Product Promotion Price

Solution Information Value Access

Placement

Having generated a number, -sometimes a large number- of ideas, the filtration process must begin. The objective is to identify new product ideas which are weak in terms of their chances of market success or their potential return-on-investment. The important point here is that product ideas must be evaluated against the company's objectives. A company must have a clear mission and know what business it is in. Only then can product ideas be matched with company objectives and resources. Internal R & D department, committee or task force Top executives Sales representatives Production staff Other company employees Noncompetitive firms External Suppliers or market intermediaries Customers Competition Freelance inventors Consultants Patent applications

Consider the example, of a manufacturer of processed meat products (sausages, hamburgers, corned beef etc.) Who developed an improved binding agent based on rolled oat rather than rusk. Wishing to fully exploit this development, some individuals, within the company, wanted to market the new binding agent to other food manufacturers as well as making use of it to improve their own meat products. On the face of it this proposition made good sense since it appeared to meet a market need but the idea was rejected because it did not fit the company's objectives or resources. First, whilst the rolled oat based product was unquestionably superior in performance to rusk binding agents it cost almost twice as much. Substantial resources would have had to be devoted to marketing the product to others. Second, the company had expertise in consumer marketing but no experience in industrial marketing. Third, the company profit objectives were tied to exploiting volume markets through mass marketing. In contrast, the new binding agent was only likely to appeal to a niche market i.e. those food companies with premium quality meat products where the cost of the value added by the improved binder could be recouped.

Brand product importance

Some people distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service. A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is the identification of a brand without the name of the company present. Alternatively, in a market that is fragmented amongst a number of brands a supplier can choose deliberately to launch totally new brands in apparent competition with its own existing strong brand (and often with identical product characteristics); simply to soak up some of the share of the market which will in any case go to minor brands. The rationale is that having 3 out of 12 brands in such a market will give a greater overall share than having 1 out of 10 (even if much of the share of these new brands is taken from the existing one). In its most extreme manifestation, a supplier pioneering a new market which it believes will be particularly attractive may choose immediately to launch a second brand in competition with its first, in order to preempt others entering the market

Food Labelling in the EU

Competition for finite space by ever-increasing information requirement. Information needs to be: readable AND understandable

Food Labelling in the EU

The Stakeholders
Legislators Consumers Manufacturers and retailers Regulatory agencies Analysts

Food Labelling in the EU

Legislators
require mandatory information to inform consumers facilitate trade prevent fraud

Food Labelling in the EU

Consumers
need information to provide identity, quantity advice on safe storage and use enable informed choice

Food Labelling in the EU

Manufacturers and retailers
need information to help differentiate / sell the product comply with legislation enable traceability of products

Food Labelling in the EU

Retailers additionally
provide space for the bar code for checkout scanning stock control via in-store database

Food Labelling in the EU

Regulatory agencies and analysts
need data to enable checking that regulatory standards are fulfilled labelling regulations are complied with claims are fulfilled

Food Labelling in the EU

More information Competition for finite space Would better label design help?

Food Labelling in the EU

Full texts of all labelling-related EU Directives and Regulations can be accessed by links on the Web page
http://europa.eu.int/comm/food/food/labellingnutrition/food labelling/index_en.htm

Food Labelling in the EU

DIRECTIVE 2000/13/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on labelling, presentation and advertising of foodstuffs

Food Labelling in the EU

COMMISSION DIRECTIVE 2001/101/EC of 26 November 2001 regulating the definition of meat for labelling purpose, where meat is used as an ingredient in foodstuffs

Food Labelling in the EU

COUNCIL DIRECTIVE 90/496/EC
concerns nutrition labelling of foodstuffs to be delivered to the consumer (compulsory if a claim is made)

Food Labelling in the EU

COMMISSION REGULATION (EC) No 1825/2000 of 25 August 2000 Detailed rules for the labelling of beef and beef products

Food Labelling in the EU

COMMISSION DIRECTIVE 2002/67/EC of 18 July 2002 on the labelling of foodstuffs containing quinine, and of foodstuffs containing caffeine

Food Labelling in the EU

Regulation 608/2004/EC
of December 2004 on the labelling of foods and food ingredients with added phytosterols, phytosterol esters, phytostanols and/or phytostanol esters

Food Labelling in the EU

EU LAWS AFFECTING LABELLING OF GENETICALLY MODIFIED FOODS since 1997 provide for information for consumers using distinctive labelling as a tool for making an informed choice.

Food Labelling in the EU

REGULATION (EC) No 258/97 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 27 January 1997 concerning novel foods and novel food ingredients (Article 8 concerns labelling)

Food Labelling in the EU

COUNCIL REGULATION (EC) No 1139/98 of 26 May 1998 As amended by COMMISSION REGULATION (EC) No 49/2000 of 10 January 2000 concerning the compulsory indication of the labelling of soy and maize produced from genetically modified organisms

Food Labelling in the EU

COMMISSION REGULATION (EC) No 50/2000 of 10 January 2000 on the labelling of foodstuffs and food ingredients containing additives and flavourings that have been genetically modified or have been produced from genetically modified organisms

Food Labelling in the EU

COUNCIL DIRECTIVE 98/95/EEC concerns the labelling of genetically modified seed varieties

Food Labelling in the EU

27 July 2001: EU Commission Proposals for two Regulations of the European Parliament and of the Council: on genetically modified food and feed concerning traceability and labelling of GMOs and traceability of food and feed products produced from GMOs

Food Labelling in the EU

Regulation (EC) 1829/2003 of the European Parliament and of the Council of 22 September 2003 on genetically modified food and feed.

