Perceived and actual key success factors: A study of the yoghurt market in Denmark, Germany and the United Kingdom

Executive summary 1. We define a key success factor as a skill or resource that a business can invest in, which, on the market the business is operating on, explains a major part of the observable differences in perceived value and/or relative costs. The key success factors as perceived by managers need not be identical with the actual key success factors in a market. 2. Depth interviews with managers in yoghurt-producing companies in Denmark, Germany and the United Kingdom showed considerable variation in both substance and degree of detail in their perceptions of the determinants of success on their markets. 3. When aggregated, 16 potential key success factors were derived: High product quality, attractive packaging, high quality of raw material, possession of advanced technology and know-how, competent management and competent staff, wide product range, extensive product development activities/high degree of innovativeness, extensive marketing activities, (abundant) financial resources, s production, good logistics management, good product portfolio management, non-complex organisation, low retail prices, good relations with trade, extensive market knowledge. 4. According to managers' perceptions, three direct determinants lead to high perceived value: attractive packaging, high product quality, and extensive marketing activities. High product quality is in turn determined by high raw material quality, possession of advanced technology and know-how, and competent management and indicating an emphasis on an objective concept of quality. 5. According to managers' perceptions, extensive market knowledge is the main determinant of good relations with trade, supplemented by extensive product development activities, good logistics management, and extensive marketing activities. Competent management and staff is a major second-order determinant. 6. According to managers' perceptions, scale production, possession of advanced technology and know-how, and good logistics management are regarded as the main direct determinants of low relative costs, with competent management and staff and financial resources as second-order determinants. 7. Managers' perceptions seem to be fairly correct with regard to the determinants of consumer perceived value and good relations with trade. They do not seem to be correct with regard to the determinants of low relative costs.