A report on Business Policy, Ethics and strategy Of Grameen Danone Food Ltd. (GDFL)
Session 3. Henson Danone Grameen Case Study
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Transcript of Session 3. Henson Danone Grameen Case Study
Spencer Henson (IDS)
Delia Grace (ILRI)
Building a Framework for Assessing the Impacts of Efforts to Enhance Access to Nutritious Foods Through In-Depth Analysis of the Grameen Danone Foods Ltd Case
Overview
Introduction
Aims of project
Structure of project
Grameen Danone Foods Ltd
Approach
Introduction
Recognition that ways in which value chains are structured and operate are critical to ability of the poor to access nutritious food
Recognised that need to enhance value chain functioning in terms of nutritional outcomes and impacts:– Needs new ways of thinking about how value chains operate– Need to ‘join up’ concept of diet and product-based value
chains
Been limited analysis of what strategies work best and where in terms of getting value chains to work ‘better’
Need to examine efforts to enhance nutritional outcomes and impacts of value chains in a systematic way
Value chains and diet of the poorDiet
Food 1 Food 2 Food 3 Food 4 Food 5 Food 6 Food 7 Food 8
Overall objective
Develop capacity and an analytical approach for the analysis of value chain-based initiatives aimed at enhancing access and consumption of nutritious foods by the poor and to use this
learning to develop research proposals on leveraging value chains for nutrition.
Aims
Develop an analytical approach to assessing the efficacy of value chain-based initiatives aimed at enhancing access and consumption of nutritious foods by the poor.
Apply the framework to case of Grameen Danone Foods Ltd
Draw general conclusions on the effectiveness of value chain-based initiatives at achieving sustained consumption of nutritious food by the poor.
Develop skills and approaches for understanding the effectiveness of value chain-based interventions that can be employed in a larger and longer-term research programme on value chains for nutritious foods.
Develop a proposal for a major research programme into leveraging value chains for nutritious foods
Partnership
International Livestock Research Institute (ILRI)
Institute of Development Studies (IDS)
BRAC
Grameen Danone Foods Ltd
Social enterprise formed in 2006:
– Groupe Danone (50%)
– Grameen Group/Communities (50%)
Danone provided capital of US$500,000 that is fully repayable
Focused on yogurt-based nutritious foods directed at the poor
Proximity-based business model
GAIN provided support on product formulation, social marketing and assessment of nutritional efficacy
Grameen Danone - mission
Offer a product with a high nutritional value
Create jobs
Protect the environment
To be economically viable
Grameen Danone - vision
“Improve the health of in excess of 1 million children and save the life of 15,000 people.”
Shokti Doi
Targeted at children aged 3 to 15 years
Aims to meet 30% of child’s requirement for:
– Vitamin A
– Iron
– Zinc
Needs to be consumed at least twice weekly
Fortified and probiotic yogurt
Packaged in plastic pots providing individual servings
Six day shelf-life
Now extended into range of products:
– Protein enriched
– Flavoured
– Ambient drinking yogurt
Grameen Danone – performance indicators
Number of pots sold and area covered – proxy for consumption
Number of days worked per month X number of pots sold per day – proxy for income
Grameen standards indicators for living conditions
Grameen Danone Foods Ltd – value chain
Smallholder Producers
LargerProducer
Processing Plant
Local Rural Communities
Regional Urban Areas
Metropolitan Areas
‘Shokti Ladies’ Village Stores Urban Stores Urban Stores/ Supermarkets
Kiosks
Chilled Storage Facilities
Analysis of Grameen Danone Foods Ltd to date
Lot of interest in Grameen Danone as a:– Social enterprise– BoP enterprise
Most of analysis applied business case perspective:– Business performance– Business strategy
Perspectives:– ‘Failed BoP enterprise’– ‘Success waiting to happen’
Very limited focus on nutrition:– Work on nutritional efficacy near to completion– No analysis of nutritional outcomes and impacts in practice
Grameen Danone Foods Ltd – potential nutritional impacts
Smallholder Producers
LargerProducer
Processing Plant
Local Rural Communities
Regional Urban Areas
Metropolitan Areas
‘Shokti Ladies’ Village Stores Urban Stores Urban Stores/ Supermarkets
Kiosks
Chilled Storage Facilities
Assessing the efficacy of Grameen Danone Foods Ltd
Sustained access to a nutritious food by the poor
Sustained consumption of the food by target groups at required frequency
Nutritional outcomes on target groups
Economic sustainability of the value chain
Initial appraisal of challenges
Price
Distribution
Quality control and shelf-life
Consumer perceptions and acceptability
Basis of consumer demand
Economic sustainability of the business model
Targeting
Pulling the analysis together
What value chain does or can deliver?
What will ‘make’ the poor use the product
‘appropriately’?
Approach
Framework development
Stakeholder interviews
Interviews with consumers
Quantitative analysis of consumer choice and nutritional impacts
Framework revision
Definition of general conclusions
Definition of research programme
Conceptual framework
Focuses on challenges along value chain that mitigate access of the poor to acceptable nutritious foods
Examines critical processes within and along the value chain
Examines underlying aspects of value chain functioning:– Abilities– Coordination– Integrity
Focus on strategies through which constraints are alleviated:– Key role of ‘pinch points’– Notion that locus of strategies may not be point at which
challenge occurs
Key processes in functioning of value chains for nutritious foods
Enhancing and Maintaining Nutritional
ValueConsumption
Capabilities
Signalling
IntegrityAvailability Value
Affordability
Value Creation Value Capture
Approach
Framework development
Stakeholder interviews
Interviews with consumers
Quantitative analysis of consumer choice and nutritional impacts
Framework revision
Definition of general conclusions
Definition of research programme
Quantitative assessment
Indicators of current consumer behaviour within target groups:
– Locus of purchase versus consumption
– Purchase and consumption behaviour
Stated choice or revealed preference study:
– Factors driving propensity to purchase/consume
Dietary/nutritional assessment of product as actually consumed:
– Impact on diet diversity
– Impact on nutrient intake
Stated choice or revealed preference approach?
Approaches:– Stated preference:
• Conjoint or other form of choice experiment• Contingent valuation
– Revealed preference:• Hedonic pricing• Experimental auction
Issues:– Level and nature of hypothetical bias– Literacy levels of respondents/ability to deal with complex survey
designs– Distinctiveness of Shokti Doi
Dietary/nutritional assessment
Food frequency questionnaire
Analysis:
– Dietary diversity scores?
– Nutrient intake?
– Anthropometrics?
Matched samples of consumers/non-consumers
‘Joining the dots’
Evolution of strategy by Grameen Danone Foods Ltd to address value chain constraints
Ability to access target consumers
Dynamics of consumer behaviour
Viability of up-scaling
Interdependency of distinct target markets and associated distribution systems
Utility of social enterprise and proximity-based business models
Generalisable conclusions
Challenges
Political sensitivity:
– Partners in the initiative
– Bangladesh government
Resources
Timescale
Longer-term research programme
Further develop and validate the framework
Contribute to wider portfolio of strategies to enhance the nutritional outcomes and impacts of value chains
Enhance knowledge of ‘what works where’
Focus on diverse contexts/cases:
– Crops and livestock products
– Agriculture-to-nutrition / Nutrition-to-agriculture
– Geographical coverage
– Innovative interventions
Ultimate aim is wider learning