Project: Marketing plan for Dutch Raw Milk Cheese in Germany

Transcription

1 Project: Marketing plan for Dutch Raw Milk Cheese in Germany Supported by Slow Food Group 12 Germany Maximilian Hüller S Karin Visser S Mary Makri S Niall Prendergast S IBS2B International Business and Languages Windesheim University of Applied Science Zwolle, Executive Summary

2 This is the Dutch Raw Milk Cheese Project compiled for Slow Food. This project was made by Maximilian Hüller, Mary Makri, Niall Prendergast and Karin Visser. These are all students who attend Windesheim University of Applied Science in Zwolle, the Netherlands. In this project you will find the research and answers for the best way of marketing raw milk cheese in Germany. For the answer to this question we had to consult different external resources. Such as the cheese farm de Huppe in Zwolle, Internet, different German cuisine journals and prior research conducted in last period which included a macro and Meso-analysis of the current economic situation in relation to Exporting Dutch Raw milk cheese to Germany. The project is structured by different sections in relation to how to market the Dutch raw milk cheese in Germany. The first section of this project contains the Current analysis. The main points to note from this analysis section are that Germany was not hit by the economic crisis so hard and is still a perfect candidate country to export to. Another key point to note is our marketing campaign evolves around the exportation of one Dutch raw milk cheese of high quality Echte Zwolle Mosterdkaas. Attributes that made us pick this one particular cheese as our sole export to Germany was its taste was fresh, acidic and the seeds use to produce it provide a sharp taste on the tongue. The next section of the project was the SWOT-analysis. This is a key section of the whole project as carefully made SWOT-analysis can help to solve any problems which may arise with the project and help exploit ways to make the marketing campaign stronger. The main results concluded form this analysis was as an EU member, with a high population to target the raw milk cheese to and a growing organic food demand in the Germany that now is the perfect time to export our cheese to Germany. It s worth noting that a strong advertising will be needed to gain potential customers as soon as possible as the cheese market is highly competitive in Germany. The next section under review is the marketing and communication goals. In this section it was clearly defined that our main target was the wholesalers as they provide the key into how to best infiltrate the German market on a broad scale. Having good links with the wholesalers will help promote Dutch raw milk cheese in Germany as they communicate daily with restaurants and specialized cheese shops on a regular basis. Our main goal with this process is to have 80 % of wholesalers aware of our product within than first 4 months of the campaign. The next section to follow is target groups. In this section the project goes into depth about our reasons for choosing wholesalers as our first choice 2

3 target group. Our campaign believes as wholesalers already have an established communication links with our consumers that a good review form the wholesaler will be invaluable asset to our campaign to promote raw milk cheese in Germany. The wholesalers will in turn deliver our product to online shops, high end restaurants and specialized shops. They will then sell our product to our main target consumer of between years old. This is the main strategy of our campaign in relation to target groups. The next section is intended positioning of the Dutch raw milk cheese. The main elements to note form this section are that the cheese will be targeted at our target group of lifestyle foodies who are the higher middle and upper class levels of consumers between years of age. Our price and marketing campaign will position our product as a product of high value and quality aimed at higher end consumers groups. The following section goes into message and value composition. This is a short statement basically outlining the main reason why potential consumers should choose your product over that of the competition. We use a high quality homemade product which has a close relationship with nature. Perfect for a social atmosphere accompanied with friends and wine. Communication mix is a key area to focus on in the modern world of marketing. In brief even as our product is not aimed at a target group who regularly uses media sites such as Facebook and Twitter it is still a necessary and cheap way to advertise our product and it would be foolish not to take advantage of such an opportunity. The budget of this project is of the utmost importance to the success of this venture. It will have to be managed in a prudent manner and regularly reviewed, changed and edited in order to keep costs down to a minimum and still be as effective as possible to make sure no money is wasted in any ineffective ways. 3

