Literature Review: the Indian Banking System

Literature Review: the Indian Banking System Literature reviews that Indian banking system consist of a larger structure on of financial institutions, Commercial banks, foreign financial institutions. These structural transformations of Indian finance system can be divided into three parts. First, the post independence period (1947-1968). The Reserve bank of India, performed role as a supervisor and controller of finance system. RBI, dominated over all the forms of finance controls in India. In this time RBI, worked on financial stability, credit control, and regulation of interest rates and formation banking structure. The second financial repression, period the movement commenced with the nationalization of banks. This nationalization of commercial banks derives the base for changes in finance and banking system. The result into interest rate regulation and credit programmers deposit and banking working methods etc. The third period known as financial reform and liberalization period. Started in early 90s. In that period gov ernment of India was more likely to more liberalized. The three committee in 1985, vagual in 1987 and the Narasimham committee 1991. The most influential recommendations made by the committee of Narasimham regarding liberalization, consolidation and privatization in banking system. And the government of India started a financial reform era with the financial sector liberalization program. The main aims of financial liberalization program is to regulate the rates of interest, cash reserves and performance financial system consist of financial institute stocks exchanges and banks. It makes liberalization program enhance the importance of banking sector and make it more efficient and competitive. The globalization, deregularisation and privatization system emphasized on Washington consensus. These leads country to simplistic way of transforming system by functioning of market and state owned institutions restructuring. The liberalization program made changes internal economy. It restated more competitive and productive in shorter period. The liberal interest rates and reserve limits of banks resulted into stable and sound borrowing and lending market and monetary policy of government. The bank requires to keep certain amount of reserves to avoid too uncertainty an future due to competitive market another element of banking reforms is stabilization, non performing loan, which burdensome for banks are recapitalized and require standard working environment one of the most effective part is alteration of state owned banks into private sector banks. Under the government controls state owned banks recommends to sell out its public portion to private sector and consume the public pr operty in other economic project which needs more funds and these funds are taken from the privatization of state owned banks. Under the Nationalization act 1969, the largest banks were nationalized with the aim of increase in public deposits. The reason behind the nationalization of banks to grow the economy and bank network expansion. The government of India requires enhancing the economy and serving to prior areas. In 1980, more six banks were nationalized added into public share in banks to keep landing to priories areas. It was material to control on banking system and resulted into increase in priority area landing and five year plans of Indian Government. Moreover, these turned into inefficiency in banking system instead of providing equal distribution of funds. Addition banking system faced problems in 1980s these are the period of unprofitability and inefficiency and in mid 80s creates more limitations on returns and capital and reserves. These leads banks to the unrealistic performance standards. As mention above the 1991 Narasimham committee caters a influencing idea on banking sector reforms whic h idealized on interest rate deregulation, credit services and entry of new banks on Indian market private as well as foreign banks. Before the committee, interest rates were medium of subsidiary between different sectors of economy. Deregulation of interest rates was major part of making reforms that gave growth to financial savings and improve organizational finance system. On the other hands committee recommended total liberalization on deposits rates. In 2004 RBI set only rates for the savings and NRI deposits rates rest of the other deposits banks are free to levy their rates. The last major recommendation of committee was on entry of new banks in Indian market. Before it was a limited authority to the banks to do with interest rates and deposits, there were totally restrictions for new banks entry. Due to liberal view of new banks entry in Indian market seven private and twenty foreign banks started their operations in India after 1990. As per RBI (2004), the liberal aspect of new banks entry improved the quality of operation, risk management, technological changes and competition. In addition, before 1990 public sector bank distorted market system by its non profitability and inefficient management. To recover the stability in market Government inject more funds in 1993 and 1999 