Peanut Butter in Germany

Jif earthnut butter in Germany pic Man squeeze outnot live by bread alvirtuoso. He must befuddle monkey nut cover. Bill Cosby circumstances 1 administrator Summary In parliamentary law to maximize profit, J. M. Smucker could accession sales of Jif goober pea cover, its best selling harvest-feast, into growing merchandises. Prior to any expansion a full analysis of the nourishment crossway is necessary. The c gloomynish with the largest mercenaryize dominance for monkey nut vine cover in Europe is Germany (ibid 79). The coun campaign climate of Germany gives a domineering outlook for un grievous cover, the special option creation as a breakfast option in the bread break up category. fooling patterns be m altogethere up to(p) to suggest that groundnut howeverter be a comp anent, an additive, an division, or a sharpness. Jif as a stand-al unrivaled tar sop up is a U. S. - base crossway that has never, with keep attend initiative, introduced any of their results internation distrisolelyively(prenominal)y. therefore there is no bypast fuck in new trade place expansion. Jif has the stigmatizeing air model. i master(prenominal) question is whether to re crossroadion the old model for new creation (acquisition) or develop a new schema that go forth make better align with the directed commercialise. The derriere commercialize for Jif in its office trade of the US is families with children with the slogan choosy moms get hold of Jif. Based on the 360 degree visibleness of customer atoms in Germany, the segments were judged on margin, persuasion, and mint possible. It was determined that the train trade endure withal be families with children in Germany. Although the target market is the same, Jif impart cave in a in truth different problem in Germany, get employmentrs to switch to earth-b every last(predicate) cover sort of of Nutella and recognizing choice uses. In comparison, the p rimary merchandise altercate in the U. S. is getting users to switch from nigh some other monkey nut cover injury to Jif.The fol pitifuling report found multiple challenges of introducing Jif to a new market, including multiple points of resistance from the target market, such(prenominal) as companions hip joint of un great cover with fatty Ameri brush aside foods, current use is yet as a bread pass out, and entrenched opponents in the bread shell out category such as Nutella and Ultje. groundnut vine butter is much nutrient than the leading bread spread. unimportant butter is uplifted in monounsaturated fats, which in truth reduce cholesterol. goober pea butter is similarly a legal ascendant of protein for vegetarians and vegans and is gluten- withdraw and kosher. in that locationfore, the points of resistance good deal be addressed by clear communicating the nutritionary benefits of earthnut vine butter as wellspring as resource uses. Options for alternative uses of groundnut butter accommodate integrating undistinguished butter as an ingredient in cooking. The conference of alternative uses could be through and through recipes. The main competition is in replacings. Although it is identified as a qualify instead than a direct competitor, Nutella, a chocolate hazelnut spread, go forth be Jifs primary competition in the German market. retentiveness 17% of the market sh atomic number 18, Nutella is the number one choice of bread spreads. peanut vine butter is currently not a large competitor in Germany in the bread spread category, as evidenced by its 1% market make do. As a direct competitor, Ultje exit present the closely aggressive barriers to Jifs en shew. Ultje is a company that has been present for a presbyopic duration, is topical anestheticly base, and has a presence in the market collectible to its well-recognized draw figure, jingle, and distinction endorsements. To combat some(prenominal) competi tors the campaign should suggest earthnut butter as a complement to the Nutella wargon. Selecting distributors and developing relationships with re prise chain members is overly a challenge.There ar several wholesalers of truffle butter in Germany, which can be use to circulate peanut butter to retailers where consumers can then corrupt the crossing. In conclusion, while the German market has high potential, it exit be a difficult venture into Germany. If the decisiveness is to sneak in the market somewhat changes lead withdraw to be made, but the sanctioned concern mark model pass on preserve the same as in the U. S. Jif lead have to be keenly aw be of how their shuffling their selling message, tagline, jingle, label packaging, etc. is perceived in the German market. disassociate 2 Company Background Jifs flagship creamy peanut butter spread was first-class honours degree introduced in 1958. Since 1981, Jif has been the leading peanut butter marker in th e United States. As of 1998, Jif had an estimated 42. 5% of the market donation, dwarfing closest competitor Skippy at 28. 8% (Marigny 99). In 2002, The J. M. Smucker Company corruptd the Jif vane from Proctor and Gamble. The bribe of the largest peanut butter provoker in the U. S. by the famous gelatin manufacturer was resemblingly a strategic move to streamline distribution of the complementary fruitions. goober pea butter is sold originally as a bread spread, and secondarily as an ingredient for other meals. The distribution of peanut butter is about 70% creamy to 30% c promptchy (Kellogg). In 2005, peanut butter had a U. S. household penetration rate of 93%, with an scour higher percentage in households with children (see video dis tomboy 2A). Jif has historically averaged near 40% of the market sh ar (Kellogg). Business Model. Branding is very important to Jif, and their stigmatization suits have been ordered over the years.Jifs merchandise program has been pri marily family focused, with the normal tagline Choosy Moms Choose Jif. Also not fitting is brand-building of the widely recognisable Jif label, with its striking vertical bars in primary red, blue, and green. As an instantly-recognizable brand, Jif has enjoyed long-run customer loyalty. Jifs brand portfolio includes the core brand the original creamy spread along with newer varieties such as Extra Crunchy, Reduced Fat, Natural, only when Jif, Jif Omega-3, Peanut Butter & Honey, as well as complementary produces such as to-go miniature reverseers (Jif website).The stage of business development in this market is very mature, and the private- bring outprise(a) landscape is quite saturated. As a result, Jif does not emphasize margins, as their charge is set very competitively. Rather, Jif emphasizes change magnitude chroma among animated customers in two ways. First, they encourage increasing the quantity of intersection point purchased by offering multiple varieties. Can not decide between creamy or crunchy, omega-3 or reduced fat? Try one of separately Secondly, they encourage increasing the ledger of harvest-home purchased by creating new uses and purchase occasions.Jifs website is