smucker’s uncrustables in france: a new approach
DESCRIPTION
Smucker’s Uncrustables in France: A New Approach. Steve Flaherty Nathan Jones Matt Overholser Zach Rosenfeld. Possible Segmentation Options. Targeting Elementary Schools Geographic: Schools in urban areas Benefits: Eliminate preparation time, no mess, easy to store and serve - PowerPoint PPT PresentationTRANSCRIPT
Smucker’sUncrustables in France: A
New Approach
Steve FlahertyNathan Jones
Matt OverholserZach Rosenfeld
Possible Segmentation Possible Segmentation OptionsOptions
Targeting Elementary SchoolsTargeting Elementary Schools Geographic: Schools in urban areasGeographic: Schools in urban areas Benefits: Eliminate preparation time, no Benefits: Eliminate preparation time, no
mess, easy to store and servemess, easy to store and serve Teenagers for quick mealTeenagers for quick meal
Psychographics: Multi child families, Psychographics: Multi child families, where kids are highly involved and on the where kids are highly involved and on the gogo
Demographics: Male and Female children Demographics: Male and Female children ranging from 13-19, from middle income ranging from 13-19, from middle income familiesfamilies
Segmentation/TargetingSegmentation/Targeting Current: Current: (U.S.)(U.S.)
Women who have children school aged Women who have children school aged children ages 5-12children ages 5-12
Middle income familiesMiddle income families
New Target: New Target: (France)(France) Women and Men who run single parent Women and Men who run single parent
households with children ages 5-12households with children ages 5-12 Middle income familiesMiddle income families This segment is composed of nearly 1.423 This segment is composed of nearly 1.423
Million French consumersMillion French consumers Living in urban areas, with a middle class Living in urban areas, with a middle class
standard of livingstandard of living
Major CompetitorsMajor Competitors
Unilever Bestfoods Unilever Bestfoods Foods division of UnileverFoods division of Unilever Responsible for more than half of Unilever’s Responsible for more than half of Unilever’s
salessales Produces Skippy Peanut Butter, which is best Produces Skippy Peanut Butter, which is best
selling peanut butter in the world, but not well selling peanut butter in the world, but not well known in Franceknown in France
McCain McCain Specializes in the production of frozen potato Specializes in the production of frozen potato
products, oven ready entrees, pizzas, waffles, products, oven ready entrees, pizzas, waffles, etc. etc.
Current ProductCurrent Product White BreadWhite Bread Jif Peanut ButterJif Peanut Butter Smuckers Jelly Smuckers Jelly
(strawberry/grape)(strawberry/grape) 210 calories per serving210 calories per serving 80 calories from fat80 calories from fat 7 grams of protein7 grams of protein Total fat is 9 gramsTotal fat is 9 grams Total carbohydrates are 25 gramsTotal carbohydrates are 25 grams 2% calcium2% calcium 6% iron6% iron
New ProductNew ProductWheat Bread will replace white breadWheat Bread will replace white bread
More healthyMore healthyFeeds the health conscious consumers of FranceFeeds the health conscious consumers of France
Strawberry Jam and Orange MarmaladeStrawberry Jam and Orange MarmaladeAppeals to the flavor preferences of French Appeals to the flavor preferences of French ConsumersConsumersCheaper to produce in FranceCheaper to produce in France
Reduced Fat JIF peanut butterReduced Fat JIF peanut butterMore appropriate for target marketMore appropriate for target market
Maintain same size and design of productMaintain same size and design of productEconomies of scale/ appeal of American product Economies of scale/ appeal of American product
Packaging/LabelingPackaging/Labeling
Teaming up with Kraft: LunchablesTeaming up with Kraft: Lunchables One Uncrustable/packageOne Uncrustable/package Works as a complete meal, w/lunchables cheese Works as a complete meal, w/lunchables cheese
and crackersand crackers Vacuum sealed for freshnessVacuum sealed for freshness Refrigerated, no longer frozenRefrigerated, no longer frozen Must be written in FrenchMust be written in French Packaging follows local regulationsPackaging follows local regulations Uncrustable will still be nameUncrustable will still be name White plastic package with clear lid, kept within a White plastic package with clear lid, kept within a
cardboard boxcardboard box Product is visible to the consumerProduct is visible to the consumer
ProductionProduction
Partnering with Kraft and Partnering with Kraft and Tibbett & Britten to produce Tibbett & Britten to produce
the best possible productthe best possible product
Where to Produce?Where to Produce?
We will be producing Uncrustables We will be producing Uncrustables within the existing facility for within the existing facility for Kraft/Philip Morris in France. Kraft/Philip Morris in France.
