International Marketing Strategy: Delissa

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Delissa in Japan Agria - Sweden’s leading dairy products cooperative. It is a united organization that develops and sells a line of fresh dairy products. Individual cooperatives had been persuaded to drop their own trademarks, the Delissa line was launched. It compromised yogurts, dessert, fresh cheese and fresh cream. Agria’s share rose from 3% to 25% of Swedish fresh milk products market. 20 000 farmer members of the cooperative had helped build Agria into a powerful national and international organization. By 1997, more than 1.1 billion Delissa yogurts and desserts were being consumed per year world-wide. Industrial franchising was not widespread in the 1980s and Delissa’s team idea was to know-how transfer ventures, whereby a…show more content…
From the begging Delissa made a mistake - Delissa’s goal - the market for yogurt in Japan was expected to grow at an average of at least 8% over next five years. Delissa’s strategy was based on expected growth rate of 10-15% for the total market. Delissa aimed to reach 5% market share in the first year and 10% share of market within three years of launch. They aimed to cover three metropolitan areas: Tokyo, Osaka, Nagoya within 2 year period and the rest of the country within the next three years. It was too high goal for market share compared to other countries since company felt that Japan was a difficult market to enter. The goal was not reached, in 1997 Delissa’s market share was fallen to 2 percent, without ever reaching 3 percent. Even that time, when company realized that they didn’t achieve their goal, they needed to react and see why it happened, may be their strategy is wrong in Japan, may be here they need to implement another one oriented more on Japanese culture, but is better now than never and Delissa needs to start with understanding Japanese people and their demand instead of supplying product, that they are not interested in. Also, serious defect is communication between the partners. There were a lot of surveys and researches, that have been done and a lot of Delissa’s representatives in Japan, another problem is that Delissa didn’t use surveys constructively. Japanese wants to have western

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