to liquidate the government and depositors bear loses through public sector banks. In 1995 SBI act framed partial privatization of public sector banks and SBI was the first bank to get funds in form of equity and become private sector bank. Despite of partial privatization Government decide to increase the private holding up to 49 percentage and to control banking system appointment was made for a public agent to control administrative strategies after all the changes have been made the Indian banking sector covers several changes and explore the improvement effect. In case of privatization of Indian banks there are only interest rates, credit control and deposits rates to know the changes in economy are increase in savings. It predicts the removal of deposit policy in baking will lead to increase in capital availability these can make changes in private sector capital formation. The interest rates make vary forms the fixed deposit rates, lending rates are increased and steadily decline in 1990 which effect on todays market. The Repressioninst policy reduction improves the risk management of banks it is an indication of liquidity. The liberalization treated as an instrument of financial policy reformation of credit rates and statutory lending rates the division of two rates in minimum and maximum can gradually effect the repressive of monetary policy. As the liberalization program aimed to make banks more efficient and productive to compose the efficiency of banking sector based on technical efficiency, scale and scope efficiency called parametr ic and non parametric efficiency. The parametric methods considered banking returns and input like production and profit, cost, revenue to know how effective bank is performing. In Indian traditional economy needed to lift the banking sector through technological changes, global market, economic pressure and bank crisis forced to change in way of doing business in traditional way. It helps in increase in competition at local market by removal of interest rates on current account, deposit rates. More competition enhanced the service of banks in free services, capital formation and mergers. The Indian economy faces various challenges due to privatization. First, the government unable to consider the running of nationalized banks during 1997-1998 crises. In this period government cannot pressure the security holders to disclose their holding and these creates problems in negotiation of foreign bank partners and for debt forgiveness issues. Though state owned banks serves qualitative and respectable task in banking sector. In India, state owned banks only work on remote areas like rural and urban banking. Alternatively some credit unions and financial institutio n also seems, in remote areas state owned banks encourage small and medium enterprises by lending programmers, in crisis time state owned banks has quick time to deal. The cycle time is quicker than private banks some time lack of local infrastructure for finance, government organization only is the way to get hands. These are the way state owned serves public and make quality service against less return against service. Privatization Experience and Issues The privatization in recent years, the way to sell out some states to some financial institutions foreign organization. Other way government directly sell its parts to public in form of equity in stock market. These method might be useful to countries state owned banks because lack of supervision of bank management, another thing is to transparent operations before it privatized, because of they need to know the what they are buying. The bad factor during privatization was bank commercialization and collection of loans. Globalization suggest the more effective completion partially nationalize banks therefore moved to fully privatized in short period for operational efficiency later on the issue arise on reserving some share for state. The share of state in private banks derives the powers to influence the decision making and strategies of banks. The way accepting a state ownership becomes a better option. Mergers and consolidation and efficiency The banking system consists of various institutions in size, ownership, competitive profitability, structure and technology. The relationship between profitability and size of bank is relative, smaller number in having loss making institution and lager organization has very advantage over small organization like return on capital. But smaller banks have good efficiency in work while large organization. Above state bank consolidation is new phenomenon for competition due to entry of foreign banks, privatization and deregulisation. Crises deregulisation and globalization causes increase in the foreign banks in economy, there is no doubt that the region has become more open for foreign has become more open for foreign banks. The foreign bank entries enhance the quality of banking services foreign participation load to foreign international trade and membership of the European union and these will turn domestic banks into foreign banks and assist home country to provide service abroad. As foreign banks came in India, they serving large corporate