(Principles of Marketing)
Danone in Africa
I) Executive Summary: Short (less than one page). Written last, gives an overview of the paper.

II) Product/Service Market Description: Brief analysis of the market i.e. major competitors, trends, market share etc. This section should also be brief. Avoid too much repetition of the case materials.

III) Your Analysis: Your recommendations to resolve the issue from the case. This section should be extensive, detailed and follow the "4 p's" of a standard marketing plan.

IV) Budgets and Controls: How much will it cost to implement your recommendations? Return on Investment (ROI)? Also, what controls will be put in place to ensure everything is being implemented according to plan?

I) Executive Summary:

This paper analyzes Danone's operations in Africa and provides recommendations to address the challenges the company is facing in the region. The paper begins with a brief overview of the market and its major competitors. It then delves into an analysis of the issues faced by Danone and provides recommendations based on the 4 P's of marketing. The paper concludes with a discussion on the budget required to implement the recommendations and the necessary controls to ensure the success of the plan.

II) Product/Service Market Description:

Danone is a multinational food and beverage company that operates in over 120 countries. In Africa, Danone's main competitors include Nestle, Unilever, and Coca-Cola. The African market is characterized by a young and growing population, increasing urbanization, and rising disposable incomes. However, the market is also highly fragmented and has a diverse range of consumer preferences.

Danone's operations in Africa have been facing several challenges, including low market penetration, inadequate distribution channels, and limited brand recognition. The company has also struggled to adapt its products to local tastes and preferences, leading to low sales and market share.

III) Your Analysis:

Based on the challenges faced by Danone in Africa, the following recommendations are made:

Product: Danone should focus on developing products that are tailored to local tastes and preferences. The company should conduct market research to understand the needs of African consumers and adapt its products accordingly. This could include developing new products or modifying existing ones to suit local preferences.

Price: Danone should adopt a pricing strategy that is competitive and affordable for African consumers. The company should consider offering discounts or promotions to increase sales and gain market share.

Place: Danone should invest in expanding its distribution channels in Africa. The company should establish partnerships with local retailers and distributors to ensure that its products are available in all regions. Danone should also consider setting up its own distribution network to ensure that its products reach consumers in remote areas.

Promotion: Danone should increase its marketing efforts in Africa to raise brand awareness and increase sales. The company should invest in advertising campaigns that target African consumers and highlight the benefits of its products. Danone should also consider using social media and other digital channels to reach younger consumers.

IV) Budgets and Controls:

To implement these recommendations, Danone will need to allocate resources for market research, product development, advertising, and distribution network expansion. The budget required will depend on the extent of the changes required and the size of the target market.

To ensure that the plan is implemented successfully, Danone should establish clear performance metrics and put in place controls to monitor progress. The company should designate a team to oversee the implementation of the plan and regularly review performance against the established metrics. Any deviations from the plan should be addressed promptly, and adjustments made as necessary to ensure the success of the marketing plan.

The return on investment for the plan will depend on the success of the recommendations in increasing sales and market share in Africa. Danone should regularly evaluate the performance of its marketing plan and adjust its strategy as necessary to maximize return on investment.

- Eddie

For each of the following cases determine the ending balance in the inventory account. (Hint: First, determine the total cost of inventory available for sale. Next, subtract the cost of the inventory sold to arrive at the ending balance.)

Jill’s Dress Shop had a beginning balance in its inventory account of $44,500. During the accounting period, Jill’s purchased $88,500 of inventory, returned $5,900 of inventory, and obtained $840 of purchases discounts. Jill’s incurred $1,180 of transportation-in cost and $690 of transportation-out cost. Salaries of sales personnel amounted to $35,500. Administrative expenses amounted to $40,100. Cost of goods sold amounted to $91,300.
Ken’s Bait Shop had a beginning balance in its inventory account of $9,800. During the accounting period, Ken’s purchased $44,100 of inventory, obtained $1,380 of purchases allowances, and received $450 of purchases discounts. Sales discounts amounted to $730. Ken’s incurred $1,080 of transportation-in cost and $350 of transportation-out cost. Selling and administrative cost amounted to $13,200. Cost of goods sold amounted to $35,700.