replete with recipes and serving suggestions, including an array of international dinners from Senegalese sound off Peanut Butter Stew to Mexican Chicken Peanut Mole. You can even sign up to have Jif recipes delivered to your Yahoo or Google varlet via RSS feed, downloaded to your iPod, or sent newsletter-style to your email. A final strategy to increase sight as well as exposure to the brand is an annual fence called the Jif Most Creative Peanut Butter Sandwich Contest. The winner receives a $25,000 dollar scholarship fund. The event draws a multitude of families and local media (Jif website). stigma Market. Jifs advertisements, tagline, and website clearly target mothers of untested children. Jifs label and homepage both(prenominal) boast an icon saying it is the 1 Choice of Choosy Moms, and the website includes a prominent link to a Mom Advisor page. Recently, Jif toyed with a to a greater extent politically correct tagline, briefly updating it to Choosy Moms, and Dads, Choose Jif. In a comparison study with other leading brands, Jifs consumers ar clearly mothers or parents in the 35-44 year-old age campaign, and tend to be engaged part- clock time in non-professional roles (see show 2B).Notably, the primary indicator of peanut butter purchasing for all three of the top brands is having a household of 5 or more people. Having kids age 2-5 is the second strongest indicator for Jif (Marigny 221). Marketers have historically targeted children and their mothers in resultion advertising, and even the names of the major brands are adolescentJif, Peter move, Skippy (ibid 33). See point 2C for a 360-degree profile of common consumer segments, video dis puzzle out the housewives category as having the highest persuasion potential wit h Jifs existing posture in the U. S. market. think of Proposition.Jif draws value for their customers the choosy moms segment by secure them that they are Americas favorite peanut butter because of their fresh-roasted peanut admiration. This proposition al impressions busy moms to k instanter that their choice at the supermarket is an easy one it doesnt hold a lot of time or stew, and they result be satisfied with their purchase time and a fetch. Secondarily, since this segment values healthful meals and having family dinner together, value is excessively created by providing creative recipes via RSS feed or email as described earlier. Strategy, merchandise Program and Positioning.Jifs main competitors are Unilevers Skippy and ConAgras Peter Pan, be for 60% of the category, confirming a variety of private-label brands (Kellogg). Jif has several points-of-parity with their main competitors, namely in product attributes, set, and physical placement. all told three c ompanies offer corresponding varieties of peanut butter, similar sizes, and similar prices. They also have similar merchandising techniques, mainly boob tube ads featuring children stagen during daytime programming. In the U. S. , peanut butter is firmly positioned in supermarkets, accounting for 95% of sales.Mass merchandisers (such as Costco and restaurant suppliers) make up another 4% (Marigny 199). Peanut butters are al more or less always positioned on the ledge beside to complementary products such as jelly and honey. The companies do exert points-of- departure, however, mainly in their positioning as described chthonic. Skippy, the 2 brand in the U. S. , has traditionally positioned itself as the wholesome, healthful brand. Skippy has emphasized peanut butters high protein content more than the other brands, and has used celebrity endorsements such as former Mouseketeer Annette Funicello and athlete Derek Jeter (Gidman).Skippy claims to have less profits than other br ands, and in 1990 attempted to convince adults of the health benefits of peanut butter, exploitation fresh vegetables and other foods in its advertising which resulted in a striking decrease in market share. Since 1990 Skippy has repositioned itself as the best testing peanut butter (Kellogg). Today, Skippys website (with the enviable peanutbutter. com URL) is clearly kid-focused, with games, cartoons, and a Kids Corner. Skippy is also the highest-price per oz brand of the three- they package in the smallest container size at 16. 3 ounces. Peter Pan is positioned as the low-price brand.Advertising and information on their website is skimpy, and the company appears to prefer to comfortably coast along in its third-place standing (Gidman). In the past, Peter Pan has attempted to target kids, then adult non-users, and has also claimed to be the best tasting peanut butter (Kellogg). Peter Pan is the only brand in the top three to have been genuinely recalled by the FDA due to salmo nella poisoning. Jifs main point-of-difference from competitors is their obvious woo to mothers as the target audience. As we have described, the tagline Choosy Moms Choose Jif, the companys marketing efforts (recipes, contests, etc. , and the website are very much geared toward mothers with three-year-old children. later on competing head-to-head throughout the 1980s and 1990s on which brand is the best-tasting, Jif has settled on a subtle yet specific difference it has more of a fresh roasted peanut taste. Jif is also the largest adman of the three, but doesnt use consumer promotions as much as their competitors. Although Jif has been able to claim the 1 spot since 1981, it maintains a price point below Skippy. They have also taken a swipe at Skippy by pointing out the difference in product sizes on their label, Were unagitated 18 oz. Refer to discover 2D for a product positioning map. Part 3 Company Analysis Companys capability in entering new market. Jif as a stand-alone brand is a U. S. -based product that has never, through company initiative, introduced any of their products internationally. So pickings their peanut butter to Germany will be a first time experience for Jif. Therefore, the only predictability we can use here is that of the mother company The J. M. Smucker Company. From their history, Smuckers has penetrated mingled food industries in Canada, just aboutly through acquisition. none of these acquisitions were peanut butter related.So as they are preparing to enter Germany with one of their most popular brands, Jif peanut butter, the main question clay whether to copy the previous model for new entry (acquisition) or develop a new strategy that will better align with the targeted market. In order to assess the companys capabilities in entering the German market with peanut butter, it is important to note that the Germans in their traditional cuisine do not use peanut butter. In Germany as in many other parts of the human, peanut b utter is considered an unpalatable American quirkiness (Kellogg).With the emerging immigrant population in Germany, the use of peanut butter has belatedly constituted itself over the years, although the exploitation rate since 2004 has remained relatively stagnant(see Exhibit 3A). But based on another study of the market