Proposal of Uncrustables Proposal of Uncrustables entry into the French entry into the French

MarketMarket

Alejandra MillerAlejandra MillerLindsay HerlingLindsay Herling

Birch BaylyBirch BaylyZak RosenfeldZak Rosenfeld

Brooke AlexanderBrooke Alexander

Assessment of Assessment of potential French potential French

marketmarketIs there a demand?Is there a demand?

What kind of competition exists?What kind of competition exists?

Competition Competition within the frozen foods marketwithin the frozen foods market

The frozen food market consists of frozen ready meals, frozen potato The frozen food market consists of frozen ready meals, frozen potato products, frozen fruits and vegetables, frozen desserts, frozen products, frozen fruits and vegetables, frozen desserts, frozen

bakery products, and frozen meat, fish, and seafood. bakery products, and frozen meat, fish, and seafood. Frozen food meals dominate the French market. In 2003, frozen ready Frozen food meals dominate the French market. In 2003, frozen ready meals accounted for 51.8% of the market.meals accounted for 51.8% of the market. In 2003, the French market generated 14.1% of the European frozen In 2003, the French market generated 14.1% of the European frozen food sales.food sales. An increasing amount of interest in American culture, younger An increasing amount of interest in American culture, younger consumers consumers and changing lifestyles are contributing to France’s import and changing lifestyles are contributing to France’s import demand demand for food products from the United States.for food products from the United States.

Thus, significant opportunities exist for frozen foods within France, and Thus, significant opportunities exist for frozen foods within France, and this is reflected in the influx of foreign companies into this is reflected in the influx of foreign companies into the marketthe market

Leading companies within the French food market are Unilever, McCain, Leading companies within the French food market are Unilever, McCain, and Saveurs de France-Brossardand Saveurs de France-Brossard

UnileverUnilever

Unilever has found great success in France, particularly with Unilever has found great success in France, particularly with their Iglo and Findus brands, and more recently the frozen their Iglo and Findus brands, and more recently the frozen ranges promoted by Knorr and Bertolli.ranges promoted by Knorr and Bertolli.

Unilever Bestfoods is the foods division of Unilever, Unilever Bestfoods is the foods division of Unilever, responsible for more than half of Unilever’s sales.responsible for more than half of Unilever’s sales.

It has operations in Europe, South and North America, Africa It has operations in Europe, South and North America, Africa and Asia. and Asia.

The company’s products are sold in 110 countries through retail The company’s products are sold in 110 countries through retail outlets and its strong worldwide food service business, outlets and its strong worldwide food service business, operates under the name " Caterplan " outside the US.operates under the name " Caterplan " outside the US.

• It’s also one of the most international of the US foods It’s also one of the most international of the US foods companies in terms of percentage of sales, and earning companies in terms of percentage of sales, and earning coming from outside the US.coming from outside the US.

McCainMcCain

McCain specializes in the production of frozen McCain specializes in the production of frozen potato products and is responsible for the potato products and is responsible for the manufacture of one third of the world’s French manufacture of one third of the world’s French fries, making it the largest producer in the worldfries, making it the largest producer in the world It also produces other food products including juices, It also produces other food products including juices,

drinks, desserts, pizzas, oven-ready entrées and drinks, desserts, pizzas, oven-ready entrées and appetizers, pizza snacks, frozen green vegetables, appetizers, pizza snacks, frozen green vegetables, specialty meat products, and waffles.specialty meat products, and waffles.

It exports to more than 80 countries and has more It exports to more than 80 countries and has more than 55 plants in 13 countries.than 55 plants in 13 countries.

In Europe, McCain is the major retailer of French fries In Europe, McCain is the major retailer of French fries in the UK, and the Netherlands.in the UK, and the Netherlands.

Saveurs de France-BrossardSaveurs de France-Brossard

Saveurs de France-Brossard Group designs and Saveurs de France-Brossard Group designs and manufactures frozen specialties and industrial pastry manufactures frozen specialties and industrial pastry products (non-refrigerated).products (non-refrigerated).

