Thesis Defense Presentation - The WhiteWave Foods Company
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Transcript of Thesis Defense Presentation - The WhiteWave Foods Company
THESIS DEFENSEValeria Borovova
Anglo-American UniversityFaculty of Business Administration: Marketing Communications
Spring 2015
Prague, Czech Republic
Fresh
Produce
Valeria Borovova - Spring 2015 - AAU
Dairy
Products Organic and non-GMO
Plant-basedFoods and Beverages
Markets Served
Coffee
creamers
Focus
1. Business Overview2. The Strategic Question3. Financial Aspects4. Marketing Audit
4.1 PLEESTIC
4.2 Porter’s Five Forces
4.3 SWOT Analysis
4.4 Ansoff’s Matrix
5. Current Strategic Marketing Plan6. Critique7. Recommendations8. Conclusion
Valeria Borovova - Spring 2015 - AAU
AgendaFocus
Valeria Borovova - Spring 2015 - AAU
WhiteWave was established by Steve Demos
1977 1999
Dean Foods completed acquisition of WhiteWave
2002 2012-13
Two-step spin-off of WhiteWave is announced, and completed in 2013
Dean Foods bought 36% of the company‘s shares
1. Business Overview
Valeria Borovova - Spring 2015 - AAU
1. Business OverviewNORTH AMERICA Beverages:
• Over 40 different tastes and typesCoffee creamers:
Beverages:• 14 tastes and types(no soy-based products)
Coffee/culinary creamers:
• 4 types (expected to grow due tothe increasing demand)
• 7 kinds Desserts, yogurt
alternatives:• 48 flavors, and types
EUROPE1. Business Overview
Valeria Borovova - Spring 2015 - AAU
Beverages:• 22 different tastes and typesCreamers:• 3 culinary creamers
Desserts, yogurt alternatives:• 5 yogurt alternatives
• Purely organic• Beverages – 23• Creamers -1• Desserts yogurt alternatives - 22
Valeria Borovova - Spring 2015 - AAU
What should be the WhiteWave Foods’ strategy in order to sustain its leading position in the US, and succeed in the European market?
Changing social and eating trends
-veganism -gluten-free -lose weight trends
Green marketing
Ability to recover fromDean Foods
Governmental regulations
2. Strategic Question
New types of consumers-social justice-ecology-sustainability
Valeria Borovova - Spring 2015 - AAU
2014 2013
SALES 3,436.605 2,503.487
NET INCOME 140,185 99,041
Annual Summary Data (Millions - USD)
CURRENT RATIO 1.1 1.181
QUICK RATIO 0.494 0.642
DEBT-TO-EQUITY RATIO
1.409 0.689
INVENTORY TURNOVER
18.37 16.66
GROSS PROFIT MARGIN
33.56% 35.7%
Key Ratios
North America
Foods and Beverages+0.6%
Europe Foods and Beverages+2.3%
3. Financial AspectsPrice change
Productionvolume
Sale (tofuproduction line)
Valeria Borovova - Spring 2015 - AAU
Organic and non-GMO
Foods and beveragesindustry
Political-Legal Environmental
Social-Cultural
Economic
Technological
International
4. Marketing Audit - PLEESTIC
Valeria Borovova - Spring 2015 - AAU
Political- Legal EnvironmentalPossible labeling of GMO products
Environmental regulations• Energy• Pollution• Water
Political instability (prices on raw materials)
Unfavorable weather conditions
Emissions; carbon & climate change
Preservation of ecosystems
4. Marketing Audit - PLEESTIC
Valeria Borovova - Spring 2015 - AAU
Social - CulturalChanges in eating habits-healthy eating-environmental conciousness- “lose weight”
Number of people with:• Lactose intolerance• Heart diseases
Environmental friendliness
EconomicDecrease in disposable income
Unemployment
Unstable interest rates
4. Marketing Audit - PLEESTIC
4. Marketing Audit - PLEESTIC
Valeria Borovova - Spring 2015 - AAU
InternationalFluctuations in exchange rates
Copyrights and intellectual property rights
Strategic partner’s state of business
TechnologicalChanges in IT technologies
Data management
Success in R&D
+ Customers with special nutritional needs- Various products available
Impact of buyers – High- Increasing expectations- Price sensitivity
-Decide on shelf space-Low switching costs
Barriers to entry – Medium to High+ Organic certification+ Economy of scale-/+ Limited number of organic farms
Substitute products– Medium
Valeria Borovova - Spring 2015 - AAU
Impact of suppliers – MediumLimited number of organic farms
+ Long-term contracts with several suppliers including organic farms- Constant audit isrequired
Internalindustry rivalry –
High- Product differentiation
Is difficult+ Strong brand name
is required
End customers
Mass merchendisers
4. Marketing Audit – Porter’s Five Forces
Valeria Borovova - Spring 2015 - AAU
In-house R&D
Technological know-how
Strong Corporate Social Responsibility
Strengths
4. Marketing Audit – SWOT
Intensive market cannibalization
Reputation (Dean Foods)
High debt-to-equity ratio
Weaknesses
Valeria Borovova - Spring 2015 - AAU
Cooperation with:• Meat-Free Monday program • First vegan school in the US• Hospitals
Increasing health conscious society worldwide
