The German food market
Transcription
The German food market
T he German food market Helsinki, 12 March 2015 Agenda 1) Introducing UMPR 2) Specifics of the German food trade 3) Suitable chains and HoReCa sales channels 4) Logistics and importing 5) Case study: Food From Sweden 1) Introducing UMPR Introducing UMPR UMPR Strategic communications consulting agency Key facts § Founded in 1989 § 25 permanent employees § In-house design studio § Proven freelance and network partners for graphics, copy, digital, media training § Clear sense of identification with customers à long-term client relationships (often more than 10 years) § Consultancy “on equal terms” § Network of specialised partners (digital, video & film, media training, installation art, crisis, event) § § § § 4 | 11.03.15 Expertise Strategy, positioning, corporate, brand & product Creation “one step ahead“ Measuring concepts are based on strategic central themes Strong food expertise © UMPR GmbH Introducing UMPR Client portfolio All-round food expertise Current food-related briefs: Selection of previous briefs: SweetFamily-Logo 100 mm (Standard positive – blau auf weiss) Farben (Vollton/4c): Pantone 2748 (100c, 85m, 0y, 20k) Pantone 144 (0c, 47m, 100y, 0k) Other current briefs: 5 | 11.03.15 © UMPR GmbH 2) Specifics of the German food trade Specifics of the German food trade Structure The German food trade can be divided up into the following areas: § Hypermarkets § Supermarkets § Discount stores § Department stores 7 | 11.03.15 Population 80.8 million 5.4 million No. of stores 33,000 4,066 No. of stores per inhabitant 2,400 1,300 © UMPR GmbH Specifics of the German food trade Special features of the German food trade § The sector is served by five major companies that have national coverage: EDEKA Group– Edeka, Marktkauf REWE Group – Rewe, toom, Penny, Karstadt Schwarz Group – Lidl, Kaufland Aldi Group – Aldi Nord, Aldi Süd Metro Group – real, Metro C&C, KauAof Responsible for 65% of turnover in the food sector § Consideration given to various aspects from initial contact to listing § In general, a listing in the Top 5 is a costly business, e.g. participation in marketing campaigns § Also many regional providers with high customer acceptance and a wide network of branches (e.g. tegut) - perceived by consumers as on a par with large retail chains § Stiff competition = increasing importance of service, of attractively laid-out stores, of the “right” range and online shops § Price is a major factor for consumers (as is quality) 8 | 11.03.15 © UMPR GmbH Specifics of the German food trade Trends in the food industry § Taste is important 96% of consumers believe that food must taste good, otherwise it is not good quality (“Consumers’ Choice 2011” study) § Increase in consumers’ focus on quality 49% of Germans say that the quality of food they purchase is the most important thing § Increased interest in products with added health benefits Sharp increase in lactose-free and gluten-free products § Curated food The consumer of tomorrow – according to the trend forecast from Food Report 2014 – will value a curated selection more than an infinite choice. Many providers are responding to this trend. § Locally sourced Retailers are now offering a greater selection of local German products and have implemented various concepts on this topic on the shop floor 9 | 11.03.15 © UMPR GmbH Specifics of the German food trade Cultivating business relationships in Germany § The majority of food trade buyers do not make fast decisions § Trustworthiness and reliability as guarantees of good business relationships § Punctuality and compliance with deadlines are extremely important § Annual meetings between retailers and suppliers regarding product development, potential new listings and advertising activities for the coming year - scheduled mainly for the fourth quarter § Product presentations and participation in the in-house fairs of German retail chains 10 | 11.03.15 © UMPR GmbH Specifics of the German food trade Communication is paramount § One of the biggest differences between German and Finnish food trade is the level of concentration § An attractive USP is the key to success in the saturated German market § Communication is paramount: it is not enough to know your own USPs, you also need to communicate them § Potential communication measures include: - Media work (media mailings, media partnerships, maintaining close contacts, etc.), B2B & B2C, print & online, social influencers (including food blogger relations) - One-voice communications: “Food From Finland” à if applicable, publishing (magazine, website, video or film material such as explanatory films, promotional films or similar) - Organising trips for journalists and bloggers to the production facilities 11 | 11.03.15 © UMPR