The company has five production sites and distributes all its The company has five production sites and distributes all its products through its Brossard Distribution subsidiary.products through its Brossard Distribution subsidiary.

Products include puff pastries including pies and cakes, Products include puff pastries including pies and cakes, doughnuts and delicatessen products, 20 varieties of pizzas, doughnuts and delicatessen products, 20 varieties of pizzas, aperitifs and desserts.aperitifs and desserts.

All products are under the same brand name: BrossardAll products are under the same brand name: BrossardThe company uses two distinct distribution methods. The company uses two distinct distribution methods.

The first is direct sales to consumers via supermarkets, hypermarkets, The first is direct sales to consumers via supermarkets, hypermarkets, freezer centers and frozen product home services.freezer centers and frozen product home services.

The second is through merchants (for out-of-home catering), The second is through merchants (for out-of-home catering), commercial caterers, collective organizations and small buying centers.commercial caterers, collective organizations and small buying centers.

The French ConsumerThe French Consumer

French Diet and NutritionFrench Diet and Nutrition

The French take food very seriously and feel The French take food very seriously and feel that meals should be savored, not rushed.that meals should be savored, not rushed.A typical French breakfast includes coffee with A typical French breakfast includes coffee with hot milk or hot chocolate served in a bowl, hot milk or hot chocolate served in a bowl, accompanied by a croissant, brioche or toast accompanied by a croissant, brioche or toast with jam. with jam. Lunch might be a quiche, a Croque Monsieur Lunch might be a quiche, a Croque Monsieur (open-faced sandwich with ham and melted (open-faced sandwich with ham and melted cheese), or a crepe. cheese), or a crepe. Traditionally lunch was the biggest meal of the Traditionally lunch was the biggest meal of the

day, but today many French families have day, but today many French families have their main meal in the evening.their main meal in the evening.

Diet and Nutrition continued…Diet and Nutrition continued…

Snacks between meals are not commonSnacks between meals are not common The French tend to snack less, which could be the reason as to The French tend to snack less, which could be the reason as to

why only 8% of the population is considered obese.why only 8% of the population is considered obese. The French typically consume 60% of their day’s calories before The French typically consume 60% of their day’s calories before

2pm. 2pm. Snacking in French cities such as Paris is gaining some ground Snacking in French cities such as Paris is gaining some ground

thoughthough Still many French find the practice distasteful.Still many French find the practice distasteful.

81% of French consumers surveyed think that eating in-81% of French consumers surveyed think that eating in-between meals is a problem and can be unhealthy.between meals is a problem and can be unhealthy.

Dinner might start with crudités (marinated raw vegetables), or Dinner might start with crudités (marinated raw vegetables), or charcuterie (cold cuts), followed by the piece de resistance (the charcuterie (cold cuts), followed by the piece de resistance (the main course), then salad, and finally cheese and dessert.main course), then salad, and finally cheese and dessert.

Mass catering: by sector, expressed as Mass catering: by sector, expressed as numbers of meals served (1997)numbers of meals served (1997)

Schools and universitiesSchools and universities1.242 billion1.242 billion

Businesses and central and local government officesBusinesses and central and local government offices555 million555 million

Hospitals and old people’s homesHospitals and old people’s homes1.490 billion1.490 billion

Other sectors (day nurseries, etc.)Other sectors (day nurseries, etc.)420 million420 million

Price and income constraints have become relatively Price and income constraints have become relatively less important and they now find that age, gender, and less important and they now find that age, gender, and health concerns play a greater role in dietary choices.health concerns play a greater role in dietary choices.There is still a strong attachment to tradition and to the There is still a strong attachment to tradition and to the three meals a day that are customarily eaten, which three meals a day that are customarily eaten, which delay any drastic changes in dietary habits.delay any drastic changes in dietary habits.The French are saying NO to two things: 1) is to food The French are saying NO to two things: 1) is to food risk and farming practices considered dangerous for risk and farming practices considered dangerous for health and the environment and 2) to bland, health and the environment and 2) to bland, standardized food and the disappearance of products standardized food and the disappearance of products which are clearly identifiable with a local area.which are clearly identifiable with a local area.

