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CAMPOFRIO FOOD GROUP

Student: Crisbăşan Adriana


Specialization: Business Administration
Year: II

1. Introduction
Campofrio Food Group is one of the largest processed meat companies around the world that is
specialized in the next products: dry sausages, cooked ham, dry ham, frankfurters, pates, poultry

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and ready meals. The company resulted from the merger between Groupe Smithfield and
Campofrío, both being family companies, in 2004. Campofrio was founded in1952 in Burgos,
Spain. In 1988 it entered on the stock market and after two years starts to produce in Moscow.
Between 1998 and 1999 buys some small companies from France, Portugal and Romania.
Campofrio group is an international food and nutrition consumer – oriented group and also is the
leading processed meats company in Europe, and one of the five largest processed meats
companies worldwide with a turnover of almost €2.1 billion. Campofrio Food Group employs
are more than 11,000 people in the eight countries where it is present.
There are today 7 inter-dependent operating companies in the new group: Campofrio (Spain),
Groupe Aoste (France), Aoste SB (Germany), Imperial Meats Products (Belgium), Stegeman
(The Netherlands), Tabco-Campofrio (Romania) and Nobre (Portugal). Each company has a
strong leadership position in the processed meats market in its country, being either in the
number 1 or number 2 positions, with the exception of Aoste SB which is active mainly in the
high premium segments of the German market. Campofrio bets on development both through
organic growth and acquisitions in these countries. The group follows the added value strategy
and is focused on producing healthy food solutions.

2. The macro environment


Macro environment is made from all the elements that can not be controlled or influenced by the
firm. These elements are:
a. Demographic environment;
b. Natural environment;
c. Political and legal environment;
d. Economic environment;
e. Social – cultural environment;
f. Technological environment

2.1 Demographic environment


The industries in witch Campofrio works are meat production and canned and frozen foods. The
most important competitors that the company has in the world are: Moksel from Germany,
Nutreco from Netherlands and Sadia from Brazil. In Romania the competitors are Cris –Tim,
Aldis, Angst and Caroli Foods.
When I’m talking about the age structure and the distribution of the population I can say that
Campofrio’s products are consumed by people off ale ages and from all over the places, where
the food is distributed. Campofrio addresses to children with all kinds of hams and Frankfurt,
having also for them a special range called “Junior” and to the teenagers and the adults with all
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their products especially with the “ready meals” made for those who don’t have much time to
cook. They also posted on their web site a recipe book and an article where’s wrote about their
nutritionist and his e-mail where people can ask about Campofrio’s products.
Regarding the distribution of the population, consumers that buy these products are from the city
and from the country side also. In some places like Romania people from cities afford to buy this
kind of food but country side people can not pay for those products. But this problem has a
solution: partners all over the Europe are working on creating new efficient recipes for the
customers who seek for lower cost products.

2.2 The natural environment


The products that these consumers buy are made from natural resources: like beef, pork or
chicken, condiments, water, little fat, fresh vegetable for salads, etc.
Producing all this food can also increase the level of pollution. Campofrío has an environmental
management system designed to control the activities of its productive facilities and their
environmental impact. Aware of the importance of dedicating resources to ensure that its
industrial activities are environmentally friendly, the Campofrío Group has close ties with
suppliers that demonstrate high environmental standards. Campofrío has also put into place a
series of measures to promote the development and diffusion of technologies that minimize
environmental damage. At two of the Group’s facilities, specifically in Burgos and Toledo, there
are electricity cogeneration plants which enable significant savings in fuel, electricity and water.

2.3 The political and legal environment


Campofrio Food Group it is founded in Spain, where the type of organization is constitutional
monarchy. The other countries where it has plants, excepting Netherlands witch is also
monarchy, are republics. Also Campofrio’s plants location, excepting the one from Russia, are
part of European Union.
Like Germany, France Netherlands, Belgium, Portugal and Russia, in Spain is more political
stability then in Romania.
The law system to witch the company complies is The European Union Legislation. The concern
of the European Union is to make sure that the food people eat is of the same high standard for
all its citizens, whether the food is home-grown or comes from another country, inside or outside
the EU. This was a response to headline-hitting food safety scares in the 1990s about such things
as ‘mad cow’ disease, dioxin-contaminated feed and adulterated olive oil. The purpose was not
just to make sure that EU food safety laws were as up-to-date as possible, but also that
consumers have as much information as possible about potential risks and what is being done to
minimize them. So there are some standards that Campofrio Food Group must apply to: a careful

