George Bernard Shaw said, “There is no love sincerer than the love of food.”
There is no greater gift than customers that love your food, and will pay for it-but at what price? Food price value equilibrium continues it’s resetting? How low is your company going to go? Are you price positioning your food properly? Here is my formula for establishing customer focused price:
Price + Quality + Service + Portability = Value
Incremental Value = Constantly Changing Menu (Seasonally / Sustainability with creditability).
Now, lets look at what is happening at different companies, price and channel of distribution are clearly challenging each other this is about share of stomach. While Subway started the focus on the $5 foot-long we can see just where it has gone.
1. T.G. I. Fridays announced it will offer Jack Daniel's® Burgers and Jack Daniel's® Chicken Sandwiches for $5 and will offer $5 off all Jack Daniel's® Grill entrees for a limited time at approximately 600 US based participating restaurants.
2. Steve Davis, Arby’s CMO said $5 has become a magic number for fast food.
3. Shane’s Rib Shack has a family meal (feeds 4) for $20.
4. Popeye’s now as value meals from $1.99 & $2.99
5. McDonalds has three mini meals for under $3.00
The economy continues in a quagmire so price can be a determining factor. Be mindful that price and value are not the same thing. Brand marketers must be aware of the new product and price points that non-traditional competitive channels will introduce. Including attractive packaging, new product bundling options which in turn will contribute to establishing new long term price value models going forward. Watch just what is happening in the Grocerant niche via Grocery stores, Convenience Stores, Mobile trucks and Kiosks food outlets or follow this blog.
Join me here on my blog for insights, information and inspiration. www.FoodserviceSolutions.us of Tacoma, WA is the global leader in the Grocerant niche providing Ready-2-Eat and Heat-N-Eat program assessments aka Grocerant Niche assessments. 1-253-759-7869 or linkedin.com/in/grocerant or leave a comment below.