Peanut Butter in Germany

Jif undistinguished aloneter in Germ both(prenominal) pic military personnel give the bounce non live by gelt al oneness. He mustiness mystify monkey nut c e reallywhere. Bill Cosby bankrupt 1 Executive Summary In assure to maximize profit, J. M. Smucker could gain sales of Jif earthnut c everywhere, its beat selling crossway, into ontogenesis commercializes. Prior to all expansion a full analysis of the commercialize is necessary. The soil with the largest commercialize potential for minor cover in atomic recite 63 is Ger many a(prenominal) (ibid 79). The country climate of Germany gives a commanding outlook for minor cover, the topic one option being as a breakfast option in the staff of life blossom out category.Daily kinds be malle able to suggest that footingnut vine vine cover be a component, an additive, an particle, or a snack. Jif as a stand-alone instigator is a U. S. -establish merchandise that has never, through and through comp any initiative, introduced any of their harvest-tides internationally. in that respectfore on that breaker point is no past experience in wise marketplace expansion. Jif has the gulling business re expressative. One important question is whether to duplicate the previous model for revolutionary entry (acquisition) or unwrap a juvenile strategy that leave behind better align with the steered market. The crisscross market for Jif in its home market of the US is families with children with the slogan Choosy moms choose Jif. Based on the 360 degree profile of customer segments in Germany, the segments were evaluated on margin, aspect, and loudness potential. It was determined that the butt discontinue market result in any case be families with children in Germany. Although the target market is the same, Jif go away return a very(prenominal) assorted problem in Germany, getting purposers to switch to goober pea cover instead of Nutella and recognizing al ternative routines. In comparison, the chemical elementary marketing challenge in the U. S. is getting rolers to switch from an another(prenominal) earthnut cover discolouration to Jif.The succeeding(a) report found ternary challenges of introducing Jif to a youthful market, including multiple points of enemy from the target market, often judgment of convictions(prenominal) as association of insignifi fundamentt cover with round outso American fodders, on-going use is only as a bread opening, and entrenched competitors in the bread dispersed category untold(prenominal) as Nutella and Ultje. minor cover is more than nutritious than the principal bread dispense. minor vine butter is graduate(prenominal) in monoun unadulterated fats, which actually reduce cholesterol. Peanut butter is too a satisfactory source of protein for vegetarians and vegans and is gluten- salvage and kosher.Therefore, the points of bulwark can be addressed by clearly communica ting the viandsary benefits of undistinguished butter as rise up as alternative uses. Options for alternative uses of monkey nut butter embarrass integrating wild bean butter as an ingredient in cooking. The communicating of alternative uses could be through normals. The main competition is in transmutes. Although it is identified as a substitute sooner than a sharpen competitor, Nutella, a chocolate hazelnut spread, ordain be Jifs particular competition in the German market. Holding 17% of the market sh atomic number 18, Nutella is the number one plectron of bread spreads.Peanut butter is before hanker not a large competitor in Germany in the bread spread category, as evidenced by its 1% market shargon. As a sway competitor, Ultje al depressed for present the most aggressive barriers to Jifs entry. Ultje is a company that has been present for a long time, is local anestheticly based, and has a forepart in the market collectible to its healthy-recognized toon f igure, jingle, and laurels stopping pointorsements. To combat both competitors the motility should suggest undistinguished butter as a musical accompaniment to the Nutella overlap. Selecting distributors and developing descents with grade chain members is as well a challenge.There atomic number 18 whatsoever(prenominal) wholesalers of monkey nut butter in Germany, which can be utilize to distribute minor butter to retailers where consumers can consequently leveraging the result. In conclusion, while the German market has spunky potential, it bring home the bacon for be a difficult venture into Germany. If the decision is to enter the market some changes leave bespeak to be made, but the basic business suckering model go out reside the same as in the U. S. Jif exit throw away to be keenly aw atomic number 18 of how their shit their marketing mess meshing, tagline, jingle, label furtherance, and so on is comprehend in the German market.Part 2 a micable club mount Jifs flagship creamy wild bean butter spread was maiden introduced in 1958. Since 1981, Jif has been the leading peanut butter brand in the United States. As of 1998, Jif had an estimated 42. 5% of the market assign, dwarfing closest competitor Skippy at 28. 8% (Marigny 99). In 2002, The J. M. Smucker Company getd the Jif brand from Proctor and Gamble. The purchase of the largest peanut butter brand in the U. S. by the famous jelly manufacturer was likely a strategic move to streamline distribution of the complementary products.Peanut butter is sold primarily as a bread spread, and secondarily as an ingredient for other meals. The distribution of peanut butter is about 70% creamy to 30% crunchy (Kellogg). In 2005, peanut butter had a U. S. syndicate penetration rate of 93%, with an raze higher percentage in households with children (see screening 2A). Jif has historically averaged near 40% of the market shargon (Kellogg). credit line Model. Branding is ve ry important to Jif, and their branding efforts destine been consistent over the historic period.Jifs marketing political program has been primarily family concentrateed, with the push d possessular tagline Choosy Moms engage Jif. Also notable is brand-building of the widely recognizable Jif label, with its striking vertical prohibit in basic red, blue, and green. As an instantly-recognizable brand, Jif has enjoyed long-term customer loyalty. Jifs brand portfolio acknowledges the core brand the original creamy spread along with newer varieties such as Extra Crunchy, Reduced Fat, Natural, Simply Jif, Jif Omega-3, Peanut Butter &038 Honey, as well as complementary products such as to-go miniature containers (Jif website).The pil junior-gradecase of business development in this market is very mature, and the competitive decorate is quite saturated. As a result, Jif does not emphasizing margins, as their expense is set very competitively. Rather, Jif emphasizes increas ing volume among existing customers in 2 ways. First, they encourage increasing the quantity of product purchased by offering multiple varieties. Cannot decide between creamy or crunchy, omega-3 or lessen fat? Try one of each Secondly, they encourage increasing the volume of product purchased by creating new uses and purchase occasions.Jifs website is replete with recipes and answer suggestions, including an array of international dinners from Senegalese Beef Peanut Butter sudor to Mexican Chicken Peanut Mole. You can even sign up to declare Jif recipes delivered to your Yahoo or Google paginate via RSS feed, trim downloaded to your iPod, or sent newsletter-style to your email. A final strategy to increment volume as well as exposure to the brand is an annual contest called the Jif just about Creative Peanut Butter Sandwich Contest. The winner learns a $25,000 dollar scholarship fund. The feature draws a multitude of families and local media (Jif website).Target grocer y store. Jifs advertisements, tagline, and website clearly target mothers of young children. Jifs label and homepage both boast an icon grammatical construction 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 more policy- fashioningly correct tagline, presently updating it to Choosy Moms, and Dads, Choose Jif. In a comparison require with other leading brands, Jifs consumers are clearly mothers or parents in the 35-44 year-old age pasture, and tend to be employed part-time in non- headmaster fictional characters (see demo 2B).Notably, the primary indicator of peanut butter purchasing for all terce of the top brands is having a household of 5 or more people. Having kids age 2-5 is the second difficultest indicator for Jif (Marigny 221). Marketers deliver historically targeted children and their mothers in product advertising, and even the names of the major brands are childlikeJif, Peter Pan, Ski ppy (ibid 33). image salute 2C for a 360-degree profile of putting green consumer segments, showing the housewives category as having the highest persuasion potential with Jifs existing panorama in the U. S. market. look on Proposition.Jif creates value for their customers the choosy moms segment by assuring them that they are Americas favorite peanut butter because of their neat-roasted peanut try out. This marriage proposal allows busy moms to bash that their choice at the supermarket is an easy one it doesnt require a lot of time or effort, and they entrust be satisfied with their purchase time and again. Secondarily, since this segment values anthelminthic meals and having family dinner together, value is also created by providing creative recipes via RSS feed or email as depict earlier. Strategy, selling broadcast and stance.Jifs main competitors are Unilevers Skippy and ConAgras Peter Pan, accounting for 60% of the category, plus a variety of private-label bra nds (Kellogg). Jif has several points-of-parity with their main competitors, namely in product attributes, expenditure, and physical placement. All common chord companies offer similar varieties of peanut butter, similar sizes, and similar prices. They also consider similar marketing techniques, mainly television ads featuring children shown 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) afford up another 4% (Marigny 199). Peanut butters are almost always positioned on the shelf next to complementary products such as jelly and honey. The companies do maintain points-of-difference, however, mainly in their placement as described below. Skippy, the 2 brand in the U. S. , has traditionally positioned itself as the strong, healthful brand. Skippy has emphasized peanut butters high protein subject matter more than the other brands, and has used celebrity endorsements such as causality Mouseketeer Annette Funicello and athlete Derek Jeter (Gidman).Skippy claims to have less sugar than other brands, and in 1990 act to convince adults of the health benefits of peanut butter, using fresh vegetables and other fares in its advertising which resulted in a dramatic decrease in market share. Since 1990 Skippy has repositioned itself as the best testing peanut butter (Kellogg). Today, Skippys website (with the desirable 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 share in the smallest container size at 16. 3 ounces. Peter Pan is positioned as the low-price brand.Advertising and randomness on their website is skimpy, and the company appears to prefer to comfortably bank along in its third-place standing (Gidman). In the past, Peter Pan has try to target kids, accordingly adult non-users, and has also claimed to be th e best savour peanut butter (Kellogg). Peter Pan is the only brand in the top three to have been actually recalled by the FDA due to salmonella poisoning. Jifs main point-of-difference from competitors is their obvious appeal 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 young children. After 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 relish. Jif is also the largest advertiser of the three, but doesnt use consumer promotions as much as their competitors. Although Jif has been able to claim the 1 plaza since 1981, it maintains a price point below Skippy. They have also interpreted a swipe at Skippy by pointing out the difference in product sizes on their label, Were Still 18 oz. Refer to manifest 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 taking their peanut butter to Germany give 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 get intod various food industries in Canada, mostly 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 lodges whether to copy the previous model for new entry (acquisition) or develop a new strategy that allow better align with the targeted market. In say to assess the companys capabilities in entering the German market with peanut butter, it is important to ac count that the Germans in their traditional cuisine do not use peanut butter. In Germany as in many other parts of the world, peanut butter is considered an unpalatable American curiosity (Kellogg).With the emerging immigrant population in Germany, the use of peanut butter has slowly established itself over the years, although the development rate since 2004 has remained relatively stagnant(see award 3A). But based on another study of the market in atomic number 63, Germany has the largest potential market for peanut butter (see Exhibit 3B). One challenge in entering Germany for Smuckers Jif is a general 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 salutary opinion butterflys a major role.In this regard, Jif whitethorn be able to enter the German market by emphasizing facts such as the nutritional benefits of their product line. Identif ication of business model. Since thither are some very specific points of shield in the German consumers intelligence of peanut butter, Jifs primary responsibility will be to build brand awareness and break the points of resistance with effective communication. Jif will have to be keenly aware of how their brand their marketing message, tagline, jingle, label packaging, etc. is perceived in the German market.While some changes will need 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 right is their branding. Controlling the largest domestic market share in the U. S. has enabled the company to guarantee some train of profitability through the years not to mention their effort to always drive an attach in sales volume through programs that keep the Jif brand acti ve in the mind of their customers.Looking at the German peanut butter market at once, it is clear that the sales volume and values have most decreased since 2008 (see Exhibit 3C). With volume potential as a main component in the profit encroachment equation, Jif in todays German peanut butter market whitethorn 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 return a good market to Jif if the right marketing strategy is applied. In considering Jifs aggressiveness in attacking the U. S. market today, it will be a good tool for them in the German market where in that location is large potential to tap into the competitors market. Another avenue using the current market share whitethorn be to explore Blue marine that will result i n lowering variable cost and may increase the sales volume because considering increasing price to a market that is stagnant will only force the market to decrease.The success of intense the German peanut butter market will be very much supposeent 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 write was then performed for these segments with regard to Demographics, Psychographics, and Product utilization. Demographics upstart Families Young Families with No Young geniuss Seniors with Children Children Barneys Best intensity import creamy or crunchy peanutCompany has very little information online Depends on mart store blowhole butter Ultje 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, tone of voice snack company is marshmallow fluff, apple act, promoted as an innovative safe in etc. nut-based snacks Algood Food CompanyBulk export creamy or crunchy peanutCompany promoted as an expert Forgive us,Depends on food market store outlet butter, includes but pea around the bend are our bread and butter specialty items such as No-Stir Natural and PB &038 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 intros 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 discount store organic peanut butter REWE has a corner on the market since th ey PENNY will march the organic set own a large chain of grocery stores foods side-by-side with their obviously their label will get prominent counterparts from conventional display and marketing production.This will direct the attention of PENNY customers to ecological alternative products and new items in a targeted fashion. Other 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 grocery store outlet 400g spread targeted at children sold in glass jars which can also be used for drinking hosts an interactive online community (http//www. nutellaville. it/) sells t-shirts and other promotional products attitude of competitors product/brand. Within the nut-based spreads subsector, the competitive landscape is not exceeding ly distinguishableiated. Products have a similar price and position. In order to penetrate the market, however, Jif will need 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 effects and weaknesses. The worldwide market potential of peanut butter in Germany is the largest in Europe. At the same time, sales and ne 2rk are declining. We attribute that to a lack of wide acceptance of the product, rather than being in the late-maturity stage of the product lifecycle. There are locoweed of competitors in the nut-based spreads market, yet the market is not saturated. Of the competitors present, we deliberate Ultje will present the most aggressive barriers to Jifs entry.Ultje is a company t hat 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 in a flash 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 mar keting and communication effort will succeed in overcoming these challenges. We believe the biggest competition will come from Ferreros Nutella, a chocolate-based spread or a substitute product, rather than other peanut butter spreads now. 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 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 facilitate the target market and have an image consistent with the positioning of the company. There are several conduct 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 chromosome mapping 1) Jif -> Consumer 2) Jif -> Online Store (retailer) -> Consu mer 3) Jif -> Grocery Store (retailer) -> Consumer ) Jif -> jobber -> 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 telescope 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, thither are still a vast number of independently grocery stores where the target market shops. Therefore, to improve efficiency 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 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 serve the target consumers in order to select the proper wholesaler. Evaluation of capability Retailers Retail chain stores in Germany that contain food products are Real, Galleria Kaufhof, Kaufhaus, Aldi, and Schlecker. It is beneficial to partner with a retail chain as once a relationship is developed, the product will be supported in several locations whereas with individual retailers at that place 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 medicine store or convenience store and does not have a large variety of products, which is not consistent with the image of Jif. Evaluation of authorization Wholesalers There are 14 wholesalers of peanut butter currently in Germany as can be seen in Exhibit 6A. Wholesal ers must be analyzed to determine who would provide the most value to the partnership, such as devoting resources to marketing peanut butter, a meshing to distribute across the country, supplier of target retailers defined preceding(prenominal) 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 Country Climate (Environmental) Analysis indite the environment is critical to marketing success. Utilizing the DEEPLIST method the German scenario was analyzed by trends in population, current economic and political stability, technology for advertising, the familial genial institution, and food and occasional life. Population. Germany is a country of 82. 3 one thousand thousand inhabitants of which 74% are urban dwellers Germans have a 99% literacy rate with a growth rate of -. 053% (CIA World position Book). Th ere are two primary trends affecting the population. The mellowness remains well below the reclamation ratio and net immigration is lowthe population is ageing promptly as a result of greater 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 relief rate there are hardly a(prenominal)er women opting to have children (CIA World point 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 judge children to enter into and support our target market. We analyzed the gelid 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 running(a)-age population (20-64 years of age) is forecast to increase substantially from 32% in 2005 to 62% in 2050 (EIU 13). Pean ut butter could intimately be integrated as an easily accessible, low cost, high-protein option for seniors however, we found their margin potential measured low and declining, very unattractive. Economy &038 Politics. As the worlds third largest parsimony (EIU 22) Germany has emerged as a constant 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 barely grow in the fourth quarter of 2009 at 0. 1% after expanding an anticipated 0. % in the third quarter (PRS Group). This suggests continued stability and growth, albeit contracted, for the upcoming years. This pisss 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 accustomed to integrating peanut butter now it will continue to transition as a food compon ent when their income allocation changes. Politically, Germany is a stable democracy nonionic on federal lines (EIU 3). The democratic political infrastructure scored Germany as 13th in the Economist Intelligence Units 2006 democracy index.It scores passing in terms of electoral process and civil liberties, fairly high in terms of political culture and government functioning (the last mentioned including accountability and absence of corruption (EIU 9) and little political risk. It is not anticipated that burdens 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 factors Germany has what is currently one of the most complex revenue codes in the world (PRS Group). Recent changes will affect tack on chain costs and total 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 enlighten who has income taxes at top of mind rightfully so as taxes lift off a large portion of disposable income. The overall top income tax rate is now 47. 5% (EIU 20). Although most families will not submit as extreme a rate the income distribution, after tax, should be considered in determine the product. Additionally, while overall corporate taxes have decreased they remain extremely high. From 2008 the headline rate of corporation tax was cut from 25% to 15%, reducing the combined rates of corporation tax, local mint 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 displace (CIA World Fact Book). The birth of the Internet provided faster delivery of information and availability to the 61. 97 million Internet users, ranking it as the sixth 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 flexibleness in reaching our target market.However, one potentially costly issue for a nationwide media presence is the modified amount of advertising carried by public radio and television companies, which operate under the supervision of the government activity of the individual states (EIU 9). Not only is advertising limit, it is fractured amongst the states. Contracts would need to be negotiated at heart each of the 16 states. Social/Cultural. The most critical environmental factors roll up around the family and its social structure. The family is still the fir st and most important social group of people and one of the most significant social institutions (Hintereder). Women play the most essential role in the structure. While women continue in a traditional role responsibilities are changing within the classes.Currently, they face the main obstacle in career advancement 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 in two ways as much time looking after children as men. To date it was almost exclusively women who have productionn parental leave (Hintereder). This supports marketing to moms and their young children. Moms select the products in their household larder 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 too increasing role (Hintereder).Instead of only Choosy Moms, the marke ting campaign can also publicize for Busy Moms. Yet, working mothers alter the size of families and can decrease demand. Families have become smallersingle-child families and two-child families are typical. approximately 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 &038 Daily Life. After disposition the family structure the next most key element 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). more meals are accompanied by beer. While the previous data in this report noted Germans appreciating a nutritious approach to their diet many of their staple items are carbohydrate based. This supports eating a heavier, more nubble based p roduct 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 breakfast to accompany bread and the afternoon Kaffee. Bread is the main food at both breakfast and supper. The fast meal of the day is still often eaten at noon, though in advance(p) 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 Marketing Objectives and Strategy Marketing objective.Within 12 months, Jif will increase volume of peanut butter purchases among 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 topn for Jif to be able to create awareness and change consumer attitudes, but we will press a time period of 12 months to evaluate success. Profit jar By increasing awareness of peanut butters benefits across all consumer categories, volume will be increased 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 fuel 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 proposed positioning. Jif is an essential pantry product for all consumers among all staple food products because it is the only authentically 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 sharply marketed as a quality, low-cost worldwide 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 come back 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 German 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 fami liarity. However, the rest of the Jif product line will be withheld ab initio while the consumer is acclimated to the two main peanut butter choices. The other product lines such as Jif with honey, and Jif Omega-3 may be introduced later in small quantities possibly as a consumer preference test. As peanut butter sales grow in Germany, Jif can plan to perform new product line introductions as well as the bigger size containers, such as the 40 oz size. These campaigns will serve to honour peanut butter in the consumers mind, and entice consumers to try the hottest new spirit 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 march us link for questions or comments, and a money-back guarantee for customer satisfaction. The website should be functional yet elegant, as the Ferrero website is today. Each customer segment should be represented (a page specifically for kids, moms, vegetarians, etc. ) showing 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 cautious 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 blueprint 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 team 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 prevalent in Germany whence Jif will have a higher fixed 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 strive 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 extremely attractive to kid s in the cart as well. Promotion or Communication. Our number one goal is to increase awareness of the Jif product. Peanut butter has such a low penetration 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 earnings 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 bombination 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 disp layed 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 has stopped working, or their regular programming has resumed. If we can capture their attention and then hold it through a serial publication of captivating images, we will have succeeded in creating awareness.Another benefit of the transparent 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 tying the whole field of study 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 ki d opening his lunchbox at crop with a heart-shaped peanut butter sandwich 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 sticker to show shes vegetarian) getting her protein fix the kosher individual the dieter the German immigrants enjoying peanut sauce in a Thai dish, 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 superimposed 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 fiber and other vitamins. Peanut butter is vegan, low-carbohydrate, gluten-free and kosher. Another popular 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 misused in a non-flattering way. Professional Sales force. The sales force will be tasked first and foremost with getting entry to German grocery stores and getting the insurance 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 groom to present the desired company image of qualit y. The Jif sales force will be tasked to develop recipes for caterers and restaurants, and to provide comprehensive sampling and product use education to chefs. Award winning chefs and restaurants may be compensated to develop German dishes using peanut butter. Jif may sponsor 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 External 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 vega ns. Germany is a member of the European Union which will allow Jif to easily extend their target market to other parts of Europe as long term growth strategy.The infrastructure 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. One 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 th at Jif differentiate itself to the customer based as a way to establish their brand in that market. Going after Nutella could be challenging as they are well 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 stealing Nutellas market share. Doing business at the international level will also compound other challenges that Jif will need to deal with such as hedge 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 impli cations that comes with insurance coverage 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.Internal 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. Organic peanut butter is less convenient 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 shaping a differentiation positioning as they enter the German market, there are still few elements that remains uncertain 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 wrong to current competitors as most of them have been operating 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 testimonial 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 hardened on the communication of nutritional benefits and alternative uses. One of the main challenges is selecting wholesalers to work with and develo ping 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 Household Penetration grade in U. S. Market pic generator Dairy and Food Communications, page 217 Exhibit 2B Demographic Characteristics of Peanut Butter Brand Use in U. S. Market pic Source 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 clinical depression to middle Low Mid Stable Mid Growing Education HS Grad+ HS Grad College Grad College Grad transmission line None to part-time Full-time non profession al Retired or near professional Full-time professional Marital/Family Status Married with young children Single with young children Married with grown children Single without kids Psychographics Spending Habits Conservative will cut coupons Concerned will buy cheapest Confident 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 &038 Interests Raising kids preparing meals atNot a lot of free time for Wide variety of activities andFocus on physical fittingness and home eating dinner together activities rarely sit down to hobbies very news-focused andoutdoors hobbies and dinner together aware experimentation with new things such as exotic recipes Opinions &038 Values Value quality and nutrition overValue lively convenient cheap timbre matters above all Interested in gaining convenience experience and stories get Characteristics Purchase Occasion forget pu rchase on regular trips Will purchase on regular trips Will purchase on regular tripsWill purchase as needed may to grocery store whenever supplyto grocery store 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 Convenience 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 Nutrition Prestige brand name to avoid cost of (have you tried) experimentation with a new brand family may not like Product Usage Breakfast on toast PB&038J Breakfast on toast PB&038J Breakfast on toast PB&038J 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 sna ck on crackers or celery peanut-butter cookies sticks occasional dinner recipe Margin Potential Low Low Low Low Volume Potential High Med Med Low popular opinion Potential High Low Med Med Exhibit 2D Product Positioning Map in U. S. Market pic Exhibit 3A 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 continue 138 44 5544% 0. 4 % 3. 4 Jams and preserves 139. 45% Nutella Ferrero 17. 1 Schwartau Schwartauer Werke 9. 5 Breitsamer &038 Ulrich Breitsamer &038 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. Barneys Best Dockhorn &038 Co 0. 7 Dr Kriegers Fursten-Reform Dr Med Hans Plumer Nachf 0. 6 Nudossi Vadossi 0. 4 Ultje Ultje 0. 2 Milky Way 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 culture 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 Salted and roasted nuts and seeds, whacky, glace, Confectionery, roast Nuts and Peanut Butter Manufacturing, Nonchocolate Confectionery Manufacturing, Confectionery merchandiser Wholesalers Lauenburgische Gewurzmuhle Und Rosterei Gmbh &038 CoKg Nuts dried, dehydrated, brine-cured or roasted, Packaging and Labeling Services, Roasted in Elmenhorst, Schleswig-Holstein, Germany coffee, Roasted Nuts and Peanut Butter Manufacturing, Packaging and Labeling Services, Coffee 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, Confectionery and Nut Stores, photographic equipme