Food Labelling in the EU

Regulation (EC) 1830/2003 of the European Parliament and of the Council of 22 September 2003 concerning the traceability and labelling of genetically modified organisms and the traceability of food and feed products produced from genetically modified organisms" and amending Directive 2001/18/EC.

Food Labelling in the EU

The percentage problem QUID x % fat-free 25% rule Major serious allergens Nutrition and health claims on labels High,low,rich in,free from Salt vs sodium

Food Labelling in the EU

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 10 November 2003
amending Directive 2000/13/EC to provide complete listing of ingredients and indication of allergens present in foodstuffs

Food Labelling in the EU

July 2003, EU Commission Proposal for a Regulation on nutrition claims and health claims made on foods. http://europa.eu.int/eurlex/en/com/pdf/2003/com2003_0424en0 1.pdf Still under debate by official representatives of Member States!

Food Labelling in the EU

DIRECTIVE 98/6/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 February 1998 on consumer protection in the indication of the prices of products offered to consumers

Think of the power of the brand

Branding decision

Branding sponsor decision

Branding extension decision

Multi brand decision

Selecting the brand name

Packaging decision

Labelling decision

TRACKING:
GROWER PACKHOUSE BATCH SUPPLIER RETAILER

Batch traceability: LOT # / PALLET # Trade unit label: Lot # / BOX #) Human readable field bin label

SUPPLIER

TRACING:
GROWER BATCH

Mixed logistic unit label: Pallet # and BOX # PACKHOUSE SUPPLIER RETAILER

Parmigiano-Reggiano

Dairy identification number casein plate - alphanumeric code

RFID

Production month and year

Oval mark

Commercial and safety information

Variety Size/Caliber Pack Date Grown by Packed by LOT # or BOX #

Geographical origin of food : the stakes

Globalisation
Standardised/uniformity - locations World wide Common place products of unidentified origins Development of global brands Mass consumerism

Localisation
Quality certification Specific geographic locations Products with identifiable roots/origins Develoment of regional quality products Selective and demanding consumerism

Major decisions in international marketing

Looking at the international marketing environment

Deciding whether to go abroad

Deciding which markets to enter

Deciding on the marketing organization

Deciding on the marketing program

Deciding how to enter the market

Problem recognition

Information search

Evaluation of alternatives

Purchase decision

Purchase behavior

Attitudes of others Evaluation of alternatives Purchase intention Unexpected situational factors Purchase decision

Problem recognition: actual state desired state external stimuli Information search: Personal sources: family, friends, neighbors, acquaintances Commercial sources: advertising, salespeople, dealers, packaging, displays Public sources: mass media, consumer-rating organizations Experiential sources: handling, examining, using the product Evaluation of alternatives: Alternative evaluation Product attributes Brand image

International Trade System face several restrictions: tariff, quota, exchange controls, non-tarif restrictions.
Economic environment: Subsistence economies Raw material-exporting economies Industrializing economies Industrial economies Indicators of market potential: Demographic characteristics Geographic characteristics Economic factors Technological factors Socio-cultural factors ational goals plan

Exporting Indirect Direct

Joint venturing Licensing Contract manufacturing Management contracting Joint ownership

Direct investment Assembly facilities Manufacturing facilities

Amount of commitment, risk, control and potential profit Market entry strategies

Promotion strategies on the international market

Product Don' change product Don' change promotion 1. Straight extension 2. Communication adaptation Develop new product 5.

Adapt product 3. Product adaptation 4. Dual adaptation

Promotion

Adapt promotion

Product invention

Whole channel concept for international marketing

Seller

Seller's headquarters organization for international marketing

Channels between nations

Channels within nations

Final user or buyer

Business actions toward socially responsible marketing Enlightened marketing The concept of enlightened marketing holds that a company's marketing should support the best long-run performance of the marketing system. It consists of five principles: consumer orientated marketing innovative marketing value marketing sense of mission marketing societal marketing. Immediate satisfaction Low High Long-run consumer benefit Low Salutary Products Deficient Products Marketing ethics If you are responsible for Marketing in your organization here are some facts you should know: Long term sales and earnings growth depend on the ability to develop new products and to successfully manage product life cycles. Over 70% of all new products fail shortly after introduction, and most products under perform given their product life cycle potential. Leading causes of marketing failures cited are: poor planning (research), poor coordination (execution), and unsupportive cultures. Marketing capability, and the value of the firm, depend on the supportive capability of the organizational culture. High Desirable Products Pleasing Products

Culture flaws often precipitate marketing flaws.