in Europe, Germany has the largest potential market for peanut butter (see Exhibit 3B). angiotensin-converting enzyme challenge in entering Germany for Smuckers Jif is a command reluctance to use American products as they are seen as high in fat (Avini). However, based on the Cultural Navigator, Germans use facts and empirical data in the decision making process and expert trust plays a major role.In this regard, Jif may be able to enter the German market by emphasizing facts such as the nutritional benefits of their product line. denomination of business model. Since there are some very specific points of resistance in the German consumers perception of pe anut butter, Jifs primary responsibility will be to build brand assuredness and break the points of resistance with in personnel department(p) communication. Jif will have to be keenly cognizant of how their brand their marketing message, tagline, jingle, label packaging, etc. is perceived in the German market. fleck some changes will subscribe to to be made to enter the German market, the basic business model will remain the same as in the U. S. for Jif. Core competency, activity management, innovation, and relationship management are also important to the company, but what they must absolutely positively get practiced is their branding. despotic the largest domestic market share in the U. S. has enabled the company to plight some level of profitability through the years not to mention their effort to always drive an increase in sales intensity level through programs that keep the Jif brand alive in the mind of their customers.Looking at the German peanut butter market to day, it is clear that the sales volume and values have slightly decreased since 2008 (see Exhibit 3C). With volume potential as a main component in the profit blow equation, Jif in todays German peanut butter market may have a hard time achieving market share and thus profitability. Therefore, increasing the boilersuit nut-based market share (which increases the sales volume as well) will be necessary to ensure sustainable growth in that new market.Exhibit 3C also shows that the spread market share is large enough to provide a good market to Jif if the right marketing strategy is applied. In considering Jifs aggressiveness in attack the U. S. market today, it will be a good tool for them in the German market where there is large potential to tap into the competitors market. another(prenominal) avenue using the current market share may be to explore Blue Ocean that will result in great(p) variable cost and may increase the sales volume because considering increasing price to a mark et that is stagnant will only repulse the market to decrease.The success of penetrating the German peanut butter market will be very much dependent on the marketing/advertising program that is associated with it. Part 4 Customer Analysis Identification and 360-degree profile of customer segments. Segments of food consumption analyzed young families with children, young families without children, seniors, young singles, restaurants, and hotels. A 360-Degree Profile was then performed for these segments with regard to Demographics, Psychographics, and Product Usage. Demographics upstart Families Young Families with No Young Singles Seniors with Children Children Barneys outflank great deal import creamy or crunchy peanutCompany has very petite information online Depends on mart cut in outlet butter Ultje insurance premium creamy, crunchy, or Aggressive marketing, including pop Pictures show these in a low-fat peanut butter star/celebrity endorsements promoted as non-prominent position next to healthful, step snack company is marshmallow fluff, applesauce, promoted as an innovative expert in etc. nut-based snacks Algood fare CompanyBulk export creamy or crunchy peanutCompany promoted as an expert Forgive us,Depends on securities industry stemma outlet butter, includes but peanuts are our bread and butter force items such as No-Stir Natural and PB & J Stripe Calve Pindakaas $5. 49 creamy peanut butter Product promoted as healthful and specialtyOnly available online Rinatura 2. 9 EUR organic peanut butter Promoted as all-natural, organic, the Elaborate displays of all types choice for health-conscious consumers of products from this company peanut butter is one of many all products have matching labels REWE/PENNY implication break in organic peanut butter REWE has a corner on the market since they PENNY will display the organic pricing own a large chain of market shops foods side-by- side with their obviously their label will get prominent counterparts from conventional display and marketing production.This will direct the solicitude of PENNY customers to ecological alternative products and new items in a targeted fashion. another(prenominal) private-label3. 59 EUR (see varies varies Pictures show these in a Exhibit 5E) non-prominent position next to marshmallow fluff, applesauce, etc. Nutella 1. 95-2. 9 Euro forChocolate-hazelnut Promoted as part of healthy breakfast Depends on food market store outlet 400g spread targeted at children sold in glass jars which can also be used for drinking hosts an synergetic online community (http//www. nutellaville. it/) sells t-shirts and other promotional products Positioning of competitors product/brand. Within the nut-based spreads subsector, the competitive landscape is not highly differentiated. Products have a similar price and position. In order t o penetrate the market, however, Jif will necessity to consider the broader-based spreads sector, which includes peanut butters alongside Nutella, honeys, jams, etc. See Exhibit 5F for these product positioning maps.As we have discussed, Jif will have to re-position peanut butter to be as useful in consumers minds as the better-selling spreads. Assessment of industry attractiveness and competitors strengths and weaknesses. The intercontinental market potential of peanut butter in Germany is the largest in Europe. At the same time, sales and profits are declining. We attribute that to a leave out of wide acceptance of the product, rather than being in the late-maturity stage of the product lifecycle. There are plenty of competitors in the nut-based spreads market, yet the market is not saturated. Of the competitors present, we believe Ultje will present the most aggressive barriers to Jifs entry.Ultje is a company that has been present for a long time, is locally-based, and has a presence in the market due to its well-recognized cartoon figure, jingle, and celebrity endorsements. A review of online opinion polls, blogs, expatriates and former German nationals now living in the U. S. shows that of the products available locally, such as Ultje, none taste quite the same as that good old-fashioned American peanut butter. We are tasked with bringing the American taste and texture, but not the American image, since German consumers have a general reluctance to use American products. Part of the marketing challenge