Opportunities
4. Marketing Audit – SWOT
Negative social attitudetowards soy-based products
Changing percentage of household expenditure on food
Threats
Valeria Borovova - Spring 2015 - AAU
Present NewPr
esen
tN
ew
MAR
KET
PRODUCT
Market penetration• Product request app• The Grazing Mind BlogRecommended• Increase product availability by
cooperation with new distributors
Product development• Introduction of news products• Holiday edition product linesRecommended• Limited edition product offerings
Market developmentSeparate Webpage and customer care for Canadian marketRecommended• New distribution channels (Yoga clubs, gyms, schools, hospitals)
Diversification• Strategic partnership with
Donkin’ DonutsRecommended• Introduction of dairy free
ice-cream in Europe
4. Marketing Audit – Ansoff’s Matrix
Valeria Borovova - Spring 2015 - AAU
5. Current SMP
QualityLeadership
PlaceLeadership
ProductPortfolio
management
StrategicPartnerships
EnvironmentalFocus
“Green”Education
Valeria Borovova - Spring 2015 - AAU
Name Current position Position occupied at Dean Foods
Gregg L. Engles Chairman of the Board of Directors and Chief Executive Officer
Chairman of the Board of Directors and Chief Executive Officer(for over 19 years)
Kelly J. Haecker Executive Vice President and Chief Financial Officer
Senior Vice President and Treasurer
Edward F. Fugger
Vice President Strategy and Corporate Development
Senior Vice President, Corporate Development
Roger E. Thedoredis
Executive Vice President, General Counsel and Secretary
Vice President and General Counsel of the WhiteWave division
Thomas N. Zanetich
Executive Vice President,Human Resources
Executive Vice President,Human Resources
6. Critique
Valeria Borovova - Spring 2015 - AAU
6. Critique
Soy Myths by Silk Milk
Promotion of benefits of soy-based products
Valeria Borovova - Spring 2015 - AAU
7. Recommendations
Replacement of senior management who used to work at Dean Foods
Reduction of market cannibalization by repositioning the existing brands
Invest in market research to get a better understanding of target audience
Valeria Borovova - Spring 2015 - AAU
7. Recommendations
Introduction ofplant-based ice-cream in Europe
ORGANIC
DAIRY FREE ICE-CREAM
Valeria Borovova - Spring 2015 - AAU
7. Recommendations
New distribution channels – strategic alliances
Yoga clubs First veganschool
Hospitals Fitness centers
Valeria Borovova - Spring 2015 - AAU
7. Recommendations
Increase in organically produced foods and beverages
Valeria Borovova - Spring 2015 - AAU
7. Recommendations
Reduce dependency on soy-based products
7. Conclusion
Valeria Borovova - Spring 2015 - AAU
Monitor external
and internalenvironment
Focus on Global
expansion
Search for new distribution channels
“Green” positioning
through traditional and online channels
7. Conclusion
Valeria Borovova - Spring 2015 - AAU
Process
PositionParadigm
Product
• Superior products in terms of their composition and taste
• Implement the most sustainable production processes
• Effectively communicate the brand message and educate consumers about its promise.
• Communicate its values and principles in a creative and remarkable way
Valeria Borovova - Spring 2015 - AAU
THANK YOU!
Valeria Borovova - Spring 2015 - AAU
1. Why do you believe, (as you stated), that because different market forces affect the demand for dairy alternative products (products that are similar in taste and texture to but do not contain components of genuine dairy products), (Mosby, 2009), different marketing strategies need to be implemented in order to make them successful in the market? Which different marketing strategies do you recommend and why?
Valeria Borovova - Spring 2015 - AAU
2. You state that you have identified various ways how the company can improve its performance in the future including changes in corporate governance, a reduction of market cannibalization by repositioning existing brands, investing in market research to achieve a clearer vision of the new products’ potential, an increased offering in Europe with the introduction of plant-based ice-cream, reaching new markets through strategic partnerships, and focus on organically produced food.Which of these do you recommend over the others and why?
Valeria Borovova - Spring 2015 - AAU
3. How could the company win more customers especially in the Baby Boomers generation, which might be important in an aging society? What could it do to overcome the bias of older people (who are currently not considered as part of the main target group)?
Valeria Borovova - Spring 2015 - AAU
4. How do you think could the company make use of the on-going discussion about GM food and crops concerning patent wars (i.e. Monsanto and farmers)?