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Published cases (2009), ESSEC Business School

Pallas and the feez feed enzyme- crafting BtoB marketing strategy

Pallas is an Austrian firm specialized in feed nutritional additives. Feez, one of its key products, is an enzymatic compound which enhances the nutritional value of wheat-and barley-based diets for poultry and swine. Matt Lindon, head of the feed division of the firm, faces a challenging situation. The Board of Directors requests an aggressive five-year strategic plan covering Marketing and R&D, with the objective to achieve worldwide market leadership without destroying shareholder value. Yet, Pallas’s business is concentrated on the so-called non-starch polysaccharide enzyme specialty segment, mostly developed in Europe, not in other parts of the world, where market demand is expected to grow faster. Furthermore, the company has not tackled the phytase market, a commodity business exhibiting the highest growth rates worldwide. Entering this market calls for heavy investments and uncertain outcomes. Matt wonders: given the firm’s knowledge on marketing development and R&D costs, what is the best way to achieve profitable growth? Should the division choose a product-specific policy, a one stop-for-all approach, or an intermediate solution? Should it take the risk to enter the phytase market? These decisions are subject to a high level of risk. Link to the article

FAUCHER, H. (2009). Pallas and the feez feed enzyme- crafting BtoB marketing strategy. ESSEC Business School.

Keywords : #B-to-B-Marketing, #Business-to-business-(B-to-B), #Industrial, #Strategy, #Feed-industry, #Additives, #Agribusiness, #Formulation, #Europe, #Animal-nutrition, #Specialty, #Strategic-plan, #Planning, #Marketing