Value propositions
Your sales people should know this better than anyone
Before we get into the importance of value propositions- Happy Easter to those celebrating this holiday. This is a very busy week in grocery stores. Many people have family gatherings this weekend. Did you know today, the Thursday before Easter, is usually the single busiest day in food retail? With most stores closed for Good Friday, this is a very busy day.
There are approximately 35,000 SKUS in a conventional grocery store. Every one of them needs a value proposition. A value proposition is fundamental to the success of the item. If it is not clear to the target market, why they should pick up the product, it will be very difficult for the product to stay on the shelf.
Your sales people should be able to articulate the value proposition.
There are several components in a good value proposition:
1. Target market
2. Needs/wants
3. Product benefits
4. Competitive advantage
Your target market
At least twice per year you should have a good conversation about who is going to buy your product. Consumers are changing faster than ever. They are influenced by issues such as inflation, buy Canadian and other factors. If you think about consumers in 2026 vs consumers at the beginning of 2025, a lot has changed. You should be having discussions in your business about the people buying your products. If you compete in a premium segment of the category, is food inflation going to impact your target market. They might be more likely to trade down or switch to private label. If this is a real possibility you need to give them a compelling reason to buy your products.
There are different options to define your target market. You can use demographics such as age, household size and more to describe them. You can also use psychographics which speak more to values and beliefs. Some people prefer to create personas as it helps them relate the description to real people. Find the option that works best for your business and use it to create the definition of your target market. Once you do this it is much easier to make refinements and keep it current.
If you sell direct in person or online you have a great opportunity to learn about your target market. If all of your sales are in retail, you need to spend time in stores and if possible, gather data from retailer’s loyalty programs.
Last week in SK doing a workshop one participant shared with the group that they had a description of their target market but had to change it after observing who was buying the product. They learned it was an older generation buying which changes a lot in their marketing.
Needs/Wants
The second component of your value proposition is to understand what your target market need or want. This can be a lot of things. Everything from the best quality ingredients in a cookie to the cleanest toilet bowl. Depends on your category.
This is one area where you really must challenge yourself to be objective. Ask the question- really? We see entrepreneurs who can convince themselves there is a need, when they have a need. The win comes when there is a segment of the market large enough to deliver the sales you need.
When you have a great understanding of what your target market needs or wants you can illustrate how your product will help them get there. This should be very clear in your packaging, your consumer marketing and every other opportunity you get to interact with them.
Product benefits
Notice we said benefits and not features. There is a difference. A loaf of bread is sliced, that is the feature. The benefit is you get every slice the same thickness to make good sandwiches and you do not need a bread knife to cut it.
It is not always easy to get from features to benefits. Many large consumer packaged goods companies never get there. Packaging just lists a number of features. This does entice some people to buy but the real win comes when you can communicate the benefits.
Consumers buy for benefits.
Competitive advantage
How is your product different? What is it about your product that stands out and resonates with your target market? This can be a lot of different things, but it needs to be clear. Retailers are looking for products that have a clear competitive advantage. One more product that has the same attributes will probably not get to the shelf, let alone get into the shopping cart.
Similar to the needs/wants you must be objective with the competitive advantage. Is it a clear point of differentiation or just something you see as different but not really meaningful to your target market?
With all of these components it is good to do the work then go through your results with someone who is objective. You need someone to challenge your position. When you go through this exercise you will improve the components.
Here is one format for a value proposition that Al Archibald shares in workshops we do:
For "target market" who "need/want statement", this” your product/brand name" delivers "key benefit”. “Your product/brand name” is further protected by its “primary competitive advantage“ which differentiates it from other products.
There are many different versions of value propositions. Find the one that works for you. Your sales people should have a clear understanding of the components and review it a couple of times every year.
I do have travel coming up to Toronto, Edmonton and Guelph so if you want to connect or have an event in any of these locations give me a call or send me an email.
Peter
SKUFood Recipes for Success Podcast
In this episode of SKUFood Recipes for Success, we sit down with Jennifer Frame, a marketing and innovation strategist with more than 18 years of experience across retail, FMCG, luxury, and technology in both Canada and Europe.
Originally from Nova Scotia and now based in Geneva, Switzerland, Jennifer has built a career helping brands sharpen their positioning, clarify their growth strategy, and expand with confidence. Her experience spans global leaders like Procter & Gamble and Manor AG, as well as high-growth startups, giving her a unique perspective on what it truly takes to scale across markets.
As Co-Founder of Seajai Collective, Jennifer now helps Canadian companies enter the European market while supporting European businesses in expanding internationally. Her work focuses on strengthening brand, marketing, and commercial fundamentals before chasing growth. In our conversation, we explore what brands often overlook when entering new regions, the cultural and commercial nuances of European markets, and why successful expansion starts with strategic clarity, not just ambition.
This episode is a must-listen for founders and food brands considering export, international partnerships, or scaling beyond their home market — and for anyone who believes growth should be intentional, strategic, and built to last.
If you would like to be a guest send us a note. We are always working on the upcoming episodes.
FCC Food and beverage report
Canadian producers and processors should be reading the FCC Food and Beverage Report. This is a great source for Canadian data. You can compare your results to the overall industry numbers FCC shares.
This can help you illustrate your business results to customers. If you see in the report that your category or overall tonnage is flat but your business grew at +10% that is a great story to tell.
Empire to scale back Canadian signage
It is very unfortunate Empire are making this decision. During my time in this industry there has never been a better opportunity for Canadian food and beverage. Canadian consumers want these products and every time the President of the US criticizes Canada or our leaders, emotions are impacted. One reaction from Canadian consumers is to ‘Buy Canadian’.
The company says consumers understand where products come from. Yes there has been more focus and consumers know more than they did last year. We would argue the signage on the shelf has been very effective to help consumers make an informed choice. It is far too soon to pull it off.
Perhaps they are trying to cut costs as they struggle to overcome the write down from the Voila losses or they do not want to be fined for putting up the wrong sign. Whatever the reason it is unfortunate and we might see consumers prefer to shop in stores where Canadian products are highlighted on the shelf.
With the focus on Canadian food and beverage we wanted to share a program we have developed with Alain Bosse, the Kilted Chef. We partner to share insights about Canadian food and beverage at conferences and events. We talk about where products come from, share insights about some hidden gems and of course Chef Alain has great tips for using the products at home. This is designed to be entertaining and engaging. Not just for food industry audiences, it works for everyone.