The principal issue in this case involves the development of an effective marketing strategy for the introduction of a new productùSlamix, an enhanced salad dressing product. Crucial elements to be determined for the marketing strategy for this new product are positioning (a product strategy consideration), pricing, and promotionùall elements of the marketing mix for the product. Market segmentation issues and other aspects of a product strategy (quality, branding, packaging, and life-cycle) largely have been determined, although these factors must be addressed in the marketing strategy for Slamix.
The initial section of this case presents an analysis of the relevant factors, develops strategy alternatives, and recommends a strategy for adoption by the company. The following section of the case presents a marketing plan for the implementation of the recommended strategy.
The analysis of the situation is concerned with those characteristics of the company, the market, and the product that will influence the development of a marketing strategy for Slamix. These factors are addressed within the contexts of (1) a S.W.O.T. analysis, (2) a marketing S.W.O.T. analysis, (3) marketing mix, (4) company strategies, (5) product positioning by the company, (6) strategy alternatives for Slamix, and (7) a recommended strategy for Slamix. Although these issues are discussed separately, strong interrelationships exist.
The S.W.O.T. analysis for the Dutch Food Industries Company is presented in chart form. Chart 1ùS.W.O.T. Analysisùmay be found below on this page.
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Failure of most recent introduction in the product area.
Declining overall market share position.
Increased demand for convenience food products.
Changing food consumption patterns in Holland.
Increased competition in principal product areas.
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