Chapter_6_-_Marketing_Strategy_2023.pdf

Food marketing and consumer behaviour Academic year 2023-2024 Prof. dr. ir. Wim Verbeke dr. Christine Yung Hung ir. Fien Minnens Department of Agricultural Economics [email protected]; [email protected]; [email protected] Food marketing and consumer behaviour - Marketing Strategy 1 Chapt...

Food marketing and consumer behaviour Academic year 2023-2024 Prof. dr. ir. Wim Verbeke dr. Christine Yung Hung ir. Fien Minnens Department of Agricultural Economics [email protected]; [email protected]; [email protected] Food marketing and consumer behaviour - Marketing Strategy 1 Chapter 6: Marketing Strategy Five steps in strategy development 1. 2. 3. 4. 5. Develop a GOAL Set the OBJECTIVES Select MAJOR MARKET / SEGMENT Set POLICY: COURSES OF ACTION ASSEMBLE & IMPLEMENT Food marketing and consumer behaviour - Marketing Strategy 2 The Strategic Context PURPOSE Why the company exists STRATEGY VALUES The competitive position and distinctive competence What the company believes in STANDARDS AND BEHAVIOURS The policies and behaviour patterns that underpin the distinctive competence and the value system Food marketing and consumer behaviour - Marketing Strategy 3 Facets of Marketing Strategy Product range strategy PRODUCT PLACE Selling and distribution strategy Marketing strategy Promotional strategy PROMOTION PRICE Pricing strategy Food marketing and consumer behaviour - Marketing Strategy 4 1. Marketing goals • • • • = Statements of purpose / Mission statement General guideline for employees Usually rather general and abstract statement e.g. “Become a leading brand worldwide” Food marketing and consumer behaviour - Marketing Strategy 5 2. Operational objectives • Near-term / Long-term • Usually more specific and concrete than goals • e.g. “Realise 5% growth next year in Europe” ; “8% growth next year in Asia” Food marketing and consumer behaviour - Marketing Strategy 6 What is growth ? A relative concept. The growth-gain matrix Holding share position Gaining market share Company sales growth Loosing market share Market growth Food marketing and consumer behaviour - Marketing Strategy 7 3. Selecting major markets (where growth can be realised) • Consumer home food market: consumption at home • Food service market: catering, restaurant • Institutional food market: organisations, e.g. schools • Government food market: e.g. for food aid purpose • Industrial food market: business-to-business Each of these markets can be: • National • International Food marketing and consumer behaviour - Marketing Strategy 8 4. Courses of action = ANSOFF growth matrix Alternative product/market strategies for realising growth PRODUCTS MARKETS Existing New Existing New Market penetration Market development Product development Diversification Food marketing and consumer behaviour - Marketing Strategy 9 Growth strategy 1 Current products Market penetration strategies Current markets • Increase market share • Increase product share – Increase frequency of use – Increase quantity used – New application Food marketing and consumer behaviour - Marketing Strategy 11 Growth strategy 2 New products Current markets Product development strategies • Product improvement • Product line extensions (see Product) • New products for same market • Innovations Food marketing and consumer behaviour - Marketing Strategy 12 Growth strategy 3 Current products Market development strategies New markets • Expand markets for existing products – Geographic expansion – New target segments (see STP) Food marketing and consumer behaviour - Marketing Strategy 13 Growth strategy 4 New products Diversification strategies •Vertical integration: New markets – Forward integration – Backward integration • Horizontal integration: – Diversification into related businesses (concentric diversification) – Diversification into unrelated businesses (conglomerate diversification) Food marketing and consumer behaviour - Marketing Strategy 14 5. Assemble and implement the strategy STP-analysis Segmentation Consumer preference patterns 1. Homogeneous 2. Diffused 3. Concentrated Food marketing and consumer behaviour - Marketing Strategy 15 Good segments should be … / should have ... • • • • • • Homogenous preferences within segments Heterogenous preferences between segments Demand differences between segments Accessible: can be reached Stable: exist now and later Substantial: size or purchasing power Food marketing and consumer behaviour - Marketing Strategy 16 Segmention Criteria: how segments can be