At the intersection of today’s consumers and food sales
success Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that
in today’s dynamic retail landscape, where consumer behavior is continuously
evolving, the grocerant niche—characterized by hand-held, ready-to-eat (RTE),
and heat-and-eat fresh prepared foods—has surged to the forefront.
What was once a peripheral segment has now become central
to the retail foodservice sector’s growth. This shift can be traced back
directly to the adoption of Foodservice Solutions® Five P’s of Fresh Food
Marketing, a strategic framework developed by the Grocerant Guru®, Steven
Johnson, in 1994. These Five P’s have since become the foundational pillars for
foodservice innovation and growth, offering a blueprint for success in today’s
market.
The Five Pillars: An Overview
1.
Portability
Portability has emerged as a key driver in the retail foodservice sector.
Hand-held, ready-to-eat foods have become essential in today’s fast-paced
world. Consumers prioritize convenience without compromising on quality, making
portability a must-have attribute for any successful foodservice offering.
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Why It Matters for Sales and Profits:
o Consumer Demand: The rise of on-the-go lifestyles has led
to an increased demand for portable, easy-to-consume meals.
o Market Expansion: Portability allows brands to target new
customer segments, including busy professionals, commuters, and younger
consumers.
o Higher Margins: Portable food items often command premium
pricing due to their convenience factor.
o Cross-Channel Appeal: Portability enables seamless
integration across different retail formats, from grocery stores to convenience
stores.
o Sustained Growth: As portability becomes a standard
expectation, brands that excel in this area will see continuous growth in sales
and customer loyalty.
2.
Personalization
In today’s market, consumers crave individuality and customization. The ability
to personalize meals according to dietary preferences, taste, and portion size
has become a significant competitive advantage. Personalization not only
enhances customer satisfaction but also drives repeat business.
Why It Matters for Sales and Profits:
o Customer Loyalty: Personalized options lead to higher
customer satisfaction, fostering loyalty and repeat purchases.
o Increased Average Check: Offering customizable meals often
leads to upselling opportunities, increasing the average transaction value.
o Brand Differentiation: Personalization helps brands stand
out in a crowded market, attracting consumers who seek unique dining
experiences.
o Data-Driven Insights: Personalization efforts generate
valuable consumer data, allowing for targeted marketing and product
development.
o Flexibility: Brands that offer personalization can quickly
adapt to changing consumer preferences, ensuring long-term relevance.
3.
Price
Competitive pricing remains a cornerstone of success in the grocerant niche.
However, price is not just about being the cheapest; it’s about providing
perceived value. Consumers are willing to pay more for convenience, quality,
and the ability to customize their meals, making strategic pricing essential.
Why It Matters for Sales and Profits:
o Value Perception: Well-priced products that offer
convenience and quality drive higher sales volumes.
o Margin Management: Strategic pricing allows for optimized
profit margins without sacrificing customer appeal.
o Customer Retention: Competitive pricing helps retain
price-sensitive customers while still appealing to those seeking premium
options.
o Promotional Leverage: Price promotions can drive short-term
sales spikes, bringing in new customers and boosting overall brand awareness.
o Market Penetration: Competitive pricing strategies can help
brands penetrate new markets or demographics, expanding their customer base.
4.
Place
The importance of location in foodservice cannot be overstated. Whether it’s a
physical store, a drive-thru, or an online platform, making food easily
accessible to consumers is critical. The concept of “place” has evolved, now
encompassing not just the physical location but also the channels through which
food is delivered to the consumer.
Why It Matters for Sales and Profits:
o Convenience: Accessible locations or delivery options
increase the likelihood of impulse purchases and repeat business.
o Channel Expansion: Brands that optimize their presence
across multiple channels—physical stores, online platforms, and delivery
services—capture a larger share of the market.
o Customer Reach: Strategic placement in high-traffic areas
or online can significantly boost visibility and sales.
o Operational Efficiency: Optimizing location and delivery
methods can reduce costs and improve profit margins.
o Scalability: A strong “place” strategy allows for easy
scaling of operations, leading to consistent growth.
5.
Promotion
Effective promotion is the linchpin that ties all other pillars together. In
today’s digital age, promotion extends beyond traditional advertising to
include social media, influencer partnerships, and interactive customer
engagement. The goal is to create a compelling narrative that resonates with
consumers and drives them to action.
Why It Matters for Sales and Profits:
o Brand Awareness: Effective promotion builds brand
visibility, attracting new customers and retaining existing ones.
o Sales Boost: Well-executed promotions can lead to immediate
sales increases and long-term brand loyalty.
o Customer Engagement: Interactive and personalized
promotions foster deeper connections with consumers, leading to repeat
business.
o Market Positioning: Strong promotional efforts help
establish a brand’s position as a leader in the grocerant niche.
o ROI: Targeted promotions often result in a high return on
investment, driving both sales and profitability.
The Innovation Template: Build,
Measure, Learn, Repeat
Foodservice Solutions® has refined a proprietary innovation
template that applies the principles of Build, Measure, Learn, and Repeat. This
cycle ensures continuous improvement and adaptation, crucial in today’s
fast-changing foodservice environment. By building upon the Five P’s, measuring
their effectiveness, learning from the results, and repeating successful
strategies, brands can stay ahead of the curve.
Why It Matters for Sales and Profits:
·
Continuous Improvement: This iterative
approach allows for constant refinement, ensuring products and strategies
remain relevant and effective.
·
Risk Mitigation: By measuring results
and learning from them, brands can minimize risks associated with new product
launches or promotional efforts.
·
Scalability: The template provides a
scalable framework that can be applied across different markets and consumer
segments.
·
Agility: Brands that adopt this
approach can quickly respond to market changes, ensuring sustained growth.
·
Long-Term Success: The cycle of
continuous innovation leads to long-term customer satisfaction, loyalty, and
profitability.
Think About This: A Blueprint for
Modern Foodservice Success
The grocerant niche is not just a trend; it is the future
of retail foodservice. By embracing the Five P’s of Food Marketing—Portability,
Personalization, Price, Place, and Promotion—along with the innovation template
of Build, Measure, Learn, and Repeat, foodservice brands can drive sales,
enhance profitability, and ensure long-term success. As consumer behavior
continues to evolve, these pillars will remain critical in meeting the demands
of today’s dynamic market.
Success does
leave clues. One clue that time and time again continues to resurface is “the
consumer is dynamic not static”. Regular
readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA
based Foodservice Solutions®. Our
Grocerant Guru® can help your
company edify your brand with relevance.
Call 253-759-7869 for more information.
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