The products come together as a whole, and The products come together as a whole, and for this reason, makes sense to only produce for this reason, makes sense to only produce them as a whole unitthem as a whole unit
Production facility within ParisProduction facility within Paris
ProductionProduction
Uncrustables:Uncrustables: JIF Peanut Butter will be shipped via Tibbett & JIF Peanut Butter will be shipped via Tibbett &
Britten from the United States to production Britten from the United States to production facility in Francefacility in France
JIF is not currently available within France, so will be JIF is not currently available within France, so will be brought in from the United Statesbrought in from the United States
Strawberry Jam and Orange Marmalade will be Strawberry Jam and Orange Marmalade will be used by available jam/jelly manufacturers within used by available jam/jelly manufacturers within FranceFrance
These flavors are the cheapest to produce, and are big These flavors are the cheapest to produce, and are big sellers within the French Marketsellers within the French Market
We have no direct benefit of shipping Smucker’s jams We have no direct benefit of shipping Smucker’s jams into France, as they do not have a presence thereinto France, as they do not have a presence there
Production Production
Uncrustables: (continued)Uncrustables: (continued) Bread for the Product will be provided by from Bread for the Product will be provided by from
Kraft producer Kraft producer We will use wheat bread as a healthier alternative, We will use wheat bread as a healthier alternative,
and will produce it within France to keep fresh and and will produce it within France to keep fresh and reduce shelf life of bread between production, reduce shelf life of bread between production, shipping, and final productshipping, and final product
Once finished, will be vacuum sealed within Once finished, will be vacuum sealed within own packaging, and included with the own packaging, and included with the Lunchables packageLunchables package
Once completed, will need to be chilled, and held at Once completed, will need to be chilled, and held at one of Tibbett & Britten’s holding facilities before one of Tibbett & Britten’s holding facilities before being sent to final retail location with Carrefourbeing sent to final retail location with Carrefour
ProductionProduction
Lunchables:Lunchables: We will work with Kraft and DairyLea to We will work with Kraft and DairyLea to
produce Cheese, Meat, and Crackers for the produce Cheese, Meat, and Crackers for the lunchables packlunchables pack
Use what Kraft/DairyLea currently have Use what Kraft/DairyLea currently have within their lunchables productwithin their lunchables product
Once finished, will be put into plastic Once finished, will be put into plastic container, and vacuum sealed for freshnesscontainer, and vacuum sealed for freshness
Product must then be kept chilled to keep Product must then be kept chilled to keep fresh—can be done at Tibbett & Britten fresh—can be done at Tibbett & Britten facilitiesfacilities
DistributionDistribution
Tibbet & Britten will handle Tibbet & Britten will handle distribution of the product in Francedistribution of the product in France
Well suited to handle UncrustablesWell suited to handle Uncrustables 19 distributions centers throughout the 19 distributions centers throughout the
countrycountry Capable of handling ambient, chilled, Capable of handling ambient, chilled,
and frozen productsand frozen products Food and beverage sector is the Food and beverage sector is the
company’s largest at 39% of salescompany’s largest at 39% of sales
DistributionDistribution
Tibbett & Britten will provide value-Tibbett & Britten will provide value-added services such as CRM, order added services such as CRM, order control, and promotional packagingcontrol, and promotional packaging
Tibbett & Britten has a strong Tibbett & Britten has a strong relationship with Carrefourrelationship with Carrefour Tibbett & Britten will distribute the Tibbett & Britten will distribute the
product to Carrefour stores in Franceproduct to Carrefour stores in France
DistributionDistribution
How will Uncrustables be made?How will Uncrustables be made? No Smucker’s peanut butter operations in No Smucker’s peanut butter operations in
EuropeEurope JIF Peanut butter will be shipped from the U.S. to JIF Peanut butter will be shipped from the U.S. to
the Kraft manufacturing facility in France the Kraft manufacturing facility in France Ocean liners, rails, and trucks will be utilized by Ocean liners, rails, and trucks will be utilized by
Tibbet & BrittenTibbet & Britten Jams will be shipped directly from a local Jams will be shipped directly from a local
jam manufacturing facility in Francejam manufacturing facility in France Products transported by truckProducts transported by truck
DistributionDistribution To the store!To the store!
Once the product has been produced Once the product has been produced Tibbett & Britten will take overTibbett & Britten will take over
They will perform both primary and They will perform both primary and secondary distributionsecondary distribution
Based on expenses, Tibbett & Britten Based on expenses, Tibbett & Britten will choose the mode of transport that will choose the mode of transport that will best minimize costwill best minimize cost
We will be stocking our product We will be stocking our product exclusively at Carrefour stores, as exclusively at Carrefour stores, as Lunchables is already a known Lunchables is already a known product in France, and will not have product in France, and will not have to struggle with its introductionto struggle with its introduction
PricingPricing
Positioned as a Med/High end brand Positioned as a Med/High end brand implying good quality and a well made implying good quality and a well made productproduct
Retail price of 2.69 EuroRetail price of 2.69 Euro If selling in America, this is equivalent to If selling in America, this is equivalent to
$3.49$3.49
This price allows us to target our middle This price allows us to target our middle class urban customers that we want.class urban customers that we want.
