Developing Food Products to Meet Consumer Demands. James P. Zenner JPZ Consulting Group St. Louis, Missouri USA
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1 Developing Food Products to Meet Consumer Demands James P. Zenner JPZ Consulting Group St. Louis, Missouri USA
2 Developing Food Products to Meet Consumer Demands Where Does All this Start? It All Starts With JPZ Consulting Group 2
3 Developing Food Products to Meet Consumer Demands Marketing! JPZ Consulting Group 3
4 Marketing Marketing is: A System of business activities Designed to plan, price, promote, and distribute Something of Value want-satisfying goods and services To the benefit of the market Present & potential consumers. JPZ Consulting Group 4
5 Marketing Marketing Definition: A social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. The Essence of Marketing: A transaction An exchange Intended to satisfy human needs or wants. JPZ Consulting Group 5
6 Contrasts Between Selling and Marketing Selling: Marketing: 1. Emphasis is on the product 2. Company first makes the product and then figures out how to sell it 3. Management is oriented to sales volume 4. Planning is oriented to shortterm results, in terms of today s products and markets. 1. Emphasis is on customer wants 2. Company first determines customers wants and then figures out how to make and deliver a product to satisfy those wants 3. Management is profit-oriented. 4. Planning is oriented to the long run, in terms of new products, tomorrow s markets, and future growth. JPZ Consulting Group 6
7 Consumer Buying Behavior Know Your Market Needs and wants A Market is people with: Money to spend Willingness to spend it You must know that Market : Who buys? How do they buy? When do they buy? Where do they buy? Why do they buy? JPZ Consulting Group 7
8 Market Opportunities to be Generated: Two primary markets as they relate to our discussion today: 1. Wellness market 2. Prevention market JPZ Consulting Group 8
9 Marketing Focus: Wellness Market: Consumer Direction Seeking an on-going proactive health approach Consumer Motivation Enhance daily health Reinforce quality of life Boost mental / physical being Ensure future health JPZ Consulting Group 9
10 Marketing Focus: Prevention Market: Consumer Direction Seeking future health control and assurance Consumer Motivation Ensure future good health Seek to prevent diseases Treat / control an existing condition Concern for longevity JPZ Consulting Group 10
11 Wellness & Prevention Market For today s discussion we separate W&P into two distinct segments: Commercial Marketplace Food Security JPZ Consulting Group 11
12 Commercial Marketplace Wellness & Prevention consumer s needs in Commercial Marketplace? Live Longer Lose / manage weight Prevent disease Look better JPZ Consulting Group 12
13 Commercial Marketplace 2007 International Health and Nutrition publication survey/report: Over 60% of individuals indicated the following are Very important today. 1. Enough energy to do what I want to do 2. Preventing certain diseases or health conditions 3. Mental / brain health JPZ Consulting Group 13
14 Food Security Different groups within a given population have unique & individual nutritional needs depending on: Age Physiological Status: Nourishment Chronically Ill Pregnant / Lactating Other JPZ Consulting Group 14
15 Food Security: Important Target At-Risk Groups - Market Research 1. Moderately Malnourished Children 2. Severely Malnourished Children 3. Children with HIV/AIDS 4. Adults with HIV/AIDS 5. Elementary/School Age Children 6. Pregnant and Lactating Women 9. Infants Transitioning From Breast Feeding to Solid Food 8. Famine Victims 9. Internally Displaced People (Politics/War/Natural Disasters) 10. People with Tuberculosis 11. People with Gastrointestinal Disorders and/or Diarrhea 12. Elderly 7. Girls/Women/Teens 8. Orphans JPZ Consulting Group 15
16 Food Security Needs Energy / Calories Protein Carbohydrates Fats Electrolytes Potassium & Sodium Vitamins Minerals Phytochemical- Resveratrol Eco-friendly Versatility JPZ Consulting Group 16
17 Joint View: Commercial Marketplace / Food Security So what are the common denominators in all this? To provide Something of Value want-satisfying goods and services To the benefit of the market present and potential. Marketing applies to both: Commercial Marketplace and Food Security Arena JPZ Consulting Group 17