Interest in American CultureInterest in American Culture

An increasing amount of interest in American culture, An increasing amount of interest in American culture, younger consumers and changing lifestyles are younger consumers and changing lifestyles are contributing to France’s import demand for food products contributing to France’s import demand for food products from the United States. from the United States.

Generally, high quality food products with an American image Generally, high quality food products with an American image can find a niche in the French market.can find a niche in the French market.

Thus significant market opportunities exist for frozen foods within Thus significant market opportunities exist for frozen foods within France, and this is reflected in the influx of foreign companies France, and this is reflected in the influx of foreign companies into the market.into the market.

France has a huge young population, which is very adaptable France has a huge young population, which is very adaptable and flexible to new tastes and lifestyles. Moreover, the presence and flexible to new tastes and lifestyles. Moreover, the presence of people from almost every part of the globe makes it a very of people from almost every part of the globe makes it a very international city.international city.

LifeStyleLifeStyle

French people living in large cities such as Paris, Lyon or French people living in large cities such as Paris, Lyon or Marseille are more likely to use public transportation to Marseille are more likely to use public transportation to do their shoppingdo their shopping

They are unable to carry large amounts of packages at one timeThey are unable to carry large amounts of packages at one time Focus on buying basic necessitiesFocus on buying basic necessities

Smaller freezer space also limits the amount of Smaller freezer space also limits the amount of prepackaged frozen food that is purchasedprepackaged frozen food that is purchasedResidents of cities are less likely to own a car, and more Residents of cities are less likely to own a car, and more likely to do their shopping on a day by day basis. likely to do their shopping on a day by day basis. Real estate in the cities is expensive; therefore stores Real estate in the cities is expensive; therefore stores are smaller and have limited shelf space. Retailers are are smaller and have limited shelf space. Retailers are more likely to carry the most popular products and more likely to carry the most popular products and brands. brands.

Family StructureFamily Structure

In France, 15% of families are single-parent In France, 15% of families are single-parent familiesfamilies In most cases, the single parent is a womanIn most cases, the single parent is a woman

In families with two parents, both parents usually In families with two parents, both parents usually workworkMost families are small with only one or two Most families are small with only one or two children. children. Most French people put a high priority on Most French people put a high priority on spending time with their familiesspending time with their families On Sundays it is expected that family On Sundays it is expected that family

members will get together for a meal.members will get together for a meal.

Life in Paris is much like that of any other Life in Paris is much like that of any other cosmopolitan city, the regional and rural life on cosmopolitan city, the regional and rural life on the other hand are more traditional and the other hand are more traditional and distinctive and vary from one region to the other.distinctive and vary from one region to the other.

Professionals who were once accustomed to a Professionals who were once accustomed to a leisurely lunch break find that now they only leisurely lunch break find that now they only have time to grab a quick sandwich have time to grab a quick sandwich

The average lunch break is 38 minutes, as compared to 1 The average lunch break is 38 minutes, as compared to 1 hour 15 minutes in 1970hour 15 minutes in 1970

Today almost 80% of women aged between 25 Today almost 80% of women aged between 25 and 49 are economically active, compared with and 49 are economically active, compared with 50% in 1970.50% in 1970.

DistributionDistribution

How will Uncrustables reach How will Uncrustables reach the French Market?the French Market?

Import from the U.S.Import from the U.S.Import from the U.K. (Scotland)Import from the U.K. (Scotland)Find a company in France to Find a company in France to Build a plant in FranceBuild a plant in France

Importing from the U.S.Importing from the U.S.

