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Sadafco Case Analysis
What are the Strengths and Weaknesses of SADAFCO?
SADAFCO has several strategic strengths that have given the company a defensible market position in their core markets. In addition to their brand strength, their distributions agreements with Bagalla continued to be a highly effective barrier to entry. With 13,000 freezers installed in Bagella stores, SADAFCO has not only captured shelf space, they have also captured mindshare and supply chain planning and forecasting with this large retailer. Bagella generates 40% of all ice cream sold in the market and is considered the leading retailing that competing Multinational Corporations (MNC) must work with in order to gain shelf space and sales. SADAFCO has successfully thwarted their attempts to replace the coolers in stores, holding...
What makes these distribution agreements so effective is the streamlined supply chain that SADAFCO has created and continues to invest in heavily. The spoilage rate for all food products is high, yet for ice cream the need for accuracy, alacrity and effective supply chain planning is critical for SADAFCO to stay profitable over time. In addition to these operational and branding strengths, SADAFCO has succeeded in creating products that appeal across the age and income spectrums of its customer base.
The weaknesses include a high level of dependency on their local suppliers, lack of advertising funding and support compared to MNCs, and lack of multichannel sales that would reduce the high dependency on Bagella. Despite these weaknesses however…
This fact will allow the company to now grow its operations in the target locations while some competitive companies would have to concentrate on generating more income to cover the financial liabilities, rather than to make more capital expenditure to grow the brand. The company has chosen to reduce the number of its current assets by decreasing the number of inventories which does not have a negative impact on the
5% of pre-tax profits donated to community social and environmental organizations through the Ben & Jerry's Foundation. In addition, Unilever will contribute another $5 million to the foundation and create a $5 million fund to help minority-owned businesses" (2000, 22). Clearly, the company enjoys a wide range of product lines that can be positioned according to the cultural preferences in a given region as well as less easily defined attributes such
Marketing -- Chapman's Ice Cream Company Description: Chapman's Ice Cream The Chapman Ice Cream story is a classic small business makes good tale. In a village near Georgian Bay of Markdale, Ontario, a Canadian couple bought a roughshod small creamy and began working on a dream to manufacture a quality ice cream delivered with small town personality. In 1973, David and Penny Chapman had two trucks, four employees, and a big idea.
Sweet Dream Imagine that Paradise Foods did not launch any new products If the current marketing tactics were maintained, the La Treat line would eventually lose market share to competitors. Products such as these are called ice cream "novelties" for a reason -- even if consumers love the product, they will likely search for something new and different at some point. The relatively high cost and the sophistication of the product make
Sales Promotion Unfortunately, there is a total ban in Norway on the marketing of all alcoholic beverages containing more than 2.5 per cent alcohol by volume, a category into which this product presumably fits. This includes posters, neon, advertisements on restaurant fixtures, newspapers, television and radio (Osterberg & Karlsson, 1998, p.334). There are some exceptions by which the product may be promoted. First it may be promoted via foreign publications. Whether this
The Sarbanes-Oxley Act (SOX) (2002) was passed into law specifically for this reason. Unlike Unilever attempting to use governance to supplant and eventually replace the triad missions of Ben & Jerry's, many corporations including Enron, MCI, Tyco and many others did not have an ethical foundation to begin with at all. The use of SOX to legislate compliance to ethical standards is in effect trying to enforce ethical ecosystems