Each of the following can be either

an opportunity OR a threat.  You decide!

 

New market entrants and shifts in spending.

According to a 2006 study, there is unprecedented competition for the consumer's food dollar.  Since 1998, supermarkets have seen their marketshare decline from 73% to 51% in 2005.  

Competition is now fierce, with the market now being shared with warehouse clubs, convenience stores and even restaurants.  How will you increase YOUR piece of the pie?

 

Eating for health.  

 

Over 60% of shoppers (70% of shoppers with children) believe their diets could be healthier.  Consumers want to eat healthy, but are inundated with confusing and conflicting messages in the media.  Food labels contain more data than ever, but the average person still has difficulty interpreting it. 

 

Bottom line: consumers don't know what to do or where to turn for reliable information about the food they are eating.  As a food retailer, you already have the consumers' trust and dollars.  Can you leverage this access to customers (that you already have!) to develop stronger relationships and additional sales?  Answer - your competitors are doing this TODAY!  

Know your customers.

Companies across all industries want to know their customers and to "speak" to them with relevant messages.  Are your customers young or old?  Single?  Have kids?  What is their household income? Their ethnicity?

It's important to know this (and other) information, as it heavily influences what and how consumers want to buy.  Would you like to target new groups?  Your products, promotions, and messaging should speak directly -- and possibly separately -- to these different groups. 

Food allergies and intolerances.

If your customers ask, can you tell them which products or menu items are compatible with their gluten intolerance?  Are peanut-free?  Support cardiovascular health?  The number of diabetic exchanges in the item?  Both retailers and food service establishments (schools, hospitals, restaurants) are starting to target these customers as an untapped market and help them select appropriate foods. 

Functional/enriched/fortified foods.

When is orange juice not just orange juice?  When it's been enhanced with plant sterols and marketed to assist with lowering "bad" cholesterol.  The number of traditional foods, now with additional ingredients to help combat disease, continues to grow.  And, of course, they're not called premium products for nothing -- these products generate higher price points and higher margins.

Similarly, people now understand that whole grains are beneficial to health; 40% of Americans respond to high-fiber claims on product packaging.  Can you help your customers understand the value of these products to improve your sales?  Can you modify existing recipes or develop/sell other premium (and healthy) products? 

Formerly "fringe" foods are now mainstream.

Organic is the fastest-growing food category and large retailers like Wal-Mart are quickly moving to grab consumers' purchasing dollars.  The days where consumers must visit a specialty store to purchase organic, natural, or locally-grown foods will soon be gone.  Need another example?  In the mid-1970s, yogurt was considered a “fringe” food, reserved for health-nuts only!  Will your customers desire or demand these foods?  Can you support their health by making  them available?