Food Marketing Development for CPG Industry -myassignmenthelp

Question: Write about theFood Marketing Development for CPG Industry. Answer: Introduction: The food product industry comprises multi-aspect processing techniques. The food industry is a complex structure collectively comprising diverse supply companies providing the maximum quantity of food consumed global population. This industry comprises of crucial aspects that needs attention, among them, food processing and marketing are two noticeable criteria worth a discussion. The US consumer packaged goods (CPG) industry recorded its strongest and potential growth in the recent four years in the year of 2015. The much of the effort contributed are registered to be from the small and the medium sized producers owning their market expertise in healthy and protein-rich foods simultaneously with beverages. This sector also consisted of an important enlistment that is of mindful snacks- a growing demand. These are the top performers in the food industry (Stuckler and Nestle, 2012). Among the competitors, the pre-mentioned companies those can be listed down are quest nutrition, Fairlife, Bai, Vita Coco and Sargento foods. All of these are known to target the market with the healthy options in the food department. For this report, the Fairlife brand for its milk cans is chosen for further required analysis. Discussion Justification of Product Selection: Among the brands supportive towards a healthy diet, the brand Fairlife is performing potentially well especially the supplied Milk from the firm is building a stature in the market. An interesting phenomenon has been witnessed to unfurl in the recent history of global food market or industry with respect to consumer demands for healthier options. In reference to Euro-monitor, global record of sales regarding health foods is likely expected to amount around $1trn in 2017. The Fairlife super Milk is a lactose free product. Fairlife firm is working well surrounding the promotion of their milk in the market. The web sales also attained heights for the product. As witnessed, the fast food and the beverage sectors have recorded a sudden drop in their sales. Even revenues hit a rough patch of 7% for the coca-cola industry. Researches and analysis helps us discover that in US, CPG sales incremented by 3.1% by 2015 to an equivalent amount of $670 billion. The information statistics is well received from the Boston Consulting Group (BCG) and Information Resources, Inc. (IRI), which they have analyzed based on the sales figure. The persistent growth of these small and mid-sized companies was achieved through the potential to acquire a wider range of distribution for their products according to the data collected. However, it is critical to witness that the healthy food marketing is majorly upgraded in the developed economies (Monteiro et al., 2013). According t o the studies prevailing in the Cambridge University, healthy eating is expensive compared to other indulges. With emerging trend towards the healthier options, there are some recorded winners especially, the gluten-free, non-GMO and paleo products are rapidly growing, as in the UK, food industry the rise of organic grocery and the whole foods market has witnessed a hike in the revenue scale. Explanation of Supply Chain: Effective logistic strategy for the food industry, here in specific, Fairlife Milk has the ultimate end goal regarding the supply chain management that is to allow the correct inventory management for each commodity or segment involved in the supply chain oriented with the deliverables. The distribution of the Fairlife Milk, has witnessed a strong growth. This is actually responsible for a major portion of development oriented around the dairy product category. Although, it is twice as costly as any regular dairy product, still customers are realizing the benefits involved in the same. Some witnessed and existing practices followed in the food industry to maintain the supply chain management is worth a discussion, as firstly, the demand forecasts maintenance- generally, this is detrimental from the past patterns of demands and sales, however, reconfiguration in demands and sales are witnessed in a growing business. Few factors involved in this process are the gaining or losing custom ers with the changing popularity for a brand, new launches and short-term increase through promotions. Marketing strategies and approaches have witnessed an evolution regarding the Fairlife Milk- advertisement, with a persistent product message. The procedural acts regarding the safety management included in the food industry in the recent years has truly witnessed a visible development. Procurement is an international step, which demands complete transparency in the details of the supply chains (Bigliardi and Galati, 2013). The supply chain engaged with the food processing involves methodologies, which can be charted or tabulated. This highlights the activities involved in an efficient supply system. First concern is to evaluate the availability of the resources that support the food production arena involving all the safety and innovative measures under complete surveillance, which then advances