Maple Syrup Marketing Plan

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The market audit process evaluates the product and its potential in the chosen target market.

The Product

Maple syrup is an all-natural, organic sweetener. The syrup in North America is poured over pancakes, waffles and other breakfast items. There are also uses in baking for maple syrup. It is at its most versatile in Quebec, where there is an entire cuisine based on using maple syrup as an ingredient in everything, but such uses are not common (Bain, 2012). Maple syrup in France has an advantage as a versatile sweetener with different character than either sugar or honey, the only real competitors in European supermarkets.

Maple syrup lacks the versatility of either sugar or honey, but it is an organic, all-natural product with a complex and refined character. It is entirely suited, in that respect, to the French palate. The French view maple syrup both in its flavor context and its organic context, and both have cachet in the French market. That said, France remains a largely untapped market for maple syrup, being only the fifth-largest market for Canadian exports, and lagging behind the UK and Germany (AGR, 2013). This despite France having imported maple syrup since the Nouvelle-France days. Consumers are familiar enough with the idea of maple sugar to give the product a try, and given how much information about cooking with maple syrup that is available in French, that removes a barrier to trying unique uses for the product. Price, however, is a typical barrier, as the process of making maple syrup is slow and expensive.

The Market

France is a country in northern Europe, and is one of the largest European nations by both land area and population. The country has a well-developed transportation infrastructure. There are major ports both at Le Havre in France and at Rotterdam in the Netherlands, which is only a couple hundred miles from Paris. There are no trade barriers between these countries. With the world's 9th-largest railway network (7 of 8 countries with more are substantially larger by area) and the 8th-largest road network (behind only much larger countries), France has a modern, sophisticated transportation infrastructure (CIA World Factbook, 2014).

French consumers love sugar, but they use relatively little maple syrup. France ranks 6th in the world in total maple syrup consumption, but few countries consume maple syrup. The United States, which exports 1/10th of what Canada does, is not presenting exporting maple syrup to France (Holz-Clause, 2014). Maple syrup is typically found in high-end food shops, and is difficult to find in mainstream supermarkets in France. The French prefer richer types of maple syrup, typical of most consumers. There is no known market for Grade C, normally used only for cooking.

Maple syrup receives distribution in specialty stores. While the product is known, the price is high and it is considered to be a luxury as a result. The fact that it is always imported simply adds more cost to maple syrup. This can be seen as a challenge to understand the small store distribution channels, but it also opens the door for maple syrup to be sold through a large retailer, as that is a market unserved. Such a sale would also be direct -- say, to Carrefour -- rather than through distributors. Reaching small stores would likely entail importers and distributors, which adds costs and decreases distribution options outside of major urban centers.

Advertising and Media

Maple syrup is a niche product in France, and as such does not receive advertising. Indeed, maple syrup receiving little marketing in the domestic market, which is substantially larger. There is little brand recognition for maple syrup, which is gathered by small farmers and then sold either through cooperatives or through small buyer/marketers. There is, therefore, almost no brand loyalty in maple syrup, and most consumers are unlikely to have loyalty to point of origin. At best, consumers will have a grade preference. Because maple syrup is a premium product, there is very little in the way of promotion or discounting. First, there is evidence to suggest that premium products should not be discounted because that undermines their premium status. Consumers for maple syrup in France tend to be wealthy, and because they are buying a unique product for its health benefits or unique character, they have low price sensitivity, which means that any marketing should focus on attributes, not discounting for enticement (Sethuraman & Tellis, 1991).

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Pricing Strategy

Maple syrup is expensive to make, and it must be shipped to Europe in liquid form. The maple trees are tapped for their sap in the spring, in a process that is entirely weather-dependent. The sap is then boiled down into syrup before packaging. Because maple syrup is fermentable, care must be taken to prevent fermentation. Pasteurization for shipping is common, which further adds to the cost. As a result, there is only one viable option for pricing in Europe, and that is as a luxury product. Thus, as a sweetener, pure maple syrup is not a viable proposition for most French consumers, and it has made its way into the market only at the high end, and as a seldom-used luxury item. Discounts are seldom used, as they are not common on luxury goods in general, and because maple syrup is a unique product with no real competitors.

Competition Analysis

Maple syrup is basically a unique product with distinctive characteristics that are unmatched by other sweeteners. As such, it is without true competitors. However, it does compete with other sweeteners -- they are invariably cheaper and less refined in character. The only sweetener that is equally natural, organic and uniquely-flavored is probably agave syrup, which also hails from a plant native to the Americas is an even more rare in Europe than maple syrup is.

Thus, for our exporter, the only competition is Canadian maple syrup. Quebec has been sending maple syrup back to Mama France for hundreds of years. Maple syrup itself is a largely undifferentiated product, a commodity with no real brand loyalty and little to distinguish the different types. Canada sends $8.2 million worth of maple syrup to France. Right now, total U.S. maple syrup exports are $18.8 million, to Canada and Japan primarily. To compete with Canada requires economies of scale that will bring down the cost per gallon of syrup. Shipping in bulk for packaging in Europe might help the United States achieve economies of scale and lower costs. If the U.S. can undercut Canada on the price of maple syrup, it stands a chance to gain traction in the French market. The caveat to that is that the Canadian dollar is weak this year, which helps their producers undercut American ones, when priced in Euros (OANDA, 2014). Because Canada is the only seller of maple syrup in France, all of the market characteristics (pricing, branding, distribution) described above apply directly to Canadian maple syrup.

The overall market in France is growing, and could range between $8.2-$9.0 million next year. Our company hopes to sell $500,000, which is around 12,500 gallons at wholesale. This is a market entry target -- in future years we hope to displace a significant portion of Canadian supply, taking upwards of 20% of the French market.

Government

There are a few government agencies that can help. The Agriculture Marketing Resource Center is of particular help in marketing maple syrup in Europe. This is a division of the USDA, one of the main bodies. These agencies can help to open up new markets for American Agricultural Exports. It is highly likely that some assistance can be gained at the state level as well.

Executive Summary

France is one of the larger markets for maple syrup, and has consumed it for centuries. Still, maple syrup is a high-priced niche item in France. Its main selling points are its all-natural, organic status and the fact that is has a unique, refined character. As a premium product, it is not advertised and receives little promotion -- its quality speaks for itself on the world market and most French consumers will have heard of it; many will have tried it. The market in France can be expanded by leveraging the many culinary uses for maple syrup beyond a simple breakfast condiment. The main competition -- the only competition -- comes from Canada, which is the supplier of maple syrup to France right now. As the main exporter of maple syrup, Canada benefits from economies of scale and favorable exchange rates. This is a challenge, because maple syrup is an undifferentiated product with little to no brand loyalty......

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