GmbH 3) Suitable chains and HoReCa sales channels Suitable chains and HoReCa channels F innish providers – background Characteristics of F innish food/communications potential § Innovative, safe and environmentally sustainable products § Small and medium-sized companies (SMEs) with regional ties develop and produce individual, high-quality products § Primarily local raw materials § Authenticity and purity of products § Leaders in health-promoting and functional food § Products are very suitable for people with food intolerances § Expertise in food research § Modern production processes Summary: “Finnish food is considered to be particularly healthy as it is free from pesticides and the fattening animals are less contaminated by medications.” (Source: ZEIT online, November 2006) 13 | 11.03.15 © UMPR GmbH Suitable chains and HoReCa channels Selected sales channels Examples of regional providers/chains tegut § Largest regional provider with approx. 309 branches in Bavaria, Hesse, Lower Saxony, Rhineland-Palatinate and Thuringia K + K Märkte (Klass + Kock group of companies) § 213 branches in Lower Saxony and North Rhine-Westphalia § Importing indirectly via an importer (e.g. Importhaus Wilms or Raul Rousso) or a distributor (e.g. Transgourmet) can be a good option for entering the market – especially for SMEs 14 | 11.03.15 © UMPR GmbH Suitable chains and HoReCa channels Selected sales channels Examples of delicatessens Dallmayr § More than 6,000 products § Also operates a catering service with outlets in Munich, Berlin and Düsseldorf § Foodies can order coffee & tea, wines & spirits, pralines & baked goods, delicatessen & fine foods in the Dallmayr online shop www.dallmayr-versand.de Käfer § The Käfer Group is based on 4 pillars: party service, catering, retail and franchising § Stores in the Munich area have a range of over 2,000 products § Many of their products are also available in their online shop: http://shop.feinkost-kaefer.de/ 15 | 11.03.15 © UMPR GmbH Suitable chains and HoReCa channels Selected sales channels Examples of delicatessens targeted at commercial customers Rungis Express (CCG Cool Chain Group) § Target group: High-class hospitality sector (restaurants, hotels and delicatessens in Germany, Europe and further afield); secondary target: cooking enthusiasts § More than 3,000 items in the range (fish, meat, seafood, poultry, spices, etc.) § Has its own forwarding company and offers customers an extensive distribution network § Many producers deliver their products to Rungis in Paris, from where they are shipped by FrischeParadies’ logistics provider (Nagel Airfreight) to all FrischeParadies outlets FrischeParadies (Dr. Oetker Group) § More than 5,000 items in the range (fish and seafood are the most important product group, followed by meat) § 8 FrischeParadies stores § Target group: Restaurateurs and private gourmets can buy there without having to have a store card § Central purchasing in Hürth/Cologne 16 | 11.03.15 © UMPR GmbH Suitable chains and HoReCa channels Selected sales channels Examples of health food stores § Many small health food store operators and independent organic food stores § Health food stores have established themselves as a brand in the organic and health food sector: Reformhaus § Approx. 1,450 in Germany § Range includes primarily products that have been processed in an environmentally friendly way and have a high health value, natural foods, dietary foods, as well as natural cosmetics, natural medicines and food supplements § Examples from the wholesale and retail sector: Alnatura § More than 65 stores in Germany § Range includes more than 1,000 organic foods Dennree § denn’s Biomarkt has more than 140 stores in Germany and more than 5,000 products 17 | 11.03.15 © UMPR GmbH Suitable chains and HoReCa channels Selected sales channels Examples of specialist online shops § The number of online shops selling organic products is exploding: biomondo § Organically certified and a supporter of the Slow Food movement in Germany § Range covers more than 5,000 organic foods, including foodstuffs, wine and natural cosmetics all bio § Organic foodstuffs are its core business; range includes more than 2,000 products § Preference for locally made products where possible § Certified Trusted Shop FOODIST.de/FOODIST-HANDEL.de § Hamburg-based start-up § Curated food: Subscription box for gourmet food – a monthly selection of international delicacies for EUR 24.00 § FOODIST-HANDEL.de helps companies entering the market with market research tools and marketing materials 18 | 11.03.15 © UMPR GmbH Suitable chains and HoReCa channels HoReCa in Germany Hotel/restaurant/café or catering Opportunities: § Always searching for original and special products/ideas (e. g. Finland weeks in canteens, unusual