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Growing Gloucestershire Conference

Delivering a new product to the market-from scratch Speaker John Taylerson

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Growing GloucestershireMarketing

• Introductions

• Marketing, what is it?

• Why it is important

• How it is much more simple than it sounds

• How will you know if it is working

• Some issues about starting from scratch

• Questions

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SpeakerJohn Taylerson FCIM, MBA, Chartered MarketerCurrently re-launching owns and runs TAYLERSON˚S MALMESBURY SYRUPS

Started from scratch to putting product on-shelf in John Lewis Oxford Street in under 12 months

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Can you guess where its made?

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A 1 litre bottle of syrup can multiply in value

X 3.3

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Not every flavour is a good idea?

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Milk can be found in one of these

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And can also be found in one of these

+ goats, sheep, soya, oats, rice in fact, apart from a stone, if you squeeze most things hard enough liquid will flow out; whether it’s fit to put in your coffee is entirely up to you.

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Milk Varieties Nutritional Information/200ml

Calories Protein Carbs Fat % Pence/litre

CI - Jersey and Guernsey milk 220 7.8 10.8 4.2 155

Whole Milk 150 6.8 10.2 3.5 70

Lactose Free Whole milk 116 6.8 5.4 3.5 135

Organic whole milk 150 7 10.2 3.5 106

Goat Milk 142 7.2 9.2 4.25 158

Semi Skim 100 6.8 10.2 1.6 59

Organic Semi Skim 100 7 10.2 1.6 69

Skimmed Milk 72 6.8 10 0.3 62

Organic Skimmed Milk 72 7 10 0.3 96

Soy Milk 76 6 4.6 1.8 99

Unsweetened Soy Milk 64 6.6 0.4 1.8 99

Almond Milk 94 1.8 5.6 2.8 160

Unsweetened Almond Milk 34 1.3 1.2 0.15 160

Rice Milk 110 0.4 22 4.6 185

Unsweetened oat Milk 70 2 13 4 179

Hazelnut Milk 110 1.2 13 3.2 279

Source: Fitness Treats 2012

Increase convenience and reduce waste

Dairystix give customers a way to add milk on the go – perfect for their cup of tea

Dairystix are made from pure UHT milk so no spoilage and increased portion control i.e. they last 6 months and don’t use up fridge space

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The Chartered Institute of Marketing?Largest professional body for marketersFounded in 1911

Aim: to help marketers throughout their careers 45,000 members Membership, Qualifications, CPD, Training, Events

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MarketingOur definition

The management process responsible for identifying, anticipating and satisfying customer requirements profitably.“ “The Chartered Institute of Marketing, 2009

Future sales

Now

Sustainable

Understanding what they value

Needs

Responsibility of whole company

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Put another way…“The right stuff”

Right products and servicesRight peopleRight timeRight priceRight promotionIn return for the right level of profit C

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Why is it important• Knowing

– Who– Where– When– Why– How often– How much– How differentThe management process- risk managementCost of sale- The Gross margin calculation!

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Simples?

You only need to know…3 things about marketing?

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1 Segmentation

• Dividing the market into subsets of customers/consumers who have common needs, wants, desires, medication, hair colours, cars, hobbies, children, garages, holidays, wives, husbands, problems, diets, travel, ties, greenhouses, music taste, political affiliations, pets, gardens, pests etc……….

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2 Targeting

• Where are these customers hiding?• Where can you get at them most effectively• Cost of sale…….

Just because you found a gap in the market doesn’t mean there is a market in the gap!

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3 Positioning

• Why are you different to everyone else- difference

• Price, provenance, packaging, personality ………etc…..

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How does this all work

Segmenting, targeting and positioning all key to F&DBut so is cash!Investing new products should mean inventing new sources of revenue…(where from? who from? why from?)Food and drink is the single biggest manufacturing industry in the UK- and people keep eating and drinking

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New products

• What is a new product?– Augmenting the existing?– Adapting to meet new needs– Start from scratch- new– Buy someone else's model and adapt it

Ansoff matrixmore to existingfind new customers for existingnew products for existingnew products new customers

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Ansoff Matrixa simple way of deciding what to do next?

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Sources of inspiration?

What is a good idea?• How to test?• Is it objective?• Has someone else already done it?• If they haven’t, why not?

– Leader or follower (no shame in following)

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Start from scratch?

Advantages• New rules• No legacy costs• Re-position, start from

somewhere else• Potential for lower costs,

lower cost base- (fixed and variable)

• Ability to change and adapt

Disadvantages• No cash• No customers• No goodwill• No contacts• No awareness• No systems• No people• No knowledge

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Money

• Sunk, fixed and variable costs

• Cash flow

• P&L

• Balance sheets

All should be key to a marketing plan

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The Markets for food & drink

• Food service– County show milk bars– Hotels restaurants bars– Offices– Institutions

• Retail– John Lewis, Waitrose,

• Direct on-line- and via Amazon

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Marketing process:

Research

Product Development

Pricing and DistributionPromotion

Tracking and measurement

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Marketing process- put another way

Do more of what works

Do less of what doesn’t

Not as obvious – do you know what works and what doesn’t?Worse- some stuff that doesn’t work might facilitate the stuff that does…….?

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Thank youQuestion Time

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Contactwww.malmesburysyrups.co.uk

www.dairystix.com

coffeesyrups.wordpress.com/

www.facebook.com/pages/Dairystix

www.facebook.com/coffeesyrups

@dairystix @JTMalmesbury