Goods imported into France are subject to the Goods imported into France are subject to the Value Added Tax (VAT)Value Added Tax (VAT)

U.S. export’s entering France must conform to U.S. export’s entering France must conform to the French and European Union standardsthe French and European Union standards

Most processed products entering the E.U. and Most processed products entering the E.U. and France are subject to additional import charges France are subject to additional import charges based on the percentage of sugar, milk, fat, milk based on the percentage of sugar, milk, fat, milk protein, and starch in the product.protein, and starch in the product.

Importing from the U.S.Importing from the U.S.

U.S. and France have the Mutual U.S. and France have the Mutual Recognition Agreement covering product Recognition Agreement covering product standardsstandards

American firms must take into American firms must take into consideration certain business practices, consideration certain business practices, cultural factors, and legal requirements in cultural factors, and legal requirements in order to do business effectively in France.order to do business effectively in France.

Import from the U.K.Import from the U.K.

Smuckers has a processing plant in Smuckers has a processing plant in Scotland, which is a good resource in Scotland, which is a good resource in entering the French marketentering the French market

The U.K. is in the E.U. so Smuckers won’t The U.K. is in the E.U. so Smuckers won’t have the tariffs and taxes that it would have the tariffs and taxes that it would coming from the U.S.coming from the U.S.

Building a plant in FranceBuilding a plant in France

A possible site location would be in A possible site location would be in Northern France in a city called Nord-Pas-Northern France in a city called Nord-Pas-de-Calaisde-CalaisThis region of France is the one of the This region of France is the one of the most industrialized areas in Francemost industrialized areas in FranceIt is located 750 miles away from their It is located 750 miles away from their plant in Aberdeen Scotlandplant in Aberdeen ScotlandThe area around this region is known for The area around this region is known for it’s powerful agriculture sectorsit’s powerful agriculture sectors

This map depicts the industrial sectors in Northern France

Building a plant in FranceBuilding a plant in France

Impressive infrastructures, including three major Impressive infrastructures, including three major European seaports (Boulogne, Calais, Dunkirk)European seaports (Boulogne, Calais, Dunkirk)

Over 5,600 transport and logistics companies Over 5,600 transport and logistics companies based in the area, employing 56,000 peoplebased in the area, employing 56,000 people

Grants and subsidies available for companies Grants and subsidies available for companies setting up in the region setting up in the region 100 million consumers within a 300km (186mi) 100 million consumers within a 300km (186mi) radius radius

LogisticsLogistics

For long-term marketing and sales capabilities in For long-term marketing and sales capabilities in France one must pay close attention to securing France one must pay close attention to securing proper distribution and storage facilities close to proper distribution and storage facilities close to major airports and seaports.major airports and seaports.

Logistics firms, many of which, including Logistics firms, many of which, including American-owned, operate in France and should American-owned, operate in France and should be considered when firms develop significant be considered when firms develop significant market opportunities and sales channels in market opportunities and sales channels in France.France.

There is a multitude of available import distribution centers located There is a multitude of available import distribution centers located throughout France; which are depicted below:throughout France; which are depicted below:

Airports and Seaports in FranceAirports and Seaports in France

Consumer-Related Consumer-Related IssuesIssues

Target Market for the USTarget Market for the US

Women who have school aged childrenWomen who have school aged children particularly ages 5-12 particularly ages 5-12 Middle income families Middle income families Uncrustables are not a necessity and are Uncrustables are not a necessity and are

more expensive than homemade peanut more expensive than homemade peanut butter and jellybutter and jelly

““Soccer mom” families where the kids are Soccer mom” families where the kids are continuously on the run and active.continuously on the run and active.

Uncrustables are an easily solution for time Uncrustables are an easily solution for time pressed parentspressed parents

Smuckers Positioning of UncrustablesSmuckers Positioning of Uncrustables

Compete directly with prepared lunch kits, Compete directly with prepared lunch kits, especially leader Kraft Foods’ Oscar Mayer especially leader Kraft Foods’ Oscar Mayer Lunchables FranchiseLunchables Franchise Less than $0.65 a sandwich, while Lunchables retail Less than $0.65 a sandwich, while Lunchables retail

at higher than $3.00 for a complete lunch. at higher than $3.00 for a complete lunch.

