Daloon A/S Case Analysis
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 (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
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 (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