MKT4131: Activia's Marketing Strategy, Leadership & Planning

This report provides a comprehensive marketing plan for Activia, a yogurt brand under Group Danone, focusing on its business operations, macro and micro environmental factors, and industry trends. It includes a PESTEL analysis, examining political, economic, social, technological, environmental, and legal influences, and an industry analysis using Porter's Five Forces. The report assesses Activia's competitive advantages, internal environment, and value chain, recommending strategies for improvement and customer requirement fulfillment. It details Activia's STP strategies and marketing mix, including price, promotion, place, and product, while considering the impact of Brexit and other economic factors on the company's business operations in the UK. This resource is available for students on Desklib, offering access to past papers and solved assignments.

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author Note

1MARKETING
Table of Contents
Introduction:...............................................................................................................................4
Company Overview:..................................................................................................................5
Macro environmental Factors:...................................................................................................5
PESTEL Analysis:.....................................................................................................................5
Political:.................................................................................................................................5
Economic:..............................................................................................................................6
Social:.....................................................................................................................................7
Technological:........................................................................................................................8
Environmental:.......................................................................................................................8
Legal:......................................................................................................................................9
Industry Analysis:......................................................................................................................9
Competitive Rivalry:..............................................................................................................9
Bargaining power of the Buyers:...........................................................................................9
Threat of Substitutes:...........................................................................................................10
Bargaining power of the Suppliers:......................................................................................10
Threat of new entries:...........................................................................................................10
Internal Environment and the Competitive Advantages:.........................................................11
Marketing Mix:........................................................................................................................12
Price:....................................................................................................................................12
Promotion:............................................................................................................................12

2MARKETING
Place:....................................................................................................................................13
Products:...............................................................................................................................13
Tactical Changes on the basis of the industry environment:....................................................13
Conclusion:................................................................................................................................0
References:.................................................................................................................................2

3MARKETING
Introduction:
The business operations in the modern world is becoming intensely competitive and
one of the prime reason of that is seen to be entry of new organizations. There are
considerable number of industries that are seen to be populated by the entry of new
organizations and one of them, is seen to be the dairy products industry. With a precise focus
on the health consciousness of the people, the consumption of the diary products is seen to
increase in a notable manner. Under such situation, the market is seen to expand in a notable
manner and the increment in the growth of the market is seen to play a crucial role in
triggering the new organizations towards the opening of their business in the industry
(Barkema et al. 2015). However, the existing organizations of the mentioned industry are
seen to face the heat of competition and that is pretty evident with the undertaking of
different strategies from the part of those organizations in minimizing the impact of the
competition. Majority of the established organizations are seen to undertake the strategies
regarding the application of the low pricing or improving the quality of the products inside
the organizations (Barkema et al. 2015). Apart from that, some of the companies are seen to
consider the customer relationship to be their top most priority. Under such situation, the
paper is focused in the formation of the marketing plan of one such business organization
named as Activia.
The company operates in the dairy industry or more specifically sells the yogurt
product across the globe. The paper is focused in the description of the business operations of
the mentioned company. Along with that, the paper also includes a critical analysis of the
macro and micro environmental factors of the company. With a precise focus on the findings,
the paper summarizes the trends of the industry that the company is expected to manage for
conducting a sustainable business. Considering the trends of the market, the paper formulates

4MARKETING
a plan for the improvement of their marketing strategy. Along with that, the paper analyses
the sources of the competitive advantages that the company is able to achieve over the years
along with the key success factors for the business operations of the company. Apart from
this, the paper assesses the internal environment of the company with a precise focus on the
value chain of the company. The paper identifies the strategies that the company is expected
to implement for the improvement of the business operations of the company in order to
efficiently meet the diverse requirements of the customers. In addition to this, the paper
specifies the STP strategies of the company along with a precise elaboration regarding the
marketing mix of the company.
Company Overview:
Activia is considered to be one of the top brand of yogurt of Group Danone. The
company, Activia is able to spread their business across the globe in a significant manner and
that is pretty evident with the presence of the company in more than 70 countries along with
5 continents (Danoneactivia.co.uk. 2019). The introduction of the brand occurred in the year
1987 (Danoneactivia.co.uk. 2019). The company is able to establish a profitable business in
United Kingdom and the demand of the products is seen to be considerably high.
Macro environmental Factors:
PESTEL Analysis:
Political:
The selected country is seen to have bit of an ups and downs in terms of business
environment and with a precise focus on the impact of Brexit, it becomes more prominent.
However, majority of the economists in the region are seen to consider the political stability
of the country to be one of the important factor for the improvement of the economic