Attempted to ease hectic mornings by allowing Attempted to ease hectic mornings by allowing them to be thrown into children’s lunchboxesthem to be thrown into children’s lunchboxes

Use well known ingredients such as Jif peanut Use well known ingredients such as Jif peanut butter and Smucker’s jelliesbutter and Smucker’s jellies

Promotion of UncrustablesPromotion of Uncrustables

““With a name like Smucker’s is has to be good.”With a name like Smucker’s is has to be good.”• The name Smucker’s has no equity in France The name Smucker’s has no equity in France

so this promotional message must be so this promotional message must be changed.changed.

• Use National media such as magazines, the Use National media such as magazines, the internet and televisioninternet and television• advertise on television, most heavily during back-advertise on television, most heavily during back-

to-school and return-to-school periods to-school and return-to-school periods • Uncrustables FunZone on the Smucker’s website Uncrustables FunZone on the Smucker’s website

• Smucker’s is a major promoter of the Stars on Ice Smucker’s is a major promoter of the Stars on Ice Tour Tour

Implementation of PromotionImplementation of Promotion

Taking Uncrustables Taking Uncrustables across Americaacross America

Building Brand Building Brand recognitionrecognition

Smucker’s sets up booths Smucker’s sets up booths at events and gives out at events and gives out free samples of free samples of Uncrustables to kids and Uncrustables to kids and their parents their parents

• Kids have the chance to Kids have the chance to meet the Uncrustable’s meet the Uncrustable’s Mascot, Kidd Sandwich Mascot, Kidd Sandwich

PositioningPositioningImplementation of Marketing MixImplementation of Marketing Mix

New ProductNew Product Inform consumers, explain advantages, explain usageInform consumers, explain advantages, explain usage

Existing MarketExisting Market Penetration, consumer acquisition, relative market sharePenetration, consumer acquisition, relative market share

3 Major competitors3 Major competitors Compete for shelf space, price, convenience, consumer awarenessCompete for shelf space, price, convenience, consumer awareness

PlacePlace

Retail Options (principal formats of French food Retail Options (principal formats of French food retailers)retailers) HypermarketsHypermarkets SupermarketsSupermarkets Hard-DiscountersHard-Discounters City-Center StoresCity-Center Stores Department StoresDepartment Stores Traditional OutletsTraditional Outlets

The first five account for 75% of the country’s The first five account for 75% of the country’s food distribution; the sixth, which includes food distribution; the sixth, which includes neighborhood and specialized food stores, for neighborhood and specialized food stores, for about 25%.about 25%.

Retail Options Continued…Retail Options Continued… Attempting to capture market share from the restaurant and fast-food Attempting to capture market share from the restaurant and fast-food

sectors, hyper/supermarkets have began to sell ready-to-eat products sectors, hyper/supermarkets have began to sell ready-to-eat products such as roasted meats, fresh-baked bread, and pastries.such as roasted meats, fresh-baked bread, and pastries.

Hyper/supermarkets are where French consumers spend most of their Hyper/supermarkets are where French consumers spend most of their grocery moneygrocery money

HypermarketsHypermarkets Located in suburbs, cover sales area of 6.8 million square metersLocated in suburbs, cover sales area of 6.8 million square meters Offers 25,000-40,000 products at competitive prices (3000-5000 food Offers 25,000-40,000 products at competitive prices (3000-5000 food

items and 20,000-35,000 non-food articles)items and 20,000-35,000 non-food articles) Large International foods sectionLarge International foods section Top 5 Companies– Carrefour, Leclerc, Auchan, Geant, and CoraTop 5 Companies– Carrefour, Leclerc, Auchan, Geant, and Cora