customers and no service for ruler and small sized organization they are unattended. The risk of pricing is in foreign banking is more likely. If risk was proper than organization have advantage because the foreign banks entry is dangerous because of distribution and a market imperfection reasons. There is a plenty of literature on the bank efficiency but in the developing country it concerns to banking performance on maintenance acquisition and regulation and mergers. There are various hypothesis to measure the efficiency of banks but due to mix results if enable to derive the proper result. Deregulation in various country will goes very well in developing country. The mergers and acquisitions are improves the efficiency. The improvement efficiency is mainly generating higher output than input, revenue than costs. Micro economy theory provides the framework for effective banking, in the developing country due to lack of completion. They started reforming economy with deregulation. Deregulisation give more freedom to banks and thus if increase in bank cost and technical progress of liberalization. The state ownership banks aims to fulfill public aims and government plans. The non economic goals such as provide low rate leading, loans and interest rates stability. It called public owned bank but there is no access for common people to participate in management actions. The collective decision making process lead management to inefficient last the state bank is the support from government and gets benefit to inefficient management. Over the last two decades. Many countries are availing to go with private state owned banks. Privatization is the way of improvement in efficiency. Privatization brought drastic changes in ownership of Indian banking sector from government to private, private and local control to foreign control. Privatization deals in change in corporate field and looking for improvement. Ownership push the organization toward divestment mechanism to improved management structure. Berger argues that the examination of bank efficiency is varied in form of static, dynamic and selective on performance. Even though, bank efficiency is improves any in different structured banks. By Appling a vital concept of bank efficiency gives more detail literature for privatization liberalization affect and foreign institution participation with respect of developing economy and Indian finance system. The financial reforms provide so many improvements in Indian economy. First, improvement In financial structure of banking industry there is more sophisticated and define process carried between intermediate banks and financial institutions. The lowering the statutory-emption had lowered and that turn to provide more finance for commerce in India. The structure of intrest rates become more gradual and independe nt so many banks can provide better loans and landing system makes easy and vast so financial exchange become fast and reliable. To enhance the performance of public sector banks are recapitalized and put some restrictions on management and allow public agents in area of operation so that it become more trustworthy. The micro prudential measure improves the bank working conditions to cope up with international standard practice the result banks improves their working conditions in just 90 days and gave more competitive and safety. The liberalization process gives many good results but it has many drawbacks too. According to world development report , the liberalizations in order to count the risk as a market reforms whereas the financial conditions are differ from the expected. The crisis of 1992 many banks were affected and these resilience filled by the government in sense of pouring money in deficits. The reforms brought technological changes in banking sector many new foreign ba nks had fast network of working and technology, network payments, electronic transfers these turns into best banking practice developed.

Free Flow of Capital in Developing Countries Essay -- Essays Papers

Free Flow of Capital in Developing Countries Today, there are very few who argue against free trade, however, the idea of capital mobility to and from developing countries is a highly debated issue. Capital is the financing(money) or goods, used to produce other goods. Capital can further be split among capital debt and capital equity/finance. Equity capital or financing, is money raised by a business in exchange for a share of ownership. Ownership is achieved through shares of stock. Debt capital is represented by funds borrowed by a business that must be repaid over a period of time, usually with interest. Typically, short term debt is of less concern because if stockholders sell out, the value of the stock falls and the stockholder is hurt. The company isn’t necessarily hurt now, but will have a difficult time raising funds through future stock issues. Debt is of more concern. If short term debt isn’t renewed, than the company has to liquidate assets in order to pay. Therefore, capital mobility is the free flow of liquid investments from one country to another. Now although capital mobility could finance the world’s developing countries, increase