Project marketing - case study of the 'Company ' Michel et Augustin

Résumé du document

The instability which is sensed nowadays in the French biscuits and cakes market is mainly a consequence of the economical context. The current crisis carried a strong recession and its impacts are difficult to foresee.
We noted from 2005 to 2007 a period of rising prices concerning the biscuit market: a rise of 5.5% of the alimental products' prices in Europe has been conceded by a rising price concerning all the raw materials, with for example a jump of 142% of the global wheat in 2007.
In 2008 and 2009, consumption is likely to lower, and the wheat harvests of these two years are excellent. This explains why we assist to a stability of the prices in the biscuit market for the short and middle term. However, this won't be enough to thwart the increased demand, which is indivisible of the increased demography.
The production costs won't be deeply affected by the crisis, as only a substitution of the fixed capital could carry high spending for the biscuit and cakes' firms. The main problem concerns the distribution of these products. Indeed, in these times, distributors are not very confident with expensive products, which they think are not easily effusable. Moreover, distributors' brands and hard-discount are likely to gain market shares.
Many elements make us think that this business line is deeply touched by the current crisis. Though, in spite of this difficult economical context, the biscuit and cakes market remains stable thanks to a better penetration of the products, more precisely towards the consumers who eat biscuits occasionally, and those who don't consume biscuits at all. This business line is composed of some very innovative firms which try by many ways to entice the potential-consumers. The biscuits and cakes manufacturers launch on average, 70 new references per year, even - or rather mostly - during a crisis period. In fact, consumers need to feel that the biscuit and cakes brands are innovative, and that they can bring an easy pleasure to them during these hard days.

Extraits

[...] Marketing project case study of the company ‘Michel and Augustine' Table of contents: 1. The situation analysis 1. The environment (Demographic, Economical, Natural, Technological, Political, Cultural, Legal forces) 2. The industry 1. Rivalry among existing competitors 2. Threat of new entrants 3. Threat of substitute products 4. Bargaining power of suppliers 5. Bargaining power of buyers The firm 1. The company's mission 2. [...]

[...] This is why firms have to create loyalty relationship with their customers, to reduce this bargaining effect The firm The company's mission Michel and Augustin was created in 2004, by two friends, like Ben & Jerry's 30 years ago. Their main mission is to develop food products, such as biscuits and yogurts, and also creating around them a friendly environment, to appeal young to consumers. They want to create with their consumers a relationship of high-loyalty, by developing actions in parallel to the selling of products. [...]

[...] At least, all those characteristics of the brand are bringing them to a weak competitive position. Concerning the external factors, we can identify several opportunities. Actually, the healthy food market is in expansion and has become very relevant today and it is also a promising sector. In fact, consumers are more likely to buy traditional or artisanal and healthy foods but they are willing to eat and discover new products. Besides, Michel & Augustin may have the opportunity to develop partnerships with several new distributors and also become an even more high quality brand thanks to a hedonistic clientele. [...]

[...] However, this won't be enough to thwart the increased demand, which is indivisible of the increased demography. The production costs won't be deeply affected by the crisis, as only a substitution of the fixed capital could carry high spending for the biscuit and cakes' firms. The main problem concerns the distribution of these products. Indeed, in these times, distributors are not very confident with expensive products, which they think are not easily effusable. Moreover, distributors' brands and hard-discount are likely to gain market shares. [...]

[...] The core product is the same (with the same things in it) but they decided to conquer FAMILIES! Their one-kilo-yogurt is still in accordance to their psychographic segmentation wanting to attract people by saying that only one pot is more ecological than six pots. The younger generation was the only target but now families are also part of this incredible adventure. With this product, the target age goes a little higher and the segment is now women who want to give tasty products to their family The marketing program The product strategy In order to fit the actual trend which is taking care of our health by eating wholesome food, Michel & Augustin's products are always made with healthy products, that is to say it only uses natural raw products. [...]