4 Table of contents Summary Introduction Analysis of the situation S W O T - analysis Marketing and Communication goals T a r g e t audiences I n fl u e n t i a l groups Intended positioning of Dutch Raw Milk Cheese Message and Value Proposition Communication Mix and Activities A d v e r t i s e m e n t materials Flyer Poster Facebook web page Advertisement in newspaper

5 .5 Booth for trade fair and events Budget A d v e r t i s e m e n t materials E x h i b i t i o n / t r a d e fair E - marketing C h e e s e samples Recipes T o t a l costs Evaluation Conclusion References Appendices Introduction The reason of writing this project is because there are many small producers in the Netherlands, who produce raw milk cheese. However, the problem is that the cheese is not that well known compared to the cheese, which is produced in big factories. The main question of both projects is: How can Slow Food successfully support Dutch producers of raw milk cheese in marketing their products internationally? The country used in our project group is Germany. The task of our project group during two periods of seven weeks is to develop a good marketing strategy how the cheese can be sold to Germany. 5

6 In the first period it was about searching a lot of information, which was necessary for developing a good marketing strategy. Having all the information gathered in the first period, including conclusions and recommendations, it is now time to develop the marketing communication plan. Within the marketing communication plan, the SWOT-analysis and marketing communication goals will be made. The target audiences will be described. The most important part of the plan is the communication mix. Besides, the accompanying advertisement materials will be elaborated and the budget will be calculated. There is also a video, which is meant to support Dutch raw milk. The video will be on the Blogger. 1 At the end of the project conclusions will be made

7 1. Analysis of the situation In the effort of creating a strong marketing strategy for the sale of the Dutch raw milk cheese in Germany, on behalf of Slow Food, it is really important to use the results that are concluded in the market research that has already been done. The research report is especially made for this international marketing communication plan. The most important findings and conclusions will be mentioned once more. Dutch raw milk cheese is obviously a product of the best quality. The standards from the government and other organizations for producing the raw milk cheese are very precise and strict. If the producer is not able to meet the regulations it is not allowed to neither produce nor to sell the raw milk cheese. The product is quite highly priced and is not addressed to the average consumer. However, that is not a problem at the German market. The macro analysis clarified the fact that, due to the strong economy of Germany, there is a possible market for more expensive products. Besides, the biggest part of the German population is between the ages of 40-50, which is the final target group, the end consumer, for selling the Dutch raw milk cheese to that is chosen after the segmentation of the market. The target group is called the Lifestyle Foodies. The people within this target group have middle to high income and like to consume more delicates products. The fact that in Germany cheese is considered as one of the most important ingredients of their diet, they already have their preferences for brands, quality and kind of cheese they consume. Moreover, in the general area of Germany there are countless cheese producers with a high level of knowledge in their field. The existence of important competitors creates an even bigger need for an efficient marketing campaign. However, the German market has a lot of potential for raw milk cheese as especially in the last years, the demand for biological products which are produced environmentally-friendly and include high nutrition level has been increasing immense. These are the characteristics of the raw milk cheese that must be promoted strongly in the marketing campaign as well. Going back to the meso analysis, and having the knowledge of the possible fear that consumers may have in context with raw milk products, it is clear that the marketing strategy must deal with the unawareness of the audience. Consumers must be informed about the safety of the product and the strict regulations of producing and selling the raw milk products so that they will forget any old rumor about illnesses that were caused by raw milk cheese or other raw milk products. Once the costumers trust the safety of the product, it will be easier for them to build up a positive connection. 7