SupermarketsSupermarkets Smaller versions of hypermarketsSmaller versions of hypermarkets Offers 3,000-5,000 products (500-1,500 are non-food products)Offers 3,000-5,000 products (500-1,500 are non-food products) Large International foods sectionLarge International foods section Top 4 Companies– IntermarchTop 4 Companies– Intermarché, Champion, Super U, and Casinoé, Champion, Super U, and Casino

Core ProductCore Product

Jelly, Peanut Butter, and White Bread with no crustJelly, Peanut Butter, and White Bread with no crustoror

Cheese and White Bread with no crustCheese and White Bread with no crust

French people hardly know of peanut butter but love peanuts.French people hardly know of peanut butter but love peanuts. Knowing this, and understanding that France has a huge young population Knowing this, and understanding that France has a huge young population

that is very adaptable and flexible to new tastes and lifestyles—Peanut that is very adaptable and flexible to new tastes and lifestyles—Peanut Butter can pick up pretty fast and become an important fast food, if it’s Butter can pick up pretty fast and become an important fast food, if it’s properly advertised and promotedproperly advertised and promoted

Jams and Jellies are popular spreads in France, but rather than Jams and Jellies are popular spreads in France, but rather than Concord grape or strawberry, the French prefer flavors such as apricot, Concord grape or strawberry, the French prefer flavors such as apricot, cherry, and raspberry. Orange and lemon marmalades are also cherry, and raspberry. Orange and lemon marmalades are also popular.popular.The French have 500 varieties of cheese, but do not eat it toasted as The French have 500 varieties of cheese, but do not eat it toasted as Americans do. Somewhat similar to the American “grilled cheese” is the Americans do. Somewhat similar to the American “grilled cheese” is the French “Croque Monsieur”, which is a grilled ham and cheese sandwich. French “Croque Monsieur”, which is a grilled ham and cheese sandwich. These are frequently served as a lunch item in cafes. These are frequently served as a lunch item in cafes.

BrandBrand(Current vs. New)(Current vs. New)

Uncrustables in France?Uncrustables in France?““Uncrustable” is not even a real word in the English Uncrustable” is not even a real word in the English language so there is certainly no direct translation into language so there is certainly no direct translation into FrenchFrenchMost French sandwiches are eaten on croissants or Most French sandwiches are eaten on croissants or baguettes so the crust is not even an issue.baguettes so the crust is not even an issue.In the U.S., Canada, and Australia, where English is the In the U.S., Canada, and Australia, where English is the primary language, the product infers the convenience primary language, the product infers the convenience undergone by the productundergone by the productIn a different language the current brand does not imply In a different language the current brand does not imply the convenience enjoyed by consuming the productthe convenience enjoyed by consuming the productA new brand name that implies the ease of preparation A new brand name that implies the ease of preparation of the nutritional benefits is in order of the nutritional benefits is in order

Labeling and PackagingLabeling and Packaging

Label RegulationsLabel Regulations Origin-(city or country)Origin-(city or country) Language-(must be Language-(must be

French)French) Designation-(state what Designation-(state what

product is)product is) Brand Names/Trademark-Brand Names/Trademark-

(on exterior)(on exterior) Composition-(all Composition-(all

ingredients and materials)ingredients and materials) Usage instructions-(how Usage instructions-(how

product is used)product is used) Qualifiers-(ex. “made by Qualifiers-(ex. “made by

hand”)hand”)

Name/Address of Name/Address of ManufacturerManufacturer

SpecificationsSpecifications Price-(including taxes)Price-(including taxes) Bar Code LabelingBar Code Labeling Quality LabelsQuality Labels Required DatesRequired Dates Environmental Labels-(NF Environmental Labels-(NF

Environment label certifies Environment label certifies environmental criteria)environmental criteria)

CE Marking-(“European CE Marking-(“European Conformity” needed to be sold Conformity” needed to be sold or imported by any member of or imported by any member of the EUthe EU

Promotional MessagePromotional Message““A quick and simple solution for A quick and simple solution for

the time-pressed parent.”the time-pressed parent.”

