Smucker s uncrustables in germany
1 / 33

- PowerPoint PPT Presentation

  • Updated On :

Smucker’s Uncrustables in Germany. by Steve Guy Nate Jones Allyson Kappers Lindsey Quinn Kristin Tschantz. Assessment of Potential Market: Competition. 2 Categories: Frozen Food and Ready Made Meals Frozen Food. Competition Cont…. Ready Made Meals

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about '' - richard_edik

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Smucker s uncrustables in germany l.jpg

Smucker’s Uncrustables in Germany

by Steve Guy

Nate Jones

Allyson Kappers

Lindsey Quinn

Kristin Tschantz

Assessment of potential market competition l.jpg
Assessment of Potential Market: Competition

  • 2 Categories: Frozen Food and Ready Made Meals

  • Frozen Food

Competition cont l.jpg
Competition Cont…

  • Ready Made Meals

    • Competitors in Germany: Nestle, the Campbell Soup Company, Danone ( or Dannon), Unilever, Dr. Oetker, Frost, Suedzucker, Iceline, Nordwest, and Grand Metropolitan

    • Danone is the second largest producer in the world of cereal biscuits and snacks.

  • Market forecast for German Ready Made Meals is predicted to reach growth of $3.32 billion in 2008

Assessment of potential market german consumer demand l.jpg
Assessment of Potential Market: German Consumer Demand

  • German Frozen Food Market:

    • $6.84 billion and growing at 13.8% since 1999

    • Ready Made Meals was largest sector

  • German Ready Meals Market:

    • $2.59 billion in 2003 and growing at 6.7% since 1999

    • Ranked 3rd overall behind France and UK

    • Frozen Ready Made Meals accounted for 81.7% in 2003 ($2.1 billion)

Distribution l.jpg


Location of Production and Market Entry:

3 Basic Options for Entry:


United States


Current Distribution Agent

1 smucker s production facility in scotland l.jpg
1. Smucker’s Production Facility in Scotland

  • Part of the United Kingdom, and therefore follows rules of imports, exports, tariffs, and taxation applicable to the UK

    • No Import/Export Tax amongst members of EU

    • VAT Tax: 17.5%

  • There is also an issue of what means of transportation to move the product from the UK to Germany, as there is a body of water and neighboring countries dividing the two countries.

2 producing and shipping from united states l.jpg
2. Producing and Shipping from United States

  • There is the option to produce within the United States and ship overseas to Germany

    • Drawback to this option is that this would be very expensive, and would tack on a cost to the final product

    • There would be additional costs from export taxes and the VAT of Germany

    • More expensive cost of labor

    • Would require multiple methods of transportation to move from United States to Germany, and would be increasingly expensive

  • Germany and United States are already primary trading partners

  • Smucker’s currently outources logistics to a worldwide company that has operations in the U.S. and overseas

3 create a production facility within germany l.jpg
3. Create a Production Facility within Germany

  • Would reduce costs of transportation, and would open up future business options for Smucker’s within Germany

    • Would be very expensive, and would be starting from scratch to build new facility

    • Could buy out an existing facility within the country

    • Could partner with existing company within Germany to take existing breads and spreads and brand them with Smucker’s

    • VAT Rate: 16%

    • Highway Systems permit timely distribution

  • Labor Force:

    • Help with currently increasing unemployment rate of 10.5%

    • Would help the slow down of US imports, while boosting German economy

Current distribution agent l.jpg
Current Distribution Agent

  • Smucker’s uses the supply chain management company Tibbett and Britten to handle their distribution of Smucker’s products throughout North America

  • Tibbett and Britten is a worldwide company with a strong presence in Europe and could be used with the three options for market entry.

  • Tibbett and Britten is in the surrounding countries of Germany, and specializes in food and beverage distribution.

    • Have ability to keep frozen and pre-packaged foods fresh, as well as an extremely efficient delivery service

    • They have a new facility Deutschland (western part of Germany) , but is not a food and beverage distributor

    • Possible Locations

      • Austria, Czech Republic, France, Ireland, Netherlands, Poland, Portugal, Spain and UK

Consumer related issues l.jpg
Consumer Related Issues

Segmentation and Targeting

  • Demographics

  • Geographic

  • Benefits

  • Psychographics

  • Behavior

United states target demographics l.jpg
United States Target Demographics

  • Schools

    • Elementary Schools

  • Busy Parents

    • Parents in their 30’s-50’s looking for a convenience good

    • Upper Middle to upper class lifestyle

  • Teenagers

    • Convenient after school snacks

    • Snacks between school and other activities

German target demographics l.jpg
German Target Demographics

  • Families in Germany

    • Total Population: 85,424,609

    • 81% live in families

    • Priority on children—feel children complete a family

  • Middle Class to Upper Middle Class Families

    • Personal Income per Capita= $27,600

    • Income Tax Rate: 30.3%

  • Older Population and single-person households for packaged foods

    • Decline of traditional family meals

    • Need for single portion products

    • Higher disposable income

United states target geographics l.jpg
United States Target Geographics

  • Families in busy suburban settings

  • Target areas with access to large grocery chains that carry Smucker’s products

  • Not typical for areas that are super rural

    • Includes under developed areas with low disposable income

German target geographics l.jpg
German Target Geographics

  • Target areas of the country with the highest per capita population

    • Cities are located close together, and form one of Europe’s larges agglomerations

