- 1. Inclusive Social Innovation in ActionFighting Child
Malnutrition in PolandPrzemek PohrybieniukDanone Poland &
Partnership for HealthFinpro & Aalto University, Helsinki, 20
April 2012
2. Per cent of children living below national poverty linesOECD
Child PovertyLeague, 2011 3. EUs POOREST REGIONS + Poland heading
4. Polish childrenare the poorest in The poorestEUregion of Poland
-Newsweek, 07.02.2010 dzkie Gazeta Wyborcza,24.02.2010For many
Poles meat is luxuryNowa Trybuna Opolska, 20.01.2010 80 mln EU
citizens livein poverty, every 5th Pole cannot afford An increasing
daily spend number of childrenNowa Trybuna Opolska, live in
poverty, Gos Nauczycielski, 06.01.201020.01.2010 5. BOP consumers
in Poland 6. Not every Child in Poland starts a day with breakfast
children aged 6 11 do not eat breakfast24% every day during the
week 1 primary school children suffer from134kundernutrition school
classes consist of children not Almost 40% consuming the second
breakfast 2 primary school children are not eating220kproperly
enough for their development 27% mothers claim breakfast to be a
snack only 31. IQS "Share of Stomach" research, Dec 2009 for
Danone.2. rdo: Aprli 2011, Millward Brown 2009. Research in 300
primary schools in Poland, conducted by Danone and Federation od
Polish Food Banks3. TNS OBOP Research. 7-8.2011 for Danone6 7.
Almost 8 mio Poles (21%) still are from BOP Income Per EQU/ per EQU
DAILY% HHs % Population monthly in PLN 2400 PLN + 2314%10%
1600-2399 PLN1528%25%The lowest 800-1599 PLN 1043%44% income
groupamonghouseholds isthe so-called D 0-799 PLN5 15%21% group
whichamounts to 21%of allhouseholds in EQU Pyramid Income
Poland.Source: GfK HH Panel, Income Pyramid analysis, 2011 data
(full year) 8. What is our dream? Vision:Poland without child
malnutrition & resulting exclusionproblems Mission:To ensure
that low income families and children fromunderprivileged social
backgrounds have access toaffordable, high quality, enjoyable
nutritional dairyproducts.AmbitionReduce number of children
sufferingfrom malnutrition by half (from 2009) in 2015Sales &
Servings per daydistributedto D income group 9. Social Business
projectto tackle malnutritionVision & missionbased onvalues
PROVIDING. CHEAPLY. PROFITABLY. 10. We got inspired 11. Shifting
private sector thinking about the poor: the Danone Poland approach
... Traditionally multinationals have focused their attention on
the needsof the affluent consumers of the developed world or at
most theaspiring middle classes in the developing world. But many
examplesand other evidence points to an increasing opportunity for
forward thinkingorganizations to build interesting new businesses
by focusing on the needsof people with the lowest incomes. /.../The
Bottom of the Pyramid thinking redefines the traditionalconcept of
who is a customer & who is not. To be able to capitalize onthe
opportunities at the bottom of the pyramid we need to develop a
widersocially inclusive view of who our customers are in line with
our concept ofDanone as creating both social and economic value.
/.../Bottom of the pyramid social innovation challenges many of
theorthodoxies and conventions of our current way of thinking. The
very factthat we consider poor people as consumers challenges a
convention thatlow income people are not interesting. /.../Rather
than just leaving the poor to the interests of governmentand NGO
social nets the evidence is that partnerships with socialsector
organizations can create social and economic value. /.../Much of
the success of projects in this area is about real insightinto the
societies, cultures and lifestyles of different communities...Ramin
Khabirpour, GM Danone Poland September 2002, Evian 11 12. Mleczny
Start on the road to reduce child malnutritionPoland without child
malnutrition& resulting exclusion problems 1. Make the public
aware of thesignificance of the problem andits social consequences
2. Educate the society about therules of healthy nutrition 3.
Provide specific solutions basedon the Partners expertise
&experience to facilitateelimination of the most
importantbariers to healthy nutritionReduce no of children
sufferingfrom malnutrion by two in 2015Mleczny Start provide low
incomefamilies and children fromunderprivileged socialbackgrounds,
an access toaffordable, high quality, enjoyablenutritional dairy
products, for theirchildren A. Mleczny Start tons sold B. Servings
per day distributedto D income group 13. Mleczny Start on the road
to reduce child malnutritionPoland without child malnutrition&
resulting exclusion problems 1. Make the public aware of
thesignificance of the problem andits social consequences 2.