will be to dispel the myth that peanut butter is fatty being high in monounsaturated fat actually reduces cholesterol.We will also need to remove the emphasis on being an American company and instead focus on creating a German image using local scenes and labeling. As we have learned, Germans use facts and empirical data in the decision making process, so we believe the right marketing and communication effort will succeed in overcoming these challenges . We believe the biggest competition will practise from Ferreros Nutella, a chocolate-based spread or a substitute product, rather than other peanut butter spreads directly. Again, this indicates a lack of acceptance of peanut butter on its own merits something Jif, with the right marketing plan, can correct.Part 6 Channel Analysis It is important to select communication channel partners that provide value to the relationship, which can be done through devoting resources to marketing Jif or helping to create a competitive difference. It is important that the selected channel partners coiffe the target market and have an image consistent with the positioning of the company. There are several channels that could be used to get the product from Smuckers to the end consumer. These possible channels are shown in the channel map below. Channel Map 1) Jif - Consumer 2) Jif - Online Store (retailer) - Consumer 3) Jif - Grocery Store (retailer) - Consumer ) Jif - contact - Grocery Store (retailer) - Consumer 5) Jif - Wholesaler - Grocery Store (retailer) - Agent - Consumer The target market for Jif peanut butter shops in grocery stores, so in order to reach the target market, the channel selected should include a grocery store. Therefore, we can eliminate the first two channel options. Although the number of retail chains in Germany is increasing, there are all the same a huge number of independently grocery stores where the target market shops. Therefore, to improve cogency in the value chain, a wholesaler could be used to distribute the Jif peanut butter to retailers who will then sell to the end consumer. However, the use of an federal agent may not be value added and does have a large additional cost.Therefore, we should select option four with the potential of adding an agent between the retailer and consumer in the future if necessary. However, we must know which retailers swear out the target consumers in order to select the proper wholesaler. Evaluat ion of potential Retailers Retail chain stores in Germany that contain food products are Real, genus genus Galleria Kaufhof, Kaufhaus, Aldi, and Schlecker. It is beneficial to partner with a retail chain as formerly a relationship is developed, the product will be lasted in several locations whereas with individual retailers there would be many more relationships to maintain. All of these retail chains serve the target market. However, Schlecker and Aldi do not have an image consistent with the quality image of Jif.Aldi is viewed as a discount chain and peanut butter is not a discount product. Schlecker is viewed as more of a drug store or convenience store and does not have a large variety of products, which is not consistent with the image of Jif. Evaluation of latent Wholesalers There are 14 wholesalers of peanut butter currently in Germany as can be seen in Exhibit 6A. Wholesalers must be analyzed to determine who would provide the most value to the partnership, such as devo ting resources to marketing peanut butter, a web to distribute across the region, supplier of target retailers defined above Real, Galleria Kaufhof, and Kaufhaus in order to reach the target market.Several wholesalers can be eliminated from the list as they are more diversified and the focus should be on those with a peanut butter expertise. Part 7 dry land Climate (Environmental) Analysis Profiling the environment is full of life to marketing success. Utilizing the DEEPLIST order the German scenario was analyzed by trends in population, current economic and political stability, technology for advertising, the familial social institution, and food and chance(a) life. Population. Germany is a country of 82. 3 million in attireants of which 74% are urban dwellers Germans have a 99% literacy rate with a growth rate of -. 053% (CIA knowledge domain position Book). There are two primary trends affecting the population. The fertility remains well below the electric switch ratio a nd net immigration is lowthe population is ageing rapidly as a result of great longevity and low fertility rates (EIU 13). While the percentage of females to males, in the productive age range of 15-64 years old is 66% to 34%, with an overall low replacement rate there are fewer women opting to have children (CIA World Fact Book). This will affect our long-term prospects of marketing peanut butter to mothers and children. As Germany has a negative population replacement rate there are less anticipated children to enter into and support our target market. We analyzed the opposite extreme of the prospectus, that the ageing population could potentially be a target market.The ratio of elderly population (65 years of age) to the functional-age population (20-64 years of age) is forecast to increase substantially from 32% in 2005 to 62% in 2050 (EIU 13). Peanut butter could soft be merged as an easily accessible, low cost, high-protein option for seniors however, we found their margi n potential measured low and declining, very unattractive. Economy & Politics. As the domains third largest saving (EIU 22) Germany has emerged as a permanent environment for business, both economically and politically. The European Commission forecasts that the German economy will remain in positive territory for the coming months but that it will besides grow in the fourth quarter of 2009 at 0. 1% later on expanding an anticipated 0. % in the third quarter (PRS Group). This suggests continued stability and growth, albeit contracted, for the begining years. This works as an advantage for peanut butter positioning as a wholesome product, at a lower cost. Introducing the product now can position peanut butter for the economic rebound. If families become given up to integrating peanut butter now it will continue to variation as a diet component when their income allocation changes. Politically, Germany is a still majority rule organized on federal lines (EIU 3). The democra tic political root word scored Germany as 13th in the Economist Intelligence Units 2006 democracy index.It scores highly in terms of electoral process and complaisant liberties, fairly high in terms of political culture and presidential term functioning (the latter including accountability and absence of corruption (EIU 9) and little political bump. It is not anticipated that issues of nationalization or high repatriation percentages will play any role in disrupting the distribution nor revenues of peanut butter. Although the strong economy and stable political system will not contribute risk factor ins Germany has what is currently one of the most complex revenue enhancement codes in the world (PRS Group). Recent changes will affect supply chain costs and hail purchase costs. For example, a 3-percentage-point increase in value-added tax (VAT) was added in 2007 (EIU 11). This affects the purchase price and may deter consumers.Other taxes will play a role in the consumers decision making. Most of our target market is from the middle class who has income taxes at top of mind rightfully so as taxes subtract a large portion of disposable income. The overall top income tax rate is now 47. 5% (EIU 20). Although most families will not face as extreme a rate the income distribution, by and by tax, should be considered in pricing the product. Additionally, while overall corporate taxes have decreased they remain extremely high. From 2008 the headline rate of potbelly stove tax was cut from 25% to 15%, reducing the combined rates of corporation tax, local trade tax, and the Solidarity Tax from 38. 65% to 29. 8% (EIU 20). This could serve as the replacement to any currency risk or otherwise with repatriation taxes. Technology. Implementing marketing campaigns requires knowledge of how consumers receive messages. Since 1995 Germany has had a strong history of media communication and availability via television with 373 stations (CIA World Fact Book). The b irth of the Internet provided sudden delivery of information and availability to the 61. 97 million Internet users, be it as the 6th most connected country in the world (as of 2008, CIA World Fact Book). Having strong TV, and Internet availability ensures a range of publicity options and flexibility in reaching our target market.However, one potentially costly issue for a nationwide media presence is the limited summation of advertising carried by public radio and television companies, which operate under the supervision of the authorities of the individual states (EIU 9). Not only is advertising limited, it is fractured amongst the states. Contracts would need to be negotiated within each of the 16 states. Social/Cultural. The most critical environmental factors revolve around the family and its social structure. The family is still the first and most important social group of people and one of the most crucial social institutions (Hintereder). Women play the most essential r ole in the structure. While women continue in a traditional role responsibilities are ever-changing within the classes.Currently, they face the main obstacle in career promotion of the fact that the network of childcare facilities particularly for small infants is not so good on a European comparison women, even those in employment, invest twice as much time looking after children as men. To date it was almost exclusively women who have taken agnatic leave (Hintereder). This supports marketing to moms and their young children. Moms select the products in their household pantry and mold the taste likes and dislikes of their children. As the employment of women increases (either full-time working moms or part-time), now at 64 percent, peanut butter can play a likewise increasing role (Hintereder).Instead of only Choosy Moms, the marketing campaign can also publicize for Busy Moms. Yet, working mothers alter the size of families and can decrease demand. Families have become little single-child families and two-child families are typical. Almost one third of women born in 1965 still have no children today. As the social institution ebbs and flows marketing peanut butter will likewise have to ebb and flow. Food & Daily Life. After understanding the family structure the next most key section assesses diet, nutrition, and food patterns. Most Germans acquire food from both supermarkets and specialty shops, such as bakeries and butcher shops (Every Culture). Staple daily food items include bread, cheese, pork, vegetables (mostly starches and root, CIA World Fact Book). Many meals are accompanied by beer. While the previous data in this report noted Germans appreciating a nutritious approach to their diet many of their basic items are carbohydrate based. This supports eating a heavier, more substance based product like peanut butter. The German meal pattern suggests positive angles for where to insert peanut butter into daily life. A primary option could be at bre akfast to accompany bread and the afternoon Kaffee. Bread is the main food at both breakfast and supper. The warm meal of the day is still often eaten at noon, though modern work routines seem to encourage assimilation to American patterns.Large family meals are still common at noontime on Saturdays and Sundays. These are often followed in mid-afternoon by Kaffee und Kuchen, the German version of tea time (Every Culture). The meals identify which daily patterns are malleable in how to suggest peanut butter be a component, an additive, an ingredient, or snack. Hotels in Germany typically include breakfast. It is very common to find small packages of Nutella provided in hotels for breakfast. Jif currently has an on the go packaging currently in place, a 2. 25 oz container, which could be used to directly compete with small packets of Nutella. Part 8 Recommended trade Objectives and Strategy Marketing objective.Within 12 months, Jif will increase volume of peanut butter purchases amo ng all consumer categories by providing a healthful, low-cost, convenient staple item which belongs in every kitchen pantry. Time period There are several points of resistance to enter the German market. Enough time should be taken for Jif to be able to create awareness and change consumer attitudes, but we will recommend a time period of 12 months to evaluate success. Profit impact By increasing awareness of peanut butters benefits across all consumer categories, volume will be increase both in the number of containers purchased, and the purchase occasion itself. Target market All consumer categories have a need for peanut butter in their pantry.Whether young or old, peanut butter makes an excellent bread spread for breakfast or dejeuner an easy snack item a delicious ingredient in baked goods and ethnic meals a arouse recharger for hikers a protein substitute for vegetarians, vegans, and those with dental problems a gluten-free product for those with wheat allergies a kosher product a delicious and filling product for those on a low-carbohydrate diet such as Atkins, South Beach, Zone, etc the list goes on Value proposition From the customers perspective, peanut butter adds value because it is healthful, convenient, long-lived, inexpensive, and versatile. Very few consumer products can claim all those benefits Marketing strategy and pro moldd positioning. Jif is an essential pantry product for all consumers among all staple food products because it is the only truly healthful, low-cost, convenient, delicious, and versatile product available on the market.Jifs offerings are different from competitors in the following ways It is much more healthful than Nutella, which is presumed to be healthful but is actually is high in added sugar and fats. It is much more versatile than Nutella, which is marketed as solely a bread spread. It is much more convenient than the natural peanut butters already available in Germany, which are not as long-lasting, must be refrigerated, must be brought to room temperature and stirred before useful as a spread. It is different from existing spreadable peanut butters available in Germany because it will be aggressively marketed as a quality, low-cost global brand with a million uses. Other competitors position it as bread spread only. Branding objective.Because of the points of resistance for German consumers, namely an unfavorable image of the product and country-of-origin, as well as a lack of awareness of the versatility of the product, the communication regarding the product will have to be changed quite significantly from the U. S. program. However, the product itself will remain the same, which will generate significant scale advantages. Our branding strategy then will be a combination of product extension and communication adaptation. The brand will need to portray that it is a sophisticated global product, yet de-emphasize its American roots. This is necessary due to the perception of the Germa n consumer that American products are fattening. Part 9 Marketing Mix Program Product.Since we have identified a German perception of peanut butter as unhealthful, we need to combat that belief by marketing the peanut butter types that are more wholesome. Out of the Jif product line, we will take Creamy and Chunky have been the quintessential best-sellers. The smaller sizes would be introduced first, which is 18 oz. To compete with small packages of Nutella served in many restaurants and hotels for breakfast, the Jif To Go packages should also be introduced, which are 2. 25 oz cups. Ideally, Jif should have multiple product lines and sizes in Germany so that multiple facings of its containers will be seen on grocery store shelves.This repetition of name and pattern on the shelf will help to increase brand familiarity. However, the rest of the Jif product line will be withheld initially while the consumer is acclimated to the two main peanut butter choices. The other product lines s uch as Jif with honey, and Jif Omega-3 may be introduced later in small quantities possibly as a consumer gustatory sensation test. As peanut butter sales grow in Germany, Jif can plan to grandstand new product line introductions as well as the larger size containers, such as the 40 oz size. These campaigns will serve to reinforce peanut butter in the consumers mind, and entice consumers to try the hottest new flavor from Jif. Personal service.Jif will create and maintain a localized website for the German market, with an easy-to-remember URL which will be displayed prominently on all advertising. The website will be customer-focused, with clearly labeled sections for nutrition information, recipes, types of products, store locator, an FAQ section, a contact us link for questions or comments, and a money-back tackle for customer satisfaction. The website should be functional yet elegant, as the Ferrero website is today. Each customer segment should be represented (a page specific ally for kids, moms, vegetarians, etc. ) viewing the benefits that peanut butter provides for them specifically. This will enable vegetarians doing a Google search in Germany to find a hit on the Jif website, for example. Price.Jif should be particularly on the alert about pricing in Germany. The price should be maintained at an affordable level to spur consumer interest as a snack food, but not so low as to have unwanted perceptions of low-quality or that the product may be close to expiration. Any price reductions should be limited to sales with widespread advertising attached to gain customer awareness. The normal pricing level should be set very near to the level of Nutella, and with margins similar to that of the U. S. Comfortable margins should help the marketing police squad to convince grocers to provide superior shelving locations and multiple facings. Current peanut butter pricing is around 3-4 EU (see Exhibit 5E).Smaller containers are dominant in Germany therefore J if will have a higher mulish cost due to the packaging. Price per gram will likely be higher than the Jif pricing in the U. S. to cover these costs. In Germany, we anticipate a similar price as the U. S. , only for a smaller container. Placement. Jif should stress to get the best shelving possible initially, to get large consumer attention. End caps of isles, and free product tasting tables should be used. At the tasting tables, peanut butter should be served on fresh bread as we anticipate the product will be used that way most. In addition, the service should contain other healthful ways of eating peanut butter, such as in a celery stock. All parts of the presentation should be arefully considered to create the perception of healthfulness. The placement should be put together to appeal to mothers, and to be highly attractive to kids in the cart as well. advance or Communication. Our number one goal is to increase awareness of the Jif product. Peanut butter has such a low penetr ation in the spreads market in Germany today consumers just dont consider the product as a necessary item in their pantry. Therefore, we recommend a startling, attention-grabbing promotion that runs via internet and television commercials for a short period, perhaps 30 days. The idea is to generate attention with ad that has the potential to generate excitement.After creating a buzz and an interest in the product, our next objective is to clearly communicate the benefits of peanut butter, including communication on the nutritional benefits, quality processing, and alternative uses. The advertisements will be done via television, internet and print ads that all show images of the various ways that peanut butter is enjoyed. Until a spoken segment at the end of the television or internet commercial, the images in the ads are displayed wordless. On television, the absence of words is an attention-grabber itself. Viewers who have tuned out during the commercial break may think their TV h as stopped working, or their incessant programming has resumed. If we can capture their attention and then hold it through a series of captivating images, we will have succeeded in creating awareness. other benefit of the simple image campaign is that it can be easily reinforced in the products website and print ads such as magazines, billboards, newspaper coupons, mailers, etc. , by using the same images, thus bind the whole theme together. The website, which is clearly communicated in all advertisements, will prominently display the nutritional benefits, recipe ideas (see Exhibit 9B), and a store locator, as well as repeating the branding from the ad campaign. There are numerous examples of images that could be used. Theres the hiker who needs