Market selection and Market entry decisions for foreign markets. Lambertz GmbH & Co. KG's gingerbread


Term Paper, 2015

23 Pages, Grade: 2,3


Excerpt

Structure

Register of illustrations

Register of tables

1. Introduction – Why did the author choose gingerbread of the enterprise Lambertz and is there a sufficient market for this product due to restrictions?

2. Situation analysis
2.1 Analysis of the current marketing situation
2.2 Worldwide turnover of the Lambertz Group in the financial years 1999/00 till 2014/2015 (in millions of euros)
2.3 Analysis of opportunities, threats and problems
2.4 SWOT analysis

3. Targets, marketing aims and strategies: definition of the targets and marketing strategies

4. Result of the marketing concept
4.1 Decision of the market selection
4.2 Strategy of the market entry
4.3 Marketing mix

6. Attachment
6.1 Attachment 1: UNO countries

7. Bibliography

Register of illustrations

Figure 1: Production of Gingerbread, honey cake and “Printen” in Germany in 1965-2015 (in 1.000 tonnes)

Figure 2: Worldwide turnover of the Lambertz Group in the financial years 1900/00 till 2014/2015

Figure 3: SWOT analysis

Figure 4: The sprinkler strategy

Figure 5: Marketing mix

Register of tables

Table 1: Aims

1. Introduction – Why did the author choose gingerbread of the enterprise Lambertz and is there a sufficient market for this product due to restrictions?

„Tradition pflegen, Innovation leben“ – That is the guiding principle of the company Lambertz GbmH & Co. KG, which was founded in 1688. Everything has started in a small baking house and today it is an international pastry concern. In 2015 there was a turnover of 620 million euros with investments at the rate of 24. 8 million euros.

The company Lambertz is a market leader with seasonal products. Moreover, a sales increase in spite of stagnant gingerbread market takes place.[1]

Why did the author choose the enterprise Lambertz with their product gingerbread? Not only because of their unbelievable development since the foundation in 1688.

The company Lambertz is an internationally known company, which guarantees its competitiveness in the marketplace through new products and an outstanding quality. Furthermore, the gingerbread is part of the German culture and especially in the christmas season very popular.

According to a recent survey from the year 2014 gingerbread is the second most popular sweet in the biscuit segment after cookies.[2]

Ginger bread has become part of the German culture and this culture can`t imagine without it.

In this term paper the author wants to find out, which countries would be suitable for a possible market entry and if there are any restrictions. In addition to that the author asked herself if there is a particularly usable strategy for a market entry. Finally, a short conclusion and recommendation are putting an end.

2. Situation analysis

2.1 Analysis of the current marketing situation

The current marketing situation includes information about the product, competitors, distribution and some background information.

Gingerbread is sold in the Advent season to Christmas. Already since the 12th century they are baked and served but not only for enjoyment: By the use of numerous spices with the baking they also have a tradition as a remedy for illnesses.

Gingerbread has quite an own unmistakeable taste, which is marked by the combination by spices from all over the world. Typically there belong cinnamon, aniseed, ginger, cardamom, carnations, allspice, coriander and maces in the dough. Through this variety it was only possible at the beginning of the gingerbread production to bake the cake in the towns, which disposed over a very narrow commercial net.[3]

The biggest competitors are Bahlsen and Lidt. The Lindt brand with its extensive and innovative global and local range of finest quality chocolate is present in around 120 countries worldwide. The company’s very impressive results and its ongoing success confirm that Lindt & Sprüngli continues to be one of the most successful premium chocolate companies in the world.[4]

With both family brands Bahlsen and Leibniz Bahlsen market leader is in Germany and throughout Europe one of the leading suppliers of sweet cake. An intensification of the market presence on the German sales market is supposed to bring increasing net sales for the year 2015. The foreign market presence is to be increased by higher marketing activities and product re-launches, as well as new product launches.[5]

In general the gingerbread market stagnates during the last years at a very high level. Gingerbreads are available in all German sales canals. The turnovers and sales are stable regardless of the economic situation. The weighted distribution as well as the numerical distribution amounts to nearly 100 percent.[6]