wages, and create a more competitive world market (which is very beneficial to consumers); there are negative affects including income inequality, corruption, and bad capital control management . This paper will tackle both the good and bad aspects of capital flows in order to further analyze the theory of capital mobility. Before continuing it is necessary to look at some of the background and purpose of capital flows. Only until around 1980, have developing countries seen this idea as positive. Before, there was the feeling that with foreign capital a... ...s should absolutely approach with caution, because capital flows are too unstable to gamble with. Resources - Class Lecture Notes: â€Å"Trade and Capital Flows† - Class Handout: â€Å"Trade and Employment† - Hartwell, A. Christopher. Policy Analysis: The Case Against Capital Controls. The CATO Institute. Washington D.C. June 14, 2001. - http://econ.cudenver.edu/beckman/econ4410/stiglitz-world%20crisis.doc - http://quote.bloomberg.com/apps/news pid=10000039&sid=aFNcMq9i7rx0&refer= columnist_derosa - http://www.bepress.com/ev/vol1/iss1/art1/ - http://0-firstsearch.oclc.org.skyline.cudenver.edu/WebZ/FSFETCH?fetchtype=full record:sessionid=sp07sw02-58421-e0iyjwrgp5q5z:entitypagenum=3:0:recno=1 :resultset=1:format=FI:next=html/record.html:bad=error/badfetch.html:entitytop recno=1:entitycurrecno=1:numrecs=1

Investment and Japan Essay

1. Why, historically, has the level of FDI in Japan been so low? 2. What are the potential benefits to the Japanese economy of greater FDI? 3. How did the entry if Walmart into the Japanese retail sector benefit that sector? Who lost as a result of Walmart’s entry? 4. Why has it been so hard for Walmart to make a profit in Japan? What might the company have done differently? Japan, an island nation on the Pacific ocean, has none of the natural advantages that have facilitated cross-border trade and investment in other parts of the world. Also, Japan was badly defeated in World War II and occupied by Allied forces at the end of the war. Japan was totally closed to foreign investment during that period. The Japanese government sets up important barriers to reduce the foreign direct investment into Japan to develop the country by avoiding other countries’ financial shocks. Additional, the high rental and labor cost impact the Foreign Direct Investment level too. Japan as a host country, a greater FDI can result from the resource-transfer effect, employment effects, balance-of-payments effects on competition and economic growth. Walmart entered the Japanese market by purchasing large stakes in similar retailer Seiyu. Walmart helped Seiyu reorganized the structure, implemented point-of -sale and SMART inventory tracking systems, supply-chain and distribution management systems,etc. Walmart gave a free American strategy lesson to the Japanese retail industry. Walmart also increased the the level of competition in Japan, it resulted in stimulating the developing retail industry and lowering the price of products to improve economic growth in Japan. But Walmart as a foreign investor in Japan did not make profits from 2000-2010. During the years of losses in Japan, Walmart still believed the American style retail store can grow anywhere in the world. They have made similar mistakes just like in Germany. Walmart failed to grasp the fact that the consumer and retail environment in Japan has a different culture. In Japan, people puts loyalty on a highest value. It’s difficult to pursue the consumers from local â€Å"7-eleven† to foreign â€Å"Walmart†. â€Å"Every day lower price† strategy is not enough power to change Japanese consumers buying  behavior. Japanese consumers tendency to buy smaller quantities and good packaging or appearance of goods. The quality of product also play a huge role in their purchasing decisions. For Walmart, better understanding of Japan’s culture and improving relationship with supplier may help them move forward to success in Japan.

About danone uk limited - Free Essay Example

Sample details Pages: 9 Words: 2621 Downloads: 2 Date added: 2017/06/26 Category Statistics Essay Did you like this example? EXECUTIVE SUMMARY Activia and Actimel are the two probiotic yoghurt brands that are currently being marketed by Danone in the UK. The current market strategy for these products is that they are healthy food and part of a healthy lifestyle. Some modifications were made in the currents marketing strategy, which include modifying the current target market for both brands. These brands have the potential to make Danone UK Limited the market leader in the United Kingdom. Don’t waste time! Our writers will create an original "About danone uk limited" essay for you Create order 1. DANONE: THE PROBIOTIC BRANDS; THE PRESENT AND THE FUTURE. Danone UK limited, is a UK based subsidiary of the French company group Danone, which has its organizational headquarters situated in France. Danone UK is into the production and marketing of dairy products and water. Most of group Danone brands are household names in the United Kingdom and internationally, and they include the probiotic dairy brands; Activia and Actimel (DATAMONITOR, 2009). The dairy division of the Danone group, is a leader in the production of dairy products worldwide, and presently holds about 22% of the dairy products global market share (DATAMONITOR, 2009). Group Danone has different subsidiaries in varying countries and each brand has a unique attribute and name that appeals to the region or country where they are marketed. 