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Food Marketing Food Marketing InternationalInternational
SpecialtyFoodResource.coSpecialtyFoodResource.comm
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Barefoot Contessa Pantry
Lemon Curd Outstanding Jam, Preserve, Honey, or Nut Butter
DISCUSSION POINTSDISCUSSION POINTS- The Industry ~ product vs customer focus
- Trends- Product Potential
- Positioning- Packaging
- The Internet- Direct Mail
- Public Relations
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Specialty Food Specialty Food MarketingMarketing
CRITICAL POINTS TO CRITICAL POINTS TO CONSIDERCONSIDER
Are you ready to be an Are you ready to be an entrepreneur?entrepreneur?
Strategic PlanningStrategic Planning
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DEFINING THE TERRITORY
• Food producer/processor•Entrepreneur• Food broker
• Specialty food distributor• Wholesaler• Customer• Consumer
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Baking Mixes, Supplies and Flours: Gourmet, ethnic and natural brands. Natural: Bob’s Red Mill, Sunspire. Specialty: Ghirardelli, King
Arthur.Beans, Grains and Rice: Gourmet and ethnic; includes rice mixes and
couscous. Natural: Lundberg, Ancient Harvest, Arrowhead Mills. Specialty: Riceselect, Goya, Nishiki.
Bread and Baked Goods: Artisan, primarily fresh, frozen is included. Natural: Rudi’s Organic, Food For Life, French Meadow. Specialty: Masada
Bakery, Just Desserts, Tumaro’s.Candy and Individual Snacks: Gourmet, ethnic; includes jerky items. Natural: Green and Black, Endangered Species, Dagoba. Specialty: Lake
Champlain, Lindt, Divine.Carbonated, Functional and RTD Tea/Coffee Beverages: Gourmet,
ethnic and natural sodas; sparkling juice drinks from traditional water companies, sparkling non-alcoholic juices or celebration drinks. Natural: GT Kombucha, Izze, Tazo Tea. Specialty: Boylan Natural, San Pellegrino,
Orangina.
NASFT DEFINITIONSNASFT DEFINITIONS
PRIMARY MARKETS
-
1 – NEW Y ORK 15 - MINNEAPOLIS-ST. PAUL
29 - HARTFORD
2 - LOS ANGELES 16 – SAN DIEGO 30 - NEW ORLEANS
3 – CHICAGO 17 - DENVER 31 - SACRAMENTO
4 - SAN FRANCISCO 18 - BALTIMORE 32 - COLUMB US
5 – DETROIT 19 - ATLANTA 33 - INDIANAPOLIS
6 - WASHINGTON, DC 20 - PHITTSBURGH 34 - OKLAHOMA CITY
7 – PHILADELPHIA 21 - ST. LOUIS 35 - SAN ANTONIO
8 – HOUSTON 22 - MILWAUKEE 36 – SALAT LAKE CITY
9 – BOSTON 23 - PORTLAND 37 – CHRLOTTE
10 - MIAMI/FORT LAUDERDALE
24 - KANSAS CITY 38 – ALLENTOWN/ BETHLEHEM
11 - DALLAS/FORT 25 - / SAN BERNADINO 39 – BUFFALO
12 - SEATTLE-TACOMA 26 - CINCINNATI 40 - WEST PALM BEACH
13 – PHOENIX 27 - HONOLULU
14 - CLEVELAND/AKRON 28 - TAMPA/ST. TAMPA/ ST. PETERSBURG
MARKET RESEARCH• Major participants
• Prospects for a product such as yours• Technical and production
requirements• Regulatory influence (food and drug
laws)• Competitive situation
• Industry advertising and promotion methods
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TRENDS (OR FADS?)SOY PROTEIN
PRUNES TO DRIED PLUMS
ORGANIC FROZEN MEATS
STEAK WITH BACTERIAL ANALYSES
ORGANIC BEER
VITAMIN WATER
CHICKEN SAUSAGE ON A STICK
CHOCOLATE WITH TRACE ELEMENTS AND VITAMINS
CARROT AND POTATO-COLORED CHIPS
WINTER TEA
CANNED HUNGARIAN GOULASH
CHEESE MATURED IN EARTHENWARE JARS WITH TUSCAN WINE
VINTAGE OLIVE OIL
SMOKED SALMON WITH BLACK TRUFFLES
COOKED, PEELED CHESTNUTS
APPLES SUITED TO CHILDREN’S MOUTHS AND HANDS
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INGREDIENT OF THE YEAR: WHOLE GRAINSINGREDIENT OF THE YEAR: WHOLE GRAINS
PACKAGE OF THE YEAR: TETRA RECARTPACKAGE OF THE YEAR: TETRA RECART
SCENT OF THE YEAR: LAVENDERSCENT OF THE YEAR: LAVENDER
FLAVOR OF THE YEAR: SWEET AND SPICYFLAVOR OF THE YEAR: SWEET AND SPICY
CUISINE OF THE YEAR: MEDITERRANEANCUISINE OF THE YEAR: MEDITERRANEAN
Mintel Releases 2008 Trend Mintel Releases 2008 Trend PredictionsPredictions
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PRODUCT POTENTIAL
MOST:
- APPETIZERS- CANDY- FRUIT- EXOTIC MUSHROOMS- NUTS- GOAT CHEESE- VEGETABLES- SAUCES/SEASONINGS
LEAST:
- SOUPS- SYRUPS- DESSERT TOPPINGS- JAMS/JELLIES- RICE- ALCOHOLIC BEVERAGES
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PACKAGING CONSIDERATIONS
• Competition• Product Type
• Stock vs Special Order• Special Handling (label type, etc.)