5MARKETING
condition of the mentioned country. The country was observed to be one of preferred
destination for the foreign direct investment for a long period of time. However, with the
occurrence of Brexit, the uncertainty inside the business is seen to increase in a notable
manner. Some of the market analysts of the region are seen to consider Brexit to be one of the
main sources for creating unimaginable chaos inside the business market. A large number of
efficient business organizations are seen to invest heavily in the various industries of the
mentioned nation such as the real estate, technology, grocery, dairy along with sports and the
significant growth of the mentioned industries over the year with limited impact of the
political forces inside the organization were observed to be one of the prime reason of
increasing overseas interest on the business market of the mentioned company. With a precise
focus on the tax rates imposed by the government, it is evident that the corporation tax rate of
the company is currently nearly 19% (Gov.uk. 2019). Having said that, the government of the
country is seen to be concerned regarding the high rate of corporate tax inside the country and
that is pretty evident with an announcement from the part of the government regarding the
reduction of the corporate tax rate for the much required minimization of the concerns of the
business organizations operating in the region in the general budget of the country. According
to the government sources, the rate is expected to lower down to 17% from the 1st of April of
2020 (Gov.uk. 2019). Hence it is evident that the political environment of the region is not
posing any sort of major constraint in the business operations of the company.
Economic:
With a precise focus on the development of the country’s economy, it is noticeable
that the selected country is the 5th largest economy in the world in terms of nominal GDP as
per the record of World Bank in the year 2017 (Worldbank.org. 2019). However, many of the
economists of the region are seen to consider the recession that the country faced in the year
2008 to be one of the major factor that affected the economy of the mentioned country.

6MARKETING
Having said that, the increased initiatives from the part of the government of the nation are
considered to be one of the positive aspect that helped the country in the improvement of its
economy over the years.
The country is seen to have some significant concerns regarding the increasing prices
of the products as a result of the weak pounds. The impact of the low value of the country’s
currency is petty prominent with the significant increment in the cost of importing goods to
the country. Apart from this, the inflation rate is seen to increase as well as it became 3.1% in
the year 2017 (Gov.uk. 2019). With a precise focus on the urge of the Bank of England in
setting the target to 2% regarding the inflation rate, it is visible that the government are trying
their level best for the improvement of the condition of the market (Bankofengland.co.uk
2019). The increment of the GDP of the mentioned nation will be significant in increasing the
purchase intention of the customers and that will be crucial for the improved business
operations of the mentioned company.
Social:
The country is seen to be pretty focused in the improvement of the wage
characteristics and that is pretty prominent with the formation of the improved labour and
employment legislations. Under such situation, the improved wage characteristics of the
people of the nation has the potential of motivating the customers in the increased purchase
which will be crucial for the profitable business operations of e mentioned company. Along
with that, the increasing concerns of the customers of the nation regarding their health is
playing the role of a motivator for the customers of the nation. The country is able to
experience a significant increment in the rate of literacy and that is influencing the customers
regarding the consumption of the dairy products owing to the increasing list of benefits of the
products such as yogurt. Considering the increasing population of the country, various
companies operating in the region are seen to have a high sales forecast and the trend is pretty

7MARKETING
prominent amongst the dairy and food processing companies. Hence, the selected company
will be able to conduct a profitable business in UK owing to the improvement in the business
operations of the companies operating in the region.
Technological:
The mentioned country is considered to be one of the most technologically advanced
countries of the world. The heart of the country, London is seen to have considerable number
of institutional and technological institutions which contributes towards a technological
environment across the country. Majority of the companies are seen to employ the modern
technology for the improvement of their business operations and the urge of the companies in
the incorporation of the technology is seen to be influenced by the increasing level of
acceptance of the technology amongst the people of the nation. Technology as a separate
section of the business is seen to be one of the key contributor to the economy of the
mentioned country. With a precise focus on the increasing level of the acceptance of the
technology amongst the customers of the nation, the company has the potential of
incorporating modern technology in their processing of their products. In addition to this, the
marketing and the promotional activities of the company will be highly influenced by the
incorporation of the modern technology. The company will have a better opportunity of
attracting the targeted segment of the customers with the incorporation of the technology in a
more efficient manner.
Environmental:
The government of the nation is seen to be considerably strict in the effective
management of the business activities of the companies operating in the nation to minimize
any sort of detrimental impact towards the environment and that is evident with the
increasing concentration of the government in the formation of the relevant environmental
legislations. The company needs to make sure that they manage the sourcing of the raw