1.1. SWOT ANALYSIS The strength, weakness, opportunities and threats that are currently influencing Danone UK are highlighted in the table below. Table: 1 STRENGTHS * Health conscious company * Innovative Products and marketing * Customer oriented Research focused WEAKNESS * Lack of long term planning * uncorroborated claims OPPORTUNITIES * Health consciousness among populace * Growth in awareness on digestive health Probiotic bacteria awareness THREATS * New entrants * Increased competition * Stores own brand * Increase in cost of milk and production * Consumer unawareness on benefits of good bacteria * Government regulation on health claim of probiotic brands 1.2. PEST ANALYSIS GRID The grid below highlights some of the factors that affect the market presently and therefore gives an idea on the way forward in the present market environment. Table 2: POLITICAL ECONOMIC SOCIAL TECHNOLOGY Government debt Recession Unemployment Trends in Research Government policy Research sponsorship Advert withdrawal E-commerce Cold weather New technology Migration 2. MARKET ANALYSIS: UK YOGHURT MARKET The UK yoghurt market comprises of the spoonable yoghurts (pots), drinkable yoghurt (drinks) and tube yoghurts. (Mintel Oxygen, 2009) The market share value of the drinking yoghurt has seen a decrease in recent years as more people turn to more healthy option of yoghurt products that more often come in pots and tubes; the tube yoghurt is more attractive for children as parents can pack it into lunch boxes for them, thus this area has also seen a significant growth in recent years. The pots yoghurt market saw an increase in sales as they offer fewer calories and some come with health claims that lead to an increase in sales, the most active category in recent time has been the probiotic or healthy yoghurt category (spoonable) (Euromonitor,2009). Development of new products and increase in sales in some categories of the yoghurt market have mostly been due to health issues, as the behaviour of consumers suggest that they prefer a healthy lifestyle and also love to indulge, thus the development of new products that offer both a healthy and indulgence option. This trend has lead to the improvement in performance of the yoghurt market generally, in comparison to other desert options. The yogurt and Fromage Frais (pots and tubes) currently hold about 15.60% of the dairy market share in the UK (Data Monitor, 2009). The pots and tubes are the best performers in the market, and they hold about 85% of the market share, while the drinking yoghurt has been largely affected by competition from other markets that offer or claim to offer a more healthy option in form of drinks e.g. smoothies and fruits juices (or soft drinks). 2.1. MARKET SEGMENTATION Majority of the market share for 2008 as seen above was held by top manufacturers which include Muller, Danone and Yoplait. Supermarkets own brands are gradually gaining a large percent of the market share, with other brands constituting about 27% of the total market share. The probiotic yoghurt brands of Danone UK are doing well in the market currently, and account for about 19% of the UK yoghurt market share. 2.2 COMPETITOR ANALYSIS Muller dairy UK is Danone UK main competitor and the current market leader. Muller has being the market leader for a while and they function across the entire yoghurt category. Some of the Muller brands are not doing so well in the market, with some consumers perceiving it as too sweet and unhealthy, but with recent brand repositioning, re-launches and new products introduced in the market they are able to continually hold onto the number one spot. Weakness: The major weakness of the Muller brands is that consumers still perceive them as unhealthy, as they usually have high sugar content (Mintel Oxygen, 2009). 2.3 COMPETITIVE ADVANTAGE: Danone Has exclusive patent on the friendly bacteria (Lactobacilli casei Imunitass) used in addition with other bacteria in Actimel. All probiotic brands by Danone are considered healthy, hence the first choice for consumers who prefer a healthy way of life. 3. BRAND POSITIONING Probiotic yoghurts contain live bacteria that positively aid the consumers digestive system by improving microbial balance in the intestine. The probiotic brands Actimel and Activia are in the spoonable (Activia), drinking (Actimel) and the healthy option categories. In comparison, some major competing brands are perceived as unhealthy with great taste and very sweet e.g. Muller brands are perceived as unhealthy due to the sweet taste and the fact that the brands are positioned as all day snacks (Euromonitor , 2009). PERCEPTUAL MAP Healthy Actimel Activia Muller Vitality Poor taste Great taste Muller Light Unhealthy 3.1 ACTIVIA Activia is in the class of spoonable yoghurt (pots), and is in the healthy brand category. It contains the