to the distribution and aggregation units to transfer it to the food processing segments (Nestle, 2013). All these steps prove to be beneficial only with the support of a sound marketing to attract the customer base. Another approach exists through the online benefit for the execution and sales related to a product in the recent hi story, increasing the customer base in an ample amount, wherein the logistic issues are dealt via mails processed within the code of policies (Goldberg, 2012). Evaluation of the Supply Chain: To comment and understand the benefits or shortcomings this strategic management for Fairlife-Milk, needs an evaluation. On elaboration, through the advantages and disadvantages involved, the evaluated information found is tabulated herein for the modern multichannel retailers and the online procedures. The Pros The Cons Is able to access and maintain high-level competitive advantages Large scale is essential for the offset of standard fixed price Investment oriented is low and a focused system is achieved Solutions limited for a hyper-growth Potential synergies are involved Incompatible with E-Commerce Manage control to maintain operational management with competitive advantages Synergies are often over-stated Leverages the existing customer relationships Third party logistics pricing influences a return to retailer Eliminates any distraction in business end Challenging to implement multi-route experiences Table 1 Relevant Theories and Methodologies: A SWOT analysis would provide enough information to discover the strengths, weakness, opportunities and threats relative to the existing supply chain model for the Fairlife Milk, marketed on the customer demand and customization (Hall and Howe, 2012). The key pointers categorized as the strengths can be charted foe a quick review of the same. Strengths Demands prove strong and unique selling, supply chain management seems profitable, online purchase available, good service standards Weaknesses Path dependencies, high-price- targeting a specific group of customers Opportunities Updating online purchase, diverse product types to launch with quality specifications, organic products can be included Threats Online retailing process, competition set on costing, contemporaries are efficient Table 2 : SWOT Analysis The tabulated information provides an insight on the genres to be revised to provide the sustainability of the growing market for the healthy food products. Recommendations: Based on the SWOT analysis, it would be appropriate to suggest set of recommendations that would be supportive in the improvement of the supply chain management to sustain the profitability chart for the Fairlife Milk (Aung and Chang, 2014). Firstly, the idea of innovation should exist in the work culture, supply chain managers should engage with suppliers, possessing the potential and interest to help produce new products and types strengthening the competencies and sealing the opportunity to evolve. Segmentation must be applied to supply base to determine the correct partners to support sustainability. Online purchase trends in increasing the demand for online marketing; supportive software is available to remain updated. Utilizing the correct metric is important in maintaining the revenue involved in the business (Stadtler, 2015). Involving the employees is always beneficial for team as diverse recommendations emerge out. Proper integration of sales, finance and operational manage ment activities can help to deal with the concerned threats. An appropriate market research is important in determining the necessities and methodologies for growth. Conclusion: On analysis of the literature and the importance and methodologies involved in the supply chain management, it can be concluded that the there is a persistent growth rate witnessed for the chosen food product that is the Fairlife Milk. The supply chain involved is proving to be beneficial following the customer demands oriented. Few recommendations for the improvement and sustainability is suggested, which should be implied, using proper action plan. References Aung, M.M. and Chang, Y.S., 2014. Traceability in a food supply chain: Safety and quality perspectives.Food control,39, pp.172-184. Bigliardi, B. and Galati, F., 2013. Innovation trends in the food industry: the case of functional foods.Trends in Food Science Technology,31(2), pp.118-129. Goldberg, I., 2012.Functional foods: designer foods, pharmafoods, nutraceuticals. Springer Science Business Media. Hall, G.M. and Howe, J., 2012. Energy from waste and the food processing industry.Process Safety and Environmental Protection,90(3), pp.203-212. Monteiro, C.A., Moubarac, J.C., Cannon, G., Ng, S.W. and Popkin, B., 2013. Ultra?processed products are becoming dominant in the global food system.Obesity reviews,14(S2), pp.21-28. Nestle, M., 2013.Food politics: How the food industry influences nutrition and health(Vol. 3). Univ of California Press. Stadtler, H., 2015. Supply chain management: An overview. InSupply chain management and advanced planning(pp. 3-28). Springer Berlin Heidelberg. Stuckler, D. and Nestle, M., 2012. Big food, food systems, and global health.PLoS medicine,9(6), p.e1001242.