Danimals Case

Question 1

Base of the Pyramid (BOP)

Answer 1

Describes a large segment of low-income consumers.

Characteristics:
- 4 billion people
- Many consumers
- few competitors

Question 2

Social Business

Answer 2

• create and sustain social value
• constantly innovate
• accountable to the community

Question 3

Opportunities in Africa

Answer 3

• individual consumption in Africa is higher than in India or Russia
• consumers prioritize quality
• 33% of the adult population is BOP

Question 4

Danimal Opportunities in SA

Answer 4

• large low-income population
• untapped market for yoghurt consumption
• advertising and brand loyalty

Question 5

Danimal Challenges in SA

Answer 5

• product development
• distribution channels
• managment turnover
• not profitable

Question 6

Red Ocean Strategy

Answer 6

• cut throat competition
• existing market space
• either differentiate or reduce costs

Question 7

Blue Ocean Strategy

Answer 7

• enter unknown markets
• focus is on the buyer not the competition
• differentiate and reduce costs
• prioritize sustainability

Question 8

Challenges for MNEs (5)

Answer 8

• reach many at minimal costs
• meet consumer tastes
• build distribution infrastructure in poorest areas
• create new markets rather than entering pre-existing ones
• establish TRUST