Sandeep Kaur (45) Arantxa Sanchis (14) Sachin Nikam (44) Gaurav Dhall (22) Ravi Sarao (39)

CASE STUDY SUMMARY

Phileas Fogg is a brand of up-market exotic snackfoods for

adults made by Derwent Valley Food Company had adhoc success in a few markets including India, China and Mexico The brand failed to achieve when they launched to continental Europe

Contd..
Sales in 1998 was 30 million pounds with profit over 3

million pounds Continental Europe sales: Around 1 million pounds A through research planning was done to target the continental Europe market Various steps taken Increase in sales

Discussion Questions
Identify the key reasons why Derwent Valley Foods

experienced difficulties in getting established in the European market. What lessons to be learnt for company expanding internationally? What Recommended changes would you suggest Derwent valley foods make to their international marketing strategy?

What Recommended changes would you suggest Derwent valley foods make to their international marketing strategy?
Understand the market before investing. For ex:

conducting consumer research to better know the market trends. Should recruit a well experienced expertise for each country who is aware of the market trends of that particular country to take care of the marketing campaign. Roll out the product with a packaging and style that is more acceptable and pleasing to the people.

Identify the key reasons why Derwent Valley Foods experienced difficulties in getting established in the European market.
Explosive growth in Britain left little management time to

cope with the tricky problem of steering fog into continental Europe Fragmented and sometimes impenetrable national distribution patterns Buying groups purchased on behalf of odd groups of retailers

What lessons to be learnt for company expanding internationally?

Research Planning: Necessary for any expansion.
Variety to be provided in each market segment. Eg.

Company gave the choice of different flavors after the consumer research. Added value to be given: Using distinctive package shapes and packaging done in countries own language.

Contd..
Concentration on main markets
Proper distribution of work to the person having the

knowledge and experience. Eg A manager was hired for exports division Proper pricing Good and competent distribution channel Diversification to be done only in the area of core competence

Contd..
Market research to be done beforehand. Eg French

people had different purchasing behavior to which company should have catered to Attention should be given to operations of various countries