You are the marketing director of LA CATOISIRE. Your CEO, Mr. Ren CATOIS, asks you, based on

You are the marketing director of LA CATOISIÈRE. Your CEO, Mr. René CATOIS, asks you, based on the information he communicates to you, below:

1 - On the one hand, to carry out a precise analysis:

a) At the external level: Opportunities and threats to the environment;

b) At internal level: Strengths and weaknesses of the company in this environment.

2 - On the other hand, to give him your reasoned opinion, based on the available data, as to the advisability of launching the new product he plans to produce.

Company information: "LA CATOISIÈRE"

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Founded in 1945, the LA CATOISIÈRE cheese dairy has experienced steady growth for over 50 years thanks to its unique product: Roquefort FLEURON.

While until then he had preferred profitability to market share, in 2007, its CEO, René CATOIS, considers that the time has come to pass the Rubicon that separates the family business, for which independence is the key. main purpose, to the company moving forward and doomed to growth.

To do so, René CATOIS is certainly betting on FLEURON, which is likely to continue growing at an average annual rate of 2%, but also, and above all, on the launch of new products.

I. THE COMPANY

The cheese dairy has, like most of the many dairies and cheese dairies on the Causses plateau, until now opted for monoproduction by specializing in the manufacture of the famous Roquefort cheese.

The company therefore produces cheese, with sheep's milk seeded with spores of a special mold, matured in limestone caves.

It has indisputable know-how that few competitors have mastered, except those in the Roquefort region. Direct competition on the sheep's milk cheese markets is therefore highly concentrated geographically.

Moreover, of the 100 million liters of sheep's milk collected annually by the Roquefort cheese factories, only 70 million are processed into cheese of the same name.

II. THE PRODUCT

The cheese dairy currently only offers one product: Roquefort FLEURON. Highly appreciated for its quality, FLEURON enjoys an excellent brand image among buyers-resellers and, partly thanks to the latter, among end consumers. Its notoriety is so strong that it almost completely obscures the name of the company La CATOISIÉRE.

The Fleuron is a high-end product. This positioning is reflected in an adapted marketing mix:

PRODUCT High quality. "Luxurious" packaging.

PRICE High but perfectly accepted due to the quality of the product.

PROMOTION PLV. Aid granted to buyers-resellers.

Communication to buyers-resellers.

No mainstream advertising.

DISTRIBUTION All channels selling by cut.

III. COMPETITION

LA CATOISIÈRE has strong competitors, whether in the Roquefort segment, with SOCIÉTÉ, or on the overall cheese market, with BEL, BESNIER, etc.

Indeed, we can read in the press:

“On the cheese side, it's the effervescence caused both by a change in its status -“ Cheese: it's as you want, when you want ”- and an acceleration of competitive positions. In 2006, prepackaged cheese (+ 4.6% compared to 200) and grated cheese (+ 15%) performed better than average.

On the other hand, the cutting market, unlike in previous years, stagnated (-2%). To explain this phenomenon, specialists highlight new products with strong marketing budgets (Belle des Champs, Saint-Albray) and the very fierce competition from Dutch cheeses which have increased their sales in France by 15% over a year. on the other.

But French professionals are already ready to react with new packaging (the prepackaged cut) and new products (for example: Emmenthal label grand cru, Emmenthal sweet, etc.).

Also to cope with the dynamism of Dutch cheese, the inter-branch organization has implemented promotional actions (advertising, merchandising, etc.). Two very regional cheeses have seen a growing audience at the national level since the 1980s and 1990s:

- Cheese from the Pyrenees saw its cut sales evolve more rapidly than the rest of the market in all modern distribution channels.

- Cantal continues its messages on the theme of the terroir which have a good impact and allow it to be perceived as a traditional cheese.

Manufacturers are also developing “low-fat” cheeses, which have seen sales growth of around 15 to 18% (dietetic segment). "

IV. THE CHEESE MARKET

“France is the leading country in the world for cheese consumption with 21 kg per inhabitant in 2006. This consumption can increase further when we know that 45% of the French population consumes little. »There are two aspects to cheese:

- Pre-packaged cheese: it is sold mainly on the shelves of supermarkets. This packaging was very successful in the sixties, but over the past ten years we have seen a return of affection for cut cheese.

- Cut cheese: 76% of housewives prefer cut cheese. The cut is synonymous with quality, freshness, variety and freedom to choose the quantities purchased.