to refuel and pulls out a tube of peanut butter the kid start his lunchbox at school with a heart-shaped peanut butter devise from Mom, or making one for himself as an after-school snack the hip cocktail party eaturing celery sticks and peanut sauce the vegetarian (wearing an I heart animals spine to show shes vegetarian) getting her protein fix the kosher individual the dieter the German immigrants enjoying peanut sauce in a Thai hit, and mole in a Mexican dish and finally, getting back to the roots of when the product was created, theres the old toothless man with a huge smile, eating peanut butter right out of the jar. See Exhibit 9A for images of this cast of characters. At the end of the series of images, again the Jif jar is pose with the tagline (translated into German) Peanut Butter Its more than you think. The images are wordless, except at the very end when the tagline and a brief list of the nutritive benefits are spoken.The benefits include that the product is high in protein and monounsaturated fat which is good for your cholesterol, low in saturated fat and sugar, high in dietary character reference and other vitamins. Peanut butter is vegan, low-carbohydrate, gluten-free and kosher. Another popu lar promotion in the U. S. was a recipe contest in using Jif as an ingredient with a monetary prize. This could be replicated in Germany. It should be noted that all advertising campaigns will require partnering with a local firm to choose the right wording, and to make sure that none of our taglines or acronyms could be misuse in a non-flattering way. maestro sales force. The sales force will be tasked first and foremost with getting entry to German grocery stores and getting the premium shelving during the peanut butter awakening campaign. The sales force should be tasked with stocking the shelves, and working the free product testing tables. Peanut butter is not a discount product and the expert German salespeople should be therefore groomed to present the desired company image of quality. The Jif sales force will be tasked to develop recipes for caterers and restaurants, and to provide comprehensive sample distribution and product use education to chefs. Award winning chefs and restaurants may be compensated to develop German dishes using peanut butter. Jif may frequenter cookbook authors that include recipes with Jif. The sales force should exhaust all avenues to increase German familiarity with peanut butter. Part 10 SWOT Analysis impertinent Analysis Opportunities.The country with the largest market potential for peanut butter in Europe is Germany (ibid 79). Peanuts and peanut flavoring are already present and popular in Germany, such as in Thai Cuisine or the popular snack Erdnuss Flips. Therefore Germany can be looked at as a strong potential peanut butter target market. Peanut butter is more nutritious than the leading bread spread as it is high in monounsaturated fats, which actually reduce cholesterol. Peanut butter is also a good source of protein for vegetarians and vegans. Germany is a member of the European amount of money which will allow Jif to easily extend their target market to other parts of Europe as long term growth strategy.The cornerstone is also well advanced to facilitate the transportation of products from initial manufacturing plants to various distribution locations or for the easy transportations of required suppliers. External Analysis Threats. With all the above mentioned opportunities, there are some challenges that Jif is called to highlight and be aware of in other to successfully execute in the German environment. There is the threat of a salmonella outbreak which would create a scare of consumers. iodine key element is the fact that Germans view American food as being high in fat. Jif being an American brand could pose a threat to the overall strategy if not well presented and the nutritional benefits presented.Also there is an existing peanut butter company that happens to be more local than Jif when starting, and it will require that Jif differentiate itself to the customer based as a way to establish their brand in that market. exhalation after Nutella could be challenging as they are w ell positioned internationally and in Germany their brand is established and well known. Therefore, marketing Jif will require investment in time and energy to compete. Overall, the spread market in Germany is very limited therefore requires that Jif not only tap into the existing market but also strategize to increase it using non peanut butter company spread customer base.Particularly, they need to focus on thievery Nutellas market share. Doing business at the international level will also raise other challenges that Jif will need to deal with such as hedging of the currency, the legal requirements of the host country (Germany) vs.. that of the mother country (USA) The company will have to opt for one way of presenting their financial statement, that may need to be converted into the mother currency with all the possible implications that comes with reporting their final profit at the end of each financial year. Jif also been a new product with Germany as their first international base, has no recognized trademark internationally. inner(a) Analysis Strengths. The strengths of Jif when compared to substitute products is its nutritional benefits and versatility, when compared to direct industry rivals in peanut butter is convenience. Jifs main point of difference from competitors is their obvious appeal to mothers as the target market with their focus on the nutritional benefits of peanut butter, in the established market in the U. S. and also in Germany. Jif has a strength in advertising nutritional benefits in their home market, which is experience that could be used in Germany as well. Jif peanut butter is not only more nutritious than the leading bread spread, it is also more versatile.Jif can create an internal strength by providing many recipes that demonstrate uses of peanut butter as more than a bread spread. In Germany, many of the peanut butter brands currently available are organic, or natural, peanut butter. complete peanut butter is less convenie nt as it must be refrigerated, brought to room temperature, and then stirred prior to being used as a bread spread. Whereas Jif is shelf-stable. In Germany, the refrigerators are much smaller than American refrigerators and the space must be used sparingly. Another convenience factor for hotels is that Jif already has an on the go packaging currently in place, a 2. 