Reference no: EM133527177
Question: You have been hired by Kawartha Dairies a Canadian manufacturer of traditional ice cream with retail locations focused in Ontario and a healthy wholesale network selling their products nationally in the major chains such as Costco, Sobeys, Zehrs, Food Basics, & Longos.
Kawartha Dairy focuses on traditional ice creams and sorbets along with the basics of milk butter and cream. Their products are positioned and perceived to be of high quality.
The vice president of Marketing is contemplating extending their product line into the Gelato segment. Gelato is an ice cream originating in Italy and seems to be an emerging segment. He is trying to decide if Kawartha Dairy should extend its product line into this segment and if so how to approach the product line extension.
You have been tasked with conducting an environmental assessment of the Gelato Market for Kawartha Dairy and make a recommendation as to whether you believe they should enter the market segment and if so the best way.
Evaluative Criteria
Identify the criteria upon which you will decide which of the alternatives you have presented is the optimal
To determine the optimal strategic alternative for Kawartha Dairy, the following criteria can be considered:
- Market Potential and Growth: Evaluate the potential size of the Gelato market, its growth rate, and projected demand. Determine if the alternative aligns with the market trends and offers significant growth opportunities for Kawartha Dairy.
- Competitive Advantage: Assess how each alternative leverages Kawartha Dairy's core competencies and competitive advantages. Consider if the alternative allows the company to differentiate itself from competitors and gain a sustainable competitive edge in the Gelato market.
- Financial Viability: Analyze the financial implications of each alternative, including the investment required, potential return on investment, and expected profitability. Consider the feasibility of the alternative in terms of cost structures, pricing strategies, and revenue generation potential.
- Customer Acceptance and Preference: Determine the level of customer acceptance and preference for the alternative. Assess if the alternative aligns with customer preferences, addresses their needs, and has the potential to generate positive customer feedback, loyalty, and repeat purchases.
- Resource and Capability Alignment: Evaluate the alignment between each alternative and Kawartha Dairy's existing resources, capabilities, and infrastructure. Consider if the alternative can be effectively implemented without significant disruptions or the need for extensive resource reallocation.
- Risk and Uncertainty: Assess the potential risks and uncertainties associated with each alternative. Consider factors such as market volatility, regulatory changes, potential challenges in execution, and the overall level of risk involved. Identify if risk mitigation strategies can be implemented.
- Long-term Sustainability: Consider the long-term sustainability and scalability of each alternative. Evaluate if the alternative aligns with Kawartha Dairy's long-term strategic goals, brand positioning, and commitment to quality and customer satisfaction.