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Daloon A/S Case Analysis

1536 words - 6 pages

I. PROBLEMWhat strategy should Daloon undertake to build and stabilize its sales in the catering market?II. OBJECTIVESShort-Term: To build and maintain sales in the current catering market it serves while controlling its sales and marketing overheadsLong-Term: To be able to expand into and develop new European catering markets, on its way to becoming the leader in the industryIII. SWOT ANALYSISStrengths- Daloon can produce high quality products by carefully choosing its raw materials and avoiding the use of preservatives and additives. It also gives equal attention to its packaging and production process. Continuous product improvement or development is maintained by the company as a response to changing customer preference (e.g. in terms of flavor) and market needs.- The company has a flexible production capacity. This is because it is free to choose its suppliers of raw materials depending on the filling requested by its customers. Moreover, in case of immediate additional demand, Daloon can easily adjust its production capabilities, as seen in McDonald's' experience.- Daloon is the largest producer of spring rolls and the leader among its close competitors. It has also developed a strong business relationship with Scandinavia, Britain and Germany.- The distribution cost for Daloon is relatively low because wholesalers are in charge of the distribution process and it has to maintain only few warehouses.- Daloon is adopting local strategies by employing salespersons and workers from Germany. It is an advantage since they have to deal with customers who are also Germans.Weaknesses- Since the company has no direct competitor, it is difficult to pinpoint the reasons for declining sales. Thus, it is unable to respond accordingly.- Because wholesalers are not particular with the brand, the end-customers (canteens, fast food stores) are not aware that the high quality products (spring rolls, etc.) they buy from the wholesalers are in fact coming from Daloon.- Information and customer feedback gathered by the company's salespersons are coordinated with the wholesalers and the latter would then relay the information back to Daloon. There is a possibility that the information collected might be modified and the "real concerns" of the customers would not be addressed properly.Opportunities- Daloon could enter the catering market directly since it succeeded in satisfying the needs of McDonald's, an example of an end customer.- Establishing a relationship with other European McDonald's outlets is a means of increasing sales level and expanding the business coverage of Daloon.- Rapid growth in the industry of spring rolls may be exploited by the company by producing more differentiated products and targeting specific markets (school, military, hospitals)Threats- The declining number of wholesalers due to mergers and closed-downs of small players pose a great threat to sales and even worse, to the existence of Daloon. The company's sale is highly dependent on...

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