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Embassy of the Republic of Lithuania to the UK
Lithuania Food Export Seminar
• 8.30– 9.00 Registration• 9.00– 9.20 Welcomeandprojectintroduction• 9.20– 10.00 UKfoodmarketoverview• 10.00– 10.40 Howthesectorsandsubsectorsworkand
purchase• 10.40– 11.30 Basicprojectentryrequirements• 11.30– 12.00 Break(coffee)• 12.00– 13.20 Categoryanalysisandproductpositioning• 13.20– 14.00 Summary:practicalexamples,Q&A
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Embassy of the Republic of Lithuania to the UK
Project Introduction
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Embassy of the Republic of Lithuania to the UK
UK Food Market Overview
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Embassy of the Republic of Lithuania to the UK
UK food market overview
Retail ‐ Supermarkets(Multiples)‐ Independentretailers&Symbolgroups‐ Speciality foodoutlets‐ On‐lineretailers
FoodService‐ DeliveredWholesalers‐ Chainendusers‐ Independentendusers
Foodingredients‐ FoodManufacturers‐ FurtherProcessors(e.g.blenders,slicers)‐ Categorybrokersandimporters
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Embassy of the Republic of Lithuania to the UK
Retail: Multiple market share
Stores %share•Tesco 2900+ 30.2•Asda* 550+ 17.9• Sainsbury’s 1000+ 16.7•Morrisons 500+ 12.2•Co‐op 3000+ 6.4•Waitrose 300+ 4.5•Aldi UK 500+ 3.5•Lidl UK 600+ 2.5• Iceland 900+ 2.1
*Netto UKpurchasedbyAsda in2011
• Sources:KantarWorldpanel totalsales12weeksending27/3/12
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Embassy of the Republic of Lithuania to the UK
UK Retail Market Split
Multiples:
Tesco, Sainsbury Etc
Independents & Symbol Stores
5%
95%
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Embassy of the Republic of Lithuania to the UK
Retail : Independents
• Departmentstores:Selfridges,Harrods,HarveyNic• Symbolgroups:Spar,Musgrave(Budgens &Londis),Mace,Premier,Costcutters
• SmallIndependentchains:Booths,WholeFoodsMarket,Neals Yard• HealthFoodStores:Holland&Barrett• Deli’s:LaFromagerie,• Farmshops:Windsor,Laverstoke,• Garageforecourts• Cash&Carry:Booker,Makro,Costco• GardenCentres:Wyevale,Dobbies,• Farmersmarkets• On‐line/homedeliveryretailers:Ocado,Amazon,GoodnessDirect
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Embassy of the Republic of Lithuania to the UK
Retail trends & market drivers
• Trends� Organic,FairTrade� Foodmiles/local/Fresh/Seasonal� Provenance(storiesbehindtheproducts)� FreeFrom:Glutenfreebutalsowheat,dairy,refinedsugar� Cafesandfoodstationsinstores� Storerecipesendorsedbycelebritychefs� Newformsofpackaging;pouches,recyclability,lessismore� Noartificialcolourings,flavoursandpreservatives� Cupcakes,rawfood,superfoods� Readymeals&scratchcooking
• KeyMarketdrivers� Private/ownlabel(KVI’s)� Pricecomparisonswithotherretailers,moneybackoffshoppingincentives� Promotions:BOGOF,Multibuys,Mealdeals� Efficientretailoperations:merchandising,fulfilmentplanning
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Embassy of the Republic of Lithuania to the UK
Tesco – Fresh Produce
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Embassy of the Republic of Lithuania to the UK
Whole Foods Market – fresh produce
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Embassy of the Republic of Lithuania to the UKWhole Foods Market
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Embassy of the Republic of Lithuania to the UKPartridges ‐ charcuterie
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Embassy of the Republic of Lithuania to the UKWhole Foods Market
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Embassy of the Republic of Lithuania to the UKTesco Baby
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Embassy of the Republic of Lithuania to the UKWhole Foods Market
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Embassy of the Republic of Lithuania to the UK
The Food Service Sector
TheFoodservicesectoris:
• About30%ofUKfoodmarketbyvalueand10%byvolume• Extremelydiverse• Cosmopolitan• Notdevelopinguniformly• Sophisticatedandprofessional• About260,000outlets
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Embassy of the Republic of Lithuania to the UK
Food Service
TheFoodservicesectorismadeupoflargesubsectors:
CostSector– foodpurchasedtofeedatlowestcoste.g.HospitalsSchools&UniversitiesMinistryofDefencePrisons
ProfitSector – serviceprovidedtoconsumersataprofite.g.HotelsPubsRestaurantsTravelandLeisure
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Embassy of the Republic of Lithuania to the UK
Food Service
TheProfitSectorisyetmorediversified:
• Independentsabout40%• Chainsabout60%
Chainsthenbreakdownbetween
• Disciplined(e.g.Mcdonald’s,TRG,Tragus,JDWetherspoon)20%• Undisciplined(e.g.BestWestern,consortia)40%
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Embassy of the Republic of Lithuania to the UK
UK Foodservice Market
Central distribution
Wholesale Distribution
Wholesale Distribution40%
40%
20%Disciplined Chains e.g. Mcdonalds
TRG, Tragus, JD Wetherspoon
Disciplined and Undisciplined chains
e.g. Greene King, Best Western
Independents
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Embassy of the Republic of Lithuania to the UK
Foodservice trends & market drivers
• Trends� QSR’s performingstrongly� Brandedcasualdiningcontinuesolidly� BudgetHotelsgrowingwell� Ethnicdiversitycommonplacee.g.Mexican,Thai,Italian,Indian� AuthenticityandExperience� Pubswithlittlefoodrapidlydeclining� Workplaceandschoolfeedingunderpressure� Deskillinginthekitchen� Emphasisonretailskillsinfrontofhouseoperations� CostSectorunderpressurefromgovernmentausterity� CostSectorincreasinglyoutsourcedtoProfitSector� Increaseduseofpromotions(2for1)anddigitalmarketing� FollowUSAtrendse.g.‘fastcasual’
• KeyMarketdrivers� Macroeconomicconditionsmeanspendstagnating� SophisticatedoperatorsatChainandWholesalebuyingpoints� Only2nationaldeliveredWholesalers� Foodpriceinflationandgovernmenttaxationpolicieshavegreaterimpactinfoodservice� Concernsgrowingaboutobesityandalcoholabuse
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Embassy of the Republic of Lithuania to the UK
Ingredients
ThereisasignificantmarketsupplyingproductmanufacturersintheUK.
TheUKFoodprocessingindustryiscomprehensive.Ingredientscanbeforfurtherprocessing(e.g.afunctionalingredient)oracomponentinafinishedproduct(e.g.cookedmeatinreadymeal).
Salescanbedirecttoproducersorviaspecialistwholesalers/brokersThekeyaspectsarethatyouringredientmusthaveauniqueattribute:Functionality– processorproductHealthclaim– e.g.sucrolosePriceAvailability
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Embassy of the Republic of Lithuania to the UK
How the Sectors Work
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Embassy of the Republic of Lithuania to the UK
How Retailers purchase
• Multiples– Directproducerrelationships– Categorybuyers,stockcontrollersandlogisticteams– Buyerschangeveryregularlyfromcategorytocategory– Verydifficulttogetfacetofacemeetingsandpricechangesthrough– Expectedfinancialproductsupport(promotions,adverts,tastings)– Brandbanklistings– Retailreadypackagingincreasinglyakeyrequirementbyallmultiples– Startingtospecifycasesizes:2pershelf– Forms,formsandmoreforms!– FinesforOOS,latedelivery,slowROS– Minimumdeliveries:pallets,layers.Somerequireoneproductperpallet– DeliveryintoCentral/RegionalDistributionCentres– Onlydirectdeliveryintostoreoflocal/regionallines– Consolidationhubs– FreshProduceretailerspecificplasticre‐usablecrates– Chep palletrequirement
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Embassy of the Republic of Lithuania to the UK
How Retailers purchase
• Independents
– Fewerstaffsobuyersoftenresponsibleforwholedepartments– Purchasethroughdeliveredwholesalers(savestime&resources)– OrpurchasefromCash&Carryoutlets– Local/regionalproductsmaybepurchaseddirectfrommanufacturer– Newproductforms,invoicinganddeliveryalldonethroughwholesaler– Suppliersmaybeaskedtogettheirproductlistedbythepreferredwholesaler– Mayhavedirectproducerrelationshipswithkeysuppliers– Promotionsusuallythroughthetradepromotion&pricebooks– Cataloguesusuallyareupdatedevery2months(6perannum)– Crates&packagingoftenatthesuppliersdiscretion(oftennotusedinstore)– Manualre‐orderingprocedures(stockreplenishment)– Minimumcaseordersalthoughsomewholesalerswillsellinsingles
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Embassy of the Republic of Lithuania to the UK
How Food Service purchases
CostSectorOftenbypublictenderWholesalersBuyingGroups(consortia)
ProfitSectorDisciplinedChainsdirectlyfrommanufacturerUndisciplinedChainsfromwholesalersIndependentsfromwholesalersandCash&CarriesSpecialistwholesalers(e.g.ethnic,meat,fish,)BuyingGroups(consortia)
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Embassy of the Republic of Lithuania to the UK
How Food Service purchases
CostSectorCentralisedpurchasinginsomeform.PriceiskingBrandsirrelevant
ProfitSectorChainshavecentralisedpurchasingIndependentscanonlybereachedbywholesalersBrandsrelevantonlyif‘FrontofHouse’ConsumersdonotwelcomeRetailbrandsatrestaurantpricesDedicatedrecipesorproductscommonConceptfoodsolutionsincludingequipmentcanbeinteresting
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Embassy of the Republic of Lithuania to the UK
Marketing
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Embassy of the Republic of Lithuania to the UK
Cost of Retail Marketing
Multipletrade Listingsfees(canbeupto£500perproduct,althoughtheremaybescopefornegotiation)Compulsorypromotionalprogramme(startingcost£3000perannum)Advertisingspendintheirin‐housemagazines(onceagainstartsat£1,500)Allproductimagesmustbeonbrandbank‐ £80peritem
Independenttrade Newlistingadvertcostsfortradecatalogues(10maintradewholesalers,eachonewillcharge£200– 500dependingonsizeoftherange)Advertisingapromotioninthetradecatalogueswillcostanother£200‐ £500perwholesaler(plusthelossinmargin!)Ifyoudon’thavein‐housedesignoptionwillneedtopay£50foraddesigncostsperwholesalerEachwholesalerswillwantsamples£50Retailerswilloftenrequestforsamplingeventsin‐store.Wholefoodsforexamplewillcharge£100fora2hoursamplingsessionplusthecostofproducts.Youwillgetaveryusefulsamplingreportaspartofthiscost.Somestoreswillaskforfreefillsforthestockingofanewstore(1‐2cases)
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Embassy of the Republic of Lithuania to the UKTypes of promotions
• BOGOF ;BuyOneGetOneFree• 3for2multi‐buys• 2for£X• %off(normallyaminimumof10%)• BuyonegetXhalfprice• Linepromos– Naturalremediesorbabyfood• Vouchers‐ redemption
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Embassy of the Republic of Lithuania to the UKWaitrose –half price
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Embassy of the Republic of Lithuania to the UKTesco – Line promo
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Embassy of the Republic of Lithuania to the UKWaitrose –Buy 2 for £5
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Embassy of the Republic of Lithuania to the UKTesco – Line promo
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Embassy of the Republic of Lithuania to the UKPromo communication
• Shelftalkers• Banners• Flyers(bagstuffing)• Tillreceipts• Shopwindowdisplays• Producttastingsinstore• Stafftraining&involvement(tastings)• Newspaperadsandinserts• Storemagazine• A‐frameboardsoutsidethestore• Merchandisingoutsideofthestoreifthereisspace(onwheels)
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Embassy of the Republic of Lithuania to the UKOutside store
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Embassy of the Republic of Lithuania to the UKShop window
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Embassy of the Republic of Lithuania to the UK
Consumer Product Marketing
• IndustryAwards EntrycostforGreatTasteAwards&industryawards.Roughly£100perproductpercompetition.
• Competitions Runcompetitions&offeryourproductinhampersasprizes(£100)
• Samplemailouts EspeciallytotheGroceryteamsofthoseretailersyourhavelistingsintheywillactasyourbrandambassadors(£50perstore)
• AttendTradeShows Naturalproductshow(April)fororganic/naturalproductsInternationalFoodExhibition,London(£4000)forastandBBCGoodFoodBirmingham
• Consumeradvertising;Foodmagazines(startingfrom£500upto£8,000foranarticleinJamieOlivermagazine)
• SocialMedia Samplemailoutforfoodiestoreview
• PR
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Embassy of the Republic of Lithuania to the UK
Foodservice Marketing
Unbrandedproductsstraightforward:
• Wholesalercatalogueadvertising• Wholesalersupportinthefieldfordemonstrations• Promotionalsupportforlaunche.g.pricediscountorvalueoffers• WholesalerDepottelesalesteamincentives• Samples• Wholesalerexhibitionsupport
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Embassy of the Republic of Lithuania to the UK
Foodservice Marketing
‘FrontofHouse’brandsmateriallymoredifficultandexpensive:
• Wholesalercatalogueadvertising• Menucardsortabletalkers• Trademagazineadvertising• PR• Tradeexhibitionpresence• Wholesalersupportinthefieldfordemonstrations• Promotionalsupportforlaunche.g.pricediscountorvalueoffers• WholesalerDepottelesalesteamincentives• WholesalerFieldsalesteamsincentives• Samples
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Embassy of the Republic of Lithuania to the UK
Business Relationships
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Embassy of the Republic of Lithuania to the UK
Retail relationships
Directretailrelationships• Commercialmeetings; Supplyissues
AnnualpromocalendarSalestrends/categorySalestargets&rebatesGapAnalysis/NPD
• StoreMarketing In‐storetastings;freestock&personMagazine/leafletsfeatures,Supplierstoryboards,ShelfedgelabelsWindowdisplays
• Training; DMmeetingsProductFayresSuppliervisits
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Embassy of the Republic of Lithuania to the UKWFM Supplier Board
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Embassy of the Republic of Lithuania to the UK
Retail relationships
Wholesalerrelationships• Commercialmeetings; Supplyissues
AnnualpromocalendarSalestrends/category/retailerPlacementofproductsinthecatalogueSalestargets&rebatesNewproductslistings/delists
• Marketing SamplingtotheirtopcustomersLeafletsinwithinvoicesCataloguefront/backcoveradvertisingProductdisplaysattrade/consumershows
Note:Mostindependentwholesalersdonothavetelesalesteams
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Embassy of the Republic of Lithuania to the UK
Foodservice relationships
ThemanufacturermustselltotheChainendusersandtheWholesalerThewholesalermustselltotheindependent
ThemanufacturermustdevelopsimultaneousrelationshipswithChainsandWholesalers.
WithWholesalersrelationshipsarewith:CategoryBuyerFieldSalesManagers(independents)BusinessDevelopmentManagers(Chains)DepotTelesalesteam(Both)TechnicalandMarketingteams
WithChainsrelationshipsarewith:CategoryBuyerExecutiveChefTechnicalandMarketingteams
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Embassy of the Republic of Lithuania to the UK
Supply Chain Links
TheUKFoodindustryhaswellestablishedefficientlogisticssystemstogetproductstoconsumers.
Therearedifferencesbysubsector.
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Embassy of the Republic of Lithuania to the UK
Supply Chain Links
Retail
MultipleRetailManufacturerdeliversinmultiplepallet/containerquantitiestoupto6RDC’s.RetailerbuysatRDCanddeliverstoshops
Independent/SpecialityRetailManufacturerdeliversinpalletquantitiestowholesaler/cash&carrydepots.Wholesalerbuysatdepotanddeliverstoshops
Supplywillusuallyrequire:• StockintheUKfordeliveriesoflessthan1container• Automatedlinktocustomer’sorderingsystem
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Embassy of the Republic of Lithuania to the UK
Supply Chain Links
Foodservice
CentralDistributionManufacturerdeliversinmultiplepallet/containerquantitiestoupto2RDC’s.LogisticscompanybuysatRDCanddeliverstorestaurants
ChainsandIndependentsManufacturerdeliversinpalletquantitiestowholesalerdepots(upto35)ortoaconsolidationcentre(1).Wholesalerbuysatdepot(ordeliveryfromconsolidationcentre)anddeliverstorestaurants
Supplywillusuallyrequire:• StockintheUKfordeliveriesoflessthan1container• Paymentofconsolidationcostsbymanufacturer• Underwritingofstockatwholesaleruntilsold
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Embassy of the Republic of Lithuania to the UK
Margin Expectations
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Embassy of the Republic of Lithuania to the UKPricing; Multiples margin aspirations
• Itisnowillegaltospeaktobuyersaboutthesettingofrecommendedretailprices.
• Mostsupermarketspriceaccordingto‘pricematch’programmes(www.mysupermarket.com)
• Verydifficulttogetpriceincreasesthrough– oftenonlypossibletohavethesediscussiononceayear(infactsometimesnegotiationcanlastfor8months!)
• Grocerymarginexpectationisbetween35– 45%(categorydepending)
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Embassy of the Republic of Lithuania to the UKTrade margins; Wholesaler margin aspirations
• WholesalersprintBi‐monthlypricecatalogues
• Intheseproducttradepricesarelistedaswellasrecommendedretailprices
• Awholesalerisgiven25%offtradeforgroceryand33%forNaturalRemedies
• Wholesalermaythengivetheircustomersdiscountsandover‐ridersbasedonagreedtargetsalesvolumes(canbeupto20%)&willnegotiatesimilardiscountwithmanufacturer
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Embassy of the Republic of Lithuania to the UKPricing; Independent retailer margin aspirations
•NatRem 50%+,•Ambient35– 45%,• Chilled30– 35%,• Frozen35‐ 40%,• Foodservice50%+•KVI’spricing;competitoranalysis•Valueaddedproducts;juices,guacamole85%GM
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Embassy of the Republic of Lithuania to the UK
Supply Chain Margin Expectations
MultipleRetail
RetailSellingPrice £2.00
RetailMargin(30%to45%) £0.75
ManufacturerSellingPriceatRDC £1.25
Note:therecanbelistingfeesandoverridingdiscountsandpromotionalpricingseparatetostandardpricing.
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Embassy of the Republic of Lithuania to the UK
Supply Chain Margin Expectations
Independent/SpecialityRetail
ManufacturerSellingPrice £1.25
Wholesaler/cash&carryMargin(25%‐ 35%) £0.54
WholesalerPrice £1.79
RetailerMargin(30%) £0.77
RetailSellingPrice £2.56
Note:therecanbelistingfeesandoverridingdiscountsandpromotionalpricingseparatetostandardpricing.
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Embassy of the Republic of Lithuania to the UK
Supply Chain Margin Expectations
Foodservice Independent ChainCentralDistribution£ £ £
ManufacturerSellingPrice 1.00 1.00 1.00
Wholesaler/Margin 0.54 0.33
LogisticsCompanycost 0.15
RestaurantBuyingPrice 1.54 1.33 1.15
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Embassy of the Republic of Lithuania to the UK
Supply Chain Margin Expectations
UKStockholdinglogisticscostsvarydependingonstockrotationbutareintheregionof:
Ambient 7%Frozen 12%
(thiscoversreceipt,storage,pickinganddeliverytoRDC/Wholesaler)
UKConsolidationcostscanbeveryhigh5%‐ 8%
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Embassy of the Republic of Lithuania to the UK
Basic Project Entry Requirements
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Embassy of the Republic of Lithuania to the UK
There are minimum operating standards
Allproductsneedtobecorrectlylabelled.ThisincludesingredientsandnutritionalinformationAllproductsneed2barcodes:1fortheouterand1fortheretailpack.InFoodservicetheouterwillneedabarcode.Forsomeretailershighvolumelinesmayneedacodeonthepallet.AllproductsmustnametheproducerorhaveaUKcontactaddressAllproductsmusthaveBBEorSellbyDateonboththeouterandinnerpack.AllproductsmustentertheUKsupplychainonUKChep pallets.ThiscanbedoneatsourceorconvertedinUKProductpackagingmustbetamperproofAccuratedeclarationsonweightandprotein,fatcontentLabelsonouters andinnercartonsmustbeinEnglishTherearedetailedrequirementsonproductdescriptionsthatmustbeaccurate(e.g.Ham,addedwater,natural,organicmeatcontent)
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Embassy of the Republic of Lithuania to the UK
There are minimum operating standards
AllmajorbuyersinRetailandFoodservicewillinsistthat:
YourfactoryhasBRC/EFSISapprovalYouacceptandpayforfactoryvisitsandtechnicalauditsYouprovidedetailedproductspecifications– evenifyouconsiderthiscommerciallysensitiveYousellinGBPsterlingYouadheretotheirdemandingtimetablesonsupplyofsamples,pricing,technicalquestionsandattendingtastepaneldatesatshortnotice
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Embassy of the Republic of Lithuania to the UK
There are minimum operating standards
TheUKconsumerhasspecifictastesandconcernsbothinRetailandFoodservice.Eachcategoryhasspecificissuesandyourcategoryauditmustincorporatethese.
Herearesomeexampleslikelytobeunacceptable:• MechanicallyRecoveredMeat• Crossspeciesmeatproducts• Excessaddedwater• Excesssalt(legallimitsforschools)• Excessfat• Artificialcolourings• Artificialflavourings• Excessiveaddedsugar• MostOffalproducts• Productstobedeepfatfried• Previouslyfrozenproductsoldaschilled
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Embassy of the Republic of Lithuania to the UK
Brand v Own Label
TheUKmarkethasaproportionofownlabelinbothRetail(30%)andFoodservice.Itmaybepreferabletodevelophavecontrolofyourownbrandbutasanewentranttherearerisks:
• Launchcostswillbehigher• Theretailermightcopyyourideaandproduceanownlabel• Allstocksofproductandpackagingareyourrisk• Theburdenofcommunicatingtotheconsumerisallyours
Thebiggestriskswithownlabelare:
• Theproductisnotyours– theyowntherecipe• Costsaremoretransparent• Marginsarelower• Thecustomerwillbecomeveryresourcedemanding
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Embassy of the Republic of Lithuania to the UK
Category Analysis and Product Positioning
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Embassy of the Republic of Lithuania to the UK
Category analysis
“Youdonotgetasecondchancetomakeafirstimpression!”
Marketresearch/Gapanalysis:whyisitimportant?• Productdifferentiation• Resourceallocation:time&£• Clarityregardingbusinessstrategy&direction
Whatshouldyoulookfor ‐ competition‐ flavourprofiles‐ pricepoints(lowesttohighest)‐ size‐ packagingtype‐ USP’s
Don’treinventthewheel– learnfromothers
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Embassy of the Republic of Lithuania to the UK
e.g. Product Packaging analysis
• Packagingthatstandsoutonshelf(Why?)• Strongbrandtoencouragecustomerloyalty;instantrecognition(font,colour,imageetc)
• CommunicationofUSP’s(doesnotmeaneverylogounderthesunshouldbedisplayed)
• Languageonpacktoreflecttargetcustomer• Packagingtosuit&protecttheproduct• Packaging;loose,re‐use,recycledorrecyclable• Shelfspacerequirements(units&casesizetofitfixtures)• Legalcomplianceofpackaging– meetingEU&localEHO
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Embassy of the Republic of Lithuania to the UK
Product Positioning
Usingdetailedcategoryanalysisresultsdecideonyourbrandpositioning:
Value lowmarginsVhighvolume
Midrange
Luxury/Premium highmarginsVlowvolumes
‘Productbasedpricing’versus‘Marketbasedpricing’
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Embassy of the Republic of Lithuania to the UK
So you want to come to the UK?
1. Retail,foodservice,industrial2. Categoryaudit3. WillIadaptproductstotheUKmarket?4. DoIunderstand:
1. Logistics2. Customerbase3. Theconsumer
5. DoIhavefinancialandtechnicalcapacity?6. WhatUKresourceswillIhave?7. CanIrelyonagents/importers/distributers?
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Embassy of the Republic of Lithuania to the UK
Real Life Examples
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Embassy of the Republic of Lithuania to the UK
Retail Summary
• Anexampleofagroceryproductconcepttolaunchintheindependentretailsector(throughawholesaler)
– Productsampletastingsin‐houseandinfocusgroups– Categoryanalysis:taste/flavour,size,price,packagingoptions,USP’s– Packagingdesignconcepts– Draftingofconcisebutimpactfulproductpresenters– WebsitedesigntoassistwithUSPcommunication– Buyermeetingwithwholesaler(timings)– Buyermeetingswithkeyretailers(push&pullapproach)– Formfilling:newlineforms,packagingdetails(weights,size,recyclability)– Launchplan:promotions,tastingevents,trade/consumershows,PR,awards– Stafftraininginkeyretailers– Getfeedback– Revisestrategyiftherearemajorissueshighlighted(learnfromyourmistakes)– Workonlineextensions&NPD
Abovetakesanaverageof9months.
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Embassy of the Republic of Lithuania to the UK
Real Life Example ‐ Ingredient
January2006USsnackingredienttechnologysharedinJVwithDanishproducerProducesaporksnacknotcurrentlyavailableinEUNewtechnologyutilisesexistingsnackmanufacturingequipment
2006UKLaunchtosnackproducers2007LaunchintoSpain2009LaunchintoEasternEuropeandNordiccountries
Nowamulti£m productwithlimitedpricesensitivity
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Embassy of the Republic of Lithuania to the UK
Real Life Example ‐ Foodservice
June2010UKLaunchprecookedfrozenpasta
1. Productreviewtoestablishkeyfeaturesandbenefits2. Categoryaudittoidentifycompetitiveposition,pricingandrange3. Buildofsalesmaterials4. Appointmentswithlargeenduserstodemonstrateproductand
establishkeycompetitiveadvantages5. Listingsgainedwithendusersforcingwholesalerstostock6. UKlogisticsplatforminplace7. Productlaunchedlate20108. Subsequentassociatedproductlaunchesoffrozenprecookedrice
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Embassy of the Republic of Lithuania to the UK
Real Life Example ‐ Foodservice
Keyaspectstoprecookedfrozenpasta:
Producthadlittledirectcompetition– mainlyambient
Cleardifferentiators–nowaste,lesslabour,higherqualityconsistency,easiermenuvariation,higherfoodsafety
MainObjections–Price,storage
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Embassy of the Republic of Lithuania to the UK
Questions