How$to$Present$Your$Product$ Line$to$Wholesale$Buyers$ ! - PowerPoint PPT Presentation

How$to$Present$Your$Product$ Line$to$Wholesale$Buyers$ ! Brian!Stockwell! Danielle!Lanham! Gil!Harkness! ! Queensland!Government!! Regional!Services! 25!July!2013!

Workshop$Components$ • External$business$environment$ • Capability$Profiling$&$Pitching$your$USP$ • Defining$your$CapabiliEes$and$Capacity$ – Decision$Making$and$Focus$ • Next$Steps$

External$Business$Environment$ – The$market$ – My$customer � s$needs$ – MacroJeconomic$trends$ – My$compeEtors$ – Risks$of$working$with$a$larger$supplier$ $

THE!MARKET!

ProporEonal$Spending$on$Food$ Increasing$

Australian$Food$Industry$Turnover$ Trends$ • In$current$prices,$the$trend$esEmate$for$Food$ retailing$rose$0.3%$in$May$2013.$$ • The$seasonally$adjusted$esEmate$rose$for$Other$ specialised$food$retailing$(3.3%)$and$fell$for$ Supermarkets$and$grocery$stores$(J0.1%)$and$Liquor$ retailing$(J0.5%). $$

Costco$Planned$ Growth$ �� we're always looking for new suppliers, always looking for new products. We're just trying to stay ahead of the curve. � Managing Director, Patrick Noone • Costco$revealed$plans$to$open$14$warehouse$stores$ between$now$and$September$1,$of$which$half$would$ be$in$Australia$and$Asia.$$ • Costco's$Australian$subsidiary$has$recorded$a$stellar$ year$for$subscripEons $ The$cheap$prices$for$members$ for$bulk$items$(big$box$retail)$ • It$plans$to$open$as$many$as$20$outlets$in$Australia$ $ Read$more:$h`p://www.smh.com.au/business/costcoJseesJgrowthJstoryJinJasiaJregionJ20130313J2g0s1.html#ixzz2ZSe6LcTq$ • $ $

Top!Global!Food!Trends! • Pure!is!the!New!Natural! • Green!is!a!Given! • LocaMon,!LocaMon,!LocaMon! • Premium!Stands!Out! • Seniors!Draw!APenMon! • Forty!is!the!New!Twenty! • Unmeasurable!Niches! • Boom!for!Protein!

Australian*Food*Trends* 1.*PURITY* !"doubling"of"food"and"beverage"products" • marketed"as"'pure'"between"2008"and"2009,"with" another"third"added"in"2010"and"considerably"more"in" 2011." * 2.*GREEN "!"Sustainability"is"an"increasing"concern"!""focus" • is"shiBing"towards"packaging,"fair"trade"ingredients"and" reducing"carbon"emissions." "" 3.*WHERE'S*IT*FROM? "!"People's"interest"in"reducing" • carbon"emissions,"a"desire"to"support"local"producers"" 4.*QUALITY "!"good"quality,"'premium'"food"is"certainly" • sEll"a"common"indulgence." " 5.*THE*AGED*MATTER "–"focus"on"both"packaging" • funcEonality"and"the"specific"requirements"and"health" concerns." (Source"Innova)" •

Australian!Culinary!Trends!2012! • Gourmet!Convenience! ! InnovaEve$food$products$and$quality$foodstuffs$$ J$using$semiJhomemade$culinary$masterpieces,$ ! • Global!Flavour!CombinaMons $ $trend$toward$a$cooking$style$that$combines$ethnic$flavours$and$ ingredients$from$around$the$world..$ ! • Farm!to!Fork $ $it$is$more$important$than$ever$to$understand$where$food$comes$from,$ how$it’s$made$and$whether$the$flavour$is$natural$or$manufactured.$ ! • Culinary!Crusading $ $From$sustainable$products$to$good$purpose$brand$iniEaEves,$food$ purchases$are$now$based$on$more$than$just$good$taste.$AcEvism$is$now$ expressed$through$food$choices,$ $$

Local$Sourcing$Is$Trending$Up$ • Coles$and$Woolworths$have$$ launched$new$iniEaEves$to$$ source$locally.$$ $ • � We"recognise"that"supplying"" 890"Woolies"stores"can"be"a"" daunEng"prospect"for"small"and"" medium"businesses,"and"may"" simply"be"beyond"the"reach"of"their"producEon"capacity." Woolworths � "Local"Sourcing"Managers"will"work"with"these" suppliers"to"design"a"plan"that"suits"their"business,"whether" that � s"supplying"3"stores,"or"300"stores. � $$ $$$$$$$$$$$$$$$$$$$$$$$$$ $Managing$Director$Tjeerd$Jegen.$ $

