Appendix 1: Organogram Koppert Cress
Appendix 2: Marketing analysis Koppert Cress
In this chapter the marketing of Koppert Cress is discussed with use of a marketing analysis. The marketing analysis is made to define the strategic combination of tools a company has to approach their potential target group. The objective of marketing tools is to acquire a position in the market or to enhance the company's position relative to their competitors. For this marketing analysis, the 5 P's are used to define the marketing of Koppert Cress.
The 5 P's:
Koppert Cress supplies in a wide variety of cresses. Their assortment consists of 30 different cresses. Furthermore, Koppert Cress offers another 28 specialties, like leaves of flowers and plants.
Cress is a sowing of unique plants; it contains a lot of vitamins and has a strong taste. Cress is a freshly germinated plant and differentiates from other plants, because these sprouts are grown on a fixed nutrient soil. Koppert Cress makes use of LED-lighting to grow the cresses. It is investigated that the best light to grow cresses is a combination of blue and red light. Furthermore, Koppert Cress has its production area near the coast in the Netherlands.
One of the reasons for this location is the longest period of natural sunlight per day, which is very important for the growth of cresses.
Cress is mainly used as decoration for a dish or as a seasoning. The characteristics of the cresses are the strong taste, nice appearance, and a lot of vitamins. Cresses are mainly used in restaurants by professional chefs.
The price of the products that Koppert Cress sell, are for every trader the same. The price keeps Koppert Cress secret for everybody, expect for the traders. They publish a price overview once a year, which is only available for the traders, in order to help the traders to set prices and the choice for a proper approach.
A box of cress (contains 16 small boxes) has approximately a price between €15 - €20 the Netherlands. This price is quite expensive, due to the high production costs and the expensive technology used for the production. The technologies used are the greenhouses and the LED-lighting. The lighting itself is expensive to purchase, but the use of power is low.
The high price for cresses has also a marketing point of view. The high price is partial due to the psychological effect of an expensive product. When a product is expensive, it is most of time considered as high quality and luxurious product. Therefore people are urging of purchasing the good.
The cresses are produced in Monster at two different places: Maasdijk and ‘s-Gravenzande, by use of large greenhouses with LED lighting as discussed before. Monster is a village located at the coast in the province ‘'Zuid-Holland''. The region of Koppert Cress consists of 1,7 hectares. (Koppert Cress) The main focus of distributing the product is to the customer and the customer provides the product to the consumer. The main focus of Koppert Cress is mainly focussing on chefs, restaurants and caterers. These main target groups are the customers and they take care that their guests are consuming the cresses.
In the image below, the foodservice chain is presented. Koppert Cress has 2 functions within this chain: the primary sector and producers. Koppert Cress has direct contact with the ‘'food channels'' to provide information about their products. This is a totally different approach. One of the main reasons that Koppert Cress is communicating directly with chefs and restaurants is because they are able to inform the customer (chefs and restaurants) best about the product.
Koppert Cress uses the pull strategy. By use of this strategy the demand is created and therefore the product will be pulled trough the distribution channels. The ‘'food channels'', such as chefs, make the wholesaler aware of their demand for cress. The wholesaler does not have cress available and therefore the trader will contact Koppert Cress who will supply the cress.
Koppert Cress has an international distribution area. The Netherlands is one of the leading countries of logistics. This is beneficial for Koppert Cress, because they sell a lot of their products in Europe and even other continentals. Furthermore the products of Koppert Cress are available in the retail sector (Albert Heijn), but the retail sector is not vital for Koppert Cress due to the fast changing demand in this sector. Therefore the do not focus actively on retail.
Below a map is included with all the selling points in the Netherlands.
(Koppert Cress, 2017)
Koppert Cress has several tools for their marketing. The marketers of Koppert Cress are conquering several segments. They attend food fairs such as Horecava etc. In this way, they are able to get in contact with traders, they can inspire Michelin-star chefs worldwide with free samples and may get free social media marketing.
Koppert Cress has also an internal tool for marketing. They have created the ‘'Cressperience''. The Cressperience is a miniature world of taste, smell and colours. The Cressperience is a meeting point for gastronomes with gastro horticulture. Traders, customers and consumers are able to share experiences. The Cressperience also includes a tour trough the company including the whole production process from seeding to the use of the end product.
Another marketing tool is the Molteni kitchen of Koppert Cress. A Molteni kitchen is a very exclusive high-tech kitchen. There are only 5 of these kitchens in the world. It is a privilege for chefs all over the world to cook once in a Molteni kitchen. Therefore, Koppert Cress invites chefs to come and cook in their Molteni kitchen. At the same time, Koppert Cress is able to promote their product.
