marketing b.c. agri-food and seafood products
TRANSCRIPT
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Marketing B.C. Agri-Food and Seafood Products
Location: Nanaimo
Date: January 16, 2015
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Agenda
8:30 am Welcome and Introductions
9:00 am 8 Steps to a Market Driven Marketing PlanOverview of the B.C. Marketplace
10:00 am Break
10:20 am “Inside Scoop” Presentations:
Overwaitea and Gordon Food Service
12:15 pm Networking Lunch
1:15 pm “Hands-on” Group ActivityDeveloping a Market Driven Marketing Plan: Domestic Market
2:40 pm Break
3:00 pm Presenting and Reviewing Marketing Plans
4:00 pm Closing Remarks and Evaluation
4:30 pm End of Workshop
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Marketing B.C. Agri-Food and Seafood Products
Building Your Market-Driven Marketing Plan
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Goals and Objectives
Target established B.C. companies pursuing domestic retail or food service distribution.
Designed for:• Companies that have product(s) in the market• Companies that want to expand their markets
Objective: • Provide invaluable market intelligence • Apply new intelligence in a marketing plan ULTIMATE GOAL
Build marketing capacity within BC’s
Agrifoods industry
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8 Steps to a Market-Driven Marketing Plan
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Assess the Current Situation
Identify Your Target Market
Position Your Product
Set Your Marketing Objectives
Build Your Brand
Build Your Action Plan
Evaluate Your Marketing Plan
Set Your Sales Objectives
Market Driven Marketing Plan
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STEP 1 : Assess the Current Situation
Business GoalsMarket DriversConsumer and Product TrendsBuyer TrendsCompetitive LandscapeSWOT Analysis
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Business GoalsAssess the Current Situation
Define your businessMarketing plan must be consistent with business goalsMarketing plan must contribute to short and long-term business goalsSMART
S-pecific
M-easurableA-chievableR-ealisticT-imely
Document and review goals regularly
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Business Goal ExampleAssess the Current Situation
For example:
Long Term (3-5 years):Achieve company value of $10 million by 2018
Short Term:Increase company profit by 12% by December 31, 2015
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Market DriversAssess the Current Situation
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Multiple, widely publicized food scandals
Reduced consumer confidence in the global food supply chain
Quick access to information through social media
“Transparency will no longer be an option” (John Keogh, Shantalla Inc.)
Market DriversAssess the Current Situation
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Canada B.C.
Population 2014 35.54 million 4.63 million
% of population 65 and over
16% 17%
Population 2028 40.39 million 5.47 million
% of population 65 and over
22% 23%
Sources: Statistics Canada and BC Government (2014)
Market DriversAssess the Current Situation
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Evolving concept of aging
Life expectancies changing
Nutritional needs vary
Example:Over 55’s wanting to stay healthy and active75+ years of age addressing disease issues
Market DriversAssess the Current Situation
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Major diseases that can be impacted by nutrition:
Obesity•Affects almost ¼ of Canadian population•Impacts many other chronic diseases e.g. CVD, diabetes, bone/joint•Impact is long term
Cardiovascular Disease•More than $20.9 B cost to health care system in Canada
Diabetes•Affects 3.7 million Canadians (95% with Type 2)•Often manageable through proper exercise, diet and weight management•More than $12.2B cost to health care system in Canada
Market DriversAssess the Current Situation
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Perceptions of Food & Dietary Health– Region
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ABCDEF: Significantly higher than sub-group represented by that letter.Base: All respondentsQ1a. Using a scale of 1 to 5, where 1 is strongly disagree and 5 is strongly agree, please tell me your level of agreement or disagreement with each of the following statements...
% Agree, Rated 4 or 5
Total(n=1,200)
BritishColumbia(n=161)
(A)
Alberta (n=128)
(B)
Saskatchewan/Manitoba
(n=78)(C)
Ontario(n=460)
(D)
Quebec (n=288)
(E)
Atlantic(n=85)
(F)
I believe the foods and beverages I consume
affect my health88% 92% 93% 89% 86% 85% 91%
I have made changes to my diet because of a
specific health concern47% 52% E 42% 55% E 53% E 33% 58% E
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Increasing scrutiny of food system by regulators, social activists and consumers
Concerns over:Ethical and welfare standardsFair-TradeProvenanceBio-diversityPackagingFood lossFood waste
Market DriversAssess the Current Situation
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Food and Consumer TrendsAssess the Current Situation
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Driven by demand for food safety and transparency
Top Canadian consumer reasons for buying local (2013 BMO Survey):
Freshness and better tasting(97%)Supports the local economy (97%)Supports local farmers (96%)Creates local jobs (93%) Better for the environment (88%)Offers the opportunity to buy organic product (76%)Less expensive (71%)
Food and Consumer TrendsAssess the Current Situation
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GlutenGMO (genetically modified organisms)PreservativesAllergiesHormonesDairyLactoseWheatSugarFat (reduced fat)
Food and Consumer TrendsAssess the Current Situation
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Globally, doubling of gluten-free claims since 2006 (Datamonitor)
Market expect to grow 15% - 25% per year (AC Nielsen)
US sales of gluten-free food and beverages to exceed $6.5 billion by 2017 (Packaged Facts)
Question of whether or when the trend will plateau?
