Downey's Soup

1. Did Downey Foods' export opportunity occur because of

proactive action by Downey or was its strategy reactive?
Answer:
Most students will probably agree that Downey Food's decision
to export lobster bisque was a reactive strategy. Jack Downey
was initially approached by the Japanese External Trade
Organization, or Jetro, to serve the soup at a trade show. It was
only after the show, that Downey began to think that a market
for the bisque might exist in Japan. In fact, it appears that
Downey did not explore the option of exporting the soup or any
other product to any other market, and simply pursued the
possibility of exporting the soup only to Japan.

2. Why did Downey experience frustrations when trying to

export to Japan? What actions might Downey take to improve
its prospects of succeeding in the Japanese market?
Answer:
Downey Foods faced several challenges when it tried to export
its lobster bisque to Japan. A representative for the company
went on a marketing trip to Japan to meet with food brokers
and buyers and secured an order for the soup. when the buyer
requested that the salt content of the product be lowered,
Downey Foods complied. However, when it tried to ship the
soup, the product was denied entry into Japan because
it contained an additive not on Jetro’ s approved list. even after
Downey Foods reformulated the soup and had it tested a lab in
Oregon that was approved by the Japanese, the product was
not permitted in Japan. Further testing and other efforts met
with similar reactions. yet, when a Japanese trader based in
New York exported the soup, it easily cleared customs. Most
students will probably agree that if Downey Foods wants to get
into the Japanese market, it will need a Japanese partner. Japan
has a history of being hostile to food imports, and a Japanese
partner could pave the way for success in the country.

3. You have been hired by Downey Foods to develop an

exporting strategy for the firm. What steps do you think
Downey should take to increase the volume of its exports?
Answer:
Downey Food's initial venture into the export business came
after being told that the Japanese participants at a mini trade
show liked its lobster bisque. Prior to the trade show, the
company did not export, and after making the decision to
export the soup to Japan, the company made no other efforts
to explore potential markets in other countries or for other
products. Most students will probably conclude that this sort of
reactionary strategy does not hold up well in the long run, and
that if Downey Foods wants to be successful in the export
business, it will need to take a more proactive approach to
markets. Most students will probably agree that Downey Foods
needs to explore other markets and products to determine
which products and markets have the most potential. Some
students may suggest that Downey Foods participate in other
trade shows or meet with export assistance agents to get
advice on exporting to different markets. Some students may
suggest that the company contact an export agent who is more
familiar with the potential in foreign markets and has the
contacts necessary to distribute the company's products.