FRANCE

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FRANCESMARKETING STRATEGYLaura RolkaAllyson
KappersRonita FarriaTim Rittenhouse
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Segmentation of Target Markets

• On-the-Go Parent(s) with Young Children
• Higher income cities or suburbs with a disposable
  income
• Residence with more freezer space
• Afford extras such as this product
• Frequent Hypermarkets (prime for retailing
  popular products and brands
• Families with working parent(s) and/or single
  parents
• Lifestyle allows for less time to prepare a meal
• Difficult to find time for family activities
  except for the weekend
• Ages 5-18 years old Children and Teens
• Usually only 1 or 2 children in household
• Easier to influence parents buying habits
• Adaptable and flexible lifestyles and tastes
• Athletic and active and need quick snack/meal in
  between activities, which is gaining grounds in
  Paris
• Like high quality foods (Smuckers) with American
  image (Uncrustables)
• More likely to try American cuisine with this age
• Prepackaged food industry is focusing on these
  tastes

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CHOSEN MARKET Ages 25-34 Business Professionals

• Division between traditionalists and
  conservatives
• Traditionalists are getting older and more of the
  conservative demographic is entering into the
  workforce
• Main cities Paris, Marseille, Lyon, Toulouse,
  Nice
• Paris is 2.5 times as dense as NYCs population
• Downtown business sector, government buildings,
  public transportation areas, etc.
• More likely to try American cuisine with this age
• Likely to want a quick, convenient meal
• Want the ability to rapidly grab lunch at
  convenience store
• Shop for quick meals at hypermarkets
• Prepackaged food industry is focusing on these
  tastes
• They have taken an interest in the American
  culture
• Higher income regions with a disposable income
• 1075 E/month 1403.56 per month in U.S.
• Standard of living in France is 9 above average
  in EU
• Afford extras such as this product
• Frequent Hypermarkets (prime for retailing
  popular products and brands)

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Reasons For Targeting Our Segment

• Consumer Behavior
• Spending patterns
• Consumption ( of household spending)
• Food, drink and tobacco 17.8
• Frequent convenient stores and hypermarkets
• Tastes
• Peanut butter? Like peanuts, Nutella, good for
  your health perhaps new opportunity for trial
• Enjoy jams, marmalades, and cheese
• Enjoy prepackaged and/or frozen meals
• Shortened 35 hour work week
• Less leisurely lunch break
• Legislation cut from 1.15 hours to 38 minutes
• Eating more sandwiches, especially packaged
• Dont eat between meals, so use this as a quicker
  meal to keep with the tradition of no snacking

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Growth of French Labor ForceTotal Population
60,180,529Ages 25-34 8,302,000 (13.8 of total
population)Labor Force 27,100,000 (45 of
total population)Ages 25-34 in Labor Force
3,735,900
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Positioning

• NOW Uncrustables is a crustless sandwich
• REPOSITION using 2 strategies
• Benefits
• Meet the benefit of convenient prepackaged
  sandwich
• Usage Occasion
• Use for shortened lunch break or when get home
  late from work
• Trend of rising sandwich consumption
• 2.4 sandwiches sold per year per person
• Build equity because unfamiliar with Smuckers
  and Uncrustables
• Continue wholesome, high quality, and reliable
  product image
• Different type of sandwich but not to take away
  from the traditional French foods
• Use their jams, cheeses, and ingredient
  preferences (discuss in product section)

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Positioning With Other Markets

• Frozen ready made meals dominate the market
• 2003 51.8 of the market
• Fits right in a sustained growth industry
• Little competition
• Unilever
• McCain
• Saveurs de France
• Specialty frozen desserts and bakery products
• Some non-refrigerated

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Marketing Objectives

• We hope to penetrate our target market of
  3,735,900 by 10 373,590 units
• We chose 10 because this product is in the
  Introductory Phase
• We also wanted just enough to capture the
  percentage that want to experience American
  culture
• In selling the product for 4, we hope to sell an
  average of 1 sandwich per person
• 1 sandwich (373,590 people) 373,590 units
• 4 (373,590 units) 1,494,360 sales
• We chose an estimate of 4 because in our
  research, the cost of a cheese sandwich in a
  restaurant is roughly 4.16
• Our sandwich is slightly cheaper since its
  purchased from the store ready made, rather than
  a restaurant

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Product
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Size of Product

• Current size 2 ounces 58 grams
• We have decided to keep the size of the product
  the same because the French eat smaller portions
  compared to the US even though we have changed
  the target market.
• 1 sandwich equals a meal

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Color(s) of Product

• White-bread
• Brown- peanut butter filling
• Red- strawberry filling
• Cream- cheese filling
• The only thing that will change is the color of
  the cheese sandwich filling from the yellowish
  orange (American cheese) to the cream (Camembert)
  because the cheese type is changing.

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Materials of Product

• White bread
• Strawberry jelly
• Jif peanut butter
• Camembert- white French cheese
• We have decided to change the American cheese to
  a more consumed French cheese, Camembert. We will
  use the already existing Smuckers Strawberry
  jelly. Even though they dont know much about
  peanut butter, they do know about peanuts, so the
  peanut butter filling will stay.