Educate the society about therules of healthy nutrition 3. Provide
specific solutions basedon the Partners expertise &experience
to facilitateelimination of the most importantbariers to healthy
nutritionReduce no of children sufferingfrom malnutrion by two in
2015Mleczny Start provide low incomefamilies and children
fromunderprivileged socialbackgrounds, an access toaffordable, high
quality, enjoyablenutritional dairy products, for theirchildren A.
Mleczny Start tons sold B. Servings per day distributedto D income
group 14. Mleczny Start is a result of works of an unusual
Partnershipacting as a unique social innovation frameworkThe
Partnership for Health is a joint initiative of three companies:
Danone,Biedronka, Lubella and a research/medical
institution(Institute of Mother and Child) who cooperateto
effectively counteract the problem of malnutrition among children
in Poland& its dramatic health and social consequences. 14 15.
The project is developed in a Partnership, where all partnersagree
to follow social business principles Based on unique business
principles business as unusual: o Lowest possible price with the
highest nutritional quality o Minimum margins & open P&L
statement o Outside annual nego or of any "usual" parameters o
Exclusivity within Biedronka with full distribution in all outlets
o Joint community & educational activities o Shared "PR"
activities for the whole time 16. All Partners contributing their
competencies & resources Owner of the concept Nutritional
profile /product formulas Fuels cooperation Expert opinion &
advice on Business / marketing/ nourishment standardscomms
Distribution & sales Production know-how In-store execution
Production 17. Launch 200617 18. Mleczny Start on the road to
reduce child malnutritionPoland without child malnutrition&
resulting exclusion problems 1. Make the public aware of
thesignificance of the problem andits social consequences 2.
Educate the society about therules of healthy nutrition 3. Provide
specific solutions basedon the Partners expertise &experience
to facilitateelimination of the most importantbariers to healthy
nutritionReduce number of childrensuffering from malnutriton by
halfin 2015Mleczny Start provide low incomefamilies and children
fromunderprivileged socialbackgrounds, an access toaffordable, high
quality, enjoyablenutritional dairy products, for theirchildren A.
Mleczny Start tons sold B. Servings per day distributedto D income
group 19. Mleczny Start on the road to reduce child
malnutritionPoland without child malnutrition& resulting
exclusion problems 1. Make the public aware of thesignificance of
the problem andits social consequences 2. Educate the society about
therules of healthy nutrition 3. Provide specific solutions basedon
the Partners expertise &experience to facilitateelimination of
the most importantbariers to healthy nutritionReduce number of
childrensuffering from malnutriton by halfin 2015Mleczny Start
provides low incomefamilies and children fromunderprivileged
socialbackgrounds, an access toaffordable, high quality,
enjoyablenutritional dairy products, for theirchildren A. Mleczny
Start tons sold B. Servings per day distributedto D income group
20. Affordable, high quality, enjoyable nutritional dairy product
21. Solid & nutritious breakfast for kids,fortified with
vitamins & mineralscrucial to child development Nutrition:
Covers 25% dailyrecommendedintake for vitamins & minerals
Consumption target: kids 6-11 yo. from lowincome families Effort
level: 11% at the launching phase4.6% currently Price: 0,18 22.
