By Dr. John L. Stanton Professor of Food Marketing

Transcription

1 By Dr. John L. Stanton Professor of Food Marketing

2 I have been a Professor of Food Saint Joseph s University for 28 years. Consulted for and worked with many produce groups including Mushroom Council, FL Depart of Citrus, US Apples, and many others Besides Academia I actually worked! I was VP of Marketing of an international coffee company I worked in food retailing for Tengelmann in Germany I was director of marketing research for an advertising agency

3 Presentations: FMI, NGA, NCA, NACS, IFDA, PMA, etc. Consulted for many of the largest food companies in the USA including Kellogg, P&G, Pepsi Co, Frito Lay Lived and taught in Brazil, Africa, Ireland and Germany. Authors of the following books:

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5 It has slowly changed from almost totally based on supermarket shopping to one where consumers go to a variety of different stores.

6 Foods Sales by Outlet Drug $ Store Convenience Club Mass/no super Grocery Supercenter

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9 In many cases we all become focused on our current business and fail to see the potential to the New Businesses. The revenue from the old businesses will exceed the revenue from the new businesses until the very end. I remind you Smith Corona was the #1 typewriter company on the day they went out of business

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12 Stores are approximately 9,000 sq. FT. and are designed to offer high quality, fresh food at competitive prices, capturing top-up basket shoppers looking for meal solutions. As part of the convenience concept, stores have a range of around 3,500 SKUs including chilled ready meals, snacks and salads, ready to heat prepared meals, baked goods, fresh produce, meat, poultry, seafood, juice and coffee. Prepared foods account for around 10-15% of the range. Private label is also a very strong part of the range, accounting for around 50% of the lines.

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15 Fruit & Vegetables 5 Sticking true to its name, the store aims to provide health-conscious shoppers with an easy shop by grouping certain products together (in this case: lunch foods, drink and fruit). 11

16 Convenience Food 5 Healthy convenience is the heart of Fresh & Easy's strategy. 22

17 Convenience Food 3'Fresh & Easy Ideas' is designed to create excitement in what is generally a promotion-free environment. Meal ideas are advertised in the retailer's circular and online, and then integrated in-store. Most products featured in the Ideas section are private label. 23

18 Ready Meals 5 Tesco s real strength - healthy, prepared foods - is showcased in the Fresh From Our Kitchen section. The department is almost entirely private label and consists mainly of home meal solutions, meaning that the products need to be heated up for at-home consumption 27

19 Frozen Foods 5 The frozen foods section features an array of branded and private label items. 31

20 Private Label 5 In a bid to create awareness of its private label ranges, Fresh & Easy offers in-store food samples to shoppers. Ready meals and other fresh foods from the 'Fresh From Our Kitchen' cooler are sampled here. 68

21 Others 3Somewhat cheekily, Fresh & Easy gives Californian hybrid car drivers preferential treatment. 77

22 Marketside stores are roughly 15,000 square feet

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26 Safeway got on board with The Market at Vons in Long Beach. Supervalu opened a 16,000- square-foot prototype called Urban Fresh in the Chicago market.

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33 Target has introduced a new type of store in its existing store: Target P-Fresh

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46 The store combined Giant Eagle's GetGo gasoline outlet with a drive-through pharmacy and a specialized grocery store of less than 14,000 square feet. The Giant Eagle Express store is open 24 hours a day, seven days a week. Giant Eagle Express' ready-to-eat menu now includes breakfast, lunch and dinner selections, such as fresh breakfast sandwiches, which were recently promoted for two for $3, along with gourmet muffins, deli wraps and sandwiches.

47 How about Truck stops TravelCenters provides professional drivers services for the long haul. The complex design includes gasoline, foodservice, retail, entertainment, and other roadside conveniences.

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50 The Walgreens own brand has been introduced throughout the stores product ranges and accounted for 17% of front-end sales in Although PL are concentrated in the HBA area, there are an increasing number of own brand grocery products in areas such as such as coffee, household goods, photography, ice-cream, confectionery, snacks and drinks.

51 The Walgreen Co. is changing along with the drug store industry by looking to the past, as well as to the future. The retailer is harkening back to the days of the soda fountain it has been ramping up its fountain drink, coffee and snacks offering through Café W, a compact counter version of a convenience store s beverage and snack area.

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54 Arby s Jack in the box

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57 Dollar General Family Dollar

58 DOLLAR STORES ARE RAPIDLY EXPANDING IN FROZEN AND CHILLED FOODS. THE LEADING CHAIN, DOLLAR GENERAL, HAS ADDED COOLERS AND FREEZERS TO 2,400 OF ITS 6,200 STORES, AND PLANS TO HAVE THEM IN ALL ITS STORES BY THE END OF DOLLAR STORES TODAY ARE LOOKING FOR PRODUCTS AND PACKAGE SIZES TAILORED TO THEIR NEEDS (SIMILAR TO CLUB STORES). INCREASING "CONSUMABLES," INCLUDING HOUSEHOLD PRODUCTS AS WELL AS FOOD, IS SEEN AS KEY TO BUILDING TRAFFIC.

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60 YahooDem 1700 Kinder care Do you think mothers might Value a brand called Kinder Care brand food for Kids

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65 Think college students eat a lot? Drink a lot? Think they go to the Supermarket? Think Bookstores might want to make more money as on-line steals their book sales

66 For example they sell pasta sauce with the pots, spices, oils, candy, mixes for tortillas etc.

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68 Are you putting all their eggs in one basket

69 However, what he really said was In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment. Charles Darwin ( ) The Origin of Species 1859