Koppert Cress also organises workshops for people to cook and taste cresses. Furthermore they offer workshops for children to get them in touch with healthy and tasty food. This also provides children with a taste perception at a young age.
Furthermore has Koppert Cress collaboration with the Holland America Line. Koppert Cress placed several ‘'Cressomatics'' on board of the luxurious cruise ship the ‘'Koningsdam''. A Cressomatics are large boxes (like a refrigerator) with purple LED-light where cresses are able to grow. This provides chefs on board to work with fresh products.
Koppert Cress collaborates with several partners. The first partner is Holland America Line, as mentioned above.
The second partner is Dutch Cuisine. Dutch Cuisine is an organisation, which is raising awareness for the Dutch cuisine and eating habits. They strive to make the environment and the health of humans better by the 80/20 rule. This means 80% vegetables and 20% animal.
The third partner of Koppert Cress is SysBioSim. They started this collaboration to spread the knowledge of the benefits micro-vegetables have. SysBioSim offers services to design platforms and simulations for several life science fields. SysBioSim helps companies to better allocate their resources, better design their research and development programs and to achieve their results faster. (SysBioSim, 2016)
The fourth partner of Koppert Cress is FoodforCare. FoodforCare is an organisation, which provides meals for the care industry (hospitals) and are specially developed with fresh and healthy ingredients. Patients will receive 6 or 7 meals a day, with a choice opportunity of 3 every round. The collaboration started at an expo.
The fifth partner of Koppert Cress is receptenvantopchefs.nl. This is a website who is also working together with Valderrama, a luxurious olive oil brand. It presents a unique concept of top chefs preparing meals in front of the camera using healthy products. These organisations want to offer knowledge to professionals in the gastronomy sector. All chefs cook in the famous Molteni kitchen of Koppert Cress.
Koppert Cress stand for fair and healthy food, this is also integrated internally.Koppert Cress' sixth partner is Hutten Catering. The employee canteen is a collaboration between Rob Baan (director of Koppert Cress) and Bob Hutten (director of Hutten Catering). The canteen/restaurant is called ‘'Fair Food Theatre''. They both have a vision to make the society eat healthier. They also share the vision of healthy employees make healthy products. The concept is based on the Dutch Cuisine. Dutch Cuisine stands for 80% vegetables, 20% animal and 100% taste. Rob & Bob do not charge the employees for the healthy meals. This concept is about to be sold to schools and companies.
Koppert Cress has around 160 employees. These employees all contribute to the supply of the products. Koppert Cress has 13 representatives working in Europe, of which 4 are active in the Benelux.
Below an organogram is given.
Koppert Cress has a wide variety of cresses, which is enough to supply to their customers. The production is very efficient with the use of up to date technologies. The use of the cresses as decorations and seasoning for dishes is the right use of the product. Healthy food is an upcoming trend and cresses will add extra value to this trend. This could be an opportunity. A Threat could be that the use of cress is just a temporary trend. Another threat could be a bacteria outbreak, which will be the end of cresses.
The cresses are quite expensive, partial due to a marketing point of view. It gives the cresses the image of a luxurious product. When Koppert Cress changes this image to a more common product (but still keep it luxurious), it could create a new opportunity to reach new customers and keeping the current audience. Threats could be that the high price could lead to no growth in demand and a new great supplier could enter the market with lower prices.
Koppert Cress produces their products in the Netherlands, but they could produce their products in a foreign country where the staff costs will be lower. Koppert Cress is communicating directly with their customers, because they are able to provide the guests with the best product information. This is a very well thought of strategy, but it could open up a chance when they also directly supplying their products to the customers, instead of using traders in between. Koppert Cress is not focussing on retail, but this could be an opportunity as well. Koppert Cress is focussing completely on the pull strategy, but it could be that this strategy might not work anymore in the future.
Koppert Cress has several tools for their marketing. The company attend several food fairs, created the Cressperience, inviting chefs to cook in their Molteni kitchen, organising workshops for people to become familiar with cresses and are growing cresses on board a a cruise ship of Holland America Line. What Koppert Cress could do is making cresses attractive to the direct consumers, like households. They could to this, for example, by creating recipes where they use cresses as ingredients. This could be an opportunity to attract again more customers. To reach this, they have to make cresses easy available for the direct consumer. Threats in promotion could be that the Cressperience becomes out-dated and that the Molteni kitchen could lose its prestigious image due to the development in technology.
The Fair Food Theatre of Rob Baan and Bob Hutten is a great concept to implement in schools and companies. This is an opportunity to create revenue by implementing this concept, it could make the customers aware of healthy food and it could make cresses popular. When this will not happen in the near future, it could be that competitors will come up with a similar concept. One of the objectives of Koppert Cress is to make the Netherlands the healthiest delta in the world.
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