages and disadvantages might it encounter by serving the BoP? How might it later deal with any disadvantages?

By serving the BoP first Danone can create brand recognition in the country and also promote good will. However some higher income segments may only view the products for BoP customers and refuse to purchase the products. Danone has to learn to cater to all income segments. Higher income segments may want better packaging, larger quantity sizes, and better flavors.

4. If Danone were to add products to sell to the BoP, which of its products would be the best candidate?

I believe the best candidate would be baby food. This product falls in line with fighting malnutrition especially in children.

5. Since establishment of the Grameen Danone Food social business, the...