high-end food: the role of market identification ... · may 7th, 2018 april 18th, 2018 november...
TRANSCRIPT
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:
Telephone contact:
mobile +44(0)7798 558276
@ProfDavidHughes
Retail Blog: www.supermarketsinyourpocket.com