DUTCH FOOD INDUSTRIES COMPANY: A CASE ANALYSIS
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.
The factors bearing on the corporate level problem are somewhat complex. First, DFI is concerned justifiably about its declining market share in the salad dressing market in The Netherlands. The company sees that it must both (1) stop the market share slide, and (2) promote market share growth. It has taken a unified approach to the solution of these two problems. The unified approach is the development of a new type of salad dressing product. If this product, Slamix, is successful, it will, it is hoped, bo...