The report is about the social business which is a joint venture of Grameen and Danone. It is a social business and their main motto is to decrease malnutrition of kids in Bangladesh. The report is based on the primary information.

1. Field Visit to Grameen Danone
Grameen Danone is situated in Betgari, Banani, Shajahanpur, Bogora. Grameen Danone is a joint
venture of Grameen and the French company Danone. They are producing micro-nutrients fortifies
yoghurts for children and the product name is “SHOKTI PLUS” The whole production plant is
standing in 91476 square foot plot. They started their production form 2007 and now the whole
business run independently. It is a social business and it maintained all the 7 principles which is
important to become a social business. Their main vision is to give a nutrition based food for rural
and poor children. Children need iodine, zinc, vitamin A and iron for mental and physical growth.
Shokti Plus yoghurt fulfill 30% of this nutrition with the flavor of vanilla, strawberry, mango and
normal. If any child consume it, he/she will get 30% nutrition of the whole day. Every children
under the age of 3-12 years can consume it. As it is a social business the investors are gradually
taking their invested money back but they can’t touch the dividend. Dividend will re-invested to the
business to expand it.
The 1st
process is to collect the raw milk for the yoghurt, it is held in Saraikandi, Bogra. They
collect the raw milk in two ways, one is cow farmers come to the milk collecting zone and sells
their milk another way is, they have 2 salary based van. Their work is to collect all the raw milk
from their own framers. In returns they pay per litter and provide the injection, vaccination, and
medical treatment for the farmer’s cows. The two van driver check the CLR, lactometers, fat
constitutes and collect 500 litter per day. After testing the raw milk they send it to the production
house.
After collecting all the raw milk, it is send through the pipe into the testing tank. If the test result is
positive, the milk is send to the balance tank for PHF. After PHF balancing, it is send to the pre-
pasteurizing tank for 75℃ to 15℃, then the whole milk gone for the pasteurizing for 24hr 3000℃.
The next step is to mixture it in the mixing tank for about 2500℃, then it sterilizing for 122℃ to
42℃ for 1 minute. After the sterilizing, it is send to fermentation for 7hrs after culture. The Shokti
Plus yoghurt is smooth and soft and the reason behind it is after fermentation they send it for
braking. After braking they are send to the packaging and then send for cooling. After cooling for
16 to 24hrs they are ready for the quality check. After all the process they are send to the supply
chain for sell.
They are following offline marketing model for the promotion. They are using banners, boards and
one to one meeting with mothers. Though they have TVC but currently they stopped it for the high
cost. They are arranging a meeting day with the mothers in the school and introduce them with the
goodness of the Shokti Plus yoghurt.
Shokti Plus Yoghurt

2. The human resources is cheap in Bogora which is a plus point for them and the workers work in
three shifts A, B and C. The company is still struggling because they did not meet the break-even
point yet but their operation plant is stable. They maintain a very clean and healthy environment in
the product plant. Shokti Plus yoghurt are selling all over the Bangladesh and the price of 50gm is
only 10 taka and it expired 17 days later from the manufactured day. 80gm is selling in modern
tread at the cost of 40 taka only and it expired 23 days after manufacturing day. As the expired
product can harm the human body and as well as environment, the company collected all the sold or
distributed products with the replacement of new products and bring back it to the production house
and destroy it. In these case their cost gets 3 times higher than the selling price.
In the rural area the selling of the product gets a bit complicated because they have to teach the
illiterate mother about the yoghurt to let them buy it for their children. In these case they have two
way of selling one is shop to shop and another is door to door. Under the door to door process some
unprivileged lady sell the yoghurt by telling the benefits to the mothers and those lady is called
“shokti lady”. They come to the early morning and take the yoghurts from the supply chain free of
cost and sell them whole day. Next day they come to the supply chain office and get their
commission 1.5% of how much they sell. The company have Sales Promotion Officer (SPO), their
job is to give training about sells to the shokti lady. The training is provided by the daily basis.
At present they successfully reached to the 3 million children and now they are moving with the
aim of reaching 30 million children within 2020. They have another under construction plant for
another product and the new project plant is already started from current year, 2018.
GRAMEEN DANONE