FRANCE’SFRANCE’SMARKETING MARKETING STRATEGYSTRATEGY

Laura RolkaLaura RolkaAllyson KappersAllyson Kappers

Ronita FarriaRonita FarriaTim RittenhouseTim Rittenhouse

Segmentation of Target Segmentation of Target MarketsMarkets

On-the-Go Parent(s) with Young ChildrenOn-the-Go Parent(s) with Young Children Higher income cities or suburbs with a disposable incomeHigher income cities or suburbs with a disposable income

Residence with more freezer spaceResidence with more freezer space Afford extras such as this productAfford extras such as this product Frequent Hypermarkets (prime for retailing popular products and Frequent Hypermarkets (prime for retailing popular products and

brandsbrands Families with working parent(s) and/or single parentsFamilies with working parent(s) and/or single parents

Lifestyle allows for less time to prepare a mealLifestyle allows for less time to prepare a meal Difficult to find time for family activities except for the weekendDifficult to find time for family activities except for the weekend

Ages 5-18 years old: Children and TeensAges 5-18 years old: Children and Teens Usually only 1 or 2 children in householdUsually only 1 or 2 children in household

Easier to influence parents buying habitsEasier to influence parents buying habits Adaptable and flexible lifestyles and tastesAdaptable and flexible lifestyles and tastes

Athletic and active and need quick snack/meal in between activities, Athletic and active and need quick snack/meal in between activities, which is gaining grounds in Pariswhich is gaining grounds in Paris

Like high quality foods (Smuckers) with American image Like high quality foods (Smuckers) with American image (Uncrustables)(Uncrustables)

More likely to try American cuisine with this ageMore likely to try American cuisine with this age Prepackaged food industry is focusing on these tastesPrepackaged food industry is focusing on these tastes

CHOSEN MARKET: Ages CHOSEN MARKET: Ages 25-34: Business 25-34: Business

ProfessionalsProfessionals Division between traditionalists and conservativesDivision between traditionalists and conservatives

Traditionalists are getting older and more of the conservative Traditionalists are getting older and more of the conservative demographic is entering into the workforcedemographic is entering into the workforce

Main cities: Paris, Marseille, Lyon, Toulouse, NiceMain cities: Paris, Marseille, Lyon, Toulouse, Nice Paris is 2.5 times as dense as NYC’s populationParis is 2.5 times as dense as NYC’s population Downtown business sector, government buildings, public Downtown business sector, government buildings, public

transportation areas, etc.transportation areas, etc. More likely to try American cuisine with this ageMore likely to try American cuisine with this age

Likely to want a quick, convenient mealLikely to want a quick, convenient meal Want the ability to rapidly grab lunch at convenience store Want the ability to rapidly grab lunch at convenience store Shop for quick meals at hypermarketsShop for quick meals at hypermarkets

Prepackaged food industry is focusing on these tastesPrepackaged food industry is focusing on these tastes They have taken an interest in the American cultureThey have taken an interest in the American culture

Higher income regions with a disposable incomeHigher income regions with a disposable income 1075 E/month = $1403.56 per month in U.S.1075 E/month = $1403.56 per month in U.S. Standard of living in France is 9% above average in EUStandard of living in France is 9% above average in EU Afford extras such as this productAfford extras such as this product Frequent Hypermarkets (prime for retailing popular products and Frequent Hypermarkets (prime for retailing popular products and

brands)brands)

Reasons For Targeting Our Reasons For Targeting Our SegmentSegment

Consumer BehaviorConsumer Behavior Spending patternsSpending patterns

Consumption (% of household spending):Consumption (% of household spending): Food, drink and tobacco: 17.8%Food, drink and tobacco: 17.8%

Frequent convenient stores and hypermarketsFrequent convenient stores and hypermarkets TastesTastes

Peanut butter? Like peanuts, Nutella, good for your health… perhaps Peanut butter? Like peanuts, Nutella, good for your health… perhaps new opportunity for trialnew opportunity for trial

Enjoy jams, marmalades, and cheeseEnjoy jams, marmalades, and cheese Enjoy prepackaged and/or frozen mealsEnjoy prepackaged and/or frozen meals

Shortened 35 hour work weekShortened 35 hour work week Less leisurely lunch breakLess leisurely lunch break Legislation cut from 1.15 hours to 38 minutesLegislation cut from 1.15 hours to 38 minutes Eating more sandwiches, especially packagedEating more sandwiches, especially packaged Don’t eat between meals, so use this as a quicker meal to keep with Don’t eat between meals, so use this as a quicker meal to keep with

the tradition of no snackingthe tradition of no snacking

Growth of French Labor Growth of French Labor ForceForce

Total Population: 60,180,529Total Population: 60,180,529Ages 25-34: Ages 25-34: 8,302,0008,302,000 (13.8% of total population) (13.8% of total population)