determined and/or profiled • • • • Identifiable Measurable Relevant Segmentation Variables: – – – – – Geografic: e.g. regions Demografic: e.g. gender, age, … Socio-Economic: e.g. social class, income, … Buying Behaviour: e.g. buyers vs non-buyers Psychografic: e.g. personality, lifestyle Food marketing and consumer behaviour - Marketing Strategy 17 Macro Segmentation Variables • Consumer markets – Geography: country, region, administrative area, city, density, climate – Demography: age, family, gender, income, education, occupation, religion, nationality, language Food marketing and consumer behaviour - Marketing Strategy 18 Micro Segmentation Variables • Consumer markets – Psychographic: social class, lifestyle, personality – Behavioural: occasions, benefits sought, user status, usage rate or frequency, loyalty, attitude to the product or the brand Food marketing and consumer behaviour - Marketing Strategy 19 The Market Segmentation Process 1 2 3 4 5 6 7 Define markets to be segmented Identify and apply segmentation variables Evaluate the segments Select segments to pursue Apply target marketing Apply positioning Apply marketing strategy Food marketing and consumer behaviour - Marketing Strategy 20 Sequential approach to market segmentation S Identification of feasible subsectors in specific markets Estimation of consumption levels and trends in specific segments T Evaluation of opportunities in specific segments Selection of of target market segments P Development of effective marketing strategies and tactics Food marketing and consumer behaviour - Marketing Strategy 21 Targeting • Evaluate segments: in terms of … – Growth potential – Attractiveness • Size: now and in the future • Spending power • Stability over time • Accessibility – Fit with objectives and means of the company • And select the most promising one(s) as target(s) Food marketing and consumer behaviour - Marketing Strategy 22 1. Single-Segment concentration S = Segment or Market S1 S2 S3 P1 P = Product P2 P3 Food marketing and consumer behaviour - Marketing Strategy 23 2. Selective Specialisation S1 S2 S3 P1 P2 P3 Food marketing and consumer behaviour - Marketing Strategy 24 3. Market Specialisation S1 S2 S3 P1 P2 P3 Food marketing and consumer behaviour - Marketing Strategy 25 4. Product Specialisation S1 S2 S3 P1 P2 P3 Food marketing and consumer behaviour - Marketing Strategy 26 5. Full Coverage S1 S2 S3 P1 P2 P3 Food marketing and consumer behaviour - Marketing Strategy 27 Positioning • ‘Placing’ or positioning the product in the market • Choosing a position in the market through giving the product specific characteristics High quality segm. 1 segm. 2 brand A Low price brand B segm. 3 High price brand C Low quality Food marketing and consumer behaviour - Marketing Strategy 28 Food marketing and consumer behaviour - Marketing Strategy 29 Example Food marketing and consumer behaviour - Marketing Strategy 30 Some examples of segmentation studies Food marketing and consumer behaviour - Marketing Strategy 31 Consumer segments based on involvement with fresh meat n=450; Flanders, Belgium; 2003 Straightforward Indifferent Cautious Concerned Pleasure value High Low High Medium Risk importance Low Medium High High Socio-demo Male Young With children With children Size 17% 15% 36% 32% Focus Taste Price Health Safety Low interest in information; unless on differentiated sensory attributes Low interest in information; unless price information Trust in labeling and traceability; confidence in info source Belief in mass media; need for personal reassurance Information challenge – Targeting – Positioning Verbeke & Vackier (2004) Meat Science 67 Consumer use of and trust in seafood information sources: pan-European segments (n=800 per country; 2004) Use of A minimum baseline level of trust is needed before consumers even think of examining information Enthusiasts 41% - High fish consumption - Good knowledge - Strong interest in info - More females SP Trust in PL Skeptics 24% - Low fish consumption - Poorer obj. knowledge - More males - Less higher education Confidents 35% - Trust esp. in independent info - Low fish consumption DK, NL - Younger age - Moderate interest in info Pieniak, Verbeke et al. (2007), Food Quality and Preference 18 Pork consumption Frequency by Variety segmentation Frequency of pork consumption (per week) 35 30 PL, GE 25 Heavy 19% 20 BE, DK 15 Varied 52% 10 18% 5 Light 0 11% Non-pork eaters 0 5 10 15 20 25 30 Variety of pork consumption (on 30 items) Verbeke et al, (2011) Meat Science 88