Michel et Augustin

Essay by filoklisUniversity, Master'sA-, November 2014

download word file, 7 pages 0.0


1. What is the situation in 2005? Is this an attractive market? In 2005, the cookie market in France was suffering from general market maturity.

However, although it remained a massive market, its growth rate was somewhat

weaker than that of the global market itself. Moreover, a new trend had appeared in

France; growth rates in cookie market were driven by a shift in quality and higher

prices, whereas relative worldwide growth rates were pushed by the significant rise in

the volume of cookies produced (Bruno, H., A., 2014).

Big hitters, such as Kraft foods (present via LU), United biscuits and the German

Bahlsen GmbH & Co, dominated the cookie market in France, as they held

tremendous market shares and market power. On the other hand, small cookie

producers, without much funds and power were trying to survive and contest in local


The majority of cookies were sold in the shelves of supermarkets and hypermarkets at

75.1% (Bruno, H., A., 2014). As a result, the major retailers controlled the market and

held a great negotiating power, particularly over small manufacturers. Besides,

supermarkets and hypermarket chains offered private label cookies, by providing

consumers with lower-priced options, as well as premium quality products. In

particular, in 2005 supermarkets and hypermarkets held 23.4% share in the French

Sweet Biscuit Market (Exhibit 4, Bruno, H., A., 2014).

Regarding suppliers, there were a vast number of competitors in this market, which

means that manufacturers could easily switch to alternative providers, while large

companies could influence the prices of the raw materials.

Furthermore, in 2005 the biscuit and cookie industry had to face the competition from

alternative products. A wide variety of sweet snacks, other artisanal confectionery and

traditional treats, along with healthier substitutes and organic products were affecting

the demand for cookies. This...