EXPORTING PORTUGUESE SHRIMP TO FRANCE FULL PRESENTATIONWORK BY: JOÃO LADEIRA, RICARDO LOPES, RODRIGO PEREIRA AND ROMEU CASCAIS
EXPORTING PORTUGUESE SHRIMP TO FRANCE. THE PORTUGUESE INDUSTRY The portuguese fishery industry as a very important role in some local economies and culture. It´s one of the most ancient activities in the country reflecting the advantages in having more than 2000 km of seashore (including the Azores and Madeira Island). Fishery products are among the most important export products of the Portuguese food sector (EVD, 2007). In 2007, Portugal exported 133 thousand tonnes of fishery products, with a value of 448€ million (Eurostat, 2007, 2008), from which 9% are crustaceous (shrimps, prawns, etc.). However the trade balance regarding shrimps was, in 2007, -20 thousand tones and -90 millions €. Portugal is becoming an important re-exporter in this specific market. Sources: EUROSTAT;EVD
EXPORTING PORTUGUESE SHRIMP TO FRANCE. WHERE TO… After a careful look to the 26 countries, and considering several indicators such as population,GDP per capita, demographic density (inhabitants per square km), urban population, HDI ranking, growth rate as well as indicators of economic and political freedom and country risk, we have managed to reduce the list to 10 possible destinations for our product. The countries with less then 10 million inhabitants, with GDP per capita low, demographic density low, urban population low, HDI ranking and with low growth rate were eliminated. NOTE:The HDI, Human Development Index,is an indicator witch synthesizes several data such as life expectancy, level of education, professional careers, access to culture, etc
EXPORTING PORTUGUESE SHRIMP TO FRANCE. WHERE TO… U.P.D. GDP per HDI* Ranking Inhab per KM2 / Percentage Out of 177 POPULATION Capita NOTE COUNTRY In millions (PPP) Density: gives Austria 8,4 101/67% 40360€ 15 us the amount Belgium 10,7 351/97% 38250€ 17 of people in each square Finland 5,3 17/63% 42230€ 11 km France 63,7 112/77% 37150€ 10 Urban Population: Germany 82,5 236/74% 35980€ 22 gives us how Italy 57,3 202/68% 31300€ 20 many people live in cities Netherlands 16,4 484/81% 42130€ 9 U.P.D.: Spain 45,3 90/77% 28600€ 13 Urban Population Sweden 9,2 22/85% 43040€ 6 Density U.K. 60,4 252/90% 35350€ 16 Sources: CIA WORLD FACT BOOK; FITA
EXPORTING PORTUGUESE SHRIMP TO FRANCE. WHERE TO… The 10 countries are now under analysis taking in consideration some new indicators that have been added to the ones used in the previous step of this process of selection. Items like purchasing power, GDP real growth, unemployment, budget deficit, political risk, market information, consumption and productions of shrimps, competitors presence as well as industry structure and growth, will help to choose which country is the most attractive and has the biggest potential for our trade product.
EXPORTING PORTUGUESE SHRIMP TO FRANCE. WHERE TO… COUNTRY CONSUMPTION UNEMPLOYMENT GDP Real IMPORTS Averagge in tonnes In 2006 (thousand tonnes) 2001/2006 RATE Growth ITALY 16 6,20% 0% 73,4 FRANCE 79 7,90% 0,7% 79 GERMANY 11 9,00% 1,7% 39,9 SPAIN 142 8,30% 1,3% 115,4 UNITED KINGDOM 63 5,30% 1,1% 89,2 Sources: CIA WORLD FACT BOOK; CBI
EXPORTING PORTUGUESE SHRIMP TO FRANCE. WHERE TO… COUNTRY COUNTRY RISK COMPETITIVE TOTAL POTENTIAL STRENGH ITALY 2,99 2,89 3,22 3,03 FRANCE 3,19 3,07 3,6 3,29 GERMANY 3,53 2,83 2,93 3,1 SPAIN 3,11 2,57 3,53 3,07 UNITED KINGDOM 3,3 3,04 3,69 3,34 Sources: CIA WORLD FACT BOOK; CBI
EXPORTING PORTUGUESE SHRIMP TO FRANCE. TAXONOMIC MATRIX COMPETITIVE STRENGHT LOW MEDIUM HIGH A T T HIGH R HIGH MEDIUM A R C LOW T I S I HIGH V K LOW MEDIUM I T LOW Y Sources: Authors analysis
EXPORTING PORTUGUESE SHRIMP TO FRANCE. SOME CONCLUSIONS . In country potential Germany have the best result, 3.53, in second place appears United Kingdom with 3.3. In this indicator France and Spain shows a very close result, 3.19 and 3.11. Italy have the last place with only 2.99 score. . In risk the first place is occupied by France with 3.07 but the United Kingdom appears with a good result too, 3.04. The other three countries obtains a result down of 3, the Spain is the worst result with 2.57.