8 One of the most interesting conclusions of the meso analysis is in relation to the distribution channels. It is known that, despite the fact that there are a lot of farms in the Netherlands that produce raw milk cheese, none of them can produce the quantity that is necessary for exporting and meeting a bigger demand. The fact that the producers do not have the essential or preferable capacity for producing their products is the reason that none of them has the knowledge of how to export their products abroad. Of course supermarkets, delicatessen shops, natural food stores and supreme restaurants could be promising distribution channels, but without the cooperation between the producers and the experienced import and export food wholesalers in Germany and the Netherlands, the effort of selling the product to the foreign market seems very difficult and challenging. The responsibility of the wholesalers will be to collect the product from the production places in the Netherlands and to export the total quantity, but also to connect the producers with the main sale places in Germany. For the reasons referred above, it is clear that Slow Food should first focus on the wholesalers. Once they see potential and possible profit in it, they will be able to cooperate in order to access the other distribution channels. After that, the main goal should be creating a strong marketing campaign for persuading the highest part of the pyramid which of course consists of the end consumers. The main focus in this international marketing project is on the Dutch raw milk cheese product: the Zwoller mustard cheese - Echte Zwolse mosterdkaas. This raw milk cheese is a typical product from Zwolle, which is a principal town in the Netherlands. The mustard seed and the cheese are both from Zwolle. The mustard seed are from the company De Wijndragers. De Huppe, a dairy farm in Zwolle produces the cheese. The cheese is quite small, as big as a fist. The taste is fresh, acidic, and the seeds produce a slightly sharp prick on the tongue Hoofdstad-van-de-smaak.dhtml 8

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10 2. SWOT-Analysis This SWOT-Analysis evaluates the Strengths, Opportunities, Weaknesses and Threats of the raw milk cheese market in Germany. 3 The opportunities to increase the role of the cheese in Germany in future are based on the current strengths of the market. But on the other hand the weaknesses of the market should also be considered as threats could emerge and endanger the project. 4 There are many strengths, which characterize the German market, followed by plenty of opportunities, which make it very attractive to launch to cheese on this market. One of the strengths is first of all that Germany in general has a strong economy and the highest number of population in Europe. This has to be

11 pointed out because it shows that there is a big market and basically the potential to sell the raw milk cheese successfully in long-term. The excellent infrastructure is the basic for an economy to function. On one hand the roads are splendidly constructed and therefore a well-developed distribution grid is almost everywhere available. On the other hand the organizational structures are very good so that enterprises are able to conduct business easily. Once companies have settled down in Germany and decided to do business in a long-term it is a great market to build up good partnerships and business relations. As a result of that strength a good and successful trade can emerge. The fact that the Bundesrepublik Deutschland is also a member of the European Union makes it trouble-free to trade with them as in the course of the membership all trade barriers have been removed. For example there are no import and export regulations anymore. The industry is a high-technology one and high developed. Therefore the German products are of high standard and high quality. Germans are looking for and used to high quality products and they are ready to accept and pay higher prices. Relating to the raw milk cheese in itself, it should be said that cheese plays a significant role in the German diet. It is common to eat many different kinds of cheese and for all kind of different meals. Germans produce a lot of different cheeses by their own and they also import from other countries. There is a huge cheese market and as a result of that they are well informed and know about the risks for example by consuming raw milk cheese with its bacteria. During the last few years bio and organic products have been become an important matter. People look for healthy products, which are produced in a green and sustainable way. They are now almost everywhere available even in some supermarkets. This is important, as raw milk cheese has to be given the image to be green and healthy. Given these many strengths the German market offers also many opportunities for the Dutch raw milk cheese, which could be successful floated on the cheese market. The organisation Slow Food which wants to promote the Dutch raw milk cheese has still a high potential to increase its degree of awareness. The organisation is active in Germany since 1992 and it is still a mostly unknown movement but its recognition has been increasing constantly as they are present at public places. With advertising campaigns by evolving and increasing the knowledge of Dutch Raw milk cheese in Germany. Therefore, organic food festivals with booths or free sample tasting have been identified as strong marketing streams to use to promote the product. So it can be said that Slow Food has a big opportunity in order to increase its exposure in Germany. Over the last decades a change in the population age-structure has taken place in Germany. There are fewer younger people but especially the group 11

