Thursday, February 28, 2019
Management innovation in the South African dairy industry Essay
The case focuses on management existence in the South African dairy industry, describing how an innovative new yoghurt product, Danimal, was created specifically for the market at the home of the profit. It explains how management of the product line corporal the various innovation opportunities and challenges presented.The concept was initially introduced in order to pass judgment the feasibility of profitably servicing this market. However, the formulate was not simply around introducing a cheap brand to poor people but was much about creating brand awareness in the market at the base of the pyramid. It was an investment for the future.The new product took into consideration the nutritional shortcomings in the nourishment of children in this market and also allowed for the lack of lendable infrastructure electrical energy and refrigeration.The case illustrates the importance of a product being affordable, relevant and available for this market. Innovation went further th an product design and also took into account the indispensability of a lean distribution channel. This took the form of micro-distributers, referred to as Danimamas, who comprised township residents, indolent or part-time employed individuals.The case offers insights into the complexity of doing business in developing countries. The company admits that it has not been a sustainable business feigning in terms of current profitability but the value that has been gained from social marketing and long-term brand development has been great.The case concludes with the challenge of how to take care that the project continues on its upward trajectory.The objectives of the case are to encourage students to induce a better understanding of the strategies required to successfully come to on low-income markets in developing countries, the different metrics that one could consider when assessing the impact of interventions on the base of the pyramid market, and the importance of harnessin g opportunities and overcoming the challenges of management innovation.Questions to answerHow does the Danimal project shed light on and challenge the principals suggested to manage the base of the pyramid? How would you measure the success of the Danimal project?How does the approach taken by maria Pretorius in managing the Danimal product line factor in management innovation opportunities and challenges?