Michel Et Augustin

1365 Words Nov 11th, 2015 6 Pages
Michel et Augustin Cookies: Culinary Adventures Competing Against Food Giants 1. The Market French cookie market is an established market with a lot of strong brands. There are several key characteristics of the market, which is essential for the development of Michel et Augustin Cookies: * Growth of French cookie market is driven by a rising interest in quality rather than increasing volume. * Due to increasing returns to scale, undifferentiated small players have lower chances to compete with larger firms. * Artisanal confectionery products like pastries, traditional treats and macaron are dividing customer attention. * Main distribution channel is major retailers, amassing 75.1% of all cookies sold, creating …show more content…
2. Brand Positioning Michael et Augustin has to depend on the quality of their product in order to get in to the market. Among the bigger players in the market, there’s less differentiation, but since the large players have much more resources comparatively, this situation creates a high entrance barrier for the company. In A Better Way to Map Brand Strategy (2015), Niraj Dawar and Charan K. Bagga talk about the centrality-distinctiveness map (Figure 1). Centrality is the recognition and strength of the brand, whereas distinctiveness is the premium qualities of the brands that are resembled upon the customers. There are four different types of brands according to the article, and they are presented in Figure 1 in a 2x2 matrix: unconventional, aspirational, peripheral, mainstream. For Michael et Augustin, centrality is a long shot target due to the established market. However, distinctiveness can be achievable. Therefore, the company has to pursue a strategy to create an unconventional brand, and then transition into the aspirational part. In order to achieve an unconventional spot in the market place, Michael et Augustin has to identify competition, potential customers and create customer value propositions. As we have seen in the first part of this paper, there are many competitors with similar products, yet, there are high end producers like Fauchon and Hediard. Division of the market implies that Michael et Augustin can find a spot between these
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