EXPORTING PORTUGUESE SHRIMP TO FRANCE. SOME CONCLUSIONS . In Competitive Strenght the best result is 3.69 of United Kingdom, in second place France have a very close result with 3.6. Spain and Italy occupied the next places and the last one it´s for Germany, 2.93. . The total scores place the United Kingdom with the better results, 3.34. France, 3.29, also have a good result. Germany (3.1), Spain (3.07) and Italy (3.03) have the worst final scores. After this we can conclude that United Kingdom is the best country for our company to export.
EXPORTING PORTUGUESE SHRIMP TO FRANCE. SOME CONCLUSIONS . Germany is a country with low risk, high attractivity and medium competitive strength . Italy is a country with low risk, medium attractivity and high competitive strength . Spain, UK and France are countries with low risk, high attractivity and high competitive strength . Taking into account the above analysis, France is the best country to export portuguese shrimps
EXPORTING PORTUGUESE SHRIMP TO FRANCE. THE TRADE ENVIRONMENT COUNTRY OVERVIEW Total Population 61,7 million Area 551,500 km2 Urban Population 77,1% Type of Economy High-income economy, OECD member, G8 member The worlds leading tourist destination HDI (world rank) 10/177 Number Of Households 25,4 million (in 2006) GDP per capita over 36000 € Inflation Growth Rate 3,3% (in 2008) Sources: Monthly Economic Report, British Embassy (Paris) – April 2007, Imports of Shrimp 79,000 Tones (in 2006) The Economist
EXPORTING PORTUGUESE SHRIMP TO FRANCE Sources: Monthly Economic Report,. THE TRADE ENVIRONMENT British Embassy (Paris) – April 2007, COUNTRY OVERVIEW The Economist . France is the fourth largest exporter of goods and the third largest exporter of services in the world. After a disappointing 2005, the economy recovered somewhat in 2006. GDP gained momentum in the first half of 2006, remained stable over the summer and then picked up towards the end of the year. Annual growth reached 2.1%, slightly below the official forecast. . Growth has been hampered by trade deficits, despite positive export figures in 2006. The value of imports has gone up due to high oil prices, whilst the strong Euro and low penetration rates in fast- growing economies have undermined exports. . Household consumption remained strong during 2006, largely driven by consumer credit and people saving a lower proportion of their income. Consumer spending has remained constant thanks to the fall in unemployment and higher purchasing power. Companies remain somewhat hesitant and are ruling out significant increases in production capacity, despite a relative rebound in business confidence.