V. CUT CHEESE

FAMILY	SALES	MARKET SHARE	MAIN BRANDS
Uncooked pressed pasta	389 M€	33.1%	Gouda, Mimolette, Tomme de Savoie, Saint-Nectaire
Pressed cooked pasta	341 M€	29%	Comté, Emmenthal, Gruyère
Soft pasta	270 M€	23%	Lavées : Munster, Maroilles, Pont-l’Évêque Fleuries : Brie, Camembert Mixtes : Saint-Albray, Chamois d’Or, Rouy
Pasta with parsley	129.2 M€	11%	Roquefort, Bleus
Goat cheese	23.5 M€	2%	Crottin de Chavignol
Melted	14.1 M€	1.2%	melted cheese with nuts
Fresh specialties	8.2 M€	0.7%
TOTAL	1175 M€	100%

VI. COMPETITION IN THE CUT-OFF CHEESE MARKET

In the haircut market, 15% of brands generate 55% of turnover. This situation is explained, in part, by the large advertising investments of a few powerful firms.

COMPANIES	MARKETING INVESTMENT PER YEAR	BRANDS
Fromageries de Chaumes	5.03 M€	Belle des Champs, Lys Bleu, Saint-Albray, Gourmelin
Perreault fromageries	3.20 M€	Chamois d'or, Vieux Pané, Le Grand Veneur
Société Roquefort	2.13 M€	Roquefort Société
Office Néerlandais du Fromage	1.98 M€	Gouda, Édam, Mimolette
Bel	1.37 M€	Marbray, Raquelon
Bresse bleu	1.37 M€	Bresse bleu, Fourme

In the specific segment of Roquefort, SOCIÉTÉ devotes 2.13 million euros to promoting its brand. This is the largest advertising investment concentrated on a single brand.

However, despite an intense advertising effort, the market share of Roquefort did not increase. This stability is reflected in the export markets.

The media television absorbs 75% of advertising investments exceeding 0.15 million euros (1 million francs).

“In France, the promotion of Dutch cheeses is carried out by the Dutch Dairy Products Office. Generally, all the media are involved with, in particular, television, the magazine press, fairs (Lyon, Bordeaux, etc.), promotional actions and appropriate POS advertising at all points of sale. This promotion aims not only to raise awareness of the products but also to broaden consumption patterns (snacking segment).

The cut and the prepackaged are two complementary markets, the cut representing overall 68% of sales and the prepackaged 32% (slices, portions, cubes). "

VII. DISTRIBUTION OF CHEESE BY CUT

Two categories of circuits coexist:

- Traditional cutting professionals: creamers, cheese makers, dairy farmers, etc.

- Large distribution:

100% of hypermarkets have a cutting stand;

95% of supermarkets have one;

65% of mini-markets also.

Deux catégories de circuits coexistent :

- Les professionnels traditionnels de la coupe : crémiers, fromagers, laitiers, etc.

- La grande distribution :

100 % des hypermarchés ont un stand de coupe ;

95 % des supermarchés en ont un ;

65 % des supérettes également.

PLACES OF PURCHASE FOR FRENCH CONSUMERS

	ALWAYS	OFTEN	RARELY	NEVER
- Buy in supermarkets - Buy from traditional vendors	28,6% 5%	64% 40%	2% 32%	5,4% 23%

VIII. THE BEHAVIOR OF THE FRENCH CONSUMER

The French buy cheese not for what it is (sheep's milk cheese, for example) but for the satisfaction it provides.

Freshness is a very important purchasing criterion. This search for freshness appears in the frequency of purchases.

They are, in fact, weekly for 58% of French people.

Moreover, the studies carried out by the large industrial groups all show that the French consumer aspires to a certain standardization of the “technical” characteristics of cheeses and, on the contrary, to a differentiation of their positioning and presentation. Finally, the consumer, who rejects strong or very mature cheeses, generally wants a cheese which “does not stink”, does not stink and which keeps. A more neutral flavored cheese that stays true to itself with every purchase. (Source: LSA).

IX. THE NEW PRODUCT FROM LA CATOISIÈRE

Mr. René CATOIS has just developed a new product. It is a soft cheese with a bloomy rind (whose name comes from the white molds that develop as it matures). Its raw material, sheep's milk, is the essential element that differentiates it from other soft cheeses with a bloomy rind such as Camembert, Brie, Chaource, Neufchâtel, etc.

However, sheep's milk has major qualities which give the cheese creaminess and great softness. The price of the new product, due to the high cost of its raw material, will be higher than the average price of other soft cheeses.

This cheese has no direct competitor based on sheep's milk. In addition, LA CATOISIÈRE has made an investment of nearly 0.15 million euros to develop a very technically sophisticated product in order to protect itself against too rapid a reaction from the competition.

Mr. CATOIS forecasts a turnover of 16.5 million euros in the first year, and expects a growth rate of around 20% for the following four years.

Answer rating: 100% (QA)

External analysis Opportunities Cheese is a staple food in France and France is the leading country in the world for cheese consumption Lowfat cheeses ... View the full answer