When looking at the range of products, three sorbets and the ice-cream/sorbets have been added, carrying the Del Monte brand name. The process of developing the recipes have been made together with Del Monte, who have contributed with their knowledge in fruit. No real modifications in SIA's own assortment has been made due to their co-operation with Del Monte and to sell sorbets under the SIA brand name is not in line with SIA's strategy; SIA is supposed to stand for dairy icecream products and nothing else.
Shipments to wholesalers and retailers are co-ordinated with SIA's other range of products. Concerning the remaining products, sold on the Swedish market under the name Del Monte, the potential for co-ordinating shipments is limited since the products (juice, canned products and ice-cream) demand different transport solu-
tions. Therefore transportation is an area in which Del Monte has an interest in leaving SIA to make the necessary arrangements.
Between SIA and Del Monte the information on marketing issues has been of main interest. Del Monte needs extensive information in this area in order to enable them to make the best priorities for marketing investments. By sharing information with Del Monte on how the market is developing, SIA can also improve their own skills in marketing and communication, as it gives an insight into how Del Monte uses the information to choose ways of communicating with the consumers. So far, no system of shared computerized information network (e.g. the Intranet) exists.
From the point of view of production, it is SIA that makes the investments and SIA that has the final say in questions that are related to production issues. An exchange of ideas between the companies nonetheless takes place also in this area.
Collaboration in advertising is done together with the wholesaler Arvid Nordq-vist and producer of fruit juices, JO-bolaget. Del Monte finances the promotion material as well as advertisements in different media. SIA, together with Arvid Nordqvist and JO-bolaget, pays for the price reductions of the products when there is a price promotion on. As the products under the Del Monte name in Sweden are sold through three sales forces, problems in terms of co-ordination of different promotional acti vities towards the stores might arise. Accordingly, it may sometimes be difficult to achieve good exposure of the Del Monte products in the stores.
Not surprisingly, the collaboration with Del Monte has meant that SIA has increased its knowledge on marketing considerably. For example, Del Monte uses an advertising agency that is well known as well as expensive, something that SIA would never consider being able to do on their own. SIA has been able to use the knowledge and experience received through Del Monte to better market its own assortment of products.
According to SIA, the alliance with Del Monte has not put any limitations on what the company is able to do on the market. To Movenpick, SIA's collaboration with Del Monte is quite close to what could be allowed by a partner. Movenpick also manufactures sorbet but only in 1-1 packages. SIA argues that sorbet is an exotic product on the Swedish market and thus package sizes of (maximum) 0.5 1 are essential. Through this argument, SIA has this far been able to refrain from selling Movenpick's sorbet.
1. What advantages and disadvantages have the alliances with Movenpick and
Del Monte meant for SIA?
2. What would the alternative to the alliances have been and would that have worked better?
3. For the future, do you see alliances as an important part of the company's strategy - or should the strategy change?
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