If you don’t have an accurate description of your target market it is like sailing without a rudder
It is summer here in Nova Scotia and we are fortunate to live by the sea. I grew up doing a fair amount of sailing. My father was a dedicated sailor and was an accomplished judge at international regattas. His boat of choice was a J/24 which is what I grew up sailing on.
If you are not a sailor and not familiar with parts of a boat, the rudder is the part of the boat in the water that steers the boat. You control it with a tiller on a smaller boat or a wheel on a bigger boat. Many components of a boat are important, but the rudder is one you cannot do without. That is your direct link to where you are going.
In the food and beverage industry you need to understand your target market. If you do not understand these consumers you are really out there in the water without the ability to control where you go.
Why you need a definition of your target market
This definition should guide your decision making when you are developing your sales and marketing plans. It should be integral to deciding which retailer to target. You have heard us say before “Any shelf is not the right shelf”.
If your target market are people who love to cook, want the best quality ingredients, knowledgeable staff to help them pick out the right items for a party and not that concerned about price, then you know the retailers you need to find. Sounds like your people are at Whole Foods, high end specialty stores and maybe some of the leading conventional stores. Even if your cousin owns a discount store, you will be less likely to find your target market there. When you try to sell in a format where your people do not shop you will be pushed to sell your product in a manner that is not in line with your plans. You might get on the shelf but getting into the shopping cart will be a challenge.
Your definition should guide you in your selection of channels to promote your product. Social media is a great example where the demographics are reasonable well defined as to who you will find on tiktok vs. facebook. You might get traction on one platform or another but are they really going to buy?
The definition you have should also guide your product evolution. Consumers change over time. The radio station I listened to in my 20’s would not the same choice I would make today (now that I am not in my twenties!). Your product might need to change if you plan to keep the same consumers or you might need to bring new consumers into the mix.
You need to know these people better than anyone. It is very important when talking to your customers to let them know you understand your target market. A supplier who came into my office with a good sense of who would be buying their products and why had a lead over many others who came in talking about their great products.
Creating a definition of your target market
No product appeals to everyone.
Often when we are talking to food and beverage entrepreneurs we start with the target market. We ask “who will buy your product? The response is ‘everyone likes our product’.
Hate to break it to you but not everyone likes your product…
There are certain segments of the market who like it and these are your people. We suggest you take two approaches to defining the target market:
Demographics-these are segments of the population you can identify based on age, household, geography and other parameters. It is important to consider this in your definition as you can usually find some numbers to help you define the size of the potential market.
Psychographics-these are more intangible qualities and they are important too. Are your people interested in local products? Are they looking for value? Do they like to cook or prefer convenience?
You can go down the list to develop a clear and concise definition of your target market. Make sure the people in your organization understand who your people are. It can be beneficial to define a primary and secondary target market if your product does appeal to different segments of the population.
This is not a weekly task but don’t ignore it
This is something you do need to focus on in your business once or twice per year. If your target market are changing quickly perhaps a bit more often. Revisit what you have, talk to others in your business. Make sure it is still relevant.
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.
In this episode, we're delighted to sit down with Carly, a culinary innovator on a mission to elevate kitchen experiences through the power of mustard. As she embarked on her journey towards obtaining her Red Seal Certification, Carly discovered the transformative potential of mustard as a culinary secret weapon. With a simple spoonful, she realized how mustard could effortlessly elevate familiar dishes to new heights of flavor and complexity.
Drawing on her expertise as a trained chef, Carly has embarked on an entrepreneurial venture, carving out a niche in the local food market for high-quality mustard. Her creations not only cater to seasoned chefs but also invite enthusiasts of all cooking levels to experiment and explore the culinary magic of mustard. Join us as Carly shares her insights, experiences, and the delicious journey she's undertaken to fill the mustard gap in the food market, inspiring us all to embrace the simple yet profound impact of this versatile ingredient in our kitchens.
N.S. launches ‘buy local’ program
We know consumers are interested in local products. Many provinces have programs to promote local products and encourage consumers to purchase these items. N.S. has launched their own program that ties into Sobeys Scene program and Air Miles at Nova Scotia Liquor Corporation. Consumers will see N.S. items with rewards in store for one week per month. N.B. recently launched a program as well with a different focus on exposure and signage.
We still believe a regional program would be more effective in Atlantic Canada, given the regional nature of food and beverage distribution and retailing. If they want retailers to participate and get behind the program, they find it challenging to execute in one province.
The local procurement portions of these programs are great opportunities for producers and processors. These should be investigated to find sales opportunities.
