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Daloon A/S Case Analysis

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I. PROBLEM

What strategy should Daloon undertake to build and stabilize its sales in the catering market?

II. OBJECTIVES

Short-Term: To build and maintain sales in the current catering market it serves while controlling its sales and marketing overheads

Long-Term: To be able to expand into and develop new European catering markets, on its way to becoming the leader in the industry

III. SWOT ANALYSIS

Strengths

- 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 …show more content…

The wholesalers, as the primary marketing intermediaries, play an important role here.

FIRST OPTION: RETAIN WHOLESALER RELATIONSHIPS

Daloon, which is currently practicing this alternative, is faced with strong forces from its rivals and substitute products. To illustrate this fierce rivalry, there are four existing Dutch competitors who try to oust Daloon off its lead position in other parts of Germany.

Moreover, there is strong conflict of interest between the company and its wholesalers since Daloon is also maintaining direct contact with the target groups within the catering market. The fact that Daloon's products constitute only a small portion of the wholesalers' catalogue makes it more pressing for the company to exert extra effort for the wholesalers to promote and distribute its products.

On the other hand, Daloon has an unrestrained position when it comes to the procurement of raw materials because it has no strong ties with raw materials producers. This contributes to the great flexibility of the company's production.

No pressure is put forth by possible market entrants because entering the business demands higher levels of resources and a well-developed, efficient distribution channel. Aside from cost considerations, Daloon is not in any way bothered by such possibility because it is competitive in terms of quality and cost. As regards to

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