Question

Topic: Strategy

Penetration Into European Yoghurt Market

Posted by reneandlesley on 3/9/2009 at 4:44 PM ET 250 Points
A yoghurt brand wishes to enter European market ( from NZ) and grow the UK business. What do yo see as the sales/ marketing issues to growth and what opportunities should be investigtaed including alternative channels
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RESPONSES

  • Posted by Tracey on 3/9/2009 at 7:55 PM Member
    I'm not familiar enough with the market to answer your question, but I recommend the book "Stirring it Up". It's by the CEO of Stonyfield Farms (a popular American yogurt company).
  • Posted by reneandlesley on 3/9/2009 at 9:03 PM Author
    Thanks Tracey. I have ordered the book and will take a look but I have a feeling that this will be how to be green and make money rather than the intricacies of entering new markets but thanks once again.

  • Posted by saul.dobney on 3/10/2009 at 5:47 AM Accepted
    Personally I think it will be difficult for you to enter the market from NZ. There are number of major European suppliers in the UK (Muller, Danone, Nestle) plus more local suppliers like Yeo Valley with extremely large marketing budgets and strong control over the 4 major supermarket chains which dominate family shopping and yoghurt purchasing.

    I do not know what your USP would be, but I would guess that you are not going to have cost advantage against these larger players, and I would also guess that your launch budget would be small compared to their marketing spend.

    Unless you can sign one of the four major retailers, I think making penetration into the consumer market will be very tough. That leaves trade marketing (eg to restaurants) which tends to be captured by a small number of food service companies (3663, Brakes etc).

    You might investigate how the NZ govt can help given that NZ lamb and NZ butter (branded Anchor) do have a place in the UK supermarkets. I would suggest making contact with their UK sales and marketing agents may give more insight.
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