Labor Force: 27,100,000 (45% of total population)Labor Force: 27,100,000 (45% of total population)Ages 25-34 in Labor Force: Ages 25-34 in Labor Force: 3,735,9003,735,900

PositioningPositioning NOW: Uncrustables is a crustless sandwichNOW: Uncrustables is a crustless sandwich

REPOSITION using 2 strategiesREPOSITION using 2 strategies BenefitsBenefits

Meet the benefit of convenient prepackaged sandwichMeet the benefit of convenient prepackaged sandwich Usage OccasionUsage Occasion

Use for shortened lunch break or when get home late from Use for shortened lunch break or when get home late from workwork

Trend of rising sandwich consumptionTrend of rising sandwich consumption 2.4 sandwiches sold per year per person2.4 sandwiches sold per year per person

Build equity because unfamiliar with Smucker’s Build equity because unfamiliar with Smucker’s and Uncrustablesand Uncrustables Continue wholesome, high quality, and reliable product Continue wholesome, high quality, and reliable product

imageimage Different type of sandwich but not to take away Different type of sandwich but not to take away

from the traditional French foodsfrom the traditional French foods Use their jams, cheeses, and ingredient preferences Use their jams, cheeses, and ingredient preferences

(discuss in product section)(discuss in product section)

Positioning With Other Positioning With Other MarketsMarkets

Frozen ready made meals dominate Frozen ready made meals dominate the marketthe market 2003: 51.8% of the market2003: 51.8% of the market Fits right in a sustained growth industryFits right in a sustained growth industry

Little competitionLittle competition UnileverUnilever McCainMcCain Saveurs de FranceSaveurs de France

Specialty frozen desserts and bakery productsSpecialty frozen desserts and bakery products Some non-refrigeratedSome non-refrigerated

Marketing ObjectivesMarketing Objectives We hope to penetrate our target market of 3,735,900 We hope to penetrate our target market of 3,735,900

by 10% = 373,590 unitsby 10% = 373,590 units We chose 10% because this product is in the Introductory We chose 10% because this product is in the Introductory

Phase Phase We also wanted just enough to capture the percentage that We also wanted just enough to capture the percentage that

want to experience American culturewant to experience American culture In selling the product for $4, we hope to sell an In selling the product for $4, we hope to sell an

average of 1 sandwich per personaverage of 1 sandwich per person1 sandwich (373,590 people) = 373,590 units1 sandwich (373,590 people) = 373,590 units$4 (373,590 units) = $1,494,360 sales$4 (373,590 units) = $1,494,360 sales

We chose an estimate of $4 because in our research, We chose an estimate of $4 because in our research, the cost of a cheese sandwich in a restaurant is the cost of a cheese sandwich in a restaurant is roughly $4.16roughly $4.16 Our sandwich is slightly cheaper since it’s purchased from Our sandwich is slightly cheaper since it’s purchased from

the store ready made, rather than a restaurantthe store ready made, rather than a restaurant

ProductProduct

Size of ProductSize of Product

Current size: 2 ounces= 58 gramsCurrent size: 2 ounces= 58 grams We have decided to keep the size of We have decided to keep the size of

the product the same because the the product the same because the French eat smaller portions French eat smaller portions compared to the US even though we compared to the US even though we have changed the target market. have changed the target market. 1 sandwich equals a meal1 sandwich equals a meal

Color(s) of ProductColor(s) of Product

White-breadWhite-bread BrownBrown- peanut butter filling- peanut butter filling RedRed- strawberry filling- strawberry filling CreamCream- cheese filling- cheese filling The only thing that will change is the The only thing that will change is the

color of the cheese sandwich filling color of the cheese sandwich filling from the yellowish orange (American from the yellowish orange (American cheese) to the cream (Camembert) cheese) to the cream (Camembert) because the cheese type is changing. because the cheese type is changing.

Materials of ProductMaterials of Product White breadWhite bread Strawberry jellyStrawberry jelly Jif peanut butterJif peanut butter Camembert- white French cheeseCamembert- white French cheese We have decided to change the American We have decided to change the American

cheese to a more consumed French cheese, cheese to a more consumed French cheese, Camembert. We will use the already Camembert. We will use the already existing Smucker’s Strawberry jelly. Even existing Smucker’s Strawberry jelly. Even though they don’t know much about peanut though they don’t know much about peanut butter, they do know about peanuts, so the butter, they do know about peanuts, so the peanut butter filling will stay.peanut butter filling will stay.

