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Peanut Butter in Germany

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Jif Peanut Butter in Germany

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Man cannot live by bread alone. He must have peanut butter.
- Bill Cosby
Part 1: Executive Summary
In order to maximize profit, J.M. Smucker could increase sales of Jif peanut butter, its best selling product, into growing markets. Prior to any expansion a full analysis of the market is necessary. The country with the largest market potential for peanut butter in Europe is Germany (ibid 79). The country climate of Germany gives a positive outlook for peanut butter, the primary option being as a breakfast option in the bread spread category. Daily patterns are malleable to suggest that peanut butter be a component, an additive, an ingredient, or a snack.

Jif as a stand-alone brand is a …show more content…

– is perceived in the German market.
Part 2: Company Background
Jif’s flagship creamy peanut butter spread was first introduced in 1958. Since 1981, Jif has been the leading peanut butter brand in the United States. As of 1998, Jif had an estimated 42.5% of the market share, dwarfing closest competitor Skippy at 28.8% (Marigny 99). In 2002, The J.M. Smucker Company purchased the Jif brand from Proctor and Gamble. The purchase of the largest peanut butter brand in the U.S. by the famous jelly manufacturer was likely a strategic move to streamline distribution of the complementary products.

Peanut butter is sold primarily as a bread spread, and secondarily as an ingredient for other meals. The distribution of peanut butter is about 70% creamy to 30% crunchy (Kellogg). In 2005, peanut butter had a U.S. household penetration rate of 93%, with an even higher percentage in households with children (see Exhibit 2A). Jif has historically averaged near 40% of the market share (Kellogg).

Business Model. Branding is very important to Jif, and their branding efforts have been consistent over the years. Jif’s marketing program has been primarily family focused, with the popular tagline “Choosy Moms Choose Jif.” Also notable is brand-building of the widely recognizable Jif label, with its striking vertical bars in basic red, blue, and green. As an instantly-recognizable brand, Jif has enjoyed long-term customer loyalty. Jif’s

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