Abbildung in dieser Leseprobe nicht enthalten

Figure 1: Production of Gingerbread, honey cake and “Printen” in Germany in 1965-2015 (in 1.000 tonnes), http://de.statista.com/statistik/daten/studie/204071/umfrage/produktion-von-lebkuchen-honigkuchen-und-printen/

In this figure it is very clear to see, that the production is decreasing since 1995. In this year the production has reached a peak at around 116.000 tonnes. Surprisingly the production is again increasing: Since 2013 there is a growth of about 5000 tonnes.[7]

2.2 Worldwide turnover of the Lambertz Group in the financial years 1999/00 till 2014/2015 (in millions of euros)

The following grapic represents the worldwide turnover of the Lambertz Group. The bar diagram shows a significant increase from 1999 till 2015. In 1999 Lambertz achieved a turnover of about 330 million euros and in 2015 the turnover generates 620 million euro, that is a growth of 290 million euro.

Through this increase on a yearly basis the company can look to the future with great optimism.

Abbildung in dieser Leseprobe nicht enthalten[8]

Figure 2: Worldwide turnover of the Lambertz Group in the financial years 1900/00 till 2014/2015, http://de.statista.com/statistik/daten/studie/219478/umfrage/umsatz-der-lambertz-gruppe-nach-tochterunternehmen/

2.3 Analysis of opportunities, threats and problems

The biggest opportunity for the Lambertz Group is that they can create something new in the countries, in which they want to enter the market. A new creation is always something exciting but on the other hand it could be very risky.

A success leads to to high sales and new customers. The Lambertz Group could stand out from the crowd and get really successfull abroad. If the products of the Lambertz Group develop to a failure abroad, the company makes no profit and loses money. Another opportunity is that chocolate can be easily and safely transported, and stack well - and it can be kept for long periods. This enables an export in countries, which are far apart. In addition to that a cooperation with other companies could arise.

A quick adapting to the current market is also a positive aspect because due to this adapting they are able to keep up with the competitors by considering the preferences of the market.

The company Lambertz has a lot of great opportunities abroad but there is another risk, too: They could lose the rivalry. The Lambertz Group takes care that the transports proceed environmentally friendly. This could lead to a problem: If they want to export some products abroad they can not control this standard every time. Another problem is the healthy food movement. A healthy nutrition has become increasingly important and people who take care of this would not buy gingerbread.

[...]


[1] http://www.lambertz.de/unternehmen/unsere-gruppe/, date 04.12.2015, n.a.

[2] http://de.statista.com/statistik/daten/studie/376409/umfrage/umfrage-in-deutschland-zu-den-beliebtesten-suessigkeiten-an-weihnachten/, date 18.12.2015,n.a.

[3] http://www.essen-und-trinken.de/lebkuchen, date 08.12.2015, Maria Marnitz

[4] http://www.lindt-spruengli.com, date 08.12.2015, n.a.

[5] http://www.bahlsen.de/de, date 08.12.2015, n.a.

[6] http://www.lambertz.de/wp-content/upload/2015/10/2015-Lambertz-Jahrespressekonferenz.pdf, n.a.

[7] http://de.statista.com/statistik/daten/studie/204071/umfrage/produktion-von-lebkuchen-honigkuchen-und-printen/, date 08.12.2015, n.a.

[8] http://de.statista.com/statistik/daten/studie/219478/umfrage/umsatz-der-lambertz-gruppe-nach-tochterunternehmen/, date 17.12.2015, n.a.

Excerpt out of 23 pages

Details

Title
Market selection and Market entry decisions for foreign markets. Lambertz GmbH & Co. KG's gingerbread
College
University of Applied Sciences Stuttgart
Grade
2,3
Author
Year
2015
Pages
23
Catalog Number
V315647
ISBN (eBook)
9783668154629
ISBN (Book)
9783668154636
File size
749 KB
Language
English
Tags
market, lambertz, gmbh
Quote paper
Elena Bergmann (Author), 2015, Market selection and Market entry decisions for foreign markets. Lambertz GmbH & Co. KG's gingerbread, Munich, GRIN Verlag, https://www.grin.com/document/315647

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