Design of ProductsDesign of Products

The design of the product will The design of the product will remain the same: a crustless remain the same: a crustless sandwich with ridges around the sandwich with ridges around the perimeter and filling in the inside.perimeter and filling in the inside.

It will remain a frozen product. It will remain a frozen product.

PackagingPackaging Packaging materials: The packaging Packaging materials: The packaging

materials will remain the same.materials will remain the same. Package design: This will change to Package design: This will change to

individually wrapped sandwiches in clear individually wrapped sandwiches in clear wrapping with a smaller cardboard box wrapping with a smaller cardboard box around it (1 sandwich per box).around it (1 sandwich per box). Logistics purposesLogistics purposes

Package colors: The colors on the box Package colors: The colors on the box will correlate to what the filling is on the will correlate to what the filling is on the inside.inside.

Brand NameBrand Name

BriocheBrioche: Because they will be : Because they will be manufacturing the sandwich and this manufacturing the sandwich and this will appease consumers who support will appease consumers who support French buy local sentiments. Their French buy local sentiments. Their products are sold in markets and products are sold in markets and already have brand recognition and already have brand recognition and equity with consumers. equity with consumers.

Sandwich PrêtSandwich Prêt (“Ready Sandwich”) (“Ready Sandwich”) will be the new product namewill be the new product name

Manufacturing & Manufacturing & DistributionDistribution

Brioche Pasquier & Brioche Pasquier & Smucker’s: Smucker’s:

Strategic AllianceStrategic Alliance Definition:Definition:

Relationship whereby two or more Relationship whereby two or more entities cooperate (but do not form a entities cooperate (but do not form a separate company) to achieve the separate company) to achieve the strategic goals of each.strategic goals of each.

Advantages:Advantages: Share costs/profits of developing new Share costs/profits of developing new

productsproducts Gain access to partner’s channelsGain access to partner’s channels

Brioche Pasquier Brioche Pasquier Company ProfileCompany Profile

France's leading pastry and bread maker. France's leading pastry and bread maker. Makes products available to the masses through Makes products available to the masses through

supermarkets in France. supermarkets in France. Including Auchan, Carrefour, Casino, Comptoirs Including Auchan, Carrefour, Casino, Comptoirs

Modernes, Intermarche, Leclerc, Paridoc, Promodes Modernes, Intermarche, Leclerc, Paridoc, Promodes and Unico.and Unico.

Products: Products: Viennese bread, buns, tarts, cakes, biscuits, pastries Viennese bread, buns, tarts, cakes, biscuits, pastries

and fritters, and fritters, Frozen pastries, ice cream and other desserts. Frozen pastries, ice cream and other desserts.

Sales:Sales: Cakes and pastries account for around three-quarters Cakes and pastries account for around three-quarters

of total sales. of total sales. Frozen pastries contribute about a fifth of total sales.Frozen pastries contribute about a fifth of total sales.

The company generated revenues of E496.83 million in The company generated revenues of E496.83 million in the fiscal year ended December 2003the fiscal year ended December 2003

Brioche Pasquier Brioche Pasquier FacilitiesFacilities

The company has 2 factories The company has 2 factories throughout France:throughout France: *Lorraine region of France (Eastern *Lorraine region of France (Eastern

France)*France)* Vannes region (Western France)Vannes region (Western France)

Enables them to cope with product demand.Enables them to cope with product demand.

Brioche is headquartered in Les Brioche is headquartered in Les Cerqueux, France. Cerqueux, France. In NW FranceIn NW France

Distribution:Distribution:Why Saveurs de France-Why Saveurs de France-

Brossard?Brossard? 98.5% of revenues coming from domestic sales 98.5% of revenues coming from domestic sales Markets it products through Brossard Distribution (a Markets it products through Brossard Distribution (a

99.99%-owned subsidiary) w/ distribution centers 99.99%-owned subsidiary) w/ distribution centers throughout Francethroughout France Refrigerated Transportation (trucks, cars, etc)Refrigerated Transportation (trucks, cars, etc)

Operates in two major mass-market product areas:Operates in two major mass-market product areas: Frozen foodsFrozen foods Industrial/ambient pastries Industrial/ambient pastries

Long-life sweet pastries (stay fresh for over 4 months) Long-life sweet pastries (stay fresh for over 4 months) Brossard group is present in all retailer outlets, non-retailer Brossard group is present in all retailer outlets, non-retailer

catering and in the main specialist outlets catering and in the main specialist outlets Devoted to optimizing its organization (industrial, Devoted to optimizing its organization (industrial,

commercial and administrative) in a bid to position the commercial and administrative) in a bid to position the group as a:group as a: Leader in specialty frozen foodsLeader in specialty frozen foods Leader in industrial pastries.Leader in industrial pastries.