international ingredients for the hospitality sector) § Distributors who specialise in the hotel or hospitality sector However: § Difficult to establish a brand aimed directly at consumers 19 | 11.03.15 © UMPR GmbH Suitable chains and HoReCa channels Media landscape for HoReCa and food retail sector Communication is key 20 | 11.03.15 © UMPR GmbH Suitable chains and HoReCa channels Communication is key Using the trend for curated food Idea for an initial foray into the German market: 21 | 11.03.15 Step 1: Generate attention Step 2: Feel your way into the market Focused PR campaign: “Food from Finland” § Develop a concept with a mission statement and core messages § Aim: To create a basis for entering the market and increasing awareness of Finnish products Initiate contact with FOODIST.de to place Finnish products in the subscription box § Use the trend for curated food § Aim: To feel your way into the German food market Step 3: Entering the market © UMPR GmbH 4) Logistics and importing Logistics and importing Logistics and distribution § Local distribution in some regions is more costly/more difficult to achieve, e.g. in eastern Germany § Larger retailers are more decentralised than in neighbouring countries à requires logistics solutions § Traditional logistics routes: - Direct (deliver to the central warehouse of the food retailer/delivery to the regional warehouse of the food retailer/third-party delivery (directly to individual stores) - Indirect (via wholesalers/brokers/distributors/importers) - In the case of niche products, indirect delivery to the retailer is often the most appropriate option 23 | 11.03.15 © UMPR GmbH Logistics and importing Advantages of a German logistics partner § Even many German producers use logistics providers such as Dachser or Nagel to deliver goods as a consolidated shipment to several warehouses throughout Germany. § A logistics partner like Dachser is usually used for warehousing and delivery in the food trade. Advantages: § Reduced costs § Shorter lead times § Smaller minimum order quantities, i.e. business relationships can be established with smaller retail customers § Possibility to conduct tests or test listings § Know-how 24 | 11.03.15 © UMPR GmbH 5) Case study: “Food From Sweden” Case study: “Food From Sweden” Food From Sweden – background § Association of Swedish food producers and the Swedish Ministry of Agriculture § Objective of Food From Sweden: § To provide support for the export marketing activities of Swedish food producers in all foreign markets § To initiate cooperation between Swedish food retailers, their representative organisation “Livsmedelsföretagen” and the Swedish Trade Council represented in Germany, the Baltic States, Finland, France, the Netherlands, Poland, Russia and Ukraine § Representatives in Germany: Swedish Trade Council, Berlin and UMPR, Hamburg 26 | 11.03.15 © UMPR GmbH Case study: “Food From Sweden” How Food From Sweden works Organised: A good network of Swedish companies and German distributors Successfully: Eight contented retailers (“recidivists”) Focused: At most one or two promotions a year in the German retail market Swedish: “There are no problems, just opportunities” 27 | 11.03.15 © UMPR GmbH Case study: “Food From Sweden” Our functioning in detail § FFS talked to interested retailers and wrote a project outline. § FFS attracted interesting Swedish companies and introduced them to the retailer’s buying department. § FFS organised product samples, master data, pictures, logistics data, etc. § FFS coordinated the attendance at retailer fairs and presented the promotion to store managers/division managers. § FFS provided communications support. 28 | 11.03.15 © UMPR GmbH T he core idea: “Germans love food from Sweden – they just don’t know it yet!” 29 | 11.03.15 © UMPR GmbH Case study: “Food From Sweden” Germans love food from Sweden... they just don’t know it yet! Message 1 Sweden – there’s more to it than crispbread and cold fish! Message 2 Swedish food producers are compeIIve and competent trade partners – a kind of cooperaIon you can earn a lot of money with! The solution: The customer will be approached via two communication channels ExciIng, lively media work to publicise Swedish food and Swedish cooking in Germany AcIve communicaIon measures and acIviIes for the retail trade 30 | 11.03.15 © UMPR GmbH Case study: “Food From Sweden” Measures Preparing and implementing Swedish promotion weeks in the retail market Fair attendance § Support for all Swedish companies at German food fairs: press kits, arranging meetings with journalists, trade partners and distributors Media work § Press releases on Swedish products and Swedish cooking § Journalist trips to Sweden (with Elle Bistro, Vital, Für Sie, Lebensmittel Zeitung, Lebensmittel Praxis, Men’s Health, Brigitte, Meine Familie & ich) § Media event: Celebration of midsummer’s night in Hamburg § Famous Swedish chefs prepare delicious meals for journalists § Market monitoring 31 | 11.03.15 © UMPR GmbH Case study: “Food From Sweden” food — the magazine for “decision makers” in the German food retail industry 32 | 11.03.15 © UMPR GmbH Case study: “Food From Sweden” Measures – strategy plus magazine An innovative instrument for addressing the trade: – Aesthetically appealing 16-page magazine that communicates with 2,000 decision makers and buyers in the German food retail trade and approx. 