March 2003 and Market Niche
ASSIGNMENT B ---RSM322H1F
Qijin Feng 997347740 RSM322H1F L 0201 Professor D.L.Losell September 29TH , 2011
TO: Manager of the Distillers Delight in the United Kingdom
From: Consultant
Date: September 29th, 2011
Subject: The strategy of the company and the problems the company faced in 2003
As the case stated, there existed a lot of problems in Distillers Delight in the United Kingdom in 2003. In addition, the strategy the company adopted affects the performance of the brand significantly.
The strategy that the company adopted may be the market niche. Market niche is a strategy adopted when there is a small market segment for which the products are specially designed. (Appendix A) As the case demonstrates, the brand was once the leader of the low-proof alcohol market in the UK, so the brand should be specifically designed for the people who prefer the taste of the low-proof alcohol. It is one sign of the market niche. (Appendix B)
Market niche is also a strategy adopted by the companies which compete with generic products and are concerned with cost reduction. (Appendix C) As the case mentioned, Distillers Delight had a lot of competitors, including some huge international corporations, who compete so rigorously with Distillers Delight, such as Diageo plc. Per nod Ricard, Bacardi Limited, Allied Domecq, Constellation Brands.(Appendix D) Consequently, the company should consider about the cost reduction while compete with other companies. However, when the excise tax was raised by the government, the sales of Distillers Delight declined sharply as the cost reduction was not used immediately after the implementation of the new tax policy. (Appendix E) It also represents the adoption of market niche strategy. In addition, market niche is a strategy adopted by the companies that should spend on extensive marketing to build the
Qijin Feng 997347740 RSM322H1F L 0201 Professor D.L.Losell September 29TH , 2011
TO: Manager of the Distillers Delight in the United Kingdom
From: Consultant
Date: September 29th, 2011
Subject: The strategy of the company and the problems the company faced in 2003
As the case stated, there existed a lot of problems in Distillers Delight in the United Kingdom in 2003. In addition, the strategy the company adopted affects the performance of the brand significantly.
The strategy that the company adopted may be the market niche. Market niche is a strategy adopted when there is a small market segment for which the products are specially designed. (Appendix A) As the case demonstrates, the brand was once the leader of the low-proof alcohol market in the UK, so the brand should be specifically designed for the people who prefer the taste of the low-proof alcohol. It is one sign of the market niche. (Appendix B)
Market niche is also a strategy adopted by the companies which compete with generic products and are concerned with cost reduction. (Appendix C) As the case mentioned, Distillers Delight had a lot of competitors, including some huge international corporations, who compete so rigorously with Distillers Delight, such as Diageo plc. Per nod Ricard, Bacardi Limited, Allied Domecq, Constellation Brands.(Appendix D) Consequently, the company should consider about the cost reduction while compete with other companies. However, when the excise tax was raised by the government, the sales of Distillers Delight declined sharply as the cost reduction was not used immediately after the implementation of the new tax policy. (Appendix E) It also represents the adoption of market niche strategy. In addition, market niche is a strategy adopted by the companies that should spend on extensive marketing to build the