EXPORTING PORTUGUESE SHRIMP TO FRANCE. THE TRADE ENVIRONMENT COUNTRY OVERVIEW .Distribution There are about 800 companies distributing fresh fish in France. The six largest multiple retailers together accounted for 68% of the food retail sales and reached a sales value of €153 billion in 2006. Presentation Distribution circuit Market Share by Distribution channels: value (%) . Hypermarkets Mainstream retail 50% . Supermarkets Frozen Specialised frozen 39% . Local stores retail . Convenience stores Hard discount 11% . Discount stores Source:OFIMER/TNS.Tonnes: equivalent product weight . Cash and carry catering . Hard discount stores Source: CBI Market survey: the fishery products market in France
EXPORTING PORTUGUESE SHRIMP TO FRANCE. THE TRADE ENVIRONMENT COUNTRY OVERVIEW PRICE Margins vary strongly depending on the type of product, the distribution channel, the continual changes in supply and demand and the resulting price fluctuations. It is estimated that the importers work with a trade margin of some 5-10%. Competition in the EU market prevents excessive trade margins, although in some cases the gross margins may rise to 25%. Retail margins vary between some 10% for canned fish in supermarkets to some 50% for fresh products from specialized fish retailers (‘fishmongers’). Source: CBI Market survey: the fishery products market in France 1
EXPORTING PORTUGUESE SHRIMP TO FRANCE. THE SEAFOOD SECTOR IN FRANCE . In 2006, the French were estimated to consume an average of 38kg of seafood per capita (of which 26kg of fish and 12kg of shellfish). The French lie second in seafood consumption behind the Spanish and just ahead of the Italians and British. .In 2006, French households spent over € 4 billion on seafood. Fresh fish continues to be the most popular type of seafood, particularly fresh fillets. Fresh salmon tops the sales of fish for household consumption, totaling € 2 million in 2006. The average price of fish for home consumption, however, increased by 5% in 2006, resulting in a 3% decrease in the overall quantity purchased. Source: OFIMER/DPMA (France and French over seas territories)
EXPORTING PORTUGUESE SHRIMP TO FRANCE. THE SEAFOOD SECTOR CONSUMER TRENDS . As the French become more aware of health issues, the popularity of seafood and seafood-based product have increased, influenced by its healthy image. . Renewed interest has been shown in shopping at local stores and markets. The consumer is keen to re-establish contact with the local fishmonger as a way of getting some advice on what seafood to buy and how to cook it. Source: OFIMER/DPMA (France and French over seas territories)
EXPORTING PORTUGUESE SHRIMP TO FRANCE. THE SEAFOOD SECTOR CONSUMER TRENDS . As mentioned before, shrimps and prawns enjoy an increasing popularity in Europe, which is related to the internationalization of lifestyles and cooking. Shrimps and prawns are fashionable and relate positively to the major health, convenience and pleasure trends. For instance, the larger species have become very popular as finger food, following the Spanish use of ‘Gamba’ which relates to the pleasure trend. Shrimps are also easy to prepare and provide a healthy alternative to meat. The improved storage and distribution systems allow the product to be widely available.
EXPORTING PORTUGUESE SHRIMP TO FRANCE. THE COMPETITORS . Iglo – http://www.iglofrance.com, brand leader in the frozen fish sector. . Heinz’s Petit Navire – http://www.heinz.com, leader in the canned fish sector. . Nestlé – http://www.nestle.com, leader in frozen ready meals. . Fleury Michon – http://www.fleurymichon.fr, major supplier of ready meals and surimi. . Cap Cavalli – http://www.comptoirsoceaniques.com, importer of fresh and frozen fish.
EXPORTING PORTUGUESE SHRIMP TO FRANCE. OBJECTIVES . According to INE, Portugal in 2007 had a catch of 95 thousand tonnes of shrimp, which translated into value gives a total of 1.984.000 €. However the CBI studies show us that the values of exports are higher, 133 thousand tonnes, which easily shows that the exports came from foreign seas. . In 2006 France had a consumption of 88 thousand tonnes of shrimp. Data for the year pointed to a total of 536 million Euros of imports of shrimp. Is important to note that this value is 196 million Euros for EU countries. . Based on the national production of shrimp, 95 thousand tonnes, initially, 1 year, we export to France 2% (1.9 thousand tonnes) of that value. A second phase, which will be 1 to 3 years, we reach the 5% (4.75 thousand tonnes). Finally a last phase, to more than 3 years,10% (9.5 thousand tonnes). Source: INE; Source: CBI Market survey: the fishery products market in France
