Case study Essay Example | Topics and Well Written Essays - 500 words - 2

Case study - Essay Example Franchise contract can be beneficial on the part of Delissa in the sense that Agria could easily penetrate the Japanese market through its business partner Nikko. At the same time, Delissa could easily make use of Nikko’s existing market distribution to deliver Delissa’s yogurt in the market. One of the main factors that contribute to the failure of Delissa’s business strategy of entering the Japanese market has something to do with communication / language and culture gap. There is basically no single stakeholder on the part of Nikko who could speak English. For this reason, it becomes a challenge for the two companies to establish a clear vision and implement market strategies to increase the business’ profitability. Due to lack of communication, mistrust between the two parties becomes unavoidable. (p. 9–11) The initial marketing plan that was implemented is inappropriate due to the fact that it was not effective in establishing a good market position and differentiation for Delissa’s product-line. Based on the research survey result, 55% of the respondents were not clear on what the company is trying to communicate with regards to Delissa product. (p. 9–11) Based on the company’s recent media planning, Delissa is targeting children and young people between 13 to 24 years of age. For some reason, Nikko and SRT International Advertising Agency has been running TV spots between 11:15 to 12:15 at night. Obviously, the company’s target consumers are mostly asleep around that time. (p. 9–10) Aside from the ineffective advertising campaign used in the business, the ordering system and market distribution of Dalissa product is very slow due to some internal bottlenecks that causes delay in the delivery of products in the market. (p. 9–8) Ole Bobek – Agria’s director of international operations was constantly negotiating with Nikko regards to the business franchise. Even