Distribution MethodsDistribution Methods

The company uses two distinct The company uses two distinct distribution methods. distribution methods. Direct sales to consumers via retail Direct sales to consumers via retail

outletsoutlets Supermarkets, hypermarkets, freezer Supermarkets, hypermarkets, freezer

centers and frozen product home services. centers and frozen product home services. Through merchants (for out-of-home Through merchants (for out-of-home

catering), commercial caterers, catering), commercial caterers, collective organizations and small collective organizations and small buying centers. buying centers.

Distribution FacilitiesDistribution Facilities

Brossard DistributionBrossard Distribution **Head Quarters: Northern France****Head Quarters: Northern France**

Route Pont de l'ArcheRoute Pont de l'Arche27110 LE NEUBOURG27110 LE NEUBOURG

Alpes de Haute Provence: Southern FranceAlpes de Haute Provence: Southern France Innovatrice Gastronomie et Alimentation LegereInnovatrice Gastronomie et Alimentation Legere

Zone Industrielle Saint MauriceZone Industrielle Saint Maurice04100 Manosque 04100 Manosque

Franche-Comte: Eastern FranceFranche-Comte: Eastern France Pikiche (Sogenale)Pikiche (Sogenale)

5 Route de Moncey5 Route de Moncey25870 Thurey Le Mont25870 Thurey Le Mont

PricingPricing Start with retail price of $4.00Start with retail price of $4.00

Divided by 1.17 (VAT)= $3.42Divided by 1.17 (VAT)= $3.42 Divided by 1.60 (Retail Markup)= Divided by 1.60 (Retail Markup)= $2.14$2.14

Production 0.15(4.00)= 0.60Production 0.15(4.00)= 0.60 Distribution 0.20(4.00)= 0.80Distribution 0.20(4.00)= 0.80

3PL Markup 0.80*1.34= 1.073PL Markup 0.80*1.34= 1.07 TOTAL TOTAL $2.54$2.54 (cost to make/distribute) (cost to make/distribute) $2.14- $2.54= 0.40 loss per unit$2.14- $2.54= 0.40 loss per unit Expect to lose 373,590 (0.40)= $149,436 overall Expect to lose 373,590 (0.40)= $149,436 overall

loss estimated for 1 sandwich per person for 1 yearloss estimated for 1 sandwich per person for 1 year Promotions: Promotions:

4,852.55 Euro ($6,360 USD) * 4 = $25,440 USD4,852.55 Euro ($6,360 USD) * 4 = $25,440 USD $25,440 divided by 373,590= $.07/Unit$25,440 divided by 373,590= $.07/Unit

PromotionPromotion

Communication Objectives Communication Objectives and Overall Messageand Overall Message

To create awareness of To create awareness of Sandwich PretSandwich Pret among 10% of business professionals among 10% of business professionals between the ages of 25-34 who live in between the ages of 25-34 who live in large French cities, primarily in Paris large French cities, primarily in Paris and value quick, convenient and value quick, convenient prepackaged sandwiches within one prepackaged sandwiches within one year.year.

Message: Message: Quick convenient prepackaged sandwich Quick convenient prepackaged sandwich Due to sandwiches on the rise Due to sandwiches on the rise Shortened lunch breakShortened lunch break

AdvertisingAdvertising Business PublicationBusiness Publication

Informations Enterprise Informations Enterprise Monthly distribution (in French)Monthly distribution (in French) Circulation of 60,000Circulation of 60,000 1 Page B/W Ad1 Page B/W Ad

4,852.55 Euro ($6,360 USD)4,852.55 Euro ($6,360 USD) 1 Ad every 3 months (4 Total)1 Ad every 3 months (4 Total) Total Cost: 19,427.93 EUR ($25440) Total Cost: 19,427.93 EUR ($25440)

Introductory PhaseIntroductory Phase Make consumers aware by using print adsMake consumers aware by using print ads Prefer REACH strategy rather than Frequency StrategyPrefer REACH strategy rather than Frequency Strategy

We are going to start off with ads in Business Publications We are going to start off with ads in Business Publications Will move into Sales Promotion, Event Sponsorship, PR, Will move into Sales Promotion, Event Sponsorship, PR,

Direct Marketing, Personal Selling as we make profitsDirect Marketing, Personal Selling as we make profits