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Marketing Principles of Danone Ltd


Marketing is a process of transferring the goods and services from producers or manufacturers to the consumers. It includes advertising, shipping and selling the products or services so as to satisfy consumer needs. By making effective and strategic marketing plan the organization will be able to compete effectively in the market. Danone Ltd. is a multinational food products corporation that provides fresh dairy products, water, early life nutrition, and medical nutrition to the consumers.


AC 1.2 Benefit and cost of market orientation

Market Orientation: This approach is based on the assumption that the customer is the king of the market. Therefore, all the marketing efforts would be done in order to satisfy the customers wants (Varey, 2002). In this marketing, organization pay primary focus to determining the consumer needs and attempting to provide such products and services to the consumers.

Benefits Costs
By approaching this marketing strategy, Danone Ltd. will be able to meet customer demand in a timely manner. It helps the company to develop and produce such products that fulfill the customer requirement.  Thus, by doing this, it can increase its sales revenues and also profitability. Danone Ltd. has to organize extensive and expensive market research in order to identify customer requirements.  Further, a private marketing firm may be hired for this purpose. Therefore, it takes very much time and cost to the company.
It helps in building customer value through developing the repetition of customers and improving brand loyalty. Increasing customer value may cause increased production cost for offering product warranties. Further, the cost may increase for maintaining the staff for product repairing.


AC 2.1 Impact of Micro and Macro environmental factors on the company

Micro and macro environmental factors impact the marketing decisions of Danone Ltd. to a great extent. Microenvironmental factors can be controlled by the organization while macro factors are external factors hence cannot be controlled by the company.

Impact of Micro Environmental factors: Suppliers, customers, competition and the general public are considered as micro factors for Danone Ltd. Suppliers have the power to control the business success. For instance, if they charge high prices for the products for the Danone Ltd. then it leads to increase the product prices and vice versa. This in turn, impacts the customer demands in an adverse manner and also the profitability. However, customers are the profit source for the company. Therefore, their buying reasons for the product will play a major role in the Danone Ltd. marketing process. On the contrary, competitors who are selling the same product or services also influenced the marketing strategy. Therefore, it becomes necessary for Danone Ltd. to make product differentiation to reap better results.

Impact of Macro Environmental factors: PESTEL analysis include Political, social, legal, environmental, technological and economic factors that affect the marketing plan of Danone Ltd. The company has to follow legal and political rules and regulations of the country for deciding the marketing plan. Technology that is used by the organization for producing the products should be upgraded on a regular basis (Ferrel and et. al., 2014). Under the social factors, Danone Ltd. has to eliminate such elements that are harmful to society. On the contrary, demographic factors help in market segmentation helps to make an effective marketing plan.

AC 2.2 Market Segmentation for Danone Ltd.

Market Segmentation: It is concerned with classifying the customers on a basis in order to identify the target customers. Different customers have a different set of requirements so it is not possible for the organization to meet the entire requirement. Therefore, it becomes important to determine the target customers through the market segmentation (Kotler and Armstrong, n.d.). It can be done through geographic, demographic, psychographic and customer behaviour benefits basis.

Market Segmentation for Danone Ltd.: It can be done through a demographic basis. Under this basis, all the customers can be classified on the basis of literacy, lifestyle, age, gender, culture and their religion in order to determine the target customers. Target customers can be determined on the basis of age and gender. The female consumers that prevail under the age class of 25-35 can be determined as the target customers. It is because using food decisions is mainly depending on female customers. They take care to provide healthy nutrition to all the family members. Thus, by identifying their requirements about the food products company can increase its revenues and also the profitability.

AC 2.4 Impact of buyer behaviour on the marketing activities

Buying behaviour consists of different internal and external factors. The customer buying and purchasing behaviour affects the marketing activities of Danone Ltd. It is very important for the company to change the marketing strategy according to the changing the purchasing behaviour. If the customers are price sensitive then organization has to set lower the prices for the product otherwise it may create adverse impact on the business sales. On the other hand, some customers want better quality product they do not pay attention to the prices. Therefore, the company should provide better quality products to them (Bose, 2010). Cultural factors tend to vary from country to country. Therefore, organization has to make a marketing plan after considering all the cultural factors. Purchasing power and lifestyle also influenced the buying decision. It affects the pricing decisions for the products of Danone Ltd. On the other hand, customers that have improved lifestyle will prefer organic food products. Therefore, the company has to enhance the consumers’ health through providing better nutrition products.

AC 2.5 New positioning for a selected product or service

Positioning: It is concerned with establishing the product image in the consumers mind so as to make product different from the competitors. Effective positioning strategy must be implemented by the company for this purpose. It is affected by the number of variables that relates to the customer motivation, their requirements and competitors action. Danone Ltd. can concentrate on certain factors through considering the organization strengths and weakness under this policy. Cost positioning strategy can be follow by the company through providing the products or services at reasonable or discounted rates (Blythe, 2013). Moreover, through upgrading the products or services using new technology also create cost reduction that helps in creates cost positioning. Along with this, Danone Ltd. also has to build quality positioning for the offered products. It can be done by providing better health and nutrition products to the consumers. Further, speed position strategy make competitive advantages through avail fast and quicker food deliveries than the other companies.


AC 3.5 Elements of extended marketing mix

The extended marketing mix involve three elements include people, physical evidence and process.

People: These elements consist of all the people that are directly or indirectly dealing with the sales operations to the consumers. It includes sales staff to the managing directors of the company. The company has to select the skilled or able people to offer products or services to the customers through recruitment and selection process.

Physical evidence: It is the way of product presentation to the customers. All the products should be placed at the right place. It helps to fulfil the customer requirement at the right time otherwise it may cause a delay to the customers. This in turn, customer might purchase from the other shop's results in the loss of customers.

Process: It consists of the delivery process that how product is offering to the consumers. Effective product offering helps to create a good mindset for the offered products or services in the customer mind (Jain and Jain, 2014). The people should satisfy all the information needs that the customer wants about the products and services. Moreover, they should describe the product quality, its importance and mitigate the customer complaints.


AC 4.2 Marketing products and services to the consumers or businesses

Marketing plans tend to very under business to business and business to consumers selling.

Business to business marketing (B2B): Marketing to the other businesses involve comparatively a small market than Business to consumer markets. Full detailed content regarding the products and services is required under this marketing. It is because the businesses are highly educated and expertise in analysing the comparative benefits of the available products and services. The buying cycle under B2B is much longer as compared to B2C marketing. Brand image is created through personal relationships and consultative selling (Cooper, 2008). Consultative selling is based on understanding the client needs and developing the trust relationship. Innovative and upgraded technology is required for marketing purpose. Quality is very important factor that affect the buying decisions of the businesses.

Business to consumer marketing (B2C): Marketing has taken place for large number of customers. It is based on convincing the consumer by selling the products according to their needs. Prices affect the buying decisions of the consumers to a great extent. Effective advertising, sales promotion, social medium are the marketing tools that helps in creating the brand image. Lifetime value is lower as compared to B2B marketing because lower the repeated sales.

AC 4.3 Difference between international and domestic marketing

International marketing is significantly different from domestic marketing. The differences are described below:

Domestic Marketing International Marketing
It is concerned with the production, distribution, promotion, and sales of the goods and services in the local market. Production, distribution, promotion and selling the goods and service undertake the global market.
The risk involved in domestic marketing is less. The risk factors are quite high in this marketing.
Less finance sources are required. Huge funds are required in this marketing.
It is less challenging for the organization. High challenges are arises under this marketing as it involves a high level of uncertainty in the market (Jones and Hillier, 2008).
The company has to follow the rules and regulations of domestic country only. It deals with several countries, therefore, the company has to follow all the country's rules and regulations.


Books and Journals

  • Blythe, J., 2013. Principles and Practice of Marketing. SAGE.
  • Bose, C, D., 2010. Modern Marketing: Principles and Practice. PHI learning Pvt. Ltd.
  • Cooper, G. L. 2008. Strategic Marketing Planning for Radically New Products. Journal of Marketing.
  • Ferrel, C.O. And et. al., 2014. marketing Principles PDF. Cengage Learning Australia.
  • Jain, A. and Jain. P., 2014. Principles of Marketing. VK Global Publications.
  • Jones, P. and Hillier, D., 2008. Marketing and sustainability. Marketing Intelligence & Planning.
  • Varey, J. R., 2002. Marketing Communication: Principles and Practice. Psychology Press.


  • Kotler and Armstrong, n.d. Principle of Marketing. [Pdf]. Available through<http://www.dphu.org/uploads/attachements/books/books_3555_0.pdf>. [Accessed on 9th December 2015].
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