2. “Free From”
Food and Consumer TrendsAssess the Current Situation
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Consumers looking for:
Fewer ingredientsIngredients they can pronounce
Food and Consumer TrendsAssess the Current Situation
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The growth of food and ingredients offering intrinsic health benefits
Includes berries to honey
And also includes the astounding growth of plant based proteins (e.g. soy, wheat, pea, hemp, flax)
Food and Consumer TrendsAssess the Current Situation
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Convenience a key driver of innovation in food and beverage sector
Impacts all categories but particularly snacks
Snacking important for today’s consumers24% of all meals in Canada in 2010 were snack meals43% of American population snacked 3-4 times daily in 2012
Food and Consumer TrendsAssess the Current Situation
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Semi-vegetarian eatingThe rise of “Meatless Mondays”43% of Americans consuming vegetarian meals at least once a weekConcern over:
Rising cost of meatIncreased awareness of environment impacts of animalsAnimal welfare issuesIncreased recognition of healthy plant proteins
Food and Consumer TrendsAssess the Current Situation
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How many mass markets are there anymore?
Demand for “eye-catching”, innovative packaging
Targeting the niche but well-defined consumer niches
Addresses several functions:“Consumers - pay attention”Opportunity for price premiumsDefines new category you may be creating
Food and Consumer TrendsAssess the Current Situation
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Sports performance and recovery•Concern for almost 30% of Canadians (BioAccess)•Global sales expected to increase 40% by 2017 (NBJ)
Weight management•Of concern to half of Canadian households particularly those aged 45-55 years of age (BioAccess)•Main focus of new products on satiety and appetite suppression
Seniors’ nutrition•Active “junior seniors”•“Keep healthy to the end”•“Older seniors” – meal replacements, custard formulations, high protein beverages – ease of swallowing •Key priority for food and beverage processors
Food and Consumer TrendsAssess the Current Situation
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Not just people!
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Importance of Trends to Your Company
Focus on trends, not fads
Focus on the staying power of trends
Formulate your strategies around trend analysis
Link into target market, competitors, uniqueness, what it takes to capture a portion of the market
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Buyer TrendsAssess the Current Situation
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Food and Beverage Retail Operating Statistics – British Columbia (2012)
Source: Statistics Canada (2014)
Cost of Goods Sold
Gross Margins
Supermarkets and other grocery (except convenience)
$7,669 million 28.6%
Convenience $ 499 million 19.2%
Specialty food $ 484 million 40.1%
Buyer TrendsAssess the Current Situation
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Sales growth down, 1% versus traditional 3%
Fewer, but bigger, companies
Square footage growing at greater rate than population
More products being purchased in non-traditional food retailers (Walmart, Costco, drugstores)
Rise in ethnic grocery stores
Consumers sensitive to food prices – getting smarter at finding deals
Only way to increase sales – DIFFERENTIATESource: Canadian Grocers annual Market Survey - 2012
Buyer TrendsAssess the Current Situation
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Overwaitea Food Group
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Loblaws in British Columbia
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Sobeys in British Columbia
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Other Chains – British Columbia
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RestaurantsHotels and ResortsHospitalsSchoolsPrisonsRecreational centresSeniors facilities
Buyer TrendsAssess the Current Situation
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Canada British Columbia
Number of restaurants, bars, caterers
89,000 13,200
Number of daily visits to restaurants
18 million 2.7 million
Annual Sales $68 billion $10 billion
Percentage of GDP 4% 4.5%
Food and beverage products purchased annually
$24 billion $3.6 billion
Source: Restaurants Canada (2014)
Buyer TrendsAssess the Current Situation
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2014 sales expect to be $7.7 billion
3.9% growth over 2013
Accounts for 10.8% of Canada’s foodservice industryContract services: 53%Self-operated: 47%
Source: Restaurants Canada (2014)
Buyer TrendsAssess the Current Situation
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Farmers’ and Public Markets
Numbers have doubled in past 10 years
Sales increased 147% between 2006 and 2012
63% of B.C. food shoppers purchased products at farmers’ markets in 2011 (BioAccess)
Buyer TrendsAssess the Current Situation
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Online purchases
68% of B.C. shoppers searching online for information regarding food and beverages (2012)
11% of B.C. shoppers purchasing food and beverages online (2012)
Buyer TrendsAssess the Current Situation
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84% of smartphone shoppers turn to their
mobile phone to help them shop while in a store.
One-third of shoppers use their smartphones
to find information instead of asking store
employees.
Today’s consumers are spoiled for choice.
Faced with this surplus, consumers are choosing to engage only with content that is personally relevant to them, their purpose and their passions.
