high-end food: the role of market identification ... · may 7th, 2018 april 18th, 2018 november...

Dr. David HughesEmeritus Professor of Food Marketing

Asian Food & Agribusiness Conference:

Smart Food Value Chains

Asian Productivity Organization

Holiday Inn, Silom, Bangkok

Tuesday, June 11th, 2019

High-End Food: The Role of Market

Identification & Customer Management

@profdavidhughes

www.supermarketsinyourpocket.com

Source: Based on Business Generation Model of Osterwalder & Pigneur (2010)

courtesy of Professor Andrew Fearne*, Norwich Business School, UEA, UK (2019)

Smart Value Chain Development Framework*

The focus is on Value Design, differentiated for distinct customer and consumer segments in distinct distribution

channels requiring distinct value propositions (products & services) delivered via collaborative relationships that

facilitate the flow of information that is essential for efficient & effective resource allocation. Strategic management

is about resource allocation and SMEs are resource POOR. However, they’re more nimble than larger businesses!

Homestead

South Florida, USA1987-2002

Florida Pop. 13m in 1990 (22m now). 126m visitors in 2018

Herbs in Pots (“Living Herbs”) Worked Well

For Us But “Living Lettuce” (Lettuce Deluxe)

Failed to Win Customer Support.

October 19th, 1987 Jerry & David Fly from

Barbados to Miami, USA

on October 19th to Establish

Herbonics as a Business!

The “Eye” of the Hurricane (Typhoon) Went Slap Bang

Right Over Our Farm Business Picking Up 3 Ha. of Our

Green Houses and Deposited Them in the Gulf of Mexico!

By December, 1992, We Had Rebuilt and Had Record Sales

During the Christmas and New Year Period. We Sold the Business

In 2002 by which time We Had 8 Ha. of Green Houses.

280 kph

Delicious Fresh Food with a Strong Local Story

Devon

England

The Royal George

Appledore, Devon

England, UK

Customer Profile: Diners Who Want A Special Location

For A Special Meal with Friends and Family.

Upper Market But Casual & Friendly (for dogs, too!)

The Intent is to Maximize the Use of Local Foods

and Drink Products and to Celebrate This Sourcing

Policy with Our Customers. The Principal Constraint

We Have is Securing Consistent Quality and Quantity

of Local Meat, Fish and Vegetables.

We Seek Suppliers Who Understand: the Seasonal

Nature of Our Business as We Understand the Seasonality

of Theirs; and Who are Confident They Can Grow with Us!

Sailors Rest

Mid-Market

The Royal George

Up-Market

Sailors Break

Food Truck

• Younger/Students

• Families with Kids

• “Day Trippers”

• Surfers & Swimmers

• Locals

• Older Couples

• Special Occasion Diners

• Higher Income

• Staying the Week

• “Day trippers”

• Morning/Afternoon Walkers

• Middle Income

• Families with Children

• Locals

$15-20/Customer $40/Customer

$7-12/Customer

What Food & Drink Products are Best Suited for Each of These Outlets?

Food Gifting in China & Across Asia

Source: Plant & Food Research NZ

The Super Premium Gift Market for Food

In Asia Sometimes Defies Understanding!

In High End Bangkok Supermarket

These Grapes were US$145/kg.!

That’s US$28/kg. RSP

Beijing Very Ordinary Supermarket

That’s US$2.45 per

125 grm. RSP

In Asia, In General, and China in Particular, Health Attributes of Food

Products have Substantial Resonance with Consumers of All Ages

First $1 Bn. In 1 min. 25 sec.!

February 18th, 2019

February 22nd, 2019

April 22nd, 2019

Investors and Consumers Lose Trust in KH

Sleeping at the Wheel? Too Little Too Late?

“I’m a terrified dinosaur. I’ve been living in this

cozy world of old brands and big volumes. You

could just focus on being very efficient and

you’d be OK. All of a sudden we are being

disrupted in all ways”

Jorge Paulo Lemann

Co Founder 3G Capital

“We bought brands

and we thought they

would last forever.

Now we have to

totally adjust to new

demands from clients.”

Jorge Paulo Lemann

Co Founder 3G Capital

There’s a Distinct Pattern for

Most Millennial Start-Ups:

• owners are front and centre

• and so are their values

• minimal processing

• all natural (of course)

• link with local charity

• strong “green” credentials

• regular, folksy blog

• owner’s Mum often featured!

It’s a Fabulous Time to be a Start-Up Co. with On-Trend Food & Drink Product Ideas

Note The Focus on The

Farmer, Naturalness,

Few, Simple Ingredients,

Small Business Owners

Kraft Heinz Implements

“Hurry Up Defense”?

May 7th, 2018

April 18th, 2018

November 30th, 2018

May 7th, 2018

March 7th, 2019

Erbology was the 1st Euro Winner

European Incubator Winners

2018/19

Purchased November 2018

October 30th, 2019

April 18th, 2019

Complements its enjoy life “free from”

acquisition of 2015

May 7th, 2018

Accelerating NPD: FMCGs Equivalent of Sweeping the Augean Stables!

April 10th, 2019

March 6th, 2019

SUPER Trends:

Clean Labels

Free From

And Embraced by All Segments of the Market Place

“How’d You Like Your Chicken?”

“With Adjectives, Please”:

•free-range ….;

•known provenance …

•Farmer Anurak ….

•Araucana ….

•rare breed (Silkie)…

•slow-growing …

•vegetarian diet …

•organic …..

•Omega-3 rich …...

•happy …

•environmentally-friendly …

What’s The Story Wrapped Around Your Meat?

College-Educated

Pigs Exclusively

Used for Waitrose!

!

“How’d You Like Your ……..?”

“With Adjectives, Please”:

• ………

What’s The Story Wrapped Around Your Product (Or Service)?

What’s in a Name?

Considerable Value

When Lentil Name

Associated with Caviar!

The Value is in Adjectives!

Popcorn

in Bowls

with

Adjectives

CONTACT POINTS:

e-mail:

profdavidhughes@aol.com

Telephone contact:

mobile +44(0)7798 558276

@ProfDavidHughes

Retail Blog: www.supermarketsinyourpocket.com