Page 218 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes frill American type supermarkets that sell grocery products that Americans want and
need. The commissary system encompasses food stores run by the American Army to
serve military soldiers assigned to Europe. Most of the commissaries and the personnel
are located in Germany. Only military and American civilians connected with the US
government, and their dependents, can shop at these stores.
F Rozen called his vice-president, NEW Market, into his office and said, "Our frozen foods
are making profits in the German commissaries, especially without giant-size meals. As
in America, our frozen corn is the best seller. Family meals with corn as a vegetable are
outselling meals that have vegetables other than corn. Sales of frozen corn have exceeded
our highest expectations. I remember that when I was with the American Army in Germany,
you could not get frozen food. This will make a great market for us to expand our frozen
food line. Since then our warehouse and transportation network have been established
and the additional distribution costs are negligible."

"Whenever expanding our market area, we have used a massive television campaign,
going with a successful theme "Better than Fresh". Since the German population drinks a
lot of beer, let us use local actors drinking a cold beer while eating a meal. I want you to
go to Germany, get the shelf space, arrange the television advertising, promotion and
everything else involved an introducing the frozen food line in Germany. The food will
be shipped next week and will be available for shipment to the stores in three months."
"In the US, refrigerators are large and have very large freezing compartments. Many
Americans even own separate freezers. The typical German refrigerator is smaller and
there is little room for frozen food; Germans are not used to frozen foods and even drink
their beer warm. You have to request for ice in the restaurant. There are many food stands
in front of grocery stores that sell sausages and french fries. Grocery stores sell plenty of
fresh meat, fish, cheese, etc. There is plenty of help in the shops who give out samples and
conduct demonstrations. But there is little refrigerator or freezer space."

"I showed the package to potential customers. We had forgotten to print instructions in
German. Most packaging is printed in four or five languages, including German, English,
French and Spanish. People said they could not follow the English instruction on our
package. They were also not sure how large a pound or ounce was."
"The product also met with some advertising problems. A major problem exists with
television advertising. The only advertising occurs between 6.30 and 7.00 p.m. There is an
all advertising show that is one of the most popular shows; but to get space you have to
bid for it at least 18 months in advance. There is no guarantee when the commercial will
be shown. Comparative advertising is banned. The food industry will not let us use the
theme 'better than fresh'. This is considered derogatory to the fresh food industry."
"I cannot find shelf space for our product. Stores do not have freezer space, nor do they
want an untried product. Please advise what action should I take. What should I do with
the product which is arriving?"
Questions

1. Summarise the problem involved in marketing frozen foods in Germany.
2. What should F Rozen advise NEW Market to do?
3. Should the product be introduced? What suggestions would you make if the product
is introduced?

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