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watch is needed to be kept over what can go into our food when it is grown or produced, and
when it is processed; chemical additives are banned unless they have been approved for use in
foods (approval means first undergoing extensive evaluation by the European Food Safety
Authority); specific rules apply to food additives, such as colors, sweeteners, emulsifiers,
stabilizers and thickeners, and gelling agents; the hygienic standards are very drastic and so
every step of the production of the food must stay to that standards; The fundamental principle of
EU food labeling rules is that consumers should be given all essential information on the
composition of the product, the manufacturer, methods of storage and preparation. So Campofrio
Group complies with the European legislation in order to continue the activities in the company.
In Spain as in Germany, France, Belgium the legal changes are made rarely and they are
anticipated, meaning that the company it is find in a stable environment (excepting Romania
where the legal environment is unstable).

2.4 The economic environment


Spain's economy is the eighth largest worldwide and the fifth largest in Europe. As of 2007,
absolute GDP was valued at $1,439,000 trillion. The Spanish economy grew 3.8% in 2007
outpacing all G7 members and all the big European Union economies for the 3rd consecutive
year. Spain is also the 3rd largest world investor. The Spanish economy is credited for having
avoided the virtual zero growth rate of some of its largest partners in the EU. In fact, the
country's economy has created more than half of all the new jobs in the European Union over the
five years ending 2005 and it has been regarded lately as one of the most dynamic within the
European Union. But now, since the economic crisis started, the inflation rate has increased from
5% to 5.3% and the food prices have grown with 7% compared with the one from last year, in
2008. Therefore the Spanish government approved a series of economic reforms aimed to get
out of the impasse the Spanish economy. The plan provides a package of 20 million euros,
whose role is to support families in an attempt to have the access to credits.
As for the employment, after having completed substantial improvements, Spain suffered a
severe setback in October 2008 when it saw its unemployment rate surging to 1996 levels.
During the period October 2007-October 2008 Spain saw had its unemployment rate climbing
37%, exceeding by far the unemployment surge of past economic crisis. In particular, during this
particular month of October 2008, Spain suffered its worse unemployment rise ever recorded
and, so far, the country is suffering Europe's biggest unemployment crisis.
The inflation rate and the unemployment fact can affect Campofrio Group because the buying
power needs to be reduced and because of this also the production needs to be reduced. The
consequence is the loosing of profit and that leads too more people unemployed. But there is a
good thing, the company produces meat products, products that are consumable goods and

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represent a need of the customer and also Campofrio has a strong tradition and brand on the
market that will help the company to pass the crisis.

2.5 Social – cultural environment


In 2003 the percentage of people who were illiterate was 1.9 and there were 45.4% of the
habitants with secondary diploma and 38.1% with post-secondary diploma. This numbers shows
that in Spain the level of culture is high. Like in other country, here people are taught to follow
the healthy life trend. This means that Spanish people appreciate natural food so they also choose
locally meat products, like the ones from Campofrio.

2.6 Technological environment


Campofrio is known for the concept of a thinner slice. This is possible today because of Navidul,
a company that through innovation has a leadership vocation in the self –service segment (sliced
and diced meat). They have the technology and the equipment necessary for this concept so
Campofrio closed a dial with them.
Also in 2007 Campofrio’s IT department consolidate the SAP software. This helped the
company to implement the “Vital” intranet portal in Romania and Russia and also made the
internet services more secure.
During its first year of operation, Carnes Selectas, the select meat abattoir, benefited from
several important IT upgrades such as the new CBS cluster, management of the freezer
warehouses, palletisation of orders, automated order loading, etc.

