International Merkating - Wrights of Howth

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salmon, traditional fruit cake, chocolate, wine, liquor or champagne. Prices are comprised between 33€ and 81€.

• Four Hampers: “Irelands eye”, “Lambay”, “Tuskar Rock”, “Dalkey” containing rare and luxury European and Irish products such as chocolate, cheese, liquors, salmon, coming form small producers across the EU. The range of prices is between 129€ and 399€

Wrights of Howth products are all coming from European small producers and from Ireland. They are homemade, not widely available and luxury. The company, taking advantages of its success in Ireland, in the UK and already occasionally exporting across the Channel sea in Europe, would like to expand and increase their gift packs and hampers sales in one particular market in Europe. They’ve selected three potential markets suitable for their expansion but would only expand on one of those three markets. As a consultant, we have to advise them either to choose between the French, German, or Spanish market.

In order to advise at best Wrights of Howth, we will first choose the most attractive market for their development and justify our choice by comparing it with other selected countries’ market. Then, discuss about key differences and new challenges faced by the company in going international. Finally, an appropriate international Marketing mix will be studied in order to outline Wrights of Howth game plan and to achieve their marketing objectives internationally.

I) Identify an attractive market for development for Wrights of Howth. You must use referenced recent market/industry reports to justify the

rationale behind your selection.

In regards of selected the most attractive market for the development of Wrights of Howth, we have chosen to expand their packages in the French market, especially in the city of Paris. Many figures and data have led to consider the French market as the most interesting, mature and profitable one for the development of the Irish company. France can unarguably claim to possess one of the richest and most diversified culinary traditions in the world. Salmon, wines and Champagne, pastries and cheese are consumed everyday and for special events as well. Those eating and drinking habits suit the most to Wrights of Howth future exports.

a. Sea food market trends in the French market

According to the New Economics Foundation (NEF) and Ocean 2012 (NGO), 2012, “if French consumers would only eaten fishes fished in European waters, they would have eaten their quota of fishes of the year in one day.” With a population of over 65 million people, France is a major market for seafood with low domestic production, and one of the highest levels of per capita seafood consumption in Europe with 34kg per year.

In the seafood market, France is the 4th largest importer in the World with US$6.5 billion in 2011, an increase of 10.5% from 2010. In 2013, its top suppliers still are Norway, the United Kingdom and Spain. France imported 7.7% more salmon in 2012 compared with 2011, for a total of 169 900 tonnes. Fresh salmon and fresh smoked salmon fillets mostly participated at the increase of the market. According to the Norwegian Seafood Council, “salmon is close to overtaking tuna as the most popular seafood in France in terms of household consumption”.

Source: Inside France, Seafood Trade, 2012 “Market Indicator report 2012”

On the graph below are listed the top 10 French salmon suppliers in the world. As we can see, UK is the second French suppliers.

Source: “Global Trade Atlas”, “Top 10 countries supplying France with Fish and Seafood and Top imported products in 2011”, 2012

b. Wines and Champagne consumption in the French market

Wrights of Howth also usually offer white wines or Champagne with their packages. There are in France not less than 7 000 vineyards and 18 000 protected designations of origin for the wine.

As we can see on the graph below, according to Vinexpo, “International Wine & Spirit Research” 2012, French people consumed more than 50 litters of wine per capita in 2011. Germans consumed almost 40l. and Spanish only 25l, not even half of the French wine consumptions.

Source: Vinexpo; “International Wine and Spirit Research”, 2011

As for a conclusion, several key factors need to be underlined:

- Salmon is one of the main seafood importations in France with tuna. French consumers eat 35kg per year per capita of seafood. 169.000 tonnes of salmon are consumed each year, making France one the biggest salmon importer in Europe and the first Irish salmon importer one.

- French consume more than 50 litters of wine per capita per year, making the market difficult for Wrights of Howth, as they export French wine with their packages.

- French eat and produce a lot of cheese. 350 different chesses are listed on the market. By marketing and selling Irish chesses on the French market, Wrights of Howth assure themselves a huge demand.

II. Explain the key differences and challenges that need to be addressed in marketing the company in the new market environment and to the new target market.

In order to explain the key differences and the external environment of this new market, we will use a PEST analysis of the French market. Challenges that need to be addressed in marketing Wrights of Howth in the new environment and the new target market will be discussed after this analysis.

a. PEST analysis

1. Political factors.

Political, legal and environmental factors can be regrouped together in this part.

It is nowadays easy to trade and export in Europe, thanks to the 1992 Maastricht convention where all European countries voted to abolish European trade barriers. It is then easy for Wrights of Howth to export their products in France.

On a legal aspect, taxes on food exportation in France are around 5.5%. The company must take into account those taxes and delivery costs when pricing their gift packages and hampers.

Moreover, if the company decides to create a subsidiary in Paris, they must take