I. Strategy diagnostic
1. Business model configuration
* Definition of the product and of the value proposition
Dating from the XVI century, Epoisses cheese ranges in the category of certified term of origin (AOC) products which insist on displaying its cultural, historical and geographical heritage, as well as its high and unique quality. The“country-made” cheese is so firmly rooted in the minds of the consumers that the product must prove that it has all the characteristics of a regional product through what it evokes, its taste, its packaging and its identification.
The company has clearly positioned its product as a regional product and traditional one, up market and expensive, coherent with the positioning price of the AOCcheeses in general, knowing that its intrinsic value consists in its “regional” particularity that the price is not the deciding purchasing factor.
Anyway, the product is positioned among the trendy AOC products which are so much appreciated by the customers and it offers a high quality, a joy of taste and identification of culture and history.
Now the products of Fromagerie Berthaut consist of fourcategories, which are as shown in the table, in which the main and most famous cheese is Epoisse. One of its characteristics is that it is made of raw milk material. From the table, we can see that the total AOC cheeses represent up to 85% of the turnover.
Table 1. Lists of products
| Name of the product | Type of product | AOC | PercentageOf the turnover |
1 | Epoisses box 250g BERTHAUT AOC| Soft cheese with washed rind | Yes | 85% |
2 | Perrière BERTHAUT AOC Epoisses | | Yes | |
3 | Trou du Cru BERTHAUT | | No | 15% |
4 | Affidelice BERTHAUT | | No | |
5 | Soumaintrain BERTHAUT | | No | |
* Definition of the interface with customers
Regarding to market and customers, Fromagerie Berthaut is now doing an internation business. Its products reached 17 countries.(1) Distribution : wholesalers, commercial outlets, Berthaut Store
* The commercial outlets play more important role over wholesalers
* Wholesalers play a decisive role in exploration except in Belgium, Germany, and Switzerland
* In Belgium, Germany, and Switzerland, Fromagerie Berthaut delivers directly to local wholesalers
* A company store, located in the company itself,displays all the products as well as other regional products of Burgundy. It also does local business with restaurants, private customers, works councils (comité d’établissement) and various organizations. Relationship with customers
Table 2. Breakdown of the turnover in France by distribution channel.
| 1999 | % 1999 |
Wholesalers | 216 574 | 49% |
Commercial outlets | 212 154 | 48% |Berthaut Store | 13 260 | 3% |
Turnover France | 441 987 | 100% |
(2) Relationship with customers
* Target customer:
Fresh cut customer service counter : Customers between 50 and 60 years old who are experts and know the product very well.
* Relation with the customers direct:
Old mark with reputation: Berthaut
Registering of a product in the category of ‘ appellationsd’origine contrôlée’
The policy of national product listing with large and medium commercial outlets which represent 48% of the turnover in France
The wholesalers continue to take charge of the export sales and a part of sales in France.
* Relation with the final customers:
Old mark with reputation: Berthaut
Registering of a product in the category of ‘appellation d’origine contrôlée’
Berthautshow its products to the tourists through Berthaut Store.
Under the brand name ‘ Beauclair’, Berthaut sells its downgraded products and do business with restaurants, private customers, works councils and various organizations.
* Architecture of internal and external resources and of internal and external competencies
Shown as follows:
| Ressources | Competencies |
Internal | *...