EXPORTING PORTUGUESE SHRIMP TO FRANCE. SEGMENTS . GEO-DEMOGRAPHIC BASED Demographic criteria: age between 25 and 65 (approximately 45 millions) Geographic criteria: people living in metropolitan areas (represent 77% of the population) Size of Segment From the crossing of these two criteria resulted a market segment with approximately 35 millions. Why this segment? A new consumption trend was identified resulting from the rising popularity of this product due to the internationalization of life-styles and cooking techniques (globalization of the Mediterranean diet). Another factor taken in consideration was the fact that shrimps are easy to prepare and provide a healthy meal. Source : INSEE - Code officiel géographique
EXPORTING PORTUGUESE SHRIMP TO FRANCE. SEGMENTS Behavior criteria The French are becoming more aware of health issues. Organic food also becomes more popular (EVD, 2008). Fishery products benefit from the health trend. Consumption of fishery products increased dramatically over the last decade, at the expense of meat products. Consumption of fishery products increased from 28 kg per person per year in 1996, to almost 36 kg in 26 (Ofimer, 2007). Since 2007, consumption stabilized. Positioning Healthy and Economic Meals! Marketing Mix Product: small and medium sizes Price: penetration Source: CBI Market survey: the Placement: massive in super and hyper markets fishery products market in France Promotion: massive on television and press
EXPORTING PORTUGUESE SHRIMP TO FRANCE. SEGMENTS . “Saudade” Criteria: Portuguese immigrants and portuguese descendants living in Paris and surrounded areas Size: approximately 1 million Why this segment? Psychological attitudes towards the product – there is a nostalgic feeling associated to the product originated from their country of origin. Positioning: Portuguese Quality Food! Marketing Mix Product: small and medium sizes, in packages allusive to the origin country Price: competition Placement: massive in super and hyper markets located in Paris Source : INSEE - Code officiel géographique Promotion: selective
EXPORTING PORTUGUESE SHRIMP TO FRANCE. SEGMENTS . High-end Fooding Criteria: Restaurants listed in the Michelin Guide (3531 were founded in the last edition of the mentioned guide) Size: approximately 1 million Why this segment? There is really high standard perception on Portuguese shrimp Positioning: Fresh and Quality Marketing Mix Product: king sizes Price: premium Placement: straight to the client Promotion: selective directed Source : www.guide-michelin-centieme.com1
EXPORTING PORTUGUESE SHRIMP TO FRANCE. OUR SEGMENT IS GOING TO “SAUDADE” With the following positioning: Portuguese Quality Food! Why this positioning? The goal is to make easier the recognition and identification with country of origin, in this case - Portugal. 1
EXPORTING PORTUGUESE SHRIMP TO FRANCE MARKETING MIX PRODUCT PRICE PROMOTION PLACEMENTPRODUCT SOLUTIONPRICE VALUEPROMOTION INFORMATIONPLACEMENT ACCESS 2
EXPORTING PORTUGUESE SHRIMP TO FRANCE. RED SHRIMP . SCIENTIFIC NAME Aristeus antennatus (Risso, 1816) . FAO NAMES En - Blue and Red Shrimp Fr - Crevette Rouge Sp - Gamba Rosada Pt – Camarão Vermelho . HABITAT and BIOLOGY Depth 200 to 1440 meters Bottom soft mud. Source: F.A.O. Marine 3
EXPORTING PORTUGUESE SHRIMP TO FRANCE. RED SHRIMP . SIZE Maximum total length 220 mm The minimum size of catch is 9,4 cm of length and 2,9 cm of carapace . GEOGRAPHIC DISTRIBUTION Eastern Atlantic: Portugal to the Cape Verde Islands; And entire Mediterranean. Source: F.A.O. 4
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PROCESS . Shrimp with heads and shells . Boiled with salt and bay leaves . Frozen . Boxed in 2 weights: 400grs and 800grs . Ready to eat (only need to be thawed) 5
EXPORTING PORTUGUESE SHRIMP TO FRANCE. BRAND We felt the need to create our own brand in order to fit easier in the French market and in a way not to loose, in fact on the contrary, the origin of the Product. Fr: CPC – “La” Compagnie Portugaise de Crevette Pt: CPC – “A” Companhia Portuguesa de Camarão Meaning in english: “The” Portuguese Shrimp Company . Logo Colors Red, White and Green (main colors in the Portuguese National Flag 6
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PACKAGING This is our package! We developed from the scratch a box for our product. This box is going to be used for the 800grs as well as for 400grs. Source: created by the authors 7
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PACKAGING According to de directive 2000/13/EC all package must include information how to store and handle the products. CONSERVATION AND STORAGE HANDLING ALL PACKAGES MUST BE Source: created by the authors RECICLABLE 8
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PACKAGING According to de directive 2000/13/EC all package must include information regarding date of freezing, product and producer. FREEZING DATE PRODUCT PRODUCER Source: created by the authors 9
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PACKAGING According to de directive 2000/13/EC all package must include information regarding ingredients, catching area, sanitary authorization, nutritive value,... Source: created by the authors 10