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Design of Products

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

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Packaging

• Packaging materials The packaging materials will
  remain the same.
• Package design This will change to individually
  wrapped sandwiches in clear wrapping with a
  smaller cardboard box around it (1 sandwich per
  box).
• Logistics purposes
• Package colors The colors on the box will
  correlate to what the filling is on the inside.

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Brand Name

• Brioche Because they will be manufacturing the
  sandwich and this will appease consumers who
  support French buy local sentiments. Their
  products are sold in markets and already have
  brand recognition and equity with consumers.
• Sandwich Prêt (Ready Sandwich) will be the new
  product name

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Manufacturing Distribution
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Brioche Pasquier Smuckers Strategic Alliance

• Definition
• Relationship whereby two or more entities
  cooperate (but do not form a separate company) to
  achieve the strategic goals of each.
• Advantages
• Share costs/profits of developing new products
• Gain access to partners channels

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Brioche Pasquier Company Profile

• France's leading pastry and bread maker.
• Makes products available to the masses through
  supermarkets in France.
• Including Auchan, Carrefour, Casino, Comptoirs
  Modernes, Intermarche, Leclerc, Paridoc, Promodes
  and Unico.
• Products
• Viennese bread, buns, tarts, cakes, biscuits,
  pastries and fritters,
• Frozen pastries, ice cream and other desserts.
• Sales
• Cakes and pastries account for around
  three-quarters of total sales.
• Frozen pastries contribute about a fifth of total
  sales.
• The company generated revenues of E496.83 million
  in the fiscal year ended December 2003

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Brioche Pasquier Facilities

• The company has 2 factories throughout France
• Lorraine region of France (Eastern France)
• Vannes region (Western France)
• Enables them to cope with product demand.
• Brioche is headquartered in Les Cerqueux, France.
  
• In NW France

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DistributionWhy Saveurs de France-Brossard?

• 98.5 of revenues coming from domestic sales
• Markets it products through Brossard Distribution
  (a 99.99-owned subsidiary) w/ distribution
  centers throughout France
• Refrigerated Transportation (trucks, cars, etc)
• Operates in two major mass-market product areas
• Frozen foods
• Industrial/ambient pastries
• Long-life sweet pastries (stay fresh for over 4
  months)
• Brossard group is present in all retailer
  outlets, non-retailer catering and in the main
  specialist outlets
• Devoted to optimizing its organization
  (industrial, commercial and administrative) in a
  bid to position the group as a
• Leader in specialty frozen foods
• Leader in industrial pastries.

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Distribution Methods

• The company uses two distinct distribution
  methods.
• Direct sales to consumers via retail outlets
• Supermarkets, hypermarkets, freezer centers and
  frozen product home services.
• Through merchants (for out-of-home catering),
  commercial caterers, collective organizations and
  small buying centers.

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Distribution Facilities

• Brossard Distribution
• Head Quarters Northern France
• Route Pont de l'Arche27110 LE NEUBOURG
• Alpes de Haute Provence Southern France
• Innovatrice Gastronomie et Alimentation
  LegereZone Industrielle Saint Maurice04100
  Manosque
• Franche-Comte Eastern France
• Pikiche (Sogenale)5 Route de Moncey25870 Thurey
  Le Mont

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Pricing

• Start with retail price of 4.00
• Divided by 1.17 (VAT) 3.42
• Divided by 1.60 (Retail Markup) 2.14
• Production 0.15(4.00) 0.60
• Distribution 0.20(4.00) 0.80
• 3PL Markup 0.801.34 1.07
• TOTAL 2.54 (cost to make/distribute)
• 2.14- 2.54 0.40 loss per unit
• Expect to lose 373,590 (0.40) 149,436 overall
  loss estimated for 1 sandwich per person for 1
  year
• Promotions
• 4,852.55 Euro (6,360 USD) 4 25,440 USD
• 25,440 divided by 373,590 .07/Unit

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Promotion
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Communication Objectives and Overall Message

• To create awareness of Sandwich Pret among 10 of
  business professionals between the ages of 25-34
  who live in large French cities, primarily in
  Paris and value quick, convenient prepackaged
  sandwiches within one year.
• Message
• Quick convenient prepackaged sandwich
• Due to sandwiches on the rise
• Shortened lunch break

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Advertising

• Business Publication
• Informations Enterprise
• Monthly distribution (in French)
• Circulation of 60,000
• 1 Page B/W Ad
• 4,852.55 Euro (6,360 USD)
• 1 Ad every 3 months (4 Total)
• Total Cost 19,427.93 EUR (25440)
• Introductory Phase
• Make consumers aware by using print ads
• Prefer REACH strategy rather than Frequency
  Strategy
• We are going to start off with ads in Business
  Publications
• Will move into Sales Promotion, Event
  Sponsorship, PR, Direct Marketing, Personal
  Selling as we make profits