Many things have changed
The pace of change continues to accelerate. Consumers are buying differently and they have a very different mindset when they go in the store. Your competition has probably changed as well. We know your customers are merchandising different products and they are more focused on value. You need to take the time to ensure your product is still relevant in your category in 2024.
We will take the first 10 weeks of the year to dive into our 2024 trends. We want to provide you with as much context to determine where to focus the efforts of your business. Everyone has a limited amount of resources and dollars so it is important to consider the best return for your investments.
4. Focus on value within your category
We have seen a lot of changes in pricing, package sizes and even product formulation. Take the time to ensure your product delivers value in the category of 2024, not what it looked like 2 years ago. Track promotion programs and other offers to ensure you are competitive but also investing the right amount. You might even be spending too much.
Your value proposition
We know there is a lot of focus on the price of food. We know consumers are influenced by the value products deliver. This decision is not made in isolation. When they are in the store they compare within the category. As we discussed last week; when we talk about value it is worth noting we are not only talking about the retail price. When I was at Loblaw, we would define value as the combination of price and quality. You do not always have to be the cheapest, but you do need to deliver great value.
To understand where you are in the value equation you can start with a category review. Go into the store and capture the following information for all of the items in your category:
- Retail price
- Promotion activity (you need to be there every week to capture this)
- Other product attributes, features or benefits (e.g. gluten free, organic, pre-washed in produce etc)
Compare your product to the items you compete against. This is a great task for any person in your business. Another idea is to rotate it so different people spend time in stores. You always learn when you spend time in the stores.
A thorough category review will illustrate how you compare. You should see if there are attributes your product has that are not being communicated effectively.
When consumers get more focused on prices and value promotion activity can be a tactic you need to consider. More than likely your costs have increased and perhaps you were able to secure a price increase, so the retail is higher. Different programs such as in store specials, multi buys and loyalty might be more important considerations. Consumers might have stopped buying and these programs will get them back for you. You also need to consider how much your competition is doing in promotion. They might have increased their efforts which changes the category again.
Focus on your category
Consumers are differently. To maximize the opportunity you have in 2024 get out to the stores and see how you compare in the category!
Where is Peter Speaking?
Every week we share a news article to help you stay current with what is happening in our industry. This week we will take a different approach. We had an opportunity to work with FCC and Carly Minish Whytinck from Smak Dab. You can find the link here to the conversation we had about our industry. We discussed so many topics that day in Winnipeg. For any food entrepreneurs I believe you will find lots of great information from Carly as she shares so much about her business.
We are excited to be working on this program with Food and Beverage Manitoba. Retailer's local programs are great opportunities for processors who can take advantage of their space on the shelf. This virtual and in-person program will help processors implement processes to maximize the opportunity they get in the store.
Really excited to have the opportunity to share the stage with Cathline James from Wise Bites and Lindsay O’Donnell from Piquant Marketing. Cathline will be sharing her real life experiences gained from developing and implementing strategies to get Wise Bites products off the shelf. Lindsay has a great process to help brand owners understand their ‘why’. I get to share insights on how to get your product on the shelf. A great day for food businesses in B.C. Thanks to FCC and BC Food & Beverage for hosting the event!
FBA Digital Marketing Masterclass
Is your business ready to make a digital splash and take your marketing efforts to the next level? We have an exciting opportunity that could transform the way you reach and engage with consumers!
Introducing our Digital Marketing Masterclass tailored specifically for food and beverage processors like yours. In just 12 sessions, you’ll gain the skills and insights needed to supercharge your online presence, boost brand visibility, and drive measurable results. Uncover the essentials of digital marketing and its impact on your business. Discover the latest trends and strategies to stay ahead in the competitive market.