Food Marketing 05 Brand

7/28/2019 Food Marketing 05 Brand

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Product → Solution

Promotion → Information

r ce → a ue

Placement → Access



Internal External

R & D department, committee or

task force

Suppliers or market intermediaries

Top executives Customers

Sales representatives Competition

Production staff Freelance inventors

Having generated a number, -sometimes a large number- of ideas, the filtration process must begin. The

objective is to identify new product ideas which are weak in terms of their chances of market success or their

potential return-on-investment. The important point here is that product ideas must be evaluated against the

company's objectives. A company must have a clear mission and know what business it is in. Only then canproduct ideas be matched with company objectives and resources.

Noncompetitive firms Patent applications

Consider the example, of a manufacturer of processed meat products (sausages, hamburgers, corned

beef etc.) Who developed an improved binding agent based on rolled oat rather than rusk. Wishing to fully

exploit this development, some individuals, within the company, wanted to market the new binding agent to

other food manufacturers as well as making use of it to improve their own meat products. On the face of it

this proposition made good sense since it appeared to meet a market need but the idea was rejectedbecause it did not fit the company's objectives or resources. First, whilst the rolled oat based product was

unquestionably superior in performance to rusk binding agents it cost almost twice as much. Substantial

resources would have had to be devoted to marketing the product to others. Second, the company had

expertise in consumer marketing but no experience in industrial marketing. Third, the company profit

objectives were tied to exploiting volume markets through mass marketing. In contrast, the new binding

agent was only likely to appeal to a niche market i.e. those food companies with premium quality meatproducts where the cost of the value added by the improved binder could be recouped.



Brand product

importanceSome people distinguish the psychological aspect of a brand from the experiential aspect.

The experiential aspect consists of the sum of all points of contact with the brand and is

known as the brand experience. The psychological aspect, sometimes referred to as the

brand image, is a symbolic construct created within the minds of people and consists of allthe information and expectations associated with a product or service.

A brand which is widely known in the marketplace acquires brand recognition. When brand

recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in

, .

is the identification of a brand without the name of the company present.

Alternatively, in a market that is fragmented amongst a number of brands a supplier can choose

deliberately to launch totally new brands in apparent competition with its own existing strong

brand (and often with identical product characteristics); simply to soak up some of the share of

the market which will in any case go to minor brands. The rationale is that having 3 out of 12

brands in such a market will give a greater overall share than having 1 out of 10 (even if muchof the share of these new brands is taken from the existing one). In its most extreme

manifestation, a supplier pioneering a new market which it believes will be particularly attractive

may choose immediately to launch a second brand in competition with its first, in order to pre-

empt others entering the market



Food Labelling in the EUFood Labelling in the EU

Competition for finite space byever-increasing information

requ rement.Information needs to be: readable AND

understandable




The Stakeholders –

Le islators

Consumers Manufacturers and retailers

Regulatory agencies

Analysts




Consumers –

need information to –

provide identity, quantity advice on safe storage and use

enable informed choice




Manufacturers and retailers –

help differentiate / sell the product comply with legislation

enable traceability of products




Retailers – additionally –

checkout scanning stock control via in-store database




Regulatory agencies and analysts –

need data to enable checkin that

regulatory standards are fulfilled labelling regulations are complied with

claims are fulfilled




More information

ompe on or n e pace

Would better label design help?




Full texts of all labelling-related EU Directives and

Re ulations can be accessed b links on the Web

pagehttp://europa.eu.int/comm/food/food/labellingnutrition/food

labelling/index_en.htm




DIRECTIVE 2000/13/EC OF THEEUROPEAN PARLIAMENT AND

on labelling, presentation and

advertising of foodstuffs




COMMISSION DIRECTIVE2001/101/EC

of 26 November 2001regulating the definition of meatfor labelling purpose, where meat

is used as an ingredient infoodstuffs




COUNCIL DIRECTIVE90/496/EC

concerns nutrition labelling offoodstuffs to be delivered to theconsumer

(compulsory if a claim is made)




COMMISSION REGULATION(EC) No 1825/2000

of 25 August 2000

Detailed rules for the labelling ofbeef and beef products




COMMISSION DIRECTIVE2002/67/EC

of 18 July 2002on the labelling of foodstuffs

containing quinine, and of

foodstuffs containing caffeine




Regulation 608/2004/EC

on the labelling of foods and foodingredients with addedphytosterols, phytosterol esters,phytostanols and/or phytostanolesters




EU LAWS AFFECTINGLABELLING OF GENETICALLY

since 1997 provide forinformation for consumers using

distinctive labelling as a tool formaking an informed choice.




REGULATION (EC) No 258/97OF THE EUROPEAN

COUNCIL

of 27 January 1997

concerning novel foods and novelfood ingredients (Article 8

concerns labelling)




COUNCIL REGULATION (EC) No1139/98 of 26 May 1998

As amended b

COMMISSION REGULATION (EC) No49/2000 of 10 January 2000

concerning the compulsory indication ofthe labelling of soy and maize producedfrom genetically modified organisms




COMMISSION REGULATION (EC)No 50/2000

of 10 Januar 2000

on the labelling of foodstuffs andfood ingredients containing additives

and flavourings that have been

genetically modified or have beenproduced from genetically modified

organisms




COUNCIL DIRECTIVE

concerns the labelling ofgenetically modified seed

varieties




27 July 2001: EU CommissionProposals for two Regulations ofthe European Parliament and of

on genetically modified food andfeed concerning traceability and

labelling of GMOs and

traceability of food and feedproducts produced from GMOs




Regulation (EC) 1829/2003 of theuropean ar amen an o e ounc o

22 September 2003 on geneticallymodified food and feed.




Regulation (EC) 1830/2003 of theuropean ar amen an o e ounc o

22 September 2003 concerning thetraceability and labelling of geneticallymodified organisms and the traceability of

food and feed products produced fromgenetically modified organisms" andamending Directive 2001/18/EC.




