Problems at Dutch Food Industries

There are two related sets of problems in this case. The first set of problems is at the corporate level. At this level, Dutch Food Industries Company (DFI) is confronted with a declining market share in the salad dressing market in The Netherlands. The two concerns that must be addressed at this level are as follows:

1. The decline in the company's market share must be stopped.

2. Once the decline in the market share is stopped, ways must be found to stimulate growth in market share.

The second set of problems exists at the product manager level. The company has developed and market tested a new salad dressing product, which it has named Slamix. The three principal concerns faced by the product manager at this level relate to product strategy. These concerns are embodied in the following questions:

1. What promotional mix should be employed in the introduction of Slamix?

2. What price level should be applied to Slamix in positioning the product in the salad dressing market in The Netherlands?

3. At what time of the year should DFI introduce Slamix?

Relevant Factors Bearing on the Problems

The relevant factors bearing on the concerns must be considered in the context of each of the problem sets. The two sets of problems are highly interrelated; however, for purposes of discussion, each set of problems is addressed separately.

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user. It is advantageous to marketers to have as short channels of distribution as is feasible. Marketing channels also provide a means of transmitting information between manufacturers and end users and a means of transmitting payment from end users to manufacturers. The physical distribution of products is accomplished through channels of distribution. Significant decisions related to the physical distribution of products are concerned with: (1) the size of inventories which will be maintained; (2) the locations of the inventories which are maintained; and (3) the means by which products will be transported through channels of distribution. For Slamix, DFI has the option of using the company's existing distribution strategy or the development of a new distribution strategy for the new product. The preliminary plans are to use the existing distribution structure and plan. The major decisions related to promotion in marketing are concerned with money, message, media, motion, and measurement. The essential questions involved are as follows: 1. How much money should be spent on advertising? For Slamix, this determination tentatively already has been made. 2. What should the advertising message be? The product departmen
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Some common words found in the essay are:
Slamix DFI, DFI Pricing, Manager Level, Slamix Strategy, Pricing Target-profit, April Pricing, DFI's Slasaus, Company DFI, Slamix Sampling, Corporate Level, market share, salad dressing, product manager, salad dressing market, dressing market, dressing product, salad dressing product, 25-percent oil, market-share pricing, introduction slamix, promotional mix, strategy product, lettuce consumption season, product manager level, 25-percent oil segment,
Approximate Word count = 3169
Approximate Pages = 13 (250 words per page)

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