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MARKETING STRATEGY CURRENT SITUATION IN FRANCE OF Lucille BRICHEUX - Ming Chui CHOW - Marion DESERT - Charlotte MAYEUR 1 Export Project
MARKETING STRATEGY
CURRENT SITUATION IN FRANCE
OF
Lucille BRICHEUX - Ming Chui CHOW - Marion DESERT - Charlotte MAYEUR
1
Export Project
- Created in 2004
- The CEO’s:
- Numbers characterizing M&A (info. from 2012) :
34 employees
40% of growth
3,1 millions of biscuits sold
A turnover of 10 millions
5000 point of sales
We decided to concentrate on milky products
PRESENTATION
2
Augustin Paluel-Marmont Michel de Rovira
3
French strategy: reminder
Analysis
External
Internal
Challenges
Core strategy
Solution to the challenge
Innovative product
Marketing Mix
What consumers are
expecting : more natural
products because take care
of their health and nutrition
Where we are regarding the competition and the consumers expectations
M&A is natural and innovative
4
Innovation Authentic,
traditionnal
Natural +++
Natural - - -
5
Current target and current positioning
5
Target in France:
20 – 30 years old
Early adopters
Trendy workers or mother that care about their family wellness
Generation Y (high use of media)
Living in urban areas
Taking care of their nutrition
Positioning:
By gathering together the best natural ingredients, without additives and conservatives, products remind tradition and grandmothers recipes taste while presenting with attractive/ funny packaging. The brand developed innovative consumer relation strategies.
6
Product Mix Width (variety)
Milky
products Sweet biscuit Salty biscuit Sharing dessert Snacking products
Product
Mix Depth (assortment)
Well balanced portfolio
BCG matrix : balance to improve 7
Market Growth
Relative
market share
Cash cows
Stars
Poor dogs
Dilemmas
Best seller still in
growth
Not enough stars : the
dilemnas must become stars
8
Product
Best seller: yogurt drinks
Added value:
- High quality (top of the range)
- Natural products
- authentic/ traditional recipes (like grandmother) - Funny packaging
Price
- High price policy
- Higher than the competitors’ prices
- Cream off policy
Promotion: Creative and striking strategy
- Low budget
- Create a buzz on the ground operations (roadshows, street marketing, samples distribution…)
- Use public relations
- Advergaming
- Social networking
Place: Selective distribution
- Large retailers
- Supermarkets
- Retailing
- Ecommerce
- Trains, small restaurants, airports…
Current Marketing Mix
9
CRM Create satisfied and loyal customers
M&A creates relation with customers :
By considering CRM as a priority and base it on listening, sharing, conviviality
values and transparency (ex: visit of “La Bananeraie”)
Through internet with storytelling on social networks (M&A shares actualities
about the company, products or event with tweets, pictures, videos…)
By asking customers’ opinions about decisions on products (design, recipe…)
By answering to customers’ questions or comments.
M&A uses:
Mainly social bondings (with events)
Structural bondings (customized products offering with the “Bar à vache”)
10
Challenges
How to continue to develop innovative
products and communication to have
a higher level of differentiation and
increase the notoriety ?
How to combine authenticity and
innovation ? ?
How did we solve the challenge ?
→ New objectives and goals
• Launching a new and innovative product to develop the range
• “make the buzz” around this new product to create a better
awareness of the brand
→ Target & positioning
• Keep the same positioning : original, different and with a concentration of
good humor, traditional recipes and innovative advertising
• Involve the target :
15-30 years old → younger target
For the rest : same characteristics
11
12
The new fresh shot from
Michel et Augustin !
Shake
and
savor
wherever
you
want!
- Tasteful (as much as grandmother recipes)
- Healthy (fruits and yogurt)
- Attractive, funny and convenient
packaging
- Easy to drink everywhere
- Distribution: transports, sandwich shops,
large retailers… Le Milkshake
Fraise s des bois
Recommended Marketing Mix
13
Product
- New in the market - authenticity/tradition - Without additives and preservatives - Funny packaging
- 300 ml
Price
- High but affordable
- Between 2 and 3€ :
→ 2,10€ ideal price
Promotion: make people try to make them adopt
the product - Buzz: street marketing - Testing stands and samples distribution in strategic places.
Place: Sell products in consumption places
- Transports (vending machines, train, airport).