Buyer TrendsAssess the Current Situation
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72% of all internet users are now active on social media
18-29 year olds have an 89% usage
The 30-49 bracket sits at 72%
60 percent of 50 to 60 year olds are active on social media
In the 65 plus bracket, 43% are using social media
71% of users access social media from a mobile device
Buyer TrendsAssess the Current Situation
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Competitive LandscapeAssess the Current Situation
There are ALWAYS competitive products in the marketplace
Who are the competitors?
What is their competitive advantage?
What is their strength in the marketplace?
What do they do well?
What don’t they do well?
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SWOT AnalysisAssess the Current Situation
STRENGTHS
What your company does well?Include your core competency(ies)
WEAKNESSES
What your company could improve?
OPPORTUNITIES
Based on your analysis of the marketplace, what opportunities could your company leverage?
THREATS
What are the key issues or challenges your company faces in following those opportunities?
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STEP 2: Set Your Sales Objectives
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Set Your Sales Objectives
Define projected sales for a period of time
Sales objectives should be in line with business goals
Be SMART (particularly “realistic”)S-pecific
M-easurable
A-chievable
R-ealistic
T-imely
Lay the foundation for the rest of your marketing plan
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STEP 3: Identify Your Target Market
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Key QuestionsIdentify Your Target Market
Who is your primary target market?
Who is your secondary target market?
Develop criteria for your choice (for example):Size of the marketAwareness of your product and/or key attributesEase of market entry
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The ChallengeIdentify Your Target Market
Marketplace is highly fragmented
Determine your basis for segmentationAge (e.g. Seniors, Boomers, Generation X, Generation Y, Millennials)EthnicityLocaleTechnology, lifestyle or mass-market
Focus where you can deliver (you can’t do it all)
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STEP 4: Position Your Product
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Positioning Map
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For … (target consumer)(target consumer)
Who are dissatisfied with … (current competition)(current competition)
Our product is … (category)(category)
That provides … (solves what problem)(solves what problem)
Unlike … (the alternative)(the alternative)
Our product features are (elaborate – (elaborate – be concisebe concise))
Brand Positioning StatementPosition Your Product
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STEP 5: Set Your Marketing Objectives
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Set Your Marketing Objectives
Aimed at meeting your sales objectives
Examples of marketing objectives:
Increase retention of lifestyle customers to 70% by July 31, 2015
Increase the number of purchases of current customers from 3X per month to 4X by December 2015
Enter the Seattle grocery market by December 2016
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STEP 6: Build Your Brand
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What is a Brand?Build Your Brand
Should be viewed as a trust mark
3 C messaging to your marketConcise, Consistent, Constant
Goals are to:Differentiate yourself from the competitionYOU are the solution providerBuild a relationship with your customersBuild customer loyalty
Increasingly difficult to do
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ExampleBuild Your Brand
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STEP 7: Build Your Action Plan –
Based on the “Inside Scoop”
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Build your action plan based on:
• Market Assessment• “Inside Scoop” - Retail and foodservice speakers
Build Your Action Plan
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Build Your Action PlanRequirements:
Key basis of purchasing
Product (includes packaging, food safety, traceability, green initiatives)
Price
Distribution (includes use of distributors, insurance etc.)
Communication (includes advertising demands, in-store promotions, etc.)
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COMPANY INFORMATIONCompany name & address Contacts – phone, emails, website Company Logo/Product Logo BrandingBackground/storyLiability insuranceTraceabilitySustainability initiatives
PRODUCT INFORMATIONProduct description
Picture of retail package Picture of product in use
Vendor UPC numberIndividual size retail unit
Sell unit weight Sells per case
Order Information and contactMinimum order amount
Case specificationsweight, cube, pallet, pallet quantity, other
ADDITIONAL INFORMATIONSeparate price sheet - do not put pricing information not on sell sheet Allowances, in-Store Demos, etc… Master Case Photograph Image of scannable BAR CODE
Winning Product Presentations: Your Sell Sheet
Build Your Action Plan
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Sell Sheets: ExampleBuild Your Action Plan
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Sell Sheets: ExampleBuild Your Action Plan
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Sell Sheets: ExampleBuild Your Action Plan
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STEP 8: Evaluating Your Marketing Plan
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Assigning Measurements to Action Plan
Evaluating Your Marketing Plan
Based on action plan and items:
Prepare budgets
Assign timelines
Assign responsibility
Estimate payback
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Basis or Bases of EvaluationEvaluating Your Marketing Plan
Measure overall plan against:
Sales and profit objectives
Marketing objectives
Communication and media awareness and attitude goals
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Marketing Plan Self-AssessmentEvaluating Your Marketing Plan
Complete your Marketing Plan Self-Assessment
Hand-out
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Applying New IntelligenceDeveloping a Market Driven Marketing Plan
Hands-on Activity
We will break you into groups
Each group will be given a product and scenario sheet
Products are real, new to the market – your input will be used!
Coaches will be available to assist
You will have approximately 1.5 hours to work on your plan
A representative of each group will present the group plan to the class
We look forward to your ideas!
Have fun!!!