Management of a terroir company: The example of the Burgundian cheese producer Berthaut

Florence G.

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Management of a terroir company: The example of the Burgundian cheese producer Berthaut

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Lecture
Résumé
Sommaire
Extraits

Résumé du document

The Fromagerie Berthaut is one of the four AOC Epoisses producers. It is located in Côte d'Or, in Burgundy. Since 1956, this cheese dairy has produced the “Epoisses”, a terroir soft dough cheese made with raw milk. Over the last ten years, the company's sales have regularly increased in France and abroad leading Berthaut to heavily invest in order to increase production capacity in 1998. In 1999 a serious crisis put an end to this growth: two people had been victims of the presence of listeria in some Epoisses cheese. The Fromagerie Berthaut, non-responsible for this infection, lost 282,000 euros in 1999 due to the confidence crisis. In this fragile context, fall in sales and consumers confidence crisis, how could Berthaut restore a healthy situation and develop its activity? In a first part, an analysis and a diagnosis of the Fromagerie Berthaut will be made. Then, in a second part, the strategy to follow will be formulated. Finally, the way to implement the strategy will be explored in the third part, and the forth part will provide a story board to control and evaluate the strategy.

Sommaire

Introduction.
The external environment of the Fromagerie Berthaut.
1. The PESTEL analysis.
2. Internationalization drivers and their influence on the company's activity.
3. The offer on the Epoisses market: Porter's five forces.
The internal environment of the company.
1. Key success factors: The minimum to survive in this industry.
2. Mechanisms, logic and coherence of the model.
3. Financial performance.
The business model.
The SWOT generic strategies.
Business area of the Fromagerie Berthaut.
1. Mission statement.
2. Strategic directions and related measurable objectives.
Action plan.
1. Be more recognized.
2. Be irreproachable.
3. Increase the export sales.
Be irreproachable: Employees, the first concerned.
1. Stakeholders concerned by the change.
2. Selection of one target audience.
3. Message.
4. Media.
5. Budget.
Be recognised.
1. Message.
2. Target.
3. Medium.
4. Budget.
Evaluate and control the strategy: Story boards.
Bibliography.

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Extraits

[...] - Most of the villages in Burgundy have their own traditional village fests. By becoming a partner of some of these fairs, Berthaut could both improve its notoriety (for example through tombolas) and sell its cheeses (through stalls with samplings for instance). - Berthaut could also benefit from the “Saint-Vincent Tournante” fête and other traditional fairs dedicated to wine or Burgudian traditions in order to enhance its notoriety. Berthaut would use the same principle as described above. It would be attractive for Berthaut to benefit from the gustative marriage between wine and cheese. [...]

[...] Then, during the production process checks have to be maintained, or even reinforced. Finally, the controls over the super and hypermarkets will be realized by the sales representatives. Therefore they will have all the necessary equipments to control directly super and hypermarkets. Once a quarter, sales representatives will control a few samples of Epoisses in the super and hypermarkets. Fromagerie Berthaut has to continue being tooled up with a high level of technology. This allows having high-performance machines to produce and make quality controls. [...]

[...] The “Epoisses”, the flagship of the company belongs to cheeses” which represent 85% of Berthaut sales. There are few competitors because of the barriers to entry (AOC norms) and the Berthaut Epoisses has no real added value compared with the Epoisses cheeses produced by its competitors. Indeed the obtaining of the AOC label requires to respect numerous constraints of production, consequently the product is little different from the direct competitors' ones. The firm sells its products in France, Germany, Switzerland and Belgium; export sales represent 17% of total sales in 1999. [...]

[...] - In order to improve its notoriety, Berthaut could form a partnership with some Burgundy's tourist offices. By this way, tourists could deepen their knowledge of Burgundian culture and Berthaut could easily develop its commercial activities. Indeed, Berthaut would just have to put flyers at the disposal of “Offices de Tourisme” which would organize guided tours within the cheese dairy three or four times a month. Tourists could both make a visit of the factory and the Berthaut store followed by a sampling of Epoisses with Burgundian wine. [...]

[...] - Buyers can switch between the Epoisses and AOC or AOP cheeses, but are they really substitutable . Bargaining power of suppliers - Main suppliers: milk producers (and Marc de Bourgogne suppliers). - With the Common Agricultural Policy and quotas on the milk market, the quality and quantity of available milk are deteriorated (see above). - The quality of milk is essential for the Epoisses cheese producers who use raw milk. Unfortunately, Epoisses cheese producers can't influence the quality of milk. The milk production is currently impossible to trace and milk is anonymously collected. [...]

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