Analysing marketing in the food industry
The food industry is heading for an uncertain future. The pandemic’s impact on the way we live has been unprecedented. And this has dramatically changed the way we eat. Dining out is an essential part of western culture. With people stuck at home for longer, the demands on supermarkets have increased dramatically. This has placed a greater spotlight on the Brexit process, and its impact on supply chains.
Amidst these societal and regulatory trends, it could be easy to miss the consumer trends that are shaping our preferences. We’ve completed an in-depth analysis to understand them, the brands capitalising and what they are using to get ahead. The research provides crucial insight for any marketer, investor, or entrepreneur in the food industry.
Market understanding
Three trends are shaping the way we eat, and the food choices available to us. The first and most influential is a move to meat-free and non-dairy alternatives. Greater transparency into where food comes from, as well as growing concerns about climate change, have prompted moves to vegan, vegetarian and flexitarian diets.
These diet shifts have attracted us to new products and subsequently opened up growth opportunities in new areas. Beyond vegan meats, interesting developments are afoot, with consumers selecting better quality meats as a ‘treat’ and being drawn to a host of new supplements. Many investors are banking on the changes, yet regulations may stand in their way. Furthermore, the spotlight on sustainability has brought forward a move to sustainable packaging. Single use plastics are, thankfully, on the way out, with those quickest to do so, ready to take the spoils.
Marketing strategy
We identified three major players and three market disruptors capitalising on these trends. The major players and food producers have, begrudgingly in some cases, moved towards healthier and more sustainable products. Those embracing the changes have realised benefits beyond sustainability and transformed their overall brand perceptions. They are now positioned as more dynamic and in touch with consumer views. They have also capitalised on the controversy and publicity stoked up by the moral and ethical aspects of food production.
The market disruptors by comparison have aligned their visions with sustainability and placed it at the heart of their operations. They’ve raised investment and adopted sophisticated marketing strategies that have allowed them to establish themselves in a relatively short space of time. Their ongoing success, however, rests on the inertia of existing players and an ability to occupy sufficient ground before they catch up.
Marketing activation
A natural consequence of their size and scale, major players adopt very different marketing setups from market disruptors. They have much larger marketing teams and exhibit greater use of more sophisticated marketing tools. Yet, what they wield in size, they lose in influence. Disruptors may have smaller marketing teams, but they are much larger in relative size, which means they have greater influence. Being smaller, they can also work together with greater agility.
These teams are insufficient to perform all marketing activities, however. Both major players and disruptors draw on the creativity, expertise, and consumer understanding within leading agencies. The major players have built complex agency portfolios, allowing them to trial and adopt daring creative campaigns. Disruptors, by comparison, draw on smaller agency setups to tap into the growing public support surrounding the moral and ethical issues of food production and packaging.
This research includes
14 pages of analysis (5,000 words).
Evidence-based approach.
Case study examples and success stories.
Main tools/services/agencies.
References for additional reading.
Published November 2020.