8MARKETING
materials in an eco-friendly manner which will be crucial for the government in making sure
that they be able to maintain the ecological balance of the nation. Apart from this, the
company has to take the responsibility of making sure that the disposal of the company is
properly treated so that the detrimental impact of the disposal gets minimized.
Legal:
With a precise focus on the initiatives of the government in enforcing the companies
for formulating the appropriate business policies along with the wage and employment
characteristics, it is pretty evident that the Employment Act 1996 plays a crucial role in
making sure that the companies are aligning their business policies with the industry
standards (Legislation.gov.uk. 2019). The act helps the employees of the region in achieving
legitimate compensation for their efforts. Along with that, the concerns of the national
government regarding the formation of the appropriate activities for managing the
discrimination inside the workplaces is pretty prominent with the formation of the legislations
such as the such as the Equality Act 2010 (GOV.UK. 2019).
Industry Analysis:
Competitive Rivalry: High
The mentioned product is observed to face significant amount of competition from the
part of the other competitor brands such as Alpro, Dream, Zensoy and West Soy (Alpro.com.
2019). The excellence of Alpro in selling optimum quality soya based products along with
the capability of Dream of producing excellent quality plant based beverage, ice- cream and
frozen desserts are significant in providing tough competition to Activia. In addition to this,
the capability of West Soy and Zensoy in producing quality plant based products can be
considered to have the potential of providing intense level of competition to the products of
Activia.

9MARKETING
Bargaining power of the Buyers: High
Considering the significant ability of the mentioned brands in producing quality
products at a reasonable cost, it is pretty evident that the buyers will have notable amount of
power to choose. In addition to this, the capability of these brands in identifying the
preferences of the customers and designing the products in accordance to the appropriate
health standards is pretty significant for the customers.
Threat of Substitutes: High
As it is pretty evident that there are considerable number of brands that are capable of
providing optimum quality products for the customers in accordance to their diverse
requirements and health standards, the selected brand is expected to face a tough level of
competition in the mentioned industry. In addition to this, the application of the low pricing
from the part of the competitor brands is seen to be crucial in increasing the level of threat
that the selected brand is expected to face in getting substituted.
Bargaining power of the Suppliers: Low
With the introduction of considerable number of new organizations providing quality
supply of the raw materials, the industry is seen to experience limited impact of the suppliers.
The suppliers of the mentioned industry are seen to have the capability of providing on time
supply of the materials, adequate amount of supply along with a pricing that is affordable for
majority of the organizations operating in the mentioned industry.
Threat of new entries: Moderate.
The growth of the UK yogurt and dairy industry is considered to be one of the crucial
factors that has the potential of triggering the new organizations in opening their business in
the new industry. At the same time, the changing the political environment, increasing urge

10MARKETING
amongst the possible competitors regarding the development of the products along with the
possible increment in the commoditization of the products could be the major obstacles for
the new organizations in opening their business (Barkema et al. 2015). Hence the threat of
the new entries for the selected brand will be moderate.
Internal Environment and the Competitive Advantages:
One of the important factor that helps the selected brand in conducting a profitable
business in the British region is the excellent reach of the company to the customers. As the
company is able to serve the customers across the world with their services, the priority of the
management in opening increased number of departmental store and in triggering and
efficient online business is pretty prominent (Danoneactivia.co.uk. 2019). Under such
situation, the company is seen to have significant amount of presence in both the forms in UK
which helps them to each out to the customers with their products and services. Other than
this, the service excellence of the employees of the company is considered to be one of
fundamental factors that provide notable amount of competitive advantages to the mentioned
company. The increased number of training and developmental activities conducted from the
part of the company for the improvement of the skills of the employees is considered to one
of the important factor that helps the employees in providing quality work to their customers.
Apart from this, the incorporation of the technology in the processing of the products
is seen to be one of the crucial aspect of the business operations of the mentioned brand. The
selected brand was able to identify the preferences of the customers with the help of the
customer relationship system and the excellence of the CRM of the mentioned brand is seen
to provide the much required scope to the company in achieving the idea of the health
consciousness of the people of the region (Danoneactivia.co.uk. 2019). Hence the excellent
variety of the products of the company is seen to be notably dependent on the interaction

11MARKETING
between the company and the customers through the various marketing and promotional
campaigns along with the CRM of the company.
Marketing Mix:
Price:
The company is seen to establish a notably strong brand across the world which helps
it in attracting the customers. The application of the pricing policy from the part of the
company is one of main contributor in the creation of such strong brand awareness amongst
the customers. With a precise focus on the level of competition that the company is subjected
to, it is pretty evident that the application of low pricing from the part of company is notably
justified. All the mentioned competitor brands such as Alpro, Dream, Zensoy and West Soy
are seen to employ a considerably competitive pricing which forces the selected brand to
apply the low pricing for the products and services that they offer to the customers. As the
product is not new to the industry, the application of the price skimming would have been an
inappropriate policy for the brand. Other than this, the application of premium pricing policy
would have made the brand irrelevant in the mentioned industry as the competitor
organizations were seen to be involved in a price war. Hence it is pretty evident that the
increasing level of competition of the industry will only be managed with the application of
low pricing from the part of the company.
Promotion:
The company is observed to be more dependent on the online promotional and
marketing campaigns compared to the offline marketing activities and that is pretty evident
with the presence of the company in four different forms of the social media such as
Facebook, Pinterest, Instagram and Twitter (Tuten and Solomon 2017). The company
interacts with the customers through the mediums and along with that, the usage of the