The future for shellfish products in retail markets and how to handle the challenges? jonathan@jonathanbanks-associates.co.uk +44 (0)7764 635379
Horse, frog, or…?
Are we happy? Misery Index Inflation 21.2 20.2 Unemployment 15,4 8.5 20,8 8.2 7.5 0,6 0,3 0 6.2 5.1 5.6 5.0 1,7 0 1,5 0,5 7,9 7,9 7,5 5,8 5,1 4,5 4,5 4,1 -0,6 Sources: Haver Analytics/The Economist March 2016
Changing needs… Household composition Cooking time 60 4+ 45 11% 3 32 1 11% 42% 2 36% 1980 1990 2013 Source: Kantar Worldpanel
Chilled Ready Meals £1.5bn % change v last year Premium 16 Standard 8 Branded 7 Total 6 Healthy -11 Value -11 Source: Kantar Worldpanel 52 we 31/1/16
Your context: Total Seafood £2.6bn; +0.2% 501 Fresh -7% Frozen 1.383 754 Canned +3% = £m Source: Kantar Worldpanel 52 we 31 Jan 2016
Shellfish: lower trip volume offset by higher £ Lower trip volume offset by increased price Source: Kantar Worldpanel 52 we 31/1/16
There may be trouble ahead… Chicken 118 Turkey 108 Pork 99 Beef 92 Lamb 91 Bacon 89 Fish/Seafood 85 % under 25s consumption indexed on all foods Source: Kantar Worldpanel 52 we Jan 2016
The growth of modern retailing and economic development are highly correlated Singapore Germany U.K. France GDP Per Capita, US $ Taiwan Korea Argentina Malaysia Brazil Indonesia India Philippines Thailand China 66% 33% 100% Modern Format Retailing Sources: CIA, Nielsen
Private Label evolution: brand architecture Premium Better Better for for you the planet Regular Basic Responsible Health & Value for consumption Wellness money
Retailer issues • Profit and shareholder returns • Low/no inflation • Growing competition from discounters, on-line • Changing shopping habits: – convenience, top-up, more frequent • Declining shopper loyalty • Corruