Marketing B.C. Agri-Food and Seafood Products

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Marketing B.C. Agri-Food and
Seafood Products
Location: Nanaimo
Date: January 16, 2015

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Agenda
8:30 am Welcome and Introductions
9:00 am 8 Steps to a Market Driven Marketing Plan
Overview of the B.C. Marketplace
10:00 am Break
10:20 am “Inside Scoop” Presentations:
Overwaitea and Gordon Food Service
12:15 pm Networking Lunch
1:15 pm “Hands-on” Group Activity
Developing a Market Driven Marketing Plan: Domestic Market
2:40 pm Break
3:00 pm Presenting and Reviewing Marketing Plans
4:00 pm Closing Remarks and Evaluation
4:30 pm End of Workshop

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Marketing B.C. Agri-Food and
Seafood Products
Building Your Market-Driven Marketing Plan

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Goals and Objectives
Target established B.C. companies pursuing domestic
retail or food service distribution.
Designed for:
• Companies that have product(s) in the market
• Companies that want to expand their markets
Objective:
• Provide invaluable market intelligence
• Apply new intelligence in a marketing plan ULTIMATE GOAL
Build marketing
capacity within BC’s
Agrifoods industry

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8 Steps to a Market-Driven
Marketing Plan
1
2
3
5
6
7
8
4
Assess the Current Situation
Identify Your Target Market
Position Your Product
Set Your Marketing Objectives
Build Your Brand
Build Your Action Plan
Evaluate Your Marketing Plan
Set Your Sales Objectives
Market
Driven
Marketing
Plan

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STEP 1 :
Business Goals
Market Drivers
Consumer and Product Trends
Buyer Trends
Competitive Landscape
SWOT Analysis

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Business Goals
Define your business
Marketing plan must be consistent with business goals
Marketing plan must contribute to short and long-term
business goals
SMART
S-pecific
M-easurable
A-chievable
R-ealistic
T-imely
Document and review goals regularly

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Business Goal Example
For example:
Long Term (3-5 years):
Achieve company value of $10 million by 2018
Short Term:
Increase company profit by 12% by December 31, 2015

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Market Drivers

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Multiple, widely publicized food scandals
Reduced consumer confidence in the global food supply chain
Quick access to information through social media
“Transparency will no longer be an option” (John Keogh, Shantalla
Inc.)
Market Drivers

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Canada B.C.
Population 2014 35.54 million 4.63 million
% of population 65
and over
16% 17%
Population 2028 40.39 million 5.47 million
% of population 65
and over
22% 23%
Sources: Statistics Canada and BC Government (2014)
Market Drivers

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Evolving concept of aging
Life expectancies changing
Nutritional needs vary
Example:
Over 55’s wanting to stay healthy and active
75+ years of age addressing disease issues
Market Drivers

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Major diseases that can be impacted
by nutrition:
Obesity
•Affects almost ¼ of Canadian population
•Impacts many other chronic diseases e.g.
CVD, diabetes, bone/joint
•Impact is long term
Cardiovascular Disease
•More than $20.9 B cost to health care system in Canada
Diabetes
•Affects 3.7 million Canadians (95% with Type 2)
•Often manageable through proper exercise, diet and weight management
•More than $12.2B cost to health care system in Canada
Market Drivers

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Perceptions of Food & Dietary Health– Region
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ABCDEF: Significantly higher than sub-group represented by that letter.
Base: All respondents
Q1a. Using a scale of 1 to 5, where 1 is strongly disagree and 5 is strongly agree, please tell me your level of agreement
or disagreement with each of the following statements...
% Agree, Rated 4 or 5
Total
(n=1,200)
British
Columbia
(n=161)
(A)
Alberta
(n=128)
(B)
Saskatchewan/
Manitoba
(n=78)
(C)
Ontario
(n=460)
(D)
Quebec
(n=288)
(E)
Atlantic
(n=85)
(F)
I believe the foods and
beverages I consume
affect my health
88% 92% 93% 89% 86% 85% 91%
I have made changes to
my diet because of a
specific health concern
47% 52%E 42% 55%E 53%E 33% 58%E

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Increasing scrutiny of food system by
regulators, social activists and consumers
Concerns over:
Ethical and welfare standards
Fair-Trade
Provenance
Bio-diversity
Packaging
Food loss
Food waste
Market Drivers

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Food and Consumer Trends

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Driven by demand for food safety
and transparency
Top Canadian consumer reasons for
buying local (2013 BMO Survey):
Freshness and better tasting(97%)
Supports the local economy (97%)
Supports local farmers (96%)
Creates local jobs (93%)
Better for the environment (88%)
Offers the opportunity to buy organic product (76%)
Less expensive (71%)

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Gluten
GMO (genetically modified organisms)
Preservatives
Allergies
Hormones
Dairy
Lactose
Wheat
Sugar
Fat (reduced fat)

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Globally, doubling of gluten-free claims
since 2006 (Datamonitor)
Market expect to grow 15% - 25% per year
(AC Nielsen)
US sales of gluten-free food and beverages to
exceed $6.5 billion by 2017 (Packaged Facts)
Question of whether or when the trend will plateau?
2. “Free From”

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Consumers looking for:
Fewer ingredients
Ingredients they can pronounce

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The growth of food and ingredients
offering intrinsic health benefits
Includes berries to honey
And also includes the astounding growth of plant based
proteins (e.g. soy, wheat, pea, hemp, flax)

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Convenience a key driver of
innovation in food and beverage sector
Impacts all categories but particularly snacks
Snacking important for today’s consumers
24% of all meals in Canada in 2010 were snack meals
43% of American population snacked 3-4 times daily in 2012

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Semi-vegetarian eating
The rise of “Meatless Mondays”
43% of Americans consuming vegetarian
meals at least once a week
Concern over:
Rising cost of meat
Increased awareness of environment impacts of animals
Animal welfare issues
Increased recognition of healthy plant proteins

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How many mass markets are
there anymore?
Demand for “eye-catching”,
innovative packaging
Targeting the niche but well-defined consumer niches
Addresses several functions:
“Consumers - pay attention”
Opportunity for price premiums
Defines new category you may be creating

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Sports performance and recovery
•Concern for almost 30% of Canadians (BioAccess)
•Global sales expected to increase 40% by 2017 (NBJ)
Weight management
•Of concern to half of Canadian households particularly those aged 45-55
years of age (BioAccess)
•Main focus of new products on satiety and appetite suppression
Seniors’ nutrition
•Active “junior seniors”
•“Keep healthy to the end”
•“Older seniors” – meal replacements, custard formulations, high protein
beverages – ease of swallowing
•Key priority for food and beverage processors

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Importance of Trends to
Your Company
Focus on trends, not fads
Focus on the staying power of trends
Formulate your strategies around trend analysis
Link into target market, competitors, uniqueness, what it
takes to capture a portion of the market

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Buyer Trends

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Food and Beverage Retail Operating Statistics – British
Columbia (2012)
Source: Statistics Canada (2014)

Cost of Goods
Sold
Gross Margins
Supermarkets and other
grocery (except
convenience)
$7,669 million 28.6%
Convenience $ 499 million 19.2%
Specialty food $ 484 million 40.1%
Buyer Trends

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Sales growth down, 1% versus traditional 3%
Fewer, but bigger, companies
Square footage growing at greater rate than population
More products being purchased in non-traditional food retailers
(Walmart, Costco, drugstores)
Rise in ethnic grocery stores
Consumers sensitive to food prices – getting smarter at finding
deals
Only way to increase sales – DIFFERENTIATE
Source: Canadian Grocers annual Market Survey - 2012
Buyer Trends

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Loblaws in British Columbia

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Other Chains –
British Columbia

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Restaurants
Hotels and Resorts
Hospitals
Schools
Prisons
Recreational centres
Seniors facilities
Buyer Trends

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Canada British
Columbia
Number of restaurants, bars,
caterers
89,000 13,200
Number of daily visits to
restaurants
18 million 2.7 million
Annual Sales $68 billion $10 billion
Percentage of GDP 4% 4.5%
Food and beverage
products purchased annually
$24 billion $3.6 billion
Source: Restaurants Canada (2014)
Buyer Trends

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2014 sales expect to be $7.7 billion
3.9% growth over 2013
Accounts for 10.8% of Canada’s foodservice industry
Contract services: 53%
Self-operated: 47%
Source: Restaurants Canada (2014)
Buyer Trends

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Farmers’ and Public Markets
Numbers have doubled in past 10 years
Sales increased 147% between 2006 and 2012
63% of B.C. food shoppers purchased products at farmers’
markets in 2011 (BioAccess)
Buyer Trends

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Online purchases
68% of B.C. shoppers searching online for
information regarding food and
beverages (2012)
11% of B.C. shoppers purchasing food
and beverages online (2012)
Buyer Trends

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84% of smartphone shoppers turn to their
mobile phone to help them shop while in a store.
One-third of shoppers use their smartphones
to find information instead of asking store
employees.
Today’s consumers are spoiled for choice.
Faced with this surplus, consumers are choosing to engage only
with content that is personally relevant to them, their purpose and
their passions.
Buyer Trends

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72% of all internet users are now active on
social media
18-29 year olds have an 89% usage
The 30-49 bracket sits at 72%
60 percent of 50 to 60 year olds are active on
social media
In the 65 plus bracket, 43% are using social
media
71% of users access social media from a
mobile device
Buyer Trends

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Competitive Landscape
There are ALWAYS competitive products in the
marketplace
Who are the competitors?
What is their competitive advantage?
What is their strength in the marketplace?
What do they do well?
What don’t they do well?

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SWOT Analysis
STRENGTHS
What your company does well?
Include your core competency(ies)
WEAKNESSES
What your company could
improve?
OPPORTUNITIES
Based on your analysis of the
marketplace, what opportunities
could your company leverage?
THREATS
What are the key issues or
challenges your company faces in
following those opportunities?

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STEP 2:

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Define projected sales for a period of time
Sales objectives should be in line with business goals
Be SMART (particularly “realistic”)
S-pecific
M-easurable
A-chievable
R-ealistic
T-imely
Lay the foundation for the rest of your marketing plan

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STEP 3:

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Key Questions
Who is your primary target market?
Who is your secondary target market?
Develop criteria for your choice (for example):
Size of the market
Awareness of your product and/or key attributes
Ease of market entry

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The Challenge
Marketplace is highly fragmented
Determine your basis for segmentation
Age (e.g. Seniors, Boomers, Generation X, Generation Y, Millennials)
Ethnicity
Locale
Technology, lifestyle or mass-market
Focus where you can deliver (you can’t do it all)

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STEP 4:

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For … (target consumer)(target consumer)
Who are dissatisfied with … (current competition)(current competition)
Our product is … (category)(category)
That provides … (solves what problem)(solves what problem)
Unlike … (the alternative)(the alternative)
Our product features are (elaborate –(elaborate – be concisebe concise))
Brand Positioning Statement

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STEP 5:

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Aimed at meeting your sales objectives
Examples of marketing objectives:
Increase retention of lifestyle customers to 70% by July 31, 2015
Increase the number of purchases of current customers from 3X
per month to 4X by December 2015
Enter the Seattle grocery market by December 2016

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What is a Brand?
Build Your Brand
Should be viewed as a trust mark
3 C messaging to your market
Concise, Consistent, Constant
Goals are to:
Differentiate yourself from the competition
YOU are the solution provider
Build a relationship with your customers
Build customer loyalty
Increasingly difficult to do

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STEP 7:
Build Your Action Plan –
Based on the “Inside Scoop”

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Build your action plan based on:
• Market Assessment
• “Inside Scoop” - Retail and foodservice speakers

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Requirements:
Key basis of purchasing
Product (includes packaging, food safety, traceability, green
initiatives)
Price
Distribution (includes use of distributors, insurance etc.)
Communication (includes advertising demands, in-store promotions,
etc.)

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COMPANY INFORMATION
Company name & address
Contacts – phone, emails, website
Company Logo/Product Logo Branding
Background/story
Liability insurance
Traceability
Sustainability initiatives
PRODUCT INFORMATION
Product description
Picture of retail package
Picture of product in use
Vendor UPC number
Individual size retail unit
Sell unit weight
Sells per case
Order Information and contact
Minimum order amount
Case specifications
weight, cube, pallet, pallet quantity, other
ADDITIONAL
INFORMATION
Separate price sheet - do not put
pricing information not on sell sheet
Allowances, in-Store Demos,
etc…
Master Case Photograph
Image of scannable BAR CODE
Winning Product Presentations:
Your Sell Sheet

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Sell Sheets: Example

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STEP 8:
Evaluating Your Marketing Plan

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Assigning Measurements
to Action Plan
Based on action plan and items:
Prepare budgets
Assign timelines
Assign responsibility
Estimate payback

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Basis or Bases of Evaluation
Measure overall plan against:
Sales and profit objectives
Marketing objectives
Communication and media awareness and attitude goals

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Marketing Plan Self-Assessment
Complete your Marketing Plan Self-Assessment
Hand-out

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Applying New Intelligence
Developing a Market Driven Marketing Plan
Hands-on Activity
We will break you into groups
Each group will be given a product and scenario sheet
Products are real, new to the market – your input will be used!
Coaches will be available to assist
You will have approximately 1.5 hours to work on your plan
A representative of each group will present the group plan to the
class
We look forward to your ideas!
Have fun!!!

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Domestic Marketing Resources
Contact:
Donna Anaka
Ministry of Agriculture
donna.anaka@gov.bc.ca
(604) 660-2945

Marketing B.C. Agri-Food and Seafood Products

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