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Frico - Strategic Marketing

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Strategic market research

Problem

 

To introduce Frico cheese in Lousiana, we will first have to know more about the market conditions in the United States, as well as have more information about marketing methods. We will have to know what the American customers want and what they expect from cheese  We need to what the customs are in the US and also regulantions.

 

Simply put: How do we introduce Frico cheese on the market on Louisiana?

 

Needed information

 

To introduce Frico products on the American market we will need to know more about the following subjects:

 

Desk research:

  1. Current marketing activities of Frico
  2. Cheese products and sales in the United States
  3. Market developments  in the United States
  4. Marketingmethods in the United States
  5. Customs and ethics

 

Field research:

    1. Do Americans like cheese
    2. When do they use cheese
    3. How do Americans stand to foreign cheeses, especially Dutch

 

1. Frico cheese now

 

Frico is already operating in several countries in Europe besides their homebase the Netherlands and has own marketing and sales organizations in Germany (Essen), France (Sénas), Spain (Barcelona) and Greece (Athens) Especially for the Spanish market they introduces Sombrero de Copa, a cheese with a typical Spanish flavour. This shows that Frico is able to adapt their products to the needs of the market they operate on. Also they have the experience to operate in a foreign country. Clearly they have enough experience to move their marketing activities to the United states

 

Frico cheese sells hard and semi-hard cheese. Their most important international brand names are "FRICO" and "ROYAL HOLLANDIA".  These two  are typical dutch export cheeses. Other frico cheeses are:
Cantenaar 30+ This cheese distinguishes itself from other cheeses by its delicious full flavour. Cantenaar contains 40% less fat and 25% less salt than ordinary cheese and is a perfect complement to a healthy lifestyle.
Kollumer 48+ Kollumer is a traditional and natural cheese, made from full-cream milk. The flavour is creamy and slightly salty. This is a typically Friesian cheese. Kollumer is available in two varieties: young and old.
Slankie 20+ This cheese has 60% less fat than regular cheese but is nevertheless creamy, full-flavoured and easy to slice. Slankie is perfect for a healthy lifestyle. In addition to Slankie hard cheese, Slankie 20+ cheese spread is also available.
Kernhem Classique or Kernhem Chèvre Kernhem is a real red-rind cheese of Dutch origin. It has a full flavour. Kernhem Classique is prepared from cow's milk, and Kernhem Chèvre from 100% pasteurized goat's milk.

 

2. Cheese products  and sales in the United States

 

Different sorts

When you try to get a basic idea about the cheese market, you soon discover that there about four types of cheese. These are:

-         Soft

-         semi-soft

-         semi-hard

-         hard

Like youve seen, Frico cheeses belong to the semi-hard to hard variety. This will be the main part of the market we will be aiming at, because the soft cheeses like brie seem to be used for different purposes, like appetisers and also has a very different taste.

 

Whats available in the supermarket

Most supermarkets have a wide variety of cheeses. Next to American cheese there are lots of foreign types of cheese that are eaten in America. Next to American cheese and Monteray Jack, also cheeses like Feta, Mozzarella, Parmesan,Swiss cheese, Blue cheese, Cheddar and Gouda are widely available in stores. Some supermarkets even sell Edam and Limburger, but these are more specialty cheeses, to be fond in specialty shops.

Pre-cut slices seem to be a fairly regular product on the US- market. A new product is however cheese chunks

 

Sales

After going through several figures it seems that for the coming 5 years, an increase of 7,5 % percent is expected. This isnt much but this isnt suprising considering

 

3. Market developments

 

Plain cheese is just too plain

It seems like regular cheese in america isnt that popular. We Dutchmen like to plainy eat cheese, but this isnt the case in the US. People like to do different things with it, and use it in a variety of dishes. The do however favour imported product, esspecially when it has a different flavour. This is important because Frico is a foreign cheese so there must be a difference from the American cheese.

 

Fat free culture

Lots of Americans are overweight. In fact 25 % of all children and 59 % of all aldults are in fact overweight. This results in a major industry of dieting products and other health food.

 

Hispanics

There are  a lot of Hispanics in  the United States and its estimated that about 40 % of the American population are Hispanic. They are used to a different flavour  and  will provide a new market for Frico.

 

4. Marketing method

Coupons and samples

The easiest and most used way to sell a new product in the United States is by  sampeling. People have to taste the product for themselves and decide if they like it or not and then buy it.

 

5. American customs

 

Field research

 

First of all we have to admit tht this survey isnt u to standard and is a mere scan of the people in Louisiana. Because there are 4.3 million people living in the state Lousiana and we only interviewed about 50 this isnt a good representation. Still we think this survey will give a reasonable impression of the people living  in Lousiana. In the

 

a. Do Americans like cheese

On answering this question we can give a denifinite YES. Just like in Holland a lot of people like cheese, about 70 %. It has to be said the most of the people we interviewed were Caucasian and this probably has had its influence. A reason not to eat cheese is mostly lactose intolerant or they think cheese tastes likes plastic

Most of  the cheese-likers, over 90 %, eat cheese on at least a weekly basis

 

b. When do they use cheese

Americans use cheese in several dishes on sandwiches and on cheeseburger and pizzas. There are a lot of snack that have cheese as a ingredient

 

c.How do Americans stand to foreign cheeses, especially Dutch

Most of the americans that like cheese also try different variaties from different countries. Mozzeralla(65%) and parmazan(60%), a lot used in dishes, are most popular. But also Gouda(25%) is  popular in the US. This might have something to do with the dutch population.

Of the Dutch cheeses, Gouda is most popular, followed by Edam and Limburger

 

Conclusion

 

It seems like there are two possiblities to introduce Frico cheese in. First we can  aim at the big Hispanic market. Frico already has a Spanish ceese that might also be suitable for this market. The problem here is that Frico is a Dutch cheese and not a Spanish one, so although they might like the taste, it wont be easy to convince the target group to buy a Spanish Dutch cheese. So this isnt the way to go.

Also there is a big for low fat and fat free products. With a major part of the American population on diet or overweight, there is actually a huge market for this type of cheese. So lets go for a good quality cheese, low fat with a dutch flavour. Keeping in mind that Frico already has a low fat brand, we chose to introduce Slankie. For the American Market however, we renamed the cheese In balance, because this is easier to pronounce.

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