3. The microenvironment
Microenvironment includes all the factors that can be controlled or influenced by the company
and it is divided in two categories:
a. internal microenvironment;
b. external microenvironment
3.1 Internal microenvironment
Campofrio Food Group is a company that is oriented to customer and society and sales. The food
sales and marketing division is responsible for the distribution and penetration of new products.
The work of the marketing department is to understand customer needs in the knowledge that its
customers do not share a unique vision of the business and that there is no single buyer profile.
In 2007 Campofrio Group perfected its customer service by strengthening customer loyalty,
supporting the company’s sales network and increasing sales.
The marketing activity for the company is as important as the other activities and the marketing
function is an integrating one for the other activity.
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3.1.1. Company’s culture
The company’s culture is a very important part of the microenvironment that explains the
existing of Campofrio Group. This culture is represented by the values promoted by the
company. Theses statements are:
- Surpass customer and consumer expectation;
- Support and maintain the standards demand of its employees and managers;
- Commit to global and individual targets;
- Culture of continual improvement;
- Culture of ongoing learning and renewal;
- Teamwork, underpinned by a proactive collaborative work climate;
- Honesty always

3.1.2 Human resources


Campofrio Food Group respects its human resources for one important reason and that’s the fact
that the company wouldn’t exist if the people who work in here wouldn’t exist. The human
resources is indispensable to any activity made in the firm and that’s why the company helps and
stimulates the workers to make a great job.
Campofrio has growing on a sustained basis: this translates into job and career development
opportunities for the workforce. One of the most important initiatives taken by Campofrio Group
in 2007 was the implementation of the personalized compensation system called “Campofrio
e-Flex”. This scheme shows the total contribution of the employee in the company and in this
way he or she will be paid as most efficiently as possible. This stimulates the people to work and
to be responsible.
Also there is a special program in witch employees are trained and this helps them because they
can advance in their career.
3.2 External environment
The external environment includes four important elements: suppliers, competition, distributors
and clients. Campofrio’s suppliers provide the company food and material for the production of
the processed meat, human resources, financial resources, technology and information.
For the food resources Campofrio Group has constituted a strategic alliance with Proinserga Inv.,
S.A. that is now the supplier of fresh meat, thereby guaranteeing the entire meat chain, from the
feed to the finished product. Also another supplier is Smithfield Foods who is the leading pork
meat producer in the United States, both fresh and processed, as well as being the first producer
of pork livestock, with approximately 750,000 reproductive sows and a slaughter capacity of 20
million head/year in that country.

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In the technology field two of the suppliers is ImageID and Zetes. They provide scanners used
for verification of transportation and products that are transported. Concerned with prolonged
lead times resulting from manual verification of thousands of time-sensitive shipments every
day, Campofrio turned to Zetes and ImageID. In this way the company is saving time and
money. Also here are two more suppliers Navidul Cogeneracion, S.A and Cogeneradora
Burgalesa, S.L. The first one implements and operates other equipment and installations for the
development of energy-related technologies and the second one operates the thermoelectric
plants to optimize electricity consumption for industrial and services sector use.
For the information resources one of the providers is Gecalial, S.L., from Madrid, that activities
related to marketing, sale, manufacture, processing and industrialization of livestock farming and
meat products.

3.2.1. Competition
As any other company Campofrio has its on competitors. The direct ones are some of the top
companies in the world: Moksel from Germany, Nutreco from Netherlands, Sadia from Brasil
and from America U.S. Pilgrim's Pride, Hormel Foods and Sanderson Farms. Campofrio has also
indirect competitors from all over the world. These companies are not so big; some of them are
small or medium companies, in different countries. For example in Romania some of the
competitors are: Cris-Tim, Aldis, Angst and Caroli Foods. Even though these firms appear
harmless, Campofrio tries to be prepared, because it is possible that some of those firms to
become a top company and a top competitor.
When it comes to the competitive position Campofrio is situated on the powerful position,
because it has a strong tradition and brand and it can act independently on long term.
3.2.2 Distributors
Campofrio Food Group has distributors with commercial function and with physical distribution
function. The first type refers to the supermarkets, restaurants and hotels, like METRO,
Carrefour, McDonald’s, Alcampo, Auchan, Eroski, Consum, DIA, RIU Hotels,etc, that sell the
products. The second distributors refer to the transportation that is made by trucks and boats.

