Autopilot is great for airplanes; not food and beverage businesses
Recently I was flying home to Halifax. It had been a busy spring of travel which is great but always nice to get home. After we landed the pilot came over the PA system to announce, “we wanted to let you know that landing was done 100% by autopilot”. As I thought about that the person next to me said, “this is a recording”. Although I laughed, it did get me thinking about the concept of autopilot. Great for airplanes, but not so great for your food and beverage business.
You can’t set it and forget it
One of the things we like about the food and beverage business, is that it is dynamic. Lots changing, which keeps it interesting. The changes also mean you need to keep a close eye on things. Consider the environment you operate in:
The marketplace is always changing
Consumers have the opportunity to decide every time they are in the store what they are going to buy. You get immediate feedback about your products and your promotions. You have to be watching this often to ensure you know the impact of your investments.
Our population is changing rapidly. Many new people are coming into the country and they all have to eat. Do you understand what they think about your products? Are there things you should do to introduce them to your products or educate them how to use them?
You don’t control everything
We know execution at retail is so important. Most suppliers do not control this but you do need to understand it and fix problems when they happen. You cannot expect your customers to be perfect but when you make investments in promotions or seasonal programs you need to make sure they deliver.
Your competition is probably moving forward with ideas and programs to drive their sales. You cannot control what they do but there are times when you need to react or alter your own plans.
Customer relationships need constant attention
This is one of the areas I was thinking about most when we said ‘you cannot rely on autopilot’. You have to work at the relationship with your customers every week. That does not mean you are going to have a meeting or in person conversation every week. It does mean you need to find opportunities to interact or perhaps even have them see what you are doing. It could be sharing some information about your category or an idea from a store you visited while at a trade show.
No news is not good news in this part of your business.
Employees are changing
One of the constant challenges in this industry is to attract and maintain a productive workforce. There are many reasons why this is difficult and you do need to be aware of the expectations your employees have.
Trends are evolving all the time
As the population and the world evolves you need to be on top of the trends. Every time I think I have seen everything there is to see in food and beverage, a new item, flavour or product comes along. It is incredible and can be a challenge for food and beverage businesses. You put in the work to develop a new flavour and all of a sudden there is a new ‘hot’ taste to include in your line up.
You can’t do everything
We have said you can’t put your business on autopilot, but it is also not realistic to address every one of these issues every week. We suggest you prioritize what is important and how often you should pay attention to different priorities.
Our suggestion for the frequency of each topic is listed below. You know your business better than anyone so perhaps you should shift some priorities around. The most important thing is you are thinking about them and taking action.
Weekly
- Sales
- Customer relationships
- Food safety (perhaps daily)
Monthly
- Profit
- Shelf conditions
- Employees
- Competition
Annually
- Trends
The food and beverage industry is not for the faint of heart. There are a lot of priorities to manage. You do have to manage them and avoid the temptation to let things go on autopilot.
Peter
SKUFood Recipes for Success Podcast
The response to our SKUFood Recipe for Success podcast has been great. We want to thank everyone who has been with us as a guest. So many interesting conversations about our industry.
The story of Cedar Valley Selections is a great one. You might have seen them on Dragon’s Den. I was fortunate to meet Ameen and Surria a number of years ago when I did a workshop for the Windsor Essex Small Business Centre. They were just starting and Ameen asked a lot of questions!
If you would like to be a guest send us a note. We are always working on the upcoming episodes.
Keep consumers engaged
This is a promotion from the U.S. market and including consumers in your decision making is not new. What is interesting is the format they are using. The bracket style contest extends the life of the promotion and keeps consumers engaged over a period of time. The flavour vs. flavour approach might also get more interest and participation.
Consumer packaged goods companies must work relentlessly to deliver their message. There is a lot of noise out there. This type of promotion engages consumers, provides the opportunity to showcase flavours and some heritage of the brand. Remember to keep your customers aware of what you are doing. They might even be able to participate in one way or another.