Mainline 24 23. Mleczny Start on the road to reduce child
malnutritionPoland without child malnutrition& resulting
exclusion problems 1. Make the public aware of thesignificance of
the problem andits social consequences 2. Educate the society about
therules of healthy nutrition 3. Provide specific solutions basedon
the Partners expertise &experience to facilitateelimination of
the most importantbariers to healthy nutritionReduce number of
childrensuffering from malnutrtion by halfin 2015Mleczny Start
provides low incomefamilies and children fromunderprivileged
socialbackgrounds, an access toaffordable, high quality,
enjoyablenutritional dairy products, for theirchildren A. Mleczny
Start tons sold B. Servings per day distributedto D income group
24. Mleczny Start on the road to reduce child malnutrition A. SALES
25. Sales results (in T) in 2011: +42 vs. 2010 1 6211 135 389+42%
368 +177% +11%200820092010 2011 26. 2nd breakfast on the go Milky
Start cereal breakfast Very positive nutritious opinion due to
highcontent of cereals and fiber Co-creation of product concept
with IMID Kids Sandwich shape & name to minimizerelation with
cereal bars or sweets Same pricing as semolina; 0.69 PLN (40g) 27.
MONTHLY SALES BY FORMATS (TONS)Jan & Feb-MarJan Mar Apr
MayAug-Nov 1st wkAug-Sep Mar250 2010 20112012 TONS200150
4+1GRATIS4+1 4+14+1100GRATISGRATIS GRATIS50060g monthly (t) 4+1
Stand 2010 3+1 (240G) MIX60g strawberry test caramel (60G) 300g
monthly (t) 201160g green apple 60g chocl&nuts
Sandwich2012SOURCE: INTERNAL DATA JMD MAR 2012 28. 65 000
000breakfast portionsin 5 years 29. 80 000portions sold a day! 30.
Mleczny Start on the road to reduce child malnutritionB. SERVINGS
31. 27 % = 22 000 portionsto D households daily! 32. 27% of
volumegoes to D Households45%56%66% 20% 27%7%200820092010 33.
SEMOLINA & CEREAL SANDWICH SERVINGS SOLD PER DAY(MONTHLY
AVERAGE)Servings150,000% of MS VOL.PLN/CAPITADISTR. TO D MONTH
INCOME GROUP125,0002008:16% 0 - 599 2009:20% 0 - 799100,0002010:27%
0 - 799 75,000 50,00027% 25,000 20%=14 675 =3 734 noservings to D
income groupdata yet ,0 MarOctOct Oct OctOctOctFeb Feb FebFeb
JuneJunAug Jun Aug Feb Jun Aug Jun AugAug FebApr Apr Avr AprApr
DecDec DecDecDec Dec20062007 2008200920102011 2012SOURCE: INTERNAL
DATA JMD MAR 2012GFK income pyramids new coverage 34. Mleczny Start
on the road to reduce child malnutrition REALISATION 35. Ambition:
Contribute to reduce child malnutrition by half (till 2015) via
providing Milky Start to children from low income HH80 000180,000
170 000 70 264 170,00070 000160,00060 000150,00050 000140,00040
000130,000120,00030 000 99 736110,00020 000100,00010 00090,000 9810
80,000 2006 2007 2008 20092010 F 2011 2012 2013 20142015 # servings
per day sold to low-income HH Children suffering from malnutrition
36. Breakfast givespower 37. BREAKFAST GIVES POWER & BREAKFAST
CLUBS SCHOOLS ACTIVATIONHealthy Breakfast Day Class breakfasts as a
habit Nov 8th12 edu-breakfastsTHE BREAKFAST CLUBBreakfast gives
power Breakfast clubs One day, low effort edu-event Long term,
creative educationavailable for all schools proposal for highly
motivated & Target: +50% vs 2011 (3600engaged teachersschools)
Target: 1000 schools 38. Key Success Factors Dedication and
resilience Leader makes its continuous mark People fill jump in New
ways of working -> Partnerships require humbleness &
patience Co-Creation is a painful process Beware of idealism and
do-gooding- Price per pack is key for the BOP- A well designed TV
ad can boost success- In-store operations are powerful Malnutrition
impact measurement requires specific approach and tools to assess
growth and cognitive child development 39. VISION: POLAND WITHOUT
CHILDMALNUTRITIONCOOPERATION TO COUNTERACT CHILD
MALNUTRITIONSINCESINCE 2006 2011?