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PRICE (at the point of sale) After an analysis of the French market, we were able to conclude that theaverage price per kg of Red Shrimp is 21€. With this reference price wecalculated the variation to the Portuguese average prices, which is around 12€,and got a result of 75%. Considering that we are based in Portugal and wishing to sell in theFrench market we add to the Portuguese average price the costs of transportation(€0.16 per kg, according to most frozen transport companies, transporting a totalof 10 tones per travel) making then a price of 12,16€. Adding 60% of margin(lower than the variation) will give a recommended retail price not higher than 20€neither lower than 18€, in order to be according to the positioning – PortugueseQuality Food. 11
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PROMOTION BRAND In French - C.P.C – Compagnie Portugais de Crevettes In Portuguese – C.P.C. - Companhia Portuguesa de Camarões Meaning in English: Portuguese company of shrimps The name communicates our product and the fact that is a Portuguese product. PACKAGING Beyond the further information, the box has a function of marketing with publicity of the product and all its benefits 12
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PROMOTION SALES FORCE This department has a direct contact with our client. They need to be well trained, specialized and informed about our product in order to become an important value to the company. RELATIONAL MARKETING Beyond the sales force, we need someone that have high knowledge about the product to contact directly to the client, to monitor continuously the client status and check if he is satisfied with the product, in order to retain the same. DISTRIBUTION A specialized distribution that put our product in the right place at the right time. The all process is controlled by our company. 13
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PROMOTION POINT OF SALE Publicity of the product in the supermarket, in the area of the frozen products SALES PROMOTION Develop a partnership with a Portuguese beer brand (e.g.: Super Bock or Sagres), offering a six pack of beer with the buy of a box of 800grs of our product. INTERNET Development of a company web site, with information about the company and all available products. Publicity of products in sites, like sites of Portuguese community 14
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PROMOTION MASS MEDIA Radio: Our communication in radio will be in Portuguese radios or with Portuguese radio shows, with promotional spots and jingles, advertising our product, its origin and benefits. Press: Communication on local Portuguese press and in specialized press (such as: food magazines, cooking techniques, …) 15
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PLACEMENT PROCESS Red Shrimp captured C.P.C. in Portuguese waters (boiled, prepared, frozen and packed) Our clients (Groupe Casino, Auchan, Transported in cold trucks Carrefour, E.Leclerc, from C.P.C. facilities Intermarché) FINAL CONSUMER Source: created by the authors 16
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PLACEMENT LOGISTICS Timing: Aveiro to Paris 48h (+/-) Travel budget: 1600€ (average, according to the majority of transport companies) Distance: 1600km Aveiro to Paris Source: created by the authors 17
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PLACEMENT (DISTRIBUTION) Market Total: 25.8% Total: 12.6% Total: 13.2% Total: 12.6% Total: 16.1% Carrefour: 14.3% Auchan: 9.8% Casino: 10.7% Share Champion: 7.7% Atac: 2.8% Monoprix: 2.5% Other: 3.8% Store Hypermarkets, Hypermarkets, Hypermarket, Supermarkets, Hypermarkets, supermarkets, hard supermarkets supermarket, local convenience stores, supermarkets Type discount stores, stores, hard discount stores convenience stores, convenience local stores, cash stores, discount and stores carry catering Ownership Group (family, Family group Group (family, Independent retailer Independent stock stock retailer exchange and exchange and private private enterprises) enterprises) Web www.carrefour.fr www.auchan.fr www.supercasino.f www.intermarche.co www.e- r m leclerc.com Source: OFIMER 18
EXPORTING PORTUGUESE SHRIMP TO FRANCE. PLACEMENT DISTRIBUTION In order to distribute our product in the best way possible, and according to our goals and market segment, we are planing to work, initially, with Carrefour, Groupe Casino and Intermarché. Why this three groups? Altogether, represent over 50% of the total market share. Own different sales platforms (hypermarkets, supermarkets, hard discount and convenience stores) STRATEGY Intensive, in all above mentioned market places. 19
EXPORTING PORTUGUESE SHRIMP TO FRANCE. BIBLIOGRAPHY . Mercator XXI: Teoria e Prática do Marketing / Denis Lindon... [et al.]. - 10ª edição . Lisboa : Dom Quixote, 2004 . Administração de Marketing / Philip Kotler. - 10ª ed . - São Paulo : Prentice Hall, 2000. NETGRAPHY . www.fao.org . www.cbi.eu . www.fita.org . www.cia.com/factbook . www.economist.com . www.seafsh.org