Case Name :      Product Innovation at Aguas Danone

Authors :           Javier Jorge Silva, Femando Zerboni, Andres Chehtman, Maria Alonso

Source :             North American Case Research Association (NACRA)

Case ID :            NA0190

Discipline :        Marketing

Case Length :    31 pages

Solution sample availability : YES

Plagiarism : NO (100% Original work)

Aguas Danone de Argentina (ADA) faced an adverse scenario. Argentina was undergoing its worst economic crisis in history, and bottled water sales were dwindling (replaced by utility network running water). The company needed to boost its revenues through new, innovative, more value-added product development. Argentina displayed a significant interest in fitness. By means of several market research studies, ADA managed to identify a segment whose needs were unmet by existing products and brands. New product launches were planned to target that segment. This case describes the dilemmas faced by ADA and the decisions required to formulate and pursue a strategy for new product launching and brand extension in adverse scenarios. More specifically, this case provides an opportunity to discuss how a new product category can be created to address market downturns. This case describes events that took place in 2002. Research interviews were started in 2004, but the case was published in 2009-12, because Danone delayed its disclosure permission for strategic and competitive reasons. On account of its richness and original contents, the authors decided to write the case despite this delay.