500 journalists – Published quarterly, contains information about Swedish food, Swedish food traditions and Swedish food producers – Main communication platform and the heart of the CI 33 | 11.03.15 © UMPR GmbH Case study: “Food From Sweden” Retail promotions overview 2000/2001 34 2002/2004 2005/2009 EDEKA Nord “Swedish weeks” in 786 supermarkets: 17 companies present more than 75 products Otto Reichelt AG, Berlin Promotions in 120 supermarkets with products from Sweden and Finland for three weeks tegut 2005 & 2006 § “Sweden tastes delicious!” in 300 tegut outlets § “Sweden week” in 21 outlets: 17 companies present more than 100 products SPAR „Swedish week“ at all Spar “Schlemmermärkte” throughout Hamburg Coop Schleswig-Holstein Two separate weeks of “Sweden promotions” in all eight Plaza supermarkets in northern Germany Edeka Minden 2005 & 2006 § “Sweden week” in 66 E-Center outlets: 23 companies present more than 56 products § “Sweden week” in 78 E-Center outlets: 10 companies present 10 products Coop Mecklenburg-Western Pomerania Promotion of 50 products from Sweden in 48 SKY supermarkets for 14 days Kaufhof 14 days of “Scandinavian weeks” with a focus on Sweden in all 29 German Kaufhof food departments Reichelt Berlin “Sweden week” in 54 Reichelt outlets in Berlin: 8 companies present more than 25 products | 11.03.15 © UMPR GmbH Case study: “Food From Sweden” Satisfied? Absolutely! § More than 65 different companies exported their products to Germany over the course of 13 Sweden promotions. § Products with a total value of more than EUR 4 million were sold in 1,600 food markets over the course of the promotions. § An evaluation of the assessments provided by the Swedish companies and retailers on the activities conducted during trade fairs, PR and promotions showed that 95 percent of them were satisfied or very satisfied. § Several products were established in the product ranges of retail outlets. 35 | 11.03.15 © UMPR GmbH Case study: “Food From Sweden” Selection of participating companies Abba // Absolut // Again // Åkes Hembageri Almondy // Anna`s // Arla // Bergströms // Björnekulla // Boxholms // Bröderna Nilsson // Caj P's // Cloetta Fazer Sverige // Daim // Delikatessbageriet // Deli Lapland // Dafgårds // Delicato // Direkt Chark // Druvan // Estrella // Falbygdens Ost // Froosh // Frödinge // Gille // Göteborgs Kex // Gräddost // Hägges // Jokk // Karamelpojkarna // Kopparbergs // L&S (Alböl) // Läkerol // Larsen // Leksandsbröd /// Marabou // Nobel Lachs Import // NordSpezial Käse // Norrmejerier // Oatly // Pagen // Polarica // Ramlösa // Raoul Russo // Royal Danish Seafood // Sannäs Räkor // Scan Foods // Scandinavian Silver Eel // Stefan Palsson Laxrökeri // Stührk, Richter und Greif // Svenska Frukt & Bär // Svenska Lantchips // Swedish Glace // Swit's Gebäck // Tholstrup // Trendway/mi cider // Tulip // VOD //Västkustfilets // Vedum // Wanas // Wasa // Wild Delights // Willy Viking 36 | 11.03.15 © UMPR GmbH Case study: “Food From Sweden” Learnings § Establish Food From Finland as a brand and launch it on the market as a complete offering § Start small/on a regional basis § Seek out partners for importing, distribution and logistics § Push the brand via a package of communication measures and generate attention for Finnish food 37 | 11.03.15 © UMPR GmbH Communications support B2B and B2C communications consultancy How UMPR can help § Strategy, consultancy, project management - Workshop-based review and adaption of the marketing strategy for the German market § Creating and implementing PR campaigns § Media work (B2B & B2C, print & digital) § Layout & design for B2B and B2C communication – from flyers or magazines to websites and packaging redesign UMPR network partner: Christiane Dirkes Communications § § § § 38 | 11.03.15 Support of the appearance of Finland on the World Expo 2000 Cooperation with/pr for Invest in Finland PR for the outdoor-label „Reima“ Good relations with retail associations in Germany © UMPR GmbH Wir empfehlen uns. UMPR – Mut zur Kommunikation. Jennifer Bortchen T +49. 40. 48 06 37 10 [email protected] UMPR GmbH Mittelweg 111 a 20149 Hamburg umpr.de t +49. 40. 48 06 37-0 [email protected]