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TOASTER PASTRY IN GERMANY
Group 8 BM-B
Anshat |Gaurav | Megha |Pavani | Shubham | Vikram
CASE Company’s existing product line: packaged cookies and bakery
items New product(American): jelly/fruit filled pastry; heated in a toaster Considering launch in Germany; with modification Informal sampling test showed positive results
Better liked without icing; packaging was felt to be distracting People receptive to having it with breakfast/afternoon coffee Acceptable price : max. US $3 per box
Product targeted towards young adults, not averse on buying packaged food
Though no technical difficulty in usage; the habits and norms of Germans are different from Americans
40%
35%
25%
Population Distribution
Population<25
25<Population<55
Population>55
GERMAN DEMOGRAPHICS 1987: 60.87 Million people in West Germany 1990: German Reunification
70 Million in Federal Republic of Germany Declined Fertility Rate, High World War causalities : Population
Disproportion
MEDIA REACH Atleast One television and Radio in every
household Cost of reaching 1000 readers : $10.87
12%
13%
14%
16%
45%
Expenditures on Advertis-ing
TV Other MediaDirect Mail Journals and Period-
icalsDaily Newspaper
HOFSTEDE MODEL
Dimension Germany USA
Individualism High Very high
Masculanity High High
Power Distance Low Low
Un-certainity avoidance High Low
Long Term Orientation Low Low
World averages are: 55 - 43 - 50 - 64 - 45
ELEMENTS OF CROSS CULTURE CONSUMER BEHAVIOR
ENTRY IN A FOREIGN MARKET Geographic Area wrt Culture Needs Affordability of Product Values Distribution, Legal Structure Ways of Communication Ethical Implications of Marketing
NEEDS
The society is individualistic yet does not go against the social norms. Fresh and Daily cooked food is preferred over prepackaged
food
The product can fit into Morning breakfast Evening snack A personal care for guest Healthy, fresh food
AFFORDABILITY
Consumers are Young professional College students Families
No other investment required
Per capita income of $34000, indicates no constraints on the purchasing power wrt price
ETHICAL IMPLICATIONS OF MARKETING
Marketing ethics deals with the moral principles behind the operation and regulation of marketing
Stringent government laws on Promotion Content Monitored by legal counsel E.g. Comparative advertisement is illegal
VARIATION IN CULTURAL VALUES
ConsumptionPurchase
Communications
Other-orientedvalues
Society’s viewof relationshipsbetween people
Environment-
orientedvalues
Society’s viewof relationships
with environment
Self-orientedvalues
Objectives/approaches
to life societyfinds desirable
VARIATION IN CULTURAL VALUES
Other-Oriented Values Individual/Collective Favorable
Masculine/Feminine Unfavorable
Diversity/Uniformity Favorable
Environment-Oriented Values Risk Taking/Security Unfavorable
Self-Oriented Values Active/Passive Favorable
Norm/Habit Reason/Insight Change
Beef consumed in restaurants
• They want to maximize value for money
-
Freshly baked (not at home) hard roll along with a soft-boiled egg and coffee (Cold-breakfast)
They are time-pressed but they want fresh food
-
Snack break in mid-afternoon(Coffee with cake and pastry)
• They take number of meals in a day
• They have tendency to eat sweet food not just as dessert
-
Unacceptable to refuse a cup of coffee
• They want their traditions to be respected
-
Prefer to eat food together at the same time and at the same temperature
• Family-meals are a norm This concept is changing as the number of single households is increasing in Germany.
Norm/Habit Reason/Insight Change
Young adults are not averse to pre-packaged food items
• It is time saving• hygenic
Increasing trend
German cakes have a pound cake consistency
• Package size of new product would be compared
-
Dry cakes are not acceptable
• They like gelatin or fruit with whipped cream
• (Toaster pastries would be an innovation)
-
Desserts are not warmed in toasters
• Cold dessert are preferred
A trend towards health consciousness
• This direct consequences of greying and working German population
This trend is increasing with increasing lifestyle diseases and prosperity in the country,
Norm/Habit
Reason/Insight Change
Daily Shopping • German consumers usually do not buy frozen products, so they need to go shopping more frequently.
• Westerners have access to closely situated supermarket and preference for fresh product is high.
• East suffers from erratic food supplies so they have to go on frequent shopping.
This trend is changing, because post lifting of iron curtain, many modern retailers have entered Germany, making the country more west like. At the same time, demography of the country had changed with less kids in the family and with both partners working. So less time available
SEGMENTS Families Young professionals-Single households Working couple
TARGET SEGMENT Young professional-single households,
Working couple Profitable : 40% TG is a class which is time pressed needs
faster cooking alternatives, acceptability would be higher
Youth would be more receptive of new products than older generation
PRODUCT PLANNING
Features Creamy icing Fruit in the middle
Indicates Innovation Health Consciousness
COMMUNICATIONPlanned:
“A fruity dessert for breakfast and snacks”
Suggestions: Stress on increasing acceptability New category Creation should be on focus: warm breakfast
So alternate positioning:
A no-fuss, fruity, nutritious, warm snack to start your day
ADVERTISING- PROMOTION Communication would right now further
toaster pastry as a snacks time dessert, and eventually push it as a warm breakfast alternative
Marketing material would focus on: Nutritional qualities Different uses of toasters Prepares on the go Media: Newspaper, TVC In-store sampling
MEDIA RESOURCES
Newspaper, TVCIn-store sampling
Danke schön!