Paradise Foods Case Study Analysis
Bhagath Gottipaty, MBA
Paradise Foods dropped the plans to authorize national rollout of a new product, Sweet Dream, to complement its established frozen specialty dessert, LaTreat.
To find the challenges, I had analyzed the SWOT factors in order to better ascertain whether Paradise did the right thing in order to pursue their goals and the recommendations are based on these factors.
1. Using the market data.
2. Positive results from the test markets for Sweet Dreams brand.
1. Focusing more on LaTreat
2. Senior Management go by gut feeling rather than ...view middle of the document...
2) Weakness – Bill missed to include relevant data in the presentation and his presentation style was bit out of order because of the use of lots of system generated data
Opportunity- If bill would have used the relevant data and submitted a good presentation rather than the hard numbers, it would have countered the fame and faith of Barbara on the LaTreat brand which in turn would have helped Bill to launch his product Sweet Dreams (SD).
3) Weakness – Barbara was trying to save her product La Treat even though she knows its clearly not working and she is not encouraging the new product
Opportunity – As part of the product life cycle, any product lives and fades as time goes by. Barbara should believe in this and use her experience and acumen to help new products take position in the market under Paradise brand. It’s a win win situation for every one. End of the day its Paradise that is gaining out of those decisions.
4) Weakness – Testing of Sweet Dreams in only two test markets.
Opportunity – Testing in more test markets would have provided Bill with many inputs and scenarios to check the feasibility of the Sweet Dream’s launch. This could be a change in pricing strategy, Freezer space, advertising based on the market its launched.
2. Losing market share
4. The decisions made using data might go wrong
ST Implications & Scenarios
1). Strengths – Inputs from the data shows that the results from the test markets are positive for the launch of Sweet Dreams.
Threats – Even though Paradise is on the right path, their decision was not to launch the product. This would give a chance to the competitor to take Sweet Dreams market position. Even though if Paradise launches it after some time based on the competitor’s entry, it will really not help Paradise. It would surely miss the edge, if its not the one that launches the product first to the market.
2). Strengths – Sweet Dreams had good freezer life in the test markets
Threats – The same sometimes couldn’t be repeated in the actual launch markets. There by loosing the Sweet Dream brand. Paradise should make sure to device a plan to check this problem by positioning the Sweet Dream based on the market research report on each of the markets its releasing Sweet Dreams brand
WT Implications & Scenarios
1). Weakness – Paradise is unable to utilize their market research data to the fullest.
Threat – Not launching Sweet Dreams under the impression that it might cannibalize LaTreat, there by leaving the market open to competitors to occupy the place of Sweet Dreams and steel the market share of Paradise.
2). Weakness – Bill did not study the recent new products launch or the ability of their competitors to launch a product.
Threat- Bill clearly missed the chance to impress the committee. With the details of the competitor’s ability to launch, he would have made a good point to the management about the need of Sweet Dreams in the market.