3 Champagne Pascal Fricot • Geographical location: Champignol-lez- Mondeville (10), Northeast France • Number of employees: 2 part-times, 1 intern and seasonal workers • Quantity of bottles per year: 40 000 • Lease 3 hectares and possess 3 more hectares • Turnover: 540,000€ per year
4 Part 1: Strategic Planning Chapter 1 Analysis of the current situation – last year, 2009
1.1. Macro environmental analysis 1.2. Market analysis5 1.1. Macro environmental analysis ¨ The environment which influence the most the company is the economical environment. à it’s the economy which influence the level of a brand. The collected quantity is fixed by the Inter-professional committee according to the total of the sales of champagne during the previous year. 1.2. Market analysis à We are associated with the events market: weddings, parties, birthdays, etc.
1.3. Competitive analysis 1.4. Market segmentation6 1.3. Direct & indirect competitive analysis ¨ Direct à all champagne producers ¨ Indirect à sparkling wine producers, creaming. 1.4. Market segmentation ¨ By loyalty Development of customer loyalty thanks to the gastronomical shows. It is less expensive to preserve existing customers rather than to attract new customers, fidelity is a factor of success.
1.5. Existing marketing-mix7 Marketing offer ¨ Product Champagne rosé, brut Chardonnay, demi-sec tradition et brut-tradition, Brand: Pascal Fricot Physical features: green bottle Quality of service: high end ¨ Pricing Price structure: according to the market 12.50€ to 16.90€ Discount & rebate policy: sliding scale tariff starting from 300 bottles.
1.5. Existing marketing-mix8 ¨ Marketing promotion Distribution channels (DC) Direct DC: Direct sales (factory shop), direct mailing, sales meetings. Indirect DC : Wholesales. Marketing communication = Sales promotions : Tasting in the deposit Exhibitions : Gastronomical show ¨ Service marketing elements Suppliers’ relations: Sparflex, Broisson Chocolat, soufflet, approchampagne, nemon, cartonerie de l’esperance, sernam.
1.6. SWOT (strengths, weaknesses, opprtunities & threats)9 Strenghts Weaknesses • 80% of harvest are marketed out of • When the price of kg is very high, bottle. if the inter-professional committee marketing by bottle generates a small lowers the price of the reason we will not margin. be affected. • No business education. • Tax incentives as Champagne is stored for two years within the bottles. • Development of consumer loyalty thanks to the direct contact during the gastronomical shows. Opportunities Threats • To increase the product control in order Reorganization of the cultivated surface of to make champagne of better quality. the brand name: • It would be a problem not to control the plantations • lower output because it will be necessary to work more surface for the same output
1.7. Positioning 1.8. Sources of information10 1.7. Positioning Quality/price ratio Pascal Fricot Krug Daniel Velut Private people Professional Bauzer 1.8. Sources of information Mr. Pascal Fricot, owner. Interview 14th Nov, 2010
11 Part 1: Strategic Planning Chapter 2 Marketing strategy & objectives – next year, 2010
2.1. Marketing strategy12 ¨ Product development strategy Our project is to manufacture champagne without sugar. The competitors on this market are not that present. The production of such a product is not expected to add additional costs.
2.2. Desired market segmentation13 ¨ The targets of champagne without sugar are the women who do not want to take weight and the diabetics 2.3. Desired marketing-mix ¨ Price: 13.50€ ¨ Product: Champagne without sugar ¨ Promotion: tasting at wedding show, gastronomical shows ¨ Location: Le val Meillet, 10200 Champignol lez Mondeville, France
2.4. Marketing objectives as a result of the SWOT14 Strengths Weaknesses Producing quality when the price of the grape reinforces the is high, to sell out of bottle authenticity of the is a weakness because we product. spank a small margin, Opportunities however when this price strongly drops we do not lose anything because we do not depend on the inter- professional committee Threats
2.5. Position15 ¨ Thanks to our new champagne without sugar, the people not being able to drink champagne will finally be able to consume some. We will be able thanks to that to widen our range and thus our market shares. People will see us like a modern company which advance while meeting the new customer requirements Quality/price ratioPascal Fricot Krug2010 Daniel Velut Pascal Fricot 2009 Private people Professional Bauzer
2.6. Yearly sales forecast16 ¨ We plan to sell 2000 new bottles per year, of which 50% before the festivals of year-end. ¨ It represent an additional revenue of 27.000€
17 Part two: Action plan Chapter 3 Yearly Action Plan & Marketing Budget - 2010
3.1 Main cooperative bodies 3.2 Maintaining past activities18 3.1 Main cooperative bodies Partnership with a sales representative. We choose Lavinia. The objective is to promote the Champagne Damoiselle Fricot. This is a upmarket product with a larger margin. 3.2 Maintaining past activities The marketing activities which were regarded as successful are tasting and gastronomical shows. We plan to spend 15 000€ for the gastronomical shows (rent of the space and hostel) and 3 750€ for the tasting.
3.3 Developing new products and its pricing19 ¨ Product Champagne without sugar for women who do not want to take weight and the diabetics. ¨ Price This product is a little more expensive than the traditional products because the fabrication process is a little more elaborated.
3.4 Marketing activities 3.5 Enchancing service marketing principles20 3.4 Marketing activities ¨ Direct marketing Follow-up customers by mail before year-end. ¨ Indirect marketing We will promote our product by our deposits which know well the products and the customers. ¨ Marketing communication: We do tasting and gastronomical shows. 3.5 Enchancing service marketing principles ¨ We propose to the customer the delivery of our product at the place they want. ¨ We will organize a training day for our deposits to familiarize them with the product.
3.6 GANTT scheme21 What Who When Comments Gastronomical The Producer One per month In all France Shows during the year, and one per week during the two months before Christmas. Indirect The deposits All the year Only in marketing: France promotion by the deposits Direct An employee Before the end of To our marketing: the year customers mailing to customers
3.7 Marketing yearly budget22 Sales forecast, champagne without sugar: 27,000€ Budget assumption (40%): 10,800€ Resources Usages Self 8 640€ Direct Marketing 3 240€ Indirect Marketing 2 700€ Short term loans 1 080€ Public relation 2 160€ Advertising 1 080€ 1+1>2 1 080€ Marketing research 540€ Non allocated funds 1 080€ Total 10 800€ Total 10 800€
23 Part two: Action plan Chpater 4 Control procedures & criteria of success – 2010
Control procedures & criteria of success24 ¨ 4.1. Control bodies – Who? It’s the producer, Pascal Fricot who directly controls the activities. ¨ 4.2. Control tools – How? He controls thanks to the sales results with the help of the accountant. ¨ 4.3. Control by milestones – When? He controls once by quarter, when the accountant comes. ¨ 4.4. Criteria of success – What? The criteria of success is the number of sales. When the sale grow up, it’s a demonstration of the success. For example, during the economical crisis, the sales didn’t come down, it’s a proof of our success.