12 of the middle aged (around 50) is getting bigger. This change is a chance as this group is the chosen target group for the Dutch raw milk cheese. At the moment this group has a share of about 24 per cent in the German population and represents the biggest group. This group will steadily grow in future and guarantee that there are potential consumers and customers. As a result of that an increasing demand will come up which makes the market even more attractive to tap. Not only the number of this group is increasing but also the numbers of sold bio products. Green food products are playing a more and more important role in the daily life of Germans. The bio-market grew from 2000 to 2010 from 2,05 to 5,95 billion Euros and for each following year a double-digit rate of growth is predicted. Currently the bio-food has only a share of about 3 per cent at the produced food in Germany. Therefore it has a lot of potential in the future. Raw milk products as cheese lead only a marginal existence. This is the opportunity for the Dutch raw milk cheese to be installed and increase the market share in a present niche. Only when the demand is boosted in this niche market, it will be interesting and profitable to export the cheese to Germany. To achieve this goal and make use of this opportunity, all stops have to be pulled out. Latterly some German supermarkets started to take a few raw milk cheeses into their range of products. Most of them are from France and Germany. However, this illustrates that raw milk cheese is getting more popular and that the access for the potential consumers is getting easier. This development can also lead to a higher awareness of raw milk cheese and people will look for it more in future. Having mentioned the strengths and opportunities, it should be also considered that there are weaknesses as well. One of the main problems Slow Food faces in exporting raw milk cheese is the problem associated with the language barrier between the Netherlands and Germany. This problem must be addressed right through the operation in the marketing and distribution of the cheese. For example there are often companies, which are determined to do business only in their mother tongue. This has to be considered as otherwise devastating misunderstandings could complicate doing business. As Germany has the biggest economy in Europe there is great potential for turnover to be made, but on the same note all the main players in cheese production operate in this economy, which creates big competition threats for any business wishing to enter the market. The management should take note of this and create plans prior to entering to the market to gain potential consumers. Raw milk cheese is a new and upcoming trend in the organic food market sector. As it is currently only a trend it cannot be said if there will be in future more demand than now. This sector doesn t have a big share in the 12

13 market compared to normal pasteurised cheese and so the target market population for this cheese is not as big and will maybe not become bigger. Another weakness is that German people are very brand loyal so once they start buying the same product it is very hard to get them to change. This is of course could when they once loyal to the Dutch raw milk cheese. But as long as they buy other kind of cheeses, Slow Food has to come up with ways in to change this attitude if they are to be a success in this market. Possible ways to do this include free samples of the cheese to be given out in food festivals and in specialized shops. Another problem is the budget of Slow Food. It is not of big proportions so any money spent has to be done in a very effective and prudent way. Furthermore, Slow Food is almost unknown in Germany so it will be a challenge to create brand awareness. This will have to be a key point to be taken into account when marketing the cheese in Germany. With every business venture there are always possible threats and situations, which should be analyzed prior to entering the market. Changing consumer demands should not be ignored when entering the new market, as economic fluctuations are cyclical. The raw milk cheese is more a luxury part of the diet as a necessary one. So in difficult times the consumers will rather dispense with the raw milk cheese than more relevant food. The economic situation of the country will not always be the same year in year out. Accordingly precautions must be taken in order for this to have no effect to the company. Having the right financial planning behind you for this case is vital as growth may be slower than expected in the market and so financial management to survive and operate within your business means and still creating a profit is a difficult situation, which must be well considered by management prior starting the business venture. As with any capitalist country competition is always very string and good management throughout the company with everyone pulling together for the same goal is vital for success. With the changing economic situations input costs can fluctuate without notice so this should be taken into consideration with budgets and target outputs so as not to harm the business operations if such a threat arises. There could be also possible threats, which would be welcomed, if the demand were greater than the supply for Dutch raw milk cheese in the market. If such a case were to arise it is important to have a plan in place to deal with the situation as if the company cannot meet the demand they will lose out on potential consumers to rival companies. One important issue which was discussed in the past often is in context with the bacteria in the raw milk cheese. Some people got sick from the cheese and had serious health problems caused by the cheese. The advertising and public relations of the company has to address this issue and communicate clearly the safety of the product so as not to harm the company s campaign. 13

