Marketing B.C. Agri-Food and Seafood Products

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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.)


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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)


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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


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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


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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


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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%)


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GlutenGMO (genetically modified organisms)PreservativesAllergiesHormonesDairyLactoseWheatSugarFat (reduced fat)


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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”


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Consumers looking for:

Fewer ingredientsIngredients they can pronounce


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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)


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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


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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


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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


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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


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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%


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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


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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


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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)


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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)


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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)


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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)


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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.


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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


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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


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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


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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!!!

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Domestic Marketing Resources

Contact:

Donna AnakaMinistry of [email protected](604) 660-2945