My$Customer$Needs$

SEQ CONSUMER SURVEY

SEQ$Manufacturers$and$Food$Service$ Survey$

Macro$Economic$Trends$

Effect$of$Australian$ Dollar$ • Sokening$of$the$$Au$against$the$Euro$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ will$help$inflate$the$prices$of$the$very$$$$$$$$$$$$$$$$$$$$$$$$$$$ cheap$imported$fruit$and$tomatoes$coming$in$from$ European$markets$$ • cheap$imported$tomatoes$and$Enned$fruit$on$its$SPC$ Ardmona$fruitJprocessing$division$for$an$expected$fall$of$ up$to$9$per$cent$in$firstJhalf$earnings,$$ • Gary$Dawson,$CEO$Australian$Food$and$Grocery$Council,$ $Au$would$need$to$fall$closer$to$its$longJterm$average$ since$it$was$floated$in$December$1983$J$about$US76c.$

Macro$Economic$Trends$

CompeEtors$

“ We only have two sources of competitive advantage:” - the ability to learn more about our shoppers faster than the competition, and - the ability to turn that learning into action Jack Welch, CEO of General faster than the Electric , 1981-2001 competition”

Risks$of$Working$with$Large$Suppliers$

UK$Supermarket$Strategies$ • Listing Fees – to get on the list of suppliers • De-listing threats – when suppliers refuse to reduce prices etc • Slotting Fees – to gain access to shelf space • Demanding extra/ unforeseen discounts • Return of Un-sold goods to supplier • Late Payments • Below cost selling • Promotion of Retailers own brands

IMPACT$OF$OWN$BRANDS$

IS$IT$WORTH$IT?$

Carman � s$Bars$ • A smart rebrand about 5 years in saw Carman � s ditch its original orange packs for new designs, with new recipes inside. • The turning point was landing big deals with the likes of Coles and Qantas. Although hesitant at first, they were won over by Creswell � s determination to deliver delicious and affordable products that appeal to the mass market, while meeting the buyers � stringent packaging and price point requirements. • � I just went again and again, I kept pitching. I � ve still got a letter where one of them wrote � no � and circled it and sent it back to me, � says Creswell. �� No � is not � no forever � . It � s � no for now � . What do I need to do to turn your � no � into a � yes � ?

Thai$$ Epicurean$$ Coles$$ Contract$ • IniEally$own$gourmet$food$brands$ • NaEonal$Contract$for$home$brand$salad$ dressing$ • Required$SEQF2000$ � $High$Care$Facility � $ • 100%$growth$in$3$years$

Tim$Spence$Thomas$CEO$ • Success$is$a$partnership$$J$but$you$need$to$work$ • Empathise$with$the$buyer$–$let$them$know$how$they$ are$going$to$make$money$$$ • Understand$all$of$the$terms$–$price$,$%$etc$ • There � s$no$such$thing$as$a$long–term$contract$J don � t$scale$up$too$early$ • Things$come$to$an$end$J$have$realisEc$expectaEons$ and$have$a$plan$B$$ • In$my$dealings$with$the$ � big$two � $they$are$open$and$ honest$and$helped$us$along$the$journey.$$

Capability$Profiling$and$Pitching$ • Why$do$you$need$a$Capability$Profile?$ • Tips$for$Developing$a$Capability$Profile$ • $The$Elevator$Pitch$–$Your$USP$

Why$are$Capability$Profiles$Important?$ • Provides$a$window$into$your$company$$ • Represents$you$in$the$marketplace$ • Provides$a$snapshot$of$your$capabiliEes$and$ capacity$to$your$customers$ • To$help$you$understand$your$capabiliEes$ • Many$players$are$interested$in$your$informaEon$ –$succinct,$clear$informaEon$delivery$ • Build$your$brand$ • Time$and$effort$you$put$into$preparing$this$profile$ will$earn$you$a$tangible$return$–$new$opportuniEes$

Developing$a$Capability$Profile$ • Write$the$long$version$first$ • Use$the$Headings$ • Review$what$you$write$ • Get$to$the$Point$ • Include$the$good$stuff$ • Don � t$copy$someone$else � s$profile$ • Be$truthful$and$accurate$

Developing$a$Capability$Profile$ IMPORTANT!BITS:! • Keep$it$up$to$date$ • Make$it$a$priority$for$your$business $ • If$you$have$gaps$–$work$on$these$$ $to$improve$your$capabiliEes$ • Use$it$to$sell$your$brand$ – Website,$social$media$

$$$$$$$$$$$$$$$$$$$$$$$Unique$Selling$$ $$$$$$$$$$$$$$$$$$$$$$$$$$ProposiEon$ ! � The!factor!or!consideraMon!presented!by!a! seller!as!the!reason!that!one!product!or! service!is!different!from!and!bePer!than!that! of!the!compeMMon. � ! The!Entrepreneur.com!encyclopedia $ How$do$you$define$your$USP?$

Define$your$USP$ Consider:! • What$do$I$do$that$no$one$else$does?$(largest$range$of…;$ largest$capacity$equipment$for…;$only$one$in$region$who$ does…;$only$one$who$specialises$in…;$very$inJdepth$ knowledge/experience$in…;$best/longest$track$record$in…;$ only$agent$for…?)$$ • What$is$unique$about$my$business?$$ • What$is$my$unique$story?$(e.g.$Product$Range?$Ingredients?$ Locally$Sourced?)$$ • How$can$this$be$made$different$from$my$compeEtors?$