14 Summarized it can be said that there are many strengths and opportunities which make it very attractive to enter the German market. The mentioned points overweigh the weaknesses and threats, as they can be solved by serious tackling. 14

15 3. Marketing goals & Communication goals Primary target group (wholesalers): - Inform the wholesalers about the raw milk cheese and make at least 50% of the wholesalers aware of the product within 6 months. (knowledge) - 60% of the wholesalers, who avail of the trial order, should be satisfied about the quality of the product and should be willing to distribute the product within 1 years. (attitude) - At least 20% of the wholesalers that distribute this Dutch raw milk cheese should be willing to keep distributing the product for at least 5 years. (behaviour) Secondary target group (restaurants, special cheese shops, online shops, delicates shops): - Inform the target group about the raw milk cheese and make at least 50% of the secondary target group aware of the product within 6 months. (knowledge) - 50% of the target group should be satisfied about the product within 1 year. (attitude) - At least 20% of the target group that sell the Dutch raw milk cheese should be willing to keep selling the product for at least 5 years. (behaviour) General target group (end consumers): - To create a brand awareness of at least 15% among the Lifestyle Foodies with a middle-high income within 1 year. (knowledge) - Inform 25% of the mentioned group and make them aware of the values and quality standards of the raw milk cheese within 6 months. (knowledge) - To create a positive attitude towards raw milk cheese among the people of the end consumer target group within 2 years. (attitude) - 50% of the people that have bought the Dutch raw milk should speak positive about the product after 1 year. (attitude) - At least 25% of the people that have already bought the Echte Zwolse Mosterdkaas should buy the product again within the next 3 months. (behaviour) - About 5% of the target group of the Lifestyle Foodies should buy the cheese consistently in the long-term. (behaviour) 15

16 The price for one cheese of 750g is in the Netherlands in a producer s cheese shop On the other hand the same cheese can be found on the Internet for 1.39 per 100g. Therefore the prices differ only insignificantly. For Germany the price should be increased as costs for transportation, the marketing costs and the costs for the wooden package have to be paid. As a result of that a price of at least per cheese (750g) is recommended. 5 As it is mentioned earlier, one marketing goal is that 5% out of the group of the Lifestyle Foodies will buy the Echte Zwolse Mosterdkaas in the longterm. This group has a share of about 17% of the German population. Consequently, considering the numbers mentioned before, about 680,000 cheese should be sold in the long-term if every of the 5% consumers buys only one cheese within 2 years. 6 Again, this is only estimation and it should be also considered whether the Dutch producers are able and willing to produce an amount like that. 5 SettingGoals.aspx

17 4. Target groups There are two different ways, which should be considered in order to develop a marketing strategy for different target groups like companies and end consumers. The first way is to develop a marketing strategy for the companies, which represent the whole German distribution grid and which want to sale the raw milk cheese to the end consumers. They need a marketing strategy how to get the end consumers in their shops that they buy the product. This group is separated in the primary and the secondary target group. According to the importance of their role and the influence of the companies, a subdivision was taken place, where the complex distribution grid was separated in the primary target group and the secondary target group. The primary target group in Germany for the Slow Food organisation to focus at are the food wholesalers. This target group is chosen because the other distribution channels, which sell finally the raw milk cheese to the end consumer, procure their products from the wholesalers and not directly from the producers according to different interviews. Therefore, the wholesalers have a great influence on the secondary target group and their range of products. Their partners are mainly companies of the secondary target group and for this reason they need a business to business strategy. The perfect wholesaler should conduct his business international and familiar with importing food and especially cheese. He should be specialised on delicates or high quality food, therefore his customers are high quality restaurants and shops as well. The secondary target group consists of restaurants, special cheese shops, online shops, and delicates shops. As they get new products recommended, 17

