Question

Topic: Strategy

Launching A New Food Distribution Company

Posted bybilalshreifon 500 Points
Dear All,

it has been a long time i didn't post a question.
my question for you is a little tall and wide but general.
We have our company of food distribution we have our own brand name and exclusive brands to distribute.
we never went into a marketing campaign.
our mission now is to set up a new image for the company change the identity and provide a good marketing plan to create better awareness and induce sales.
we are thinking of changing all product labels and bring new items to the line and new exclusive rights.
my question for you is
1)after 30 years the company name is averagely known in the market ; should we come up with a new brand name for our own products and the company name or just renovate and go more professional.
2) what are the steps that we should go into and how to accomplish it ?
3)our prices are very low and the quality is average, should we change that because we intend to get exclusive rights for a more ' expensive products'. or should we stick to low prices average quality strategy.

our products are mostly canned food: sweet corn, baby corn, mushroom, etc....
also we intend to target restaurant and catering business with the bigger sized cans for efficient cost.
please if you need any further info dont hesitate thank you very much.

问候
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RESPONSES

  • Posted on Member
    I agree not to change your name.

    If I understand what you want to do, why not leave your current market line as is and introduce a 'premium' line - run both lines until you're satisfied your premium line has the reputation you want and then you can decide if you can drop your current line.

    Good luck!
  • Posted on Accepted
    Instead of losing 30 years of brand equity, how about freshening up the brand. You could entertain a redesign of the label with violators that are in the consumers eyes today. This could bring attention to the product quickly.

    Based on your description, the items are more likely imported in nature. This has been an area where brands in the category have never built any brand loyalty. Consumers shopping the section are making most of the decision purely on price. In addition, with the state of the economy and the trends in the channels, you should definitely think about packing private label. This way you can leverage your brand and the customers private label to control the section.

    As for food service in the #10 size cans, this is a good avenue, but brands rarely are making a difference in a items that are more ingredient based. I would think you will be able to best penetrate the market becoming the low cost leader.

    Feel free to email me if you are need of some talented people that can build your business.
  • Posted byJay Hamilton-Rothon Member
    Your basic question seems to be: "How can we make more money with our average products?"

    You can, as Phile & Eric suggest, create a new premium product line. That would allow you to introduce a new price point/differentiator and would most likely increase sales of your basic product line as well.

    You could make your product story stand out. Is your product "average" based on price/taste or because it's undifferentiated? Tell people where you get your ingredients and why it's different from your competitors'.

    或, you could simply change the labeling to make it look fresher/more modern (without changing the contents). This is likely to produce a short-term affect (people may stop buying if the label changes or because the label changes), but not a long-term result (after people get used to the new labels).

    You could also change your packaging. Why not smaller (individual serving) cans? Cans containing a mix of ingredients?
  • Posted byLinda Whiteheadon Member
    Another perspective that differs from the responses above might just be to go after the new market segment-restaurant and catering businesses. You might be much better off going after a new revenue stream with the same product in different size cans. The type of products you are currently selling are commodity items. For you to go up-market, you may have to change your branding, product line, packaging and marketing. This will be extremely costly, and before you make such an investment I would highly recommend some intensive consumer/trade research to ensure that you are going to get the return on investment. The additional revenue you gain from the restaurant segment may help finance the "upscaling" of your retail brand. I would strongly recommend not doing anything without undertaking proper research. You do have a 30 year-old brand that does have equity, and I would not start messing with it without having some very clear direction from both consumers and trade as to what market need exists that is not being currently serviced in the canned food sector.

    Good Luck
    Linda Whitehead
    ZUZ Marketing
  • Posted bybilalshreifon Author
    Dear All,

    thank you very much for your answers and proposals.
    i would agree with phil and steve, not to say that the others are not right, but i've had a lot of advices regarding the bigger can size for catering and for restaurants.
    i had a meeting with an advertising company and a consultancy firm, the advised me to ignore the renewing of the corporate identity for the company they proposed the following to focus on:
    marketing services:
    develop a yearly strategic plan
    finalize yearly communication budget
    develop concepts in response to marketing issues
    recommend new course of action
    creative services:
    develop tv commercial synopsis and storyboard
    develop radio commercial
    press campaigns
    outdoor campaigns
    HTML campaigns
    promotion material designs and branding
    packaging design:
    provide a new labels and packaging design for all existing and new products.

    production services:
    setting material and production specifications
    acquiring and negotiating quotation and offers
    supervision of production projects with third party.
    end...

    that was the contract and the proposal
    briefly keep the company name as equity is well established ( as Phil and Steve said), lay off the new products that doesn't go under our company name , change the packaging designs and develop a promotional campaign (BTL, POS materials etc...)that is for a high cost for a monthly cost of 5000 USD. we can have any package design and other of the above stated.
    i wanted to share this with you to have your advice also, all of you have been a great help for me thank you very much.
    appreciate your help on this last comment in order to close the question.

    问候.

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