Delissa in Dairyland
KEY ISSUE
Market Share currently less than 3%. Reason?
One of the following decision should be made:
Maintain Delissa’s presence in Japan and stay with current Franchises
New Franchise partnerships
Pull out from the market
STRENGTH
Delissa has wide international experience in marketing their product through franchise model.
USA launch date: 1977, market share is 12.5 percent.
Germany launch date 1980, market share is 14 percent.
U.K. launch date 1982, market share is 13.8 percent.
France launch date 1983, market share is 9.5 percent. Delissa has established a successful, global operation, with sales in USA, Europe and other Asian countries such as Taiwan, which increases its brand value.
2. Products : Four types of Yogurtwas sold:
Plain (packs of 2 and 4)
Plain with sugar (packs of 2 and 4)
Flavored with vanilla, strawberry an pineapple
Yogurtwith Jelly All three types were to be sold in 120 ml cups They have a wide variety of products that can be marketed to the different tastes of the consumers. The launched product was sold in appropriate quantity that can be consumed everyday. Price : Disposal Income in Japan is high. In addition, the Japanese spend over 30% of their household budget on food. Since the distribution of wealth is fairly homogenous, the pricing of the product could higher to market the product as exclusive high end product. Place: Delissa was sold mostly through supermarkets. The targeted consumers were young housewives and younger generation who shopped at supermarkets. The older generation tend to shop in traditional Japanese stores.
WEAKNESS
Consumption of Yogurt is seasonal with a peak period from March to July.
Cultural Gap: Lack of understanding between Delissa and Japanese partners due to cultural gap and language barrier.Dellisa couldn’t establish their company mentality to Nikko’s workers. There are many misunderstandings. For example TV ads, Dellisa were intended for young people in the
Market Share currently less than 3%. Reason?
One of the following decision should be made:
Maintain Delissa’s presence in Japan and stay with current Franchises
New Franchise partnerships
Pull out from the market
STRENGTH
Delissa has wide international experience in marketing their product through franchise model.
USA launch date: 1977, market share is 12.5 percent.
Germany launch date 1980, market share is 14 percent.
U.K. launch date 1982, market share is 13.8 percent.
France launch date 1983, market share is 9.5 percent. Delissa has established a successful, global operation, with sales in USA, Europe and other Asian countries such as Taiwan, which increases its brand value.
2. Products : Four types of Yogurtwas sold:
Plain (packs of 2 and 4)
Plain with sugar (packs of 2 and 4)
Flavored with vanilla, strawberry an pineapple
Yogurtwith Jelly All three types were to be sold in 120 ml cups They have a wide variety of products that can be marketed to the different tastes of the consumers. The launched product was sold in appropriate quantity that can be consumed everyday. Price : Disposal Income in Japan is high. In addition, the Japanese spend over 30% of their household budget on food. Since the distribution of wealth is fairly homogenous, the pricing of the product could higher to market the product as exclusive high end product. Place: Delissa was sold mostly through supermarkets. The targeted consumers were young housewives and younger generation who shopped at supermarkets. The older generation tend to shop in traditional Japanese stores.
WEAKNESS
Consumption of Yogurt is seasonal with a peak period from March to July.
Cultural Gap: Lack of understanding between Delissa and Japanese partners due to cultural gap and language barrier.Dellisa couldn’t establish their company mentality to Nikko’s workers. There are many misunderstandings. For example TV ads, Dellisa were intended for young people in the