The “percentage” problem QUID

x a - ree 25% rule Major serious allergens Nutrition and health claims on labels“High”,”low”,“rich in”,“free from”

Salt vs sodium




DIRECTIVE OF THE EUROPEANPARLIAMENT AND OF THE

of 10 November 2003

amending Directive 2000/13/EC to

provide complete listing of ingredients andindication of allergens present infoodstuffs




July 2003, EU Commission Proposal for aRegulation on nutrition claims and healthc a m ma e on oo .http://europa.eu.int/eur-lex/en/com/pdf/2003/com2003_0424en01.pdf

Still under debate by officialrepresentatives of Member States!




DIRECTIVE 98/6/EC OF THEEUROPEAN PARLIAMENT AND

of 16 February 1998

on consumer protection in the

indication of the prices ofproducts offered to consumers



hi k f h f h b d



Think of the power of the brand



Branding decision



Branding sponsor decision



Branding extension decision



Multi brand decision



Selecting the brand name

Packaging decision



Labelling decision



GROWER PACKHOUSE RETAILER

Human readable

field bin label

Batch traceability:

LOT # / PALLET #Trade unit label:

Lot # / BOX #)

TRACKING:

SUPPLIERBATCH

GROWER SUPPLIERBATCH PACKHOUSE RETAILER

TRACING:

SUPPLIER

Mixed logistic unit label:

Pallet # and BOX #

Dairy identificationParmigiano-Reggiano



casein plate - alphanumeric code

RFID

Production month and year

Dairy identification

number

Parmigiano Reggiano

Oval mark



Commercial and safety information



Variety

Size/Caliber

Pack Date

Grown by

Packed by

LOT # or BOX #



Geographical origin of food : the stakesGeographical origin of food : the stakes



Globalisation Localisation

Standardised/uniformity Quality certification

World wide locations- S ecific eo ra hic locations

Common place products of unidentified origins

Products with identifiable

roots/origins

Development of global

brands

Develoment of regional

quality products

Mass consumerism Selective and demandingconsumerism

Looking at the

i i l D idi D idi hi h

Major decisions in international marketing



Deciding on themarketing

organization

internationalmarketing

environment

Decidingwhether to go

abroad

Deciding whichmarkets to enter

Deciding on themarketing

program

Deciding how to

enter the market

Purchase

behavior

Purchase

decision

Evaluation of

alternatives

Problem

recognition

Information

search



Purchase

decision

Attitudes

of others

Unexpected

situational factors

Evaluation of

alternatives

Purchase

intention

Problem recognition:

ac ua s a e – es re s a e

external stimuli

Information search:

Personal sources: family, friends, neighbors, acquaintances

Commercial sources: advertising, salespeople, dealers, packaging, displays

Public sources: mass media, consumer-rating organizations

Experiential sources: handling, examining, using the product

Evaluation of alternatives:

Alternative evaluation

Product attributes

Brand image

International Trade System face several restrictions: tariff, quota, exchange controls, non-tarif restrictions.

Economic environment:

Subsistence economies



Subsistence economies

Raw material-exporting economies

Industrializing economies

Industrial economies

Indicators of market potential:

Demographic characteristics

Geographic characteristics

Market entry strategies

Technological factors

Socio-cultural factors

ational goals plan

Exporting

IndirectDirect

Joint venturing

Licensing

Contract manufacturingManagement contracting

Joint ownership

Direct investment

Assembly facilitiesManufacturing facilities

Amount of commitment, risk, control and potential profit

Promotion strategies on the international market



1.

Straight

extension

2.

Communication

3.

Product

adaptation

5.

Product

invention4.

Dual

Don' change

productAdapt product

Develop new

product

Don' change

promotion

Adapt

romotion

P r o m o t i o n

Product

Whole channel concept for international marketing

Seller's headquartersorganization for

international marketing

Seller Channels

between nations

Channels within

nations

Final

user or buyer

Business actions toward socially responsible marketing

Enlightened marketing

The concept of enlightened marketing holds that a company's marketing should support the best long-run

performance of the marketing system It consists of five principles:



Low Hi h

Immediate satisfaction

performance of the marketing system. It consists of five principles:

•••• consumer orientated marketing

•••• innovative marketing

•••• value marketing

•••• sense of mission marketing

societal marketing.

Salutary Products

Deficient Products

Desirable Products

Pleasing ProductsLow

HighLong-run

consumer benefit

Marketing ethics

If you are responsible for Marketing in your organization here are some facts you should know:

•••• Long term sales and earnings growth depend on the ability to develop new products and to successfully manage product life

cycles.

•••• Over 70% of all new products fail shortly after introduction, and most products under perform given their product life cycle

potential.

•••• Leading causes of marketing failures cited are: poor planning (research), poor coordination (execution), and unsupportive

cultures.

•••• Marketing capability, and the value of the firm, depend on the supportive capability of the organizational culture.

Culture flaws often precipitate marketing flaws.

Food Marketing 05 Brand

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