TOASTER PASTRY IN GERMANY

Presented BY:
Md. Ashraf Hossain Sarker

ABOUT THE CASE

Companys 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

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

At least One television and Radio in every household Cost of reaching 1000 readers : $10.87

ELEMENTS OF CROSS CULTURE CONSUMER BEHAVIOR

ENTRY IN A FOREIGN MARKET

Geographic Area with respect to 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 with respect to 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

Societys view of relationships between people

Otheroriented values

Environmentoriented values Objectives/ approaches to life society finds desirable

Societys view of relationships with environment

Consumption Purchase Communications

Selforiented values

VARIATION IN CULTURAL VALUES

Other-Oriented Values Masculine/Feminine Diversity/Uniformity Risk Taking/Security Active/Passive

Individual/Collective

Favorable Unfavorable Favorable Unfavorable Favorable

Environment-Oriented Values

Self-Oriented Values

Norm/Habit
They want to maximize value for money

Reason/Insight

Change

Beef consumed in restaurants

Freshly baked (not at home) They are time-pressed but hard roll along with a soft- they want fresh food boiled egg and coffee (Coldbreakfast) They take number of meals in a day They have tendency to eat sweet food not just as dessert They want their traditions to be respected Family-meals are a norm This concept is changing as the number of single households is increasing in Germany.

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

Unacceptable to refuse a cup of coffee

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

Norm/Habit
Package size of new product would be compared It is time saving Hygienic Increasing trend

Reason/Insight

Change

Young adults are not averse to pre-packaged food items

German cakes have a pound cake consistency They like gelatin or fruit with whipped cream (Toaster pastries would be an innovation) Cold dessert are preferred

Dry cakes are not acceptable

Desserts are not warmed in toasters

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

COMMUNICATION

Planned: 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 TVC In-store sampling

Thank

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