Failure Case Study: Danone Danio ; Failing to understand Spaniards' preferences about snacking and dairy consumption
The consumption of dairy products in Spain fell 1.9% in 2014, compared to figures from 2013, a trend also observed in the yogurt segment, where consumption decreased 2.3% compared to 2013 (Spanish Ministry of Agriculture, Food, and Environment). In addition, the market value of yogurt is expected to increase only 8% for the period 2015–19, quite low compared to the European average, which is forecast to grow 14% for the same time period. These figures confirm the financial crisis is still an important influencer on purchasing decisions, and the high importance that price has on new launches on the market. In this context, ""providing value"" is a must on new product launches, as consumers will be more attracted to those products that can offer an important benefit in return for the price paid – Something that needs to be clearly transmitted on commercial messages.
Launched in 2014, Danone Danio was a new type of yogurt, designed to be more filling than similar products and to be used as a healthy snack to consume between meals.
The product did not meet the needs of the target audience and it ignored Spaniard's food habits in relation to snacking and dairy consumption. In addition, the product failed to convince consumers about its benefits and values, making it difficult to justify its higher price compared to other dairy products on the shelf.
""Failure Case Study: Danone Danio"" – is part of Canadean Consumer's Successes and Failures research and explores the reasons for the failure of this product in Spain, considering that it was a success globally.
WHAT? Understand the characteristics of Danone Danio yogurt.
WHY? Discover how Danone Danio failed to connect with Spanish consumers.
TAKE-OUT: Learn from this failure, seeking further opportunities in the dairy segment.
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