3.2.3 Clients
Campofrio Food Group it is found in a market where the buyers haven’t got the same needs.
First there is the client represented by any habitant of a country. Its need is the food that probably
he or she is going to buy from a local market, several times in a month by going in to the store
and choosing the type of meat he or she needs. But here appears the segmentation because the
customers are different by gender, age, level of education, location or level of income. So the

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company has hired specialized people in research domain, to know what the client needs. The
result was finding the subgroups and they were: clients that are children and for them appeared
the “Junior” products, people who are adults and have a busy life and for them Campofrio made
cooked meals, for the ones with the low level of income specialist improved the recipes and so
they made cheaper products, for the clients with a higher level of education they still have the
old recipes and for buyers from different countries they made meet specialties from that part of
the world(example: for Italy there is a special kind of ham called Parma ham, for Germany it
there is the frankfurter, Belgium and France have the pates, Spain has dry sausages and Romania
different kinds of ham).
All the segments above are very important to the company because all of the products that
characterized each segment bring profit. Campofrio Group produces processed meat and that it is
a very important need of the clients so all the segmentations have almost the same stability.
Because Campofrio Food Group has a diversity of products, for everyone, it is a great competitor
and the company should follow that value where they say that they like the innovation.
In conclusion Campofrio it is situated in the industrial market and it is both a producers and a
sellers market.
But Campofrio it is also positioned after other criteria: considering the healthy, little fat
processed meat; after the ratio price/quality since they come with the innovation of products
specially prepared for people with low level of incomes; positioned regarding the way in witch
the products are used in this case it is used to satisfy the need of food and it is associated with the
origin of the product, Spain.
After talking about the factors above it is important to say that client has also the buying
decision. In this case the buyer is influenced by:
-the cultural factor: clients need different types of meat because of the religion, nationality, level
of income, etc.
-social factor: it is well known that people are influenced to buy products by the family or by the
group they belong to.
-personal factors: the needs of clients are different because of the age, lifestyle or economic
situation.But as I was saying Campofrio created different kinds of meat and food products to
satisfy a big part of clients.

4. Marketing Mix

4.1 The product


Campofrio Food Group produces consumable goods, that are food goods. This type of product is
tangible, it is bought very often and it is produced to be consumed after few using.

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4.1.1 The levels of the product:
First there is the fundamental advantage of the product in this case, the food can be ate. The
second level is called the main product and that is the processed meat. Next is the expected
product. Here Campofrio has the dry sausage, the cooked and dry ham, the frankfurters, the pates
and the poultry. The forth level is the improved product; here we have the milk sausages,
Vitalissimas products (different kind of ham with a low quantity of salt with a lot of minerals),
different kinds of salads and also 4 types of pizza.

4.1.2 The brand


Over the time Campofrio suffered some changes regarding the
symbol of the Company. In 2004 when Campofrio and Smithfield
Group formed Campofrio Food Group the sign has been changed again. This logo illustrates a
flower with seven colorful petals. This drawing has a meaning to: the beauty of diversity and
wealth and depth of the employee’s talent and abilities in a single colorful image that is powerful
and easy to recognize.But this is not a unique brand. The company choused a different name and
symbol for every country that produces its food. So for France is Groupe Aoste, for Germany is
Aoste SB, Imperial Meats Products in Belgium, Stegeman in Netherlands, Tabco-Campofrio for
Romania and Nobre for Portugal.

4.1.3 Packaging
The package is different from product to product. Usually the container is made of plastic
material. In 2007 the company came with a new design, bringing back the see-through window
and using materials that evoke traditional charcuterie materials; slices oh meat are separated by
special separation paper and the image of the packaging is up-to-date and in line with the brand’s
leadership.

4.1.4 Label
Attention to detail: a product must be tasty, natural, with an elegant label that's ads value to the
product. This is one the conceptions in Campofrio Food Group. The company respects its clients
and this is a fact demonstrated through correct information about all the ingredients contained in
products, information transmitted on labels. They also write the date of fabrication and the
expiration date and the nutritional values. For every 40 countries, where Campofrio’s products
are on the market, the labels are made in the language of that country.

