Subject category:
Marketing
Published by:
International Institute for Management Development (IMD)
Version: 09.03.2022
Revision date: 25-Jun-2024
Abstract
Agria, a Swedish milk products co-operative launches its Delissa yoghurt in Japan through a joint venture/franchise agreement. At the launch in 1991, Agria expected to reach between 10% and 15% of the total Japanese yoghurt market. Despite repeated surveys and visits from Agria market specialists, Delissa fails to reach 3% of the market in Japan after 10 years of operation. Disappointed by Delissa''s poor results, the Swedish management begins to wonder whether they should continue in Japan, change franchisee, or pull out.
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Abstract
Agria, a Swedish milk products co-operative launches its Delissa yoghurt in Japan through a joint venture/franchise agreement. At the launch in 1991, Agria expected to reach between 10% and 15% of the total Japanese yoghurt market. Despite repeated surveys and visits from Agria market specialists, Delissa fails to reach 3% of the market in Japan after 10 years of operation. Disappointed by Delissa''s poor results, the Swedish management begins to wonder whether they should continue in Japan, change franchisee, or pull out.