When you think of your food products, you likely envision the aisles of a traditional supermarket. But the truth is that less than half of the food products sold at conventional supermarkets are found in these outlets. To take advantage of these sales opportunities, food companies should look to warehouse clubs and e-retailers. However, this strategy isn’t the only way to reach consumers. Consider the following tips for successful food merchandising:
Target market
Target’s latest food merchandising strategy targets market segments. The company is expanding its online presence, but it is not increasing sales at the same pace as brick-and-mortar stores.
However, Target has limited options, given that competition is so intense. This article examines Target’s recent operational activities, including the concept known as “revenue per square foot” (RPSF).
Competences
Food merchandising strategies are often based on a company’s core competencies, which are its special skills and capabilities that set it apart from competitors. These capabilities are inherent to the firm and define its unique position in the market. Competencies are not necessarily physical resources. While they are often closely related to physical resources, they differ greatly from one another. In addition, these competencies are critical to the development of a company’s business strategy, as they create a sustained competitive advantage.
Lighting
Grocery store lighting is a proven influencer in the shopping habits of consumers. This type of lighting provides a new and exciting way for brands to reach out to the customers and influence their purchase decisions. Lighting can be improved with LED technology and can affect a consumer’s perception of food products and the overall shopping experience. Leading brands are examining the impact of lighting on their customers’ shopping habits and perceptions.
Price
The use of price in a food merchandising strategy can help a business to differentiate itself from its competitors. A lower price means higher profits, but it can also cause the seller to lose money by increasing their inventory. Different pricing strategies may be used, depending on the type of product. Some retailers sell items at a lower price than competitors and use trade allowances to encourage local sales. Others may use a combination of price and service to boost sales and avoid being left behind in the market.
Introducing a new product
Introducing a new product is not an easy task, and it is important to consider a number of factors before introducing it into the market. First, you need to understand the needs and expectations of the target market to develop a marketing strategy that meets those needs. After all, food products are often distributed through mass retailers and over large geographical areas, and this means that you must consider the basic cost structure and pricing policy of the product, as well as its place in the market.
Using a website to market your product
If you’re starting a food business, using a website to promote your product is a great way to reach a broader audience. Traditional media can be costly and reach every person in your locality, but word of mouth is a powerful marketing strategy. After all, if a satisfied customer tells a friend about your food product, they’ll likely try it too. Plus, word of mouth marketing works just as well as traditional advertising.