probiotic bacterium (friendly bacteria) that helps in improving the functions of the digestive system. Activia comes in fat free and low calorie flavours that consumers see as a great benefit; thus Activia has seen a rapid increase in market share since its launch in 2002, and it is one of the best performers in its category due to innovation which comprises health benefit and indulgence (Mintel Oxygen, 2009). It has a wide range of flavour in packs of four and eight pots and recently it has been proposed to introduce single pots for people with a busy lifestyle or people on the go. 3.2 ACTIMEL This is in the drinking yoghurt category, and contains the probiotic bacteria L.casei Imunitass; its main function is boosting and providing support for the immune system. Actimel has 13 different varieties, and 4 have zero percent fat content. Actimel aids the bodys immune system by fighting off germs when consumed on a daily or regular basis (Danone, 2009). 3.3 BRAND PERSONALITY GRID The consumer perception of Activia and Actimel are highlighted in the personality grid below (Table 3 and 4). ACTIVIA PERSONALITY VALUE BENEFIT ATTRIBUTE Physically fit Quintessential Indulging Wide variety range Healthy Innovative Convenient Handy Delightful Trustworthy Rich taste Relieves bloating Reliable Variety ACTIMEL PERSONALITY VALUE BENEFIT ATTRIBUTE Healthy Nutritious Boost immunity Wide product range Tasty Trusted Rejuvenation Different flavours Immunity Reliable 4. TARGET MARKET AND STRATEGY: THE PRESENT AND THE FUTURE Target Market Activia Women ACTIMEL Senior citizens Adults Rest of population 4.1 MARKETING STRATEGY (PRESENT SITUATION): The Probiotic brands are currently marketed as health beneficial products, with the emphasis on good bacteria, and the need to see the brands as part of a healthy way of life and not just as a snack. 4.2 ACTIVIA The current marketing strategy for Activia focuses solely on women and it was put in place in response to consumer demand for healthy products. Activia is positioned as an indulgent healthy food that helps women in reducing the feeling of being bloated especially after meals, and also aids in regulating the function of the digestive system. In a recent advert a woman is seen feeling more physically fit and flexible after having a pot of Activia. An interactive website has also been set up for Activia and the content is specifically for women as it gives them health tips and encourages them to share their story on the benefits of Activia. The website has a health based outlook that further reinforces the fact that Activia is a healthy brand. (Danone , 2009) Adults on the go are gradually being included in the current strategy, with the plan to introduce single pots of Activia (Mintel Oxygen, 2009). 4.2.1 DRAWBACK This strategy targets only the women in the population, and in some ways most women in a particular age demographic i.e. 25 and above. Although this strategy has been successful so far; what steps can be taken to prevent the present segment of consumers from shifting loyalty to a brand that is healthy, of good quality and is priced lower. What can be done to increase the present target market, as large segments of the population which include children, active adults and the elderly have not been included in this strategy. 4.2.2 MODIFICATION As manager of the probiotic brands of Danone UK Ltd, I will increase the target market to include families and the elderly. The family market will include children and men, while the elderly include men and women from age 55 and upwards. This segment of the population (55+) is going to see a rapid increase in sales and market share in the future as the population ages, and with the right marketing mix of price, distribution and place, this target segment offers great potential of growth for the future of the market (Mintel Oxygen, 2009). The family segment will come with a rebranding option that will target the women who have families. As women do most of the household shopping, when they buy Activia for themselves, they will have no option but to buy for their families. More flavours and packaging should be introduced to appeal to children and their parents. The current marketing strategy for the women consumers also have to be continued and improved to make the customers remain even when offered cheaper varieties, and to do this, loyalty programmes have to be introduced i.e. where consumers gain points for each pack of Activia bought. Although this might seem expensive for the company at the start of the program, as it has to be in conjunction with supermarkets, but in the long run it will be advantageous as we would have gained a loyal customer base. The present website also has to be improved to include healthy recipes tips as women love to cook healthy for their families. An interactive educational website should be introduced for children; activities on the website can include opportunity for children to pick their favourite Activia flavours, competitions that will include one where kids get the opportunity to mix different fruity flavours and submit their entries online, with opportunities to win prices. When children are loyal to their favourite brand (Activia) parents will have no choice but to also become loyal, in that way we also get families to be consumers of the Activia brand. Thus our market share will see an increase that will come from this segment of the population. 