18 Joint View: Commercial Marketplace / Food Security Identify food-form delivery system appropriate to: Consumer Local taste Efficacy Appropriate portions for consumer / person Appropriate manufacturing capability Cost management Need for effective ingredient/s that are proven: For the consumer to: obtain what they need and want and intended to satisfy human needs or wants. JPZ Consulting Group 18
19 Meeting Consumer Demands Challenge and Opportunity: Study the plethora of food form delivery systems that have been proven successful around the world Use our creative marketing abilities to study the local marketplace Include some form of consumer research Learn of new, creative and want-satisfying needs of the available consumers. JPZ Consulting Group 19
20 Meeting Consumer Demands Commercial food-form delivery. Develop response for: Having enough energy to do what I want to do Preventing certain diseases or health conditions Improve mental / brain health JPZ Consulting Group 20
21 Meeting Consumer Demands Food Security food-form delivery RUTF s / RUSF s are excellent! Challenge ourselves Are there other opportunities within &/or outside the current food-form delivery systems to meet the food security needs? JPZ Consulting Group 21
22 Meeting Consumer Demands 1. Healthy / Nutritional Beverages 2. Nutrition Bars / Food Bars 3. Follow-on Formulas 4. Weaning Foods 5. Growing-up Foods 6. Adult Nutritional Supplements 7. Enteral Feeding Products 8. Smoothies, Shakes & Beverages 9. Ready to Drink and Powdered Beverage products 10. Food Ingredient Powders 12. Performance Nutrition Products 13. Meat & Dairy Alternatives / Analogues 14. Meal Replacement Beverages 15. Milk & Dairy Alternatives 16. Sports Nutrition Beverages 17. Yogurts 18. Non-Dairy Frozen Desserts 19. Cream Soups 20. Coffee Whiteners 21. Baked Goods 22. Further Processed Meat Products 23. Ready-to-Use Therapeutic and Supplemental Foods JPZ Consulting Group 22
23 Meeting Consumer Demands Ingredients: Brown Rice Syrup, Soy Protein Isolate, Evaporated Cane Juice Crystals, Crystalline Fructose, Oat Fiber, Kashi Seven Whole Grains and Sesame Blend (Stone Ground Whole: Hard Red Winter Wheat, Oats, Rye, Barley, Triticale, Long Grain Brown Rice, Buckwheat, Sesame Seeds), Peanuts, Rice Flour, Natural Peanut Butter, Mechanically Fractionated Palm Kernel Oil, Corn Grits, Rice Starch, Brown Rice Flour, Wheat Bran, Chicory Root Fiber, Vegetable Glycerin, Cocoa, Nonfat Milk, Corn Bran, Salt, Chocolate Liquor, Calcium Carbonate, Natural Flavors, Magnesium Oxide, Soy Lecithin, Ascorbic Acid (Vitamin C), Alpha Tocopherol Acetate (Vitamin E), Zinc Oxide, Ferrous Fumarate (Iron), Annatto (Color), Pyridoxine Hydrochloride (Vitamin B6), Folic Acid and Vitamin B12. JPZ Consulting Group 23
24 Meeting Consumer Demands Nutrition Facts: Serving size 1 bar. Calories 240. Calories from fat 40. Total fat 4.5g. Trans Fat 0g. Cholesterol 0 mg. Sodium 140mg. Total Carbs. 42 g. Dietary Fiber 5g. Sugars 18g. Protein 10g. Ingredients: WHOLE OATS, BROWN RICE SYRUP, EVAPORATED CANE JUICE SYRUP, SOY CRISPS (SOY PROTEIN ISOLATE, RICE FLOUR, BARLEY MALT, SALT), PEANUT FLOUR, HONEY, CHOCOLATE CHIPS (SUGAR, CHOCOLATE, MILK FAT, COCOA BUTTER, SOY LECITHIN, VANILLA), RICE CRISPS (MILLED RICE, SUGAR, SALT, BARLEY MALT), SOY PROTEIN ISOLATE, INULIN (FIBER), GLYCERIN, PEANUT BUTTER, NATURAL FLAVOR (CONTAINS PEANUT), OAT FIBER, ALMOND BUTTER. MINERALS: CALCIUM PHOSPHATE, CALCIUM CARBONATE, MAGNESIUM OXIDE, IRON (FERROUS FUMARATE), ZINC OXIDE, COPPER GLUCONATE, MANGANESE SULFATE, CHROMIUM CHLORIDE, POTASSIUM IODIDE, SODIUM MOLYBDATE, SODIUM SELENITE. VITAMINS: VITAMIN C (ASCORBIC ACID), VITAMIN E ACETATE, PANTOTHENIC ACID (CALCIUM PANTOTHENATE), VITAMIN B3 (NIACINAMIDE), VITAMIN B6, VITAMIN B2, VITAMIN B1 (THIAMIN MONONITRATE), FOLIC ACID, VITAMIN A PALMITATE, BETA CAROTENE, BIOTIN, VITAMIN K1, VITAMIN B12. JPZ Consulting Group 24
25 Meeting Consumer Demands In Summary: Emphasis is on customer wants / needs: Commercial and Food Security Determine customers needs - deliver a product to satisfy Be profit-oriented Plan for the long-term: New products Tomorrow s markets Future growth JPZ Consulting Group 25
26 Thank You! James P. Zenner JPZ Consulting Group 37 Frontenac Estates Dr. St. Louis, Missouri USA Main Mobile JPZ Consulting Group 26
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