• Co-packer Availability• Conform with Regulations• Size = Consumer Demand
• Outer Container
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LABELING ISSUESLABELING ISSUES
- - FDAFDA- Ingredient Statements- Ingredient Statements- Nutrition Statements- Nutrition Statements
POSITION YOUR POSITION YOUR PRODUCTPRODUCT
BYBYDIFFERENTIATING IT DIFFERENTIATING IT (Pliskin’s Phables)(Pliskin’s Phables)
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Big Bark Bakery
Mega Bite Peanut Treat Outstanding Pet Product
PRICING FLOW
Price to consumer $6.25Less 40% X 60Equals cost to retailer $3.75Price to retailer $3.75Less 25% X 75Equals cost to distributor $2.81Price to distributor $2.81Less 20% X 80
Equals your exwarehouse cost $2.25
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PRICING (con’t)Competitors Product Your Product
1. Price to consumer $_________ _________2. Less 40% x 60% x 60%(Retailer profit margin)3. Equals cost to retailer $_________ _________4. Price to retailer $_________ _________(Same as 3)5. Less 25% x 75% x 75%(Distributor profit margin)6. Equals cost to distributor $_________ _________7. Price to distributor $_________ _________(same as 6)8. Less 20% x 80% x 80%(Your profit margin)9. Equals exwarehouse cost $_________ _________
PROMOTION AND PUBLIC RELATIONS
•Advertising
•Trade Shows
•In-store Demonstrations (Demos)
•Tie-ins
•Deals
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YOUR ELEVATOR YOUR ELEVATOR SPEECHSPEECH
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A "hook" –
GET THE LISTENER'S ATTENTION GET THE LISTENER'S ATTENTION WITH A "HOOK." WITH A "HOOK."
A STATEMENT OR QUESTION THAT A STATEMENT OR QUESTION THAT PIQUES THEIR INTEREST TO WANT PIQUES THEIR INTEREST TO WANT
TO HEAR MORE.TO HEAR MORE.
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NO LONGER THAN 60 SECONDSNO LONGER THAN 60 SECONDS
About 150-225 words –About 150-225 words –
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BUYERS EXPECT ENERGY AND BUYERS EXPECT ENERGY AND DEDICATION FROM FOOD DEDICATION FROM FOOD
ENTREPRENEURS. ENTREPRENEURS.
PASSIONPASSION
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ASK FOR SOMETHING. ASK FOR SOMETHING. DO YOU WANT THEIR BUSINESS CARD TO DO YOU WANT THEIR BUSINESS CARD TO
SCHEDULE A FULL PRESENTATION? SCHEDULE A FULL PRESENTATION?
A REQUESTA REQUEST
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MY ELEVATOR SPEECH:MY ELEVATOR SPEECH:
-- I manage an online place that holds the I manage an online place that holds the secrets to successful specialty food marketing.secrets to successful specialty food marketing.
- Where thousands of specialty food - Where thousands of specialty food entrepreneurs find all they need to know. entrepreneurs find all they need to know.
- It is an Internet web site called: - It is an Internet web site called: SpecialtyFoodResource.com. SpecialtyFoodResource.com.
- It includes extensive resource listings, a - It includes extensive resource listings, a discussion forum, and past copies of the online discussion forum, and past copies of the online
“Food Entrepreneur eZine.” And, it offers “Food Entrepreneur eZine.” And, it offers vendors and suppliers such as you a great vendors and suppliers such as you a great
chance to purchase sponsorship and put their chance to purchase sponsorship and put their wares in front of all of thousands of food wares in front of all of thousands of food
entrepreneurs. entrepreneurs. - May I include you as a upcoming sponsor- May I include you as a upcoming sponsor? ?
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THE INTERNETTHE INTERNET$1 Billion (plus) online grocery sales
What to do:
- Provide personalized customer service- Satisfaction guarantees- Make your site informative and fun- Offer easy, safe ordering options- Provide hotlinks to related sites
In other words, do what you do now.WWW.SPECIALTYFOODRESOURCE.COM
WWW.SPECIALTYFOODRESOURCE.COMWWW.SPECIALTYFOODRESOURCE.COM
INTERNET SALESINTERNET SALES
61.1
38.8
74.1
25.9
0
10
20
30
40
50
60
70
80
2007 2008
YES
NO
DISTRIBUTIONProcessor/Importer using mail order/Internet to Consumer
Processor/Importer to Retailer to Consumer
Processor/Importer using Broker to Retailer
Processor/Importer to Distributor to Retailer to Consumer
Processor/Importer using Broker to Distributor to Retailer to Consumer
Processor/Importer using Broker to Distributor using Broker to Retailerto Consumer
CONFUSED? I KNOW I AM….
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SummarySummary
Review discussion pointsReview discussion points Request feedback Request feedback Where to get more informationWhere to get more information
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Where to get more Where to get more informationinformation NASFT, NASFT, 120 Wall Street, 27th Floor, New York, NY 120 Wall Street, 27th Floor, New York, NY
10005-4001, 212/482-6440 or 800/627-3869 (Outside 10005-4001, 212/482-6440 or 800/627-3869 (Outside
NYNY)) Trade ShowsTrade Shows RetailersRetailers Trade Journals – Trade Journals – Food Entrepreneur eZineFood Entrepreneur eZine
Other Specialty Food ProcessorsOther Specialty Food Processors Me - Me - 480/778-0640; email: 480/778-0640; email:
[email protected]@specialtyfoodresource.com
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Food Entrepreneur eZineBy Food Entrepreneurs For Food Entrepreneurs
Volume 33 - September 2008
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“GOURMET” FOODSALES REACH$41 BILLION AT RETAIL IN 2008!70% of which were made in Supermarkets.Packaged Facts, New York
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“The gourmet market business is better suited to an entrepreneurial style than to ownership bya large chain operation.” CBRL Group Chairman Don Evans
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