- Up market shops
- Use merchandising technics: attractive location of the products, displays…)
Le Milkshake
Fraise s des bois
0 0,2 0,4 0,6 0,8
1
Le milkshake M&A 300ml
M&A "vache à boire" 500ml
Starbucks discoveries
220ml
Yop de Yoplait 850ml
Price for 100ml in €
Yoghurt Price in € for 100ml
M&A "vache à boire" 500ml
0,53 €
Starbucks discoveries 220ml
0,93 €
Yop de Yoplait 850ml
0,24 €
Le milkshake M&A 300ml
0,70 €
Switzerland, Luxembourg or Germany ?
M&A export project
14
3 targeted countries were considered
for the export project
Criteria Score Switzerland Luxembourg Germany
Consumption habits
coherent with M&A 5
• like traditional recipes
• healthy and natural
products
• Attraction for innovation
• healthy products
• concern about
environment
• healthy and natural
products
• trend to snacking
Importance of milky
product 4
Yes No so many Yes a lot
Opportunity for the
market 3
• Increasing population
• High competitive market
• High purchasing power
and standard of living
• Small population
• Aging population
• natural segment not
saturated
• lot of competitors
Easily Logistic 2
• Not a member of the EU
• 4 languages
• close to France
• close to France
• open to foreign
investment
• 3 languages
• member of EU
• close to France
• only one language but not
French
• Member of EU
Total
(5x3+4x2+3x2+2x1)
(5x1+4x1+3x1+2x2) (5x2+4x3+3x3+2x3)
15
3
2
2
2
2
3
3
3
1
1
1
1
16 37 31
Germany is the best potential target
country for exporting M&A
16
Main reasons why we chosen Germany:
German have a craze for milky products (big consumers)
Consumption habits= they snack all the day
Place to develop the natural segment
Proximity with France
17
Export project in Germany
External Analysis of Germany
Challenges
Export Strategy
Marketing Mix
Implementation
PESTEL Great political relations. Good economic environment except for the increase in prices.
Good diplomatic relations with
France (and geographical
proximity)
Member of the European Union
and of the Schengen area so
proximity with France
High increase of food prices in
2013 (+4,4%)
Increase of the purchasing
power due to the slowing down
of the inflation in 2013. (prices
increase= 1,5% so price
stability)
Food products a little bit less
expensive in Germany than in
France
POLITICAL ECONOMIC
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PESTEL Different consumption habits, mostly based on snacking
German fundamental values : quality, utility, profitability, perfection and security
Consumption habits (cultural differences with France)
Snacking culture and breakfast considered as the most important meal of the day
Craze for milky products
Preference for smooth and creamy products
Have different tastes for flavors (bi-tastes products, hazelnut, pistachio…)
Trend to eat healthy, eco-friendly products
Foreign products perception on the German market:
French products are top of the range products (Famous Made in France)
SOCIO-CULTURAL environment
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ANJA (our German adviser) = "I think French products are seen as very high class
products with a very good quality and something special in Germany. When it
comes to French products we haven't got negative biases."
Impact of cultural differences on
consumer behavior
German consumers shop everyday and even several times a
day in convenience stores and bakeries
Don’t take a real lunch break (eat while working) but take
several small breaks during the day
Are looking for nourishing, tasty and affordable food
20
Direct competition
Almost no international competitors give the advantage for M&A (consumers almost only have the choice between national brands)
21
Natural +++
Natural - - -
Traditional Innovative
M&A
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Export project in Germany
External Analysis of Germany
Challenges
Export Strategy
Marketing Mix
Implementation
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Challenges
Regarding the internationalization, how
can M&A set up in the German market
by keeping its brand personality while
being adapted to the culture of
snacking and German consumers
tastes?
?
24
Export project in Germany
External Analysis of Germany
Challenges
Export Strategy
Marketing Mix
Implementation
M&A milky products :
- Les « vaches à boire » because our best sellers
- All the deserts because opportunity regarding the German
demand for milky products and the tastes
What do we want to export ?
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Objectives and goals
Turnover expected
-1milion (year 1) 2 millions (year 2) 4 millions (year 3)
Part of all activities
-Develop the new products and packaging
-Make our products available in convenience stores,
backery chains etc
-Use various channels to deliver our message to
potential customers
Market share
-For the first three year, keep a 5-10% increase for each year
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Target in Germany of M&A Except for the age, other target characteristics are common with France (almost
cross cultural segment)
Common points with France:
Early adopters
Generation Y (high use of media)
Living in urban areas
Taking care of their nutrition or looking for authenticity
Specific to Germany: 15– 50years old (larger target market)
Targeted groups: Students and the active population (they do not take a break for lunch and just grab
something to eat they snack. They prefer to take several small
Mother that care about their family wellness
27 Globalized Localized
Glocalized
Positioning
By gathering together the best natural ingredients, without
conservatives, products remind tradition and grandmothers
recipes authenticity while being offered in places and in a
ready to consume packaging for people who want to snack.
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Export project in Germany
External Analysis of Germany
Challenges
Export Strategy
Marketing Mix
Implementation
Products Adaptation of the products to reach the target
Adapt products to the German market and consumers:
Make M&A products offered in a ready to consume way
Add spoons, napkins…
Adapt the packaging to snacking
Change products tastes
For the yogurt drinks:
Be focus on products with 2 tastes at the same time
Adapt products with German preferences
Examples: pistachio, chocolate, hazelnut, apple, vanilla-strawberry, banana-coconut
For the desserts:
Develop a German desserts range (more coherent with the German grandmothers recipes as this is not the same traditions).
Examples: chocolate-cherry mousse (Schwartzwald) and apple-cinnamon rice pudding (Apfelstrudel)
Keep the same innovative, attractive and funny packaging but translate it in German.
30 Globalized Localized
Glocalized
Place Make products available where German consumers buy their snacks. The distribution strategy has
common points with France and some specific to Germany
Where in the country?
Short term : in the capital, Berlin
Long term : in other big German cities such as Munich, Stuttgart, Hambourg, Düsseldorf….
Where in the cities?
Selective distribution
ST : convenience stores, bakery chains, airports and train stations
LT : vending machines in the subway and « bar à vaches »
31 Globalized Localized
Glocalized
Price
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High prices to stay coherent with the cream off policy of the brand and to
differenciate
But drawing up according to the prices of the competitors
Brand Product Price in € for 100g
Landliebe Milchreis
0,50 €
Yoghurt
0,39 €
Drink
0,23 €
Müller Milchreis
0,39 €
Yoghurt
0,33 €
Drink
0,22 €
Bauer Yoghurt
0,26 €
Drink
0,26 €
Product Average price in € for 100g
Milchreis
0,45 €
Yoghurt
0,33 €
Drink
0,24 €
0
0,1
0,2
0,3
0,4
0,5
Drink Milchreis Yoghurt
Average price of the milk products of the biggest competitors in €
Promotion
Communication objectives
- Attract the attention of potential customers, spark interest in the product,
stimulate desire and push customers to actions
Communication target
- Promote our grandmother receipes
- Create the buzz to receive feedbacks
Communication budget
- Percentage of Sales Approach (15% of predicted sales)
Communication message
- High quality French products with tradtional receipes
- Drink whenever and wherever you want
Communication media
-Social networks, websites, newspaper, street marketing,
billboards in the subway
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Globalized Localized
Glocalized
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Export project in Germany
External Analysis of Germany
Challenges
Export Strategy
Marketing Mix
Implementation
Marketing activities to
implement in Germany
Develop the new products : Tastes
Ingredients
Recipes
Develop the new packaging : translation in German
adaptation to the snacking
Beginning of the production in France
Meeting with German managers of
the shops to :
make them try the products
to convince them
to propose them to their
customers
Product Activities Distribution Activities
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merchandising techniques
in-store POP displays
In-store signage
Informational website operational
Demonstrations: testing
Promotion Activities
To encourage to sell the products and
have a good visibility in the stores
10% quantity discount for the bakeries
5% quantity discount for the convenience
stores
Price Activities
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Chart illustrating the implementation schedule
Activities/time(months &
week) 1rst month 2nd month 3rd month 4th month 5th month
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Product activities
News product development
Development of the new packaging
Beginning of production
Distribution activities
Meeting with shop manager
Shipment to stores
Pricing activities
10% of discount for bakeries
5% of discount for convenience stores
Promotion activities
Informational web-site operational
In-store POP displays
In-store signage
demonstrations
Forms of control used to ensure the right
implementation: formal and informal
Formal control
- Input controls (Human resource and financial resources allocations)
- Process controls (e.g. evaluation and compensation systems)
- Output controls (formal performance standards like sales, market share, and
profitability; marketing audits)
Informal control
- Employee self-control (Job satisfaction and organizational commitment)
- Social control (small-group control based on group norms)
- Culture controals (cultural control based on organizational norms )
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Conclusion: Why German consumers
should buy and eat M&A products?
Glocalized strategy to solve the challenge:
Adapt products to snacking consumption and German market:
o New tastes adapted to the German culture and tastes
o New packaging (ready to consume products)
o New distribution strategy….
While keeping:
o the Made in France touch
o The personality of the brand
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Lucille BRICHEUX - Ming Chui CHOW - Marion DESERT - Charlotte MAYEUR
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Questions ?