    • Three largest cities are Berlin, Hamburg, and Munich

  • Target public housing in the large cities

    • Over 60% of Germans rent homes, furnished with appliances such as refrigerators, freezers, and microwaves

Targeted united states benefits l.jpg
Targeted United States Benefits

  • Time Efficient

    • Reduces time to prepare, clean-up, and pack

  • Goods are Pre-Packaged

    • No mess

  • Easily stored and kept fresh by freezing

Targeted german benefits l.jpg
Targeted German Benefits

  • Can be used as a quick, hassle free meal or snack food

  • Clean and easy product for children’s lunches or snacks

  • Provides valuable daily nutrients for growing and developing children

Targeted united states psychographics l.jpg
Targeted United States Psychographics

  • Targeted for Families with two full time working parents

    • Parents that are working and trying to accommodate the busy schedules of their children

  • Families that do not have time for sit down dinners

    • Too busy to prepare a family lunch/dinner

  • Personality and Behavior types:

    • Busy, organized, impatient

Targeted german psychographics l.jpg
Targeted German Psychographics

  • Target Family Life

    • German tradition is that children complete a family

    • Benefits family life by being clean, easy to use, time saving, small portions

  • German Lifestyle is very concerned for their personal health

    • Much of personal disposable income spent on healthy food and products

    • Interested in Health and Fitness services (exercise and dieting)

United states behavior l.jpg
United States Behavior

  • Not targeted towards children, but will reward children that participate

    • Online games and activities within the Smucker’s website

  • Product available at schools

    • Children are trying the product at schools and convincing parents to buy the product later

    • Shows parents the ease of using the product

  • Gives a recognizable good, with a homemade quality, at a “grab-and-go” convenience

German behavior l.jpg
German Behavior

  • Tendency to buy products that are healthier

    • White bread is not commonly consumed

    • Not a large level of consumption of peanut butter, but an increase in the consumption of jams, jellies and spreads (3rd ranking spread market in the world)

  • Germans and Europeans tend to purchase frozen bakery products rather than frozen spread products

Marketing mix l.jpg
Marketing Mix

  • Positioning

    • Distribution

    • Product

    • Promotion

    • Price

Uncrustables distribution in the us l.jpg
Uncrustables distribution in the US

  • Available in many school cafeterias

  • Frozen foods section of grocery stores

  • Can be found in WalMart stores and other similar multipurpose retailers

Channels of distribution in germany l.jpg
Channels of Distribution in Germany

  • No Smucker’s facilities in Germany currently

  • Transportation systems are of more advanced in world

  • Majority of food industry outsources logistics/distribution to other companies

  • Method of logistics/distribution similar to that of US

Retail distribution in germany l.jpg
Retail Distribution in Germany

  • The Great Atlantic and Pacific Tea Company

    • Worldwide retail organization with local headquarters in Germany

    • Stores include Kaiser’s and Tenglemann Sumpermarkets

  • Discount supermarkets

    • Aldi, Lidl, Plus

  • MiniMalls

    • New line of grocery stores, similar to WalMart supercenter

Product us vs germany l.jpg

Made with white bread

PB&J and grilled cheese

Stored in freezers

Boxes of 4 single servings

Under widely recognizable Smucker’s label

Main feature is absence of crust (not a concern in Germany)

White bread not popular

3rd ranking spread market in world

Recent increase in jam consumption

Personal fridge/freezer ownership not as common

Limited freezer space

Don’t place large value on brands and labels

Product (US vs. Germany)

Packaging in us l.jpg
Packaging in US

  • Cardboard box

  • Color matches color of spread

  • Graphic similar to picnic table cloth

  • Picture of glass of milk

  • English label – “Uncrustables”

Packaging in germany l.jpg
Packaging in Germany

  • Box must be recyclable (green dot approval)

  • There are no taboo colors in Germany

  • Europeans like to picnic

  • Milk consumption is similar to that of the U.S.

  • Speak German (with 4 main dialects)

    • translation: Ohne Kruste

    • Translation may not hold same meaning for Germans due to their lack of concern for the crust on bread

Promotion of uncrustables in us l.jpg
Promotion of Uncrustables in US

  • Television Advertisements feature little girl on a tire swing

  • Coupons

  • Provide fact sheets to schools for consideration on lunch menus (example to the right)

  • Focus on Uncrustables on the Smucker’s website

Mass media outlets and promotion in germany l.jpg
Mass Media outlets and promotion in Germany

  • Television reaches 92.6% of population

  • Newspapers reach 95% of pop.

  • Magazines reach 88% of pop.

  • Radio reaches 88%

  • Sponsorship of Sporting Events

    • Germany plays host to Soccer/Football’s World Cup in 2006

Germany expenditures on advertising in 2003 l.jpg
Germany Expenditures on Advertising in 2003

Average cost of 60 second spot per screen per week in Germany is $101.42

Price l.jpg

  • $2.89 per package in US

  • VAT incorporated into price of products in Germany

  • Based solely on current US price, would be approximately 3.82 euros.

  • Actual cost would include

    • Possible requirement of production facility

    • Costs of media advertising

    • Possible distribution costs

    • VAT

    • Cost of shelf placement in stores

    • Consideration of personal income availability