Promotion

Media Availability

•Television

•Watching television is still the favorite leisure activity of the French

•Average of 3 hours and 15 minutes per person each day

•3 main channels are TFI, France 2, and France 3 which account for ¾ of viewing population

•Advertising on public stations is 8min/hour where as private stations are allowed 12 min/hour

•Television is affordable for most

The following table describes the type of television available and the average cost per month for the service.

*15.00 EUR = 19.82 U.S. Dollars

•Internet

•Very focused on in the United States in the promotion of Uncrustables

•4.7% of French population has Internet access

•CiteVision is one of the top service providers in France

•If subscribe to digital cable service than the internet is typically offered with the plan

•37 per 100 of the population means France is ahead of most European countries

•Radio

•National and local stations are available

•450 stations broadcasting on some 2,650 frequencies.

•RTL, France-Inter, and Europe 1 account for 1/3 of the total radio

audience

•Newspapers/Magazines

leading quality daily newspapers are Le Monde, Le Figaro, Libération, and La Croix.

The two daily business newspapers are Les Echos (with a circulation of around 125,000) and La Tribune (85,000).

La Croix is a daily family newspaper which would reach all audiences including children

The New York Times, the Times of London, and the International Herald Tribune can be purchased in major cities.

Costs are feasible averaging 6 EUR per month for leading newspapers

•Cinema

•Popular and active in France

•France is the 2nd in the world for film investment

•Other forms of promotion available

•Samples at retail outlets

•Coupons

•Events

•Billboards

•Advertising

•Main events in France where advertising could take place:

•Soccer and tennis are the largest sports federations

•Tour de France cycling race in July is one of the largest events

•Many festivals including the Internet festival and Heritage Days

•Museums throughout France attract tens of millions of visitors including locals

•These events provide the opportunity for Smucker’s to reach a wide variety of consumers efficiently and legally.

For example, as seen in the picture, Lance Armstrong is sponsored by the US postal

service. Many companies choose to sponsor riders as a form of celebrity endorsement.

Children and adults are very interested in sports, especially soccer and tennis. Therefore advertising at games or using

celebrities from the team is another method of advertising.

Legal Regulations and Restrictions

•Most important restrictions are packaging and labeling

•Promotional Restrictions

•Required by law that all English slogans must be translated into France

•Promotional gifts are prohibited unless they are identical to the good being sold or purchased

•Billboards must be 2.5 meters from the street

•Celebrity endorsements are typically permitted•Taxation

•Value Added Tax of 19.6% applies to media

Taxation continued…

•Products sold over the Internet are also subject to taxation.

•All free catalogs, direct mail, and newspapers by a company are subject to 1% tax

•Smucker’s participates in selling products over the internet. They also offer catalogs featuring their products that are available.

Disposable income for metropolitan household in Disposable income for metropolitan household in France: 1,075 euros/monthFrance: 1,075 euros/month

1,075 EUR=$1,403.56 income per month in 1,075 EUR=$1,403.56 income per month in United StatesUnited States

Standard of living of households in France is 9% Standard of living of households in France is 9% above the average for European Union.above the average for European Union.

As of 2001, unemployment was below 9%As of 2001, unemployment was below 9%

Price

What does this have to do with What does this have to do with Uncrustables?Uncrustables?

In the United States Uncrustables range in price In the United States Uncrustables range in price

$2.39-$2.59 for grape or strawberry jelly $2.39-$2.59 for grape or strawberry jelly sandwichessandwiches

Less than $.65 per sandwichLess than $.65 per sandwich

However, However, US consumers pay less for peanut butter US consumers pay less for peanut butter than anyone else in the world… 10% less than than anyone else in the world… 10% less than Canadians, 18% less than Mexicans and 50% less than Canadians, 18% less than Mexicans and 50% less than the French.the French.

Grilled cheese are typically higher pricedGrilled cheese are typically higher priced

1.83 EUR-1.98 EUR in France1.83 EUR-1.98 EUR in France

Any further Any further questions?questions?

Thank You!Thank You!