18 suggested and introduced by the food wholesaler, they use mainly this source to expand their range and are therefore not that influential with in the distribution grid. They need a special strategy, which is geared to the end consumers: Business to consumer - strategy. On the other side there is the end consumer who should be lured into the stores and shops. This different marketing strategy has to create the desire for raw milk cheese that the end consumers come by themselves and look for the cheese in the shops. The end consumers are the so-called Lifestyle-Foodies. They are between 40 and 50 years old and the group is targeted in the upper and upper middle class. Currently about 25 per cent of the German population belongs to this target group. The people are well educated, enjoying life, successful, content in life and they want to consume very high quality food with which they also boast. The shopping habits of this group can be characterised by sporadic spur of the moment consumers. Health, taste, well-being, lifestyle, and status are relevant factors to be taken into account. The segment is chiefly made up of middle-aged families with older children (aged 15-21) but also couples play an important role. 18

19 5. Influential groups Searching through the influential groups will help Slow Food to promote this Dutch Raw milk cheese. The most effective and promising solution is to use the press as a tool in order to increase the awareness. It is generally accepted that people with higher income and mature age, tend to search for ways of making their daily lives easier. How to buy all these products that absolutely satisfy their needs. How to search for the best holiday destinations, how to discover the best ways of decorating their residence, and how to taste delicate and gourmet food and generally all the elements of well being. For these reasons, in every country there can be found magazines that are made for that specific audience. The purpose of them is, to inform about topics from travel destinations to recipes and they also deal with issues such as food and gourmet products. Most of the time, between the different articles, there can be found product recommendations by chefs, food critics and delicates experts. These advertisements and articles outline price, origin, background information and preparation techniques. In Germany there is a variety of this kind of press for example the SZ- Magazin 7, Landlust 8 and the television magazine Hoerzu 9. These magazines introduce every week new recipes and products, which are mainly read by the chosen target group. Therefore, it is clear that this could be an excellent opportunity for the Echte Zwolse Mosterdkass. If these magazines would decide to write an article about the cheese and publish it then it can contribute to the whole campaign. But Slow Food should get in contact with the directors of these magazines and make a real effort. A good review from a well-known food specialist is the best advertisement for the potential consumers as it is related with a person that they trust

20 6. Intended positioning of Dutch Raw Milk cheese As it has already been mentioned, the competition in the German cheese market is very keen as many competitors offer cheeses from all sorts and areas. However, the raw milk cheese is more a niche product for the reason that there are not many German producers, but the few ones are of high quality. The producers have often developed long- term relationships with the consumers that are strengthened by good taste and trust in the product. Along with the combination of high quality and a good price the customers are often very loyal. Nevertheless, regarding the harsh competition there is still free space on this market to launch the Echte Zwolse mosterdkaas. This Dutch high quality raw milk cheese is positioned in the more high quality food departments like delicates shops are. Its image to be healthy, natural and outstanding in its taste makes it nonreversible and special and it is especially intended for cheese lovers and people who want to be the cheese part of extraordinary motives. The connection to the nature - caused by the seldom and uncommon ingredients nettles and raw milk - makes the product more luxury. Consequently for consumers who want to enjoy best cheese or show off what they eat are especially addressed. Moreover it is generally accepted that, gourmet tastes could be used as a way of socialization and gathering, highly connected with special occasions Among these reasons why consumers like Lifestyle Foodies should buy the Echte Zwolse mosterdkaas, the important fact of how it is produced has to be pointed out. Absolutely connected with the nature, as it is produced in a biologically way with the best ingredients and the highest standards makes its taste special. In combination with its high nutrition value, it must be highlighted and communicated through the positioning and addressed directly to the target audiences. Additionally it is mentionable that this sort of cheese is widely produced in the area of Zwolle. It is a specialty of the