SmuckersUncrustablesinGermany.pptVIP

Smucker’s Uncrustables in Germany by Steve Guy Nate Jones Allyson Kappers Lindsey Quinn Kristin Tschantz Assessment of Potential Market: Competition 2 Categories: Frozen Food and Ready Made Meals Frozen Food Competition Cont… Ready Made Meals Competitors in Germany: Nestle, the Campbell Soup Company, Danone ( or Dannon), Unilever, Dr. Oetker, Frost, Suedzucker, Iceline, Nordwest, and Grand Metropolitan Danone is the second largest producer in the world of cereal biscuits and snacks. Market forecast for German Ready Made Meals is predicted to reach growth of $3.32 billion in 2008 Assessment of Potential Market: German Consumer Demand German Frozen Food Market: $6.84 billion and growing at 13.8% since 1999 Ready Made Meals was largest sector German Ready Meals Market: $2.59 billion in 2003 and growing at 6.7% since 1999 Ranked 3rd overall behind France and UK Frozen Ready Made Meals accounted for 81.7% in 2003 ($2.1 billion) DISTRIBUTION Location of Production and Market Entry: 3 Basic Options for Entry: Scotland United States Germany Current Distribution Agent 1. Smucker’s Production Facility in Scotland Part of the United Kingdom, and therefore follows rules of imports, exports, tariffs, and taxation applicable to the UK No Import/Export Tax amongst members of EU VAT Tax: 17.5% There is also an issue of what means of transportation to move the product from the UK to Germany, as there is a body of water and neighboring countries dividing the two countries. German location relative to Scotland 2. Producing and Shipping from United States There is the option to produce within the United States and ship overseas to Germany Drawback to this option is that this would be very expensive, and would tack on a cost to the final product There would be additional costs from export taxes and the VAT of Germany More expensive cost of labor Would require multiple methods of transportation to move from United States to Germany, and would be increasingly expensive Germany and Uni