TOASTER PASTRY IN GERMANY

Group 8 BM-B

Anshat |Gaurav | Megha |Pavani | Shubham | Vikram

CASE Company’s existing product line: packaged cookies and bakery

items New product(American): jelly/fruit filled pastry; heated in a toaster Considering launch in Germany; with modification Informal sampling test showed positive results

Better liked without icing; packaging was felt to be distracting People receptive to having it with breakfast/afternoon coffee Acceptable price : max. US $3 per box

Product targeted towards young adults, not averse on buying packaged food

Though no technical difficulty in usage; the habits and norms of Germans are different from Americans

40%

35%

25%

Population Distribution

Population<25

25<Population<55

Population>55

GERMAN DEMOGRAPHICS 1987: 60.87 Million people in West Germany 1990: German Reunification

70 Million in Federal Republic of Germany Declined Fertility Rate, High World War causalities : Population

Disproportion

MEDIA REACH Atleast One television and Radio in every

household Cost of reaching 1000 readers : $10.87

12%

13%

14%

16%

45%

Expenditures on Advertis-ing

TV Other MediaDirect Mail Journals and Period-

icalsDaily Newspaper

HOFSTEDE MODEL

Dimension Germany USA

Individualism High Very high

Masculanity High High

Power Distance Low Low

Un-certainity avoidance High Low

Long Term Orientation Low Low

World averages are: 55 - 43 - 50 - 64 - 45

ELEMENTS OF CROSS CULTURE CONSUMER BEHAVIOR

ENTRY IN A FOREIGN MARKET Geographic Area wrt Culture Needs Affordability of Product Values Distribution, Legal Structure Ways of Communication Ethical Implications of Marketing

NEEDS

The society is individualistic yet does not go against the social norms. Fresh and Daily cooked food is preferred over prepackaged

food

The product can fit into Morning breakfast Evening snack A personal care for guest Healthy, fresh food

AFFORDABILITY

Consumers are Young professional College students Families

No other investment required

Per capita income of $34000, indicates no constraints on the purchasing power wrt price

ETHICAL IMPLICATIONS OF MARKETING

Marketing ethics deals with the moral principles behind the operation and regulation of marketing

Stringent government laws on Promotion Content Monitored by legal counsel E.g. Comparative advertisement is illegal

VARIATION IN CULTURAL VALUES

ConsumptionPurchase

Communications

Other-orientedvalues

Society’s viewof relationshipsbetween people

Environment-

orientedvalues

Society’s viewof relationships

with environment

Self-orientedvalues

Objectives/approaches

to life societyfinds desirable

VARIATION IN CULTURAL VALUES

Other-Oriented Values Individual/Collective Favorable

Masculine/Feminine Unfavorable

Diversity/Uniformity Favorable

Environment-Oriented Values Risk Taking/Security Unfavorable

Self-Oriented Values Active/Passive Favorable

Norm/Habit Reason/Insight Change

Beef consumed in restaurants

• They want to maximize value for money

-

Freshly baked (not at home) hard roll along with a soft-boiled egg and coffee (Cold-breakfast)

They are time-pressed but they want fresh food

-

Snack break in mid-afternoon(Coffee with cake and pastry)

• They take number of meals in a day

• They have tendency to eat sweet food not just as dessert

-

Unacceptable to refuse a cup of coffee

• They want their traditions to be respected

-

Prefer to eat food together at the same time and at the same temperature

• Family-meals are a norm This concept is changing as the number of single households is increasing in Germany.

Norm/Habit Reason/Insight Change

Young adults are not averse to pre-packaged food items

• It is time saving• hygenic

Increasing trend

German cakes have a pound cake consistency

• Package size of new product would be compared

-

Dry cakes are not acceptable

• They like gelatin or fruit with whipped cream

• (Toaster pastries would be an innovation)

-

Desserts are not warmed in toasters

• Cold dessert are preferred

A trend towards health consciousness

• This direct consequences of greying and working German population

This trend is increasing with increasing lifestyle diseases and prosperity in the country,

Norm/Habit

Reason/Insight Change

Daily Shopping • German consumers usually do not buy frozen products, so they need to go shopping more frequently.

• Westerners have access to closely situated supermarket and preference for fresh product is high.

• East suffers from erratic food supplies so they have to go on frequent shopping.

This trend is changing, because post lifting of iron curtain, many modern retailers have entered Germany, making the country more west like. At the same time, demography of the country had changed with less kids in the family and with both partners working. So less time available

SEGMENTS Families Young professionals-Single households Working couple

TARGET SEGMENT Young professional-single households,

Working couple Profitable : 40% TG is a class which is time pressed needs

faster cooking alternatives, acceptability would be higher

Youth would be more receptive of new products than older generation

PRODUCT PLANNING

Features Creamy icing Fruit in the middle

Indicates Innovation Health Consciousness

COMMUNICATIONPlanned:

“A fruity dessert for breakfast and snacks”

Suggestions: Stress on increasing acceptability New category Creation should be on focus: warm breakfast

So alternate positioning:

A no-fuss, fruity, nutritious, warm snack to start your day

ADVERTISING- PROMOTION Communication would right now further

toaster pastry as a snacks time dessert, and eventually push it as a warm breakfast alternative

Marketing material would focus on: Nutritional qualities Different uses of toasters Prepares on the go Media: Newspaper, TVC In-store sampling

MEDIA RESOURCES

Newspaper, TVCIn-store sampling

Danke schön!