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The Dannon Company

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THE DANNON COMPANY: MARKETING AND CORPORATE SOCIAL RESPONSIBILITY (A)

Question 1) Should Dannon proactively communicate its CSR activities to the public? Discuss pros and cons of your decision.
Answer: Dannon should not communicate its CSR activities to the public. Dannon and Yoplait are the two leading company in US with Yoplait have 35.4% market share and Dannon is second with 28.9% market share. Dannon is not too far behind Yoplait and so they don’t need to do much to become the number 1 player in America. Also, the consumers can gather more knowledge about the CSR activities of Dannon through the Dannon cares section on the website and the 16- page Corporate Social Responsibility Overview. So, it is not that the consumers are fully unaware of the company’s CSR activities.
The pros of not communicating the CSR activities are: * When they will spend their marketing budget on TV ads, in-store shopper marketing tactics, branded websites etc. people will become more aware about the high health benefit products that they provide and thus increase the consumption. * Communicating its CSR activities to the public will not be of much benefit because consumers are more concerned about how much satisfaction the product can provide and how it impacts their life. * As the consumption increases, the loyalty will increase and there will be long-term sales impact. * Sometimes the consumers may get confused as to which company is promoting its CSR activities and competitors may get an undue advantage because of this Halo effect. This situation can be avoided by not communicating the CSR activities. * CSR activities are internal initiatives and not for public relations. Not emphasizing on the CSR activities too much will help the company to increase their credibility. Otherwise

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