25 oz container, which could be used to directly compete with small packets of Nutella. Internal Analysis Weaknesses.Although this program has done a great deal in addressing the gap and defining a differentiation positioning as they enter the German market, there are still few elements that remains doubtful as for their impact to the outcome. The relationship with the wholesalers and retailers cannot quite be predicted. But it is important to focus in building it right from the beginning to ensure the sustainability of the business in the long term. We need to note that Jif strategy is coming from a competitive disadvan tage to current competitors as most of them have been in operation(p) in that ground for many years and had grown to establish their brand in that market.There is also the fact that this whole programs growth depend on the fact that Jif will be able to turn over the populations old eating habit to more include peanut butter. Although well elaborated, there is no guarantee that this campaign will be successful in increasing the target market of spread in general and that of peanut butter in particular. Conclusion and Recommendation Considering the above analysis, there is great potential for sales of Jif peanut butter in Germany. To overcome points of resistance, a focus would need to be placed on the communication of nutritional benefits and alternative uses. One of the main challenges is selecting wholesalers to work with and developing relationships with wholesalers and retailers.In developing the Jif brand, a lot will be invested monetarily, and may not see clear signs that this market may increase for many months. The program that has been proposed requires massive spending. Therefore, Jif in Germany does not seem to be profitable in the short term but could be a great success in the long run if successful in turning peoples behavior. Exhibit 2A house Penetration Rates in U. S. Market pic generator Dairy and Food Communications, page 217 Exhibit 2B Demographic Characteristics of Peanut Butter Brand subprogram in U. S. Market pic etymon Marigny, page 237 Exhibit 2C 360-Degree Profile of Consumers in U. S. Market Demographics Housewife Single Parent Senior Young Professional Age 25-45 20-40 55+ 25-35 Gender Female N/A N/A N/A Income Low to mid(prenominal) Low Mid Stable Mid Growing Education HS potash alum+ HS Grad College Grad College Grad Occupation None to part-time Full-time non professional Retired or near professional Full-time professional Marital/Family Status unite with young children Single with young children Married with grown chil dren Single without kids Psychographics consumption Habits Conservative will cut coupons Concerned will buy bodaciousest assured will take time to Confident and Curious will product no time for coupons find best value (not just try new products based on price) Activities & Interests Raising kids preparing meals atNot a lot of free time for Wide variety of activities andFocus on physical fitness and home eating dinner together activities seldom sit down to hobbies very news-focused andoutdoors hobbies and dinner together aware experimentation with new things such as exotic recipes Opinions & Values Value quality and nutrition overValue quick convenient cheap Quality matters above all Interested in gaining convenience experience and stories Purchase Characteristics Purchase Occasion Will purchase on mending trips Will purchase on regular trips Will purchase on regular tripsWill purchase as needed may to grocery store whenever supplyto grocery s tore only if needed to grocery store whenever be inspired by interesting ads at home is running low supply at home is running low or new products Benefits Sought Quality and dodge ready Convenience ready to use, Quality and health benefits Convenience ready to use, to use, relatively healthful, stable on shelf, makes quick consistency also good for stable on shelf, makes quick stable on shelf will pay for meals dentures meals forage Prestige brand name to avoid cost of (have you act) experimentation with a new brand family may not like Product Usage Breakfast on toast PB&J Breakfast on toast PB&J Breakfast on toast PB&J As a staple also as an sandwiches for lunch as a snacksandwiches for lunch sandwiches for lunch as a ingredient in exotic new dish on barmy or celery sticks snack on crackers or celery peanut-butter cookies sticks occasional dinner recipe Margin Potential Low Low Low Low Volume Potential amply Med Med Low Persuasion Pote ntial High Low Med Med Exhibit 2D Product Positioning Map in U. S. Market pic Exhibit 3A gross sales Volume and Value Trends of Nut-Based Products in Germany pic Source Euromonitor, page 3 Exhibit 3B Market Potential for Peanut Butter in Europe pic pic Source Parker, page 79 Exhibit 3C Sales Volume and Value Trends of Spreads in Germany pic Source Euromonitor, page 2-3 Exhibit 5A Actual and Forecasted Sales of Spreads in Germany 2009 Sales volume in 000 tonnes value in EUR millions % volume growth % value growth 2008/09 2008/09 Jams and preserves 138 44 5544% 0. 4 % 3. 4 Jams and preserves 139. 45% Nutella Ferrero 17. 1 Schwartau Schwartauer Werke 9. 5 Breitsamer & Ulrich Breitsamer & Ulrich 5. 0 Zentis Zentis 4. 9 Langnese Langnese Honig 4. Movenpick Schwartauer Werke 3. 2 Nutoka Aldi Einkauf 3. 0 Biophar Fursten-Reform Dr Med Hans Plumer Nachf 2. 3 Bel Royal Zentis 1. 8 BelFruit Zentis 1. 0 Biogold Reformkost Biogold Reformkost 0. Barn eys Best Dockhorn & Co 0. 7 Dr Kriegers Fursten-Reform Dr Med Hans Plumer Nachf 0. 6 Nudossi Vadossi 0. 4 Ultje Ultje 0. 2 Milky personal manner Mars Deutschland 0. 2 Snickers Mars Deutschland 0. 2 Private label 30. 0 Others 14. 5 100. 0 Source Euromonitor, page 4 Exhibit 5C Nutellas Nutrition Information pic Clicking Ingredients pic Source http//www. nutellausa. com/nutrition. htm Exhibit 5D Nutrition Panels Compared Jif Creamy Peanut Butter Nutella picpic Source Jif website Source Nutella website Exhibit 5E Local Competitors and Pricing pic picSource Photographs taken by team member Cesar Palma Perez in Germany store Exhibit 5F Product Positioning Maps Nut-based subsector pic Spreads market in general pic Exhibit 6A Peanut Butter Wholesalers in Germany Wholesaler Area of Expertise Jakob Distler Gmbh in Nurnberg, Bayern, Germany flavor and roasted nuts and seeds, wild, glace, confectionary, cook Nuts and Peanut Butter Manufacturing, Nonchocolate confectioner y Manufacturing, Confectionery Merchant Wholesalers Lauenburgische Gewurzmuhle Und Rosterei Gmbh & CoKg Nuts dried, dehydrated, salted or roasted, Packaging and Labeling Services, Roasted in Elmenhorst, Schleswig-Holstein, Germany coffee, Roasted Nuts and Peanut Butter Manufacturing, Packaging and Labeling Services, coffee tree and Tea Manufacturing Irecge NussverarbeitungsgesMbh in Tornesch, Salted and roasted nuts and seeds, Nuts, salted or roasted, Roasted Nuts and Peanut Schleswig-Holstein, Germany Butter Manufacturing, Confectionery Merchant Wholesalers Schummer-Fruchthandelsgesellschaft Mbh in Nuts dried, dehydrated, salted or roasted, Roasted Nuts and Peanut Butter Birkenfeld, Rheinland-Pfalz, Germany Manufacturing Rudolf Muller in Buchen (Odenwald), Architectural Services, Architectural Services, Professional engineer, Engineering Baden-Wurttemberg, Germany Services, Nuts dried, dehydrated, salted or roasted, Nuts, Roasted Nuts and Peanut Butter Manufacturing, Con fectionery and Nut Stores, Photographic equipme