4.5 ACTIMEL The current marketing strategy for Actimel is capitalising on the immune system boosting characteristic of the probiotic bacteria in the drink and also the claim that it improves the body capacity to combat stress for people with busy lifestyles, through the action of the bacteria in the gut. In recent times, the company has also aimed to encourage the use of Actimel by patients in the hospital as a recent study shows that Actimel has the capacity to aid patients fight off infections. Advertising and promotional activities by Danone on Actimel has helped to boost the image of this brand by placing it as a brand that supports active lifestyles and is also healthy. 4.5.1 DRAWBACK An advert for Actimel was recently banned by the Advertising Standards Authority (ASA), that the claims made by Danone on Actimel (that it boosts the natural defence of children) were not supported by sound scientific evidence (BBC, 2009); a few consumers will brand Actimel as untrustworthy. To restore the image of Actimel, scientific evidence that proves that it helps boost the natural defence of children has to be peer reviewed before publishing. Although some health professionals have said it improves immunity, this has to be reinforced so the customers can have trust in the brand. The target population for Actimel has to re-defined, as it is currently vague (covers the whole segment of the population). 4.5.2 MODIFICATION The target market for Actimel has to be clearly defined, as it seems to target all the members of the population at the moment. The population has to be segmented, and each segment given a definite strategy and marketing plan that is specific for it. The proposed target market will be segmented as shown in fig 4. There is a lot of potential in targeting the elderly and hospital patients, as they need things to help boost their immunity, and Actimel can perform that function, hence there is an opportunity of growth here. The current market strategy of positioning Actimel as a healthy lifestyle choice is great, and will work well with all segments of the population especially the adults with an active way of life. The brand should be repositioned in the children segment, as the problem with the advert can affect sales that are generated. Thus positioning it as a healthy option for children, that offers the benefit of friendly bacteria, with proven scientific studies will enable Actimel regain the trust of consumers from this segment of the population. 5. CONCLUSION Actimel and Activia have been doing well so far in the UK market, and have the potential to do better in the future. The current marketing strategies for these two brands need to be improved on. The segmenting of the target population for Actimel will give a clearer view of the market strategy put in place to enable it gain more market shares from competitors like yakult and Muller vitality. The target market for Activia will need to be expanded in order to enable Activia gain market shares in the mainstream yoghurt market. It is perceived as a healthy brand, thus it has the potential to get more market share if the target population is increased. In the future the customer base of Activia and Actimel will remain loyal as loyalty schemes will be introduced to enable them stay faithful to the brand as long as the option of indulgence and healthy living at the right price is offered. New flavours that will keep consumers interested and innovative products will definitely make and keep Danone as a leader in the UK yoghurt market. References BBC. (2009, October). Healthy yoghurt advert banned. Retrieved December 1, 2009, from News Website: https://news.bbc.co.uk/1/hi/uk/8305918.stm Danone . (2009). Danone Activia. Retrieved December 29, 2009, from Your digestive health matters website: https://www.danoneactivia.co.uk/ Danone. (2009). Actimel L.casei Imunitass. Retrieved November 30, 2009, from How Actimel Can Help You: https://www.actimel.co.uk/Benefits/Default.aspx Danone UK Ltd. (2008). Danone. Retrieved November 30, 2009, from About Danone Mission Website: https://www.danone.co.uk/mission.htm DATAMONITOR. (2009). GROUPE DANONE. London: Datamonitor. Euromonitor . (2009). Yoghurt United Kingdom. London: Euromonitor International. Mintel Oxygen. (2009, May). Yogurt UK May 2009. Retrieved November 27, 2009, from Market Share and Product Positioning website: https://academic.mintel.com/sinatra/oxygen_academic/search_results/show/display/id=393957/display/id=460332#hit1 Mintel Oxygen. (2009, May). Yogurt UK May 2009. Retrieved November 27, 2009, from Segment performance website: https://academic.mintel.com/sinatra/oxygen_academic/search_results/show/display/id=393957/display/id=460332?select_section=460331 Mintel Oxygen. (2009, May). Yogurt UK May 2009. Retrieved November 28, 2009, from Table of content website: https://academic.mintel.com/sinatra/oxygen_academic/search_results/show/display/id=393957/display/id=460331?select_section=460345