Essay on Danone's Management Innovation in South Africa - Case Study

This essay analyzes Danone's management innovation in South Africa, focusing on the Danimal yogurt project. The company implemented a cost leadership strategy by selling individual pots of vitamin-enriched yogurt through a network of women in townships. This new business model eliminated middlemen, making the product affordable and employing women as distributors. By targeting the base of the African market with smaller sizes and zero distribution costs, Danone focused on existing capabilities and a social cause related to nutrition. The essay highlights how Maria Pretorius changed the traditional business model to effectively validate, design, market, distribute, and manage the cash flow for the Danimal product, successfully targeting the lower end of the market. The case study demonstrates how Danone leveraged cost leadership and a wholesome distribution channel to expand its consumer base and improve the economy of the country.