4.2 The price

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This is also an important part of the marketing mix, because if it is choused right it can maximize
the profit, but if its not choused after studding the costs of the production, the price of the
competition and the needs of the clients, it can help any company to fail.
Campofrio Food Group has been helped by its on marketing department to find the prices they
need for their products. In the end of 2007 the costs were of approximately 900 thousand euros
in Spain. After studding the price of competition’s products that is closed to Campofrio’s prices;
the clients (in the microenvironment study); the objective of the company: somewhere between
maximum gain by exploiting the market very fast and to become leader regarding quality; the
demand: in this case the demand of processed meat has increased compared with the last years,
The team came with a price with different prices for their products.

4.3 Distribution
It is done in two big ways:
a. Direct distribution: in this case the plants have their on shops from where people or other
companies can buy Campofrio’s products;
b. Distribution channels: this is the case of companies who brings Campofrio’s product to
the final customer. For example supermarkets like METRO or Carrefour or restaurants
like McDonald’s.
The channels of distribution for Campofrio Food Group is the one and two level channels. For
the first type we have the example Campofrio – METRO- a simple client who uses the meat for
own consumption or Campofrio – McDonald’s – client and for the second type of level an
example is Campofrio – METRO – any supermarket – client.

4.4 Promotion
This concept is represented by three elements:
a. Advertising:
Campofrio uses different ways of advertising. One channel is the television. The company paid
big amount of money for the creation of spots. The most known advertise in the world is the one
where a woman wants to eat a slice o ham but she drops the food. In this time her dog fills the
smell of the ham and he runs to get the slice. The woman sees the dog and she opens a kitchen
drawer and “saves” the slice. The dog hits him self and he falls and the woman takes the slice
and she eats it.
Also the company’s advertise appear in specialized food magazines, banners, on Spanish Golden
Pages and on the internet, where the group has its on web pages for all the countries with plants.
They also have a web site where they promote their products and offer recipes.

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4.4.1 Promoting the sales
The instruments used by the company for the customers are:
-reduced prices: Campofrio made special recipes for some products to reduce the costs and the
prices.
-bigger quality at same price: the company improves its food goods every year and for some of
the products like the ham or sausages they do not rise the price.
-rewards for loyal customers: over the time the company had different promotions like in
Romania there was the “Precious processed meat” promotion where people could gain golden
necklaces.
The instruments used for the distributors are:
-reduced prices;
-display products at the best area: usually in supermarkets you can see that Campofrio’s products
are displayed at the level eyes, witch is good because the clients see these food gods first.

4.4.2 Public relations


Campofrio has different type of PR:
a. Uncomercial publicity: The company was the sponsor to some local Spanish sports
events.
b. Corporate communication: with the help of IT department the SAP software was
improved and so the intranet portal helped Romania and Russia to have their one
corporate communication.
c. Giving free consulting: on the web site from Spain there is an e-mail for the Campofrio’s
nutritionist who can help the clients with any kind of question regarding the products of
the company.

5. Conclusion

Since foundation in 1944, Campofrio has been characterized for its unflinching customer
focus. Through its trajectory dating back over 60 years, it has positioned itself as the leading

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agro-food player, within a clearly defined and well established vocation for bringing its
products portfolio to the next level in terms of quality and innovation.
The marketing mix segment occupies an important place in the company because with its
strategies Campofrio Food Group makes it in the top five companies in the world. By
studding the product, price, promotion and distribution the company manages to satisfy the
needs of all its customers and to maximize its profits.

6. References

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http://www.campofriofoodgroup.com/

http://ec.europa.eu/publications/booklets/move/46/index_en.htm

http://www.campofrio.es

http://www.tabco-campofrio.ro

http://www.campofriofoodgroup.com/pls/portal/

http://www.cbronline.com

Table of contents

1. Introduction
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2. The macro environment
2.1 Demographic environment
2.2 The natural environment
2.3 The political and legal environment
2.4 The economic environment
2.5 Social – cultural environment
2.6 Technological environment

3. The microenvironment
3.1 Internal microenvironment
3.1.1. Company’s culture
3.1.2 Human resources
3.2 External environment
3.2.1. Competition
3.2.2 Distributors
3.2.3 Clients

4. Marketing Mix
4.1 The product
4.1.1 The levels of the product:
4.1.2 The brand
4.1.3 Packaging
4.1.4 Label
4.2 The price
4.3 Distribution
4.4 Promotion
4.4.1 Promoting the sales
4.4.2 Public relations

5. Conclusion
6. References

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