CostsCosts
ProductionProduction Due to slight change in product, production Due to slight change in product, production
costs will be 17% of the unit retail pricecosts will be 17% of the unit retail price = .46 Euro per unit= .46 Euro per unit
DistributionDistribution Item is now chilled instead of frozen, Item is now chilled instead of frozen,
reducing distribution costs but still higher reducing distribution costs but still higher than regular food. Distribution costs are than regular food. Distribution costs are 10% of the unit retail price10% of the unit retail price
= .27 Euro per unit= .27 Euro per unit
Adding it all upAdding it all up
KraftKraft Kraft will be paid .46 euros per unit plus a Kraft will be paid .46 euros per unit plus a
30% fee for manufacturing the product. 30% fee for manufacturing the product. Thus, costing .60 euros per unitThus, costing .60 euros per unit
Tibbett BrittenTibbett Britten Tibbet Britten will be paid .26 euros per Tibbet Britten will be paid .26 euros per
unit plus a 30% fee for distribution of the unit plus a 30% fee for distribution of the product.product. Thus, costing .35 euros per unitThus, costing .35 euros per unit
TotalTotal It will cost .95 euros per unit to It will cost .95 euros per unit to
manufacture and distributemanufacture and distribute
What’s LeftWhat’s Left
Selling price Selling price
Selling product to stores for 1.10 euros Selling product to stores for 1.10 euros and selling at a Manufacturers and selling at a Manufacturers suggested retail price of 2.69 eurossuggested retail price of 2.69 euros
Leaves .15 euros profit per unit to be Leaves .15 euros profit per unit to be spent on promotions.spent on promotions.
Expected SalesExpected Sales
In 2000, there were 8,888,000 families In 2000, there were 8,888,000 families with dependent childrenwith dependent children 1.423 million were single parent 1.423 million were single parent
householdshouseholds 7.465 million were two parent households7.465 million were two parent households
Expected 75% of single parent Expected 75% of single parent households and 30% of two parent households and 30% of two parent households buy just one unit.households buy just one unit. 3,306,750 units sold3,306,750 units sold
* .15 = 496,012.50 for promotions/profit* .15 = 496,012.50 for promotions/profit
PromotionPromotion Before introducing the Uncrustables Before introducing the Uncrustables
Lunchable, we are going to begin a Lunchable, we are going to begin a contest in existing Lunchables packages:contest in existing Lunchables packages: The contest will ask participants to guess The contest will ask participants to guess
what will be the two main ingredients within what will be the two main ingredients within the sandwich, and what the name of the the sandwich, and what the name of the sandwich will besandwich will be
Participants must then send in their game Participants must then send in their game cards, and winners with the correct cards, and winners with the correct information will receive vouchers for information will receive vouchers for selected football games from their favorite selected football games from their favorite teams. teams.
Promotion RestrictionsPromotion Restrictions
The ticket vouchers will run on a “while The ticket vouchers will run on a “while supplies last” basissupplies last” basis
The promotion will end two weeks before The promotion will end two weeks before the Lunchables Uncrustables will enter the Lunchables Uncrustables will enter FranceFrance
Ballots can either be dropped off in Ballots can either be dropped off in Carrefour store displays, or sent through Carrefour store displays, or sent through the mailthe mail
There will be a “no purchase necessary” There will be a “no purchase necessary” option through our print advertisementoption through our print advertisement
Promotion: Product Promotion: Product DisplaysDisplays
Good product displays Good product displays increase product visibilityincrease product visibility
Increased visibility leads to Increased visibility leads to an increase in salesan increase in sales
Many companies use displays Many companies use displays in Carrefour storesin Carrefour stores End-of-aisle displaysEnd-of-aisle displays Free standing displaysFree standing displays EndcapsEndcaps
Promotion CostsPromotion Costs
Paper and Printing: 150,000 EuroPaper and Printing: 150,000 Euro Store Displays: 50,000 EuroStore Displays: 50,000 Euro Tickets: 10,000 EuroTickets: 10,000 Euro Advertising at Game Stadium: Advertising at Game Stadium:
20,000 euro20,000 euro Remaing to be spent on newspaper Remaing to be spent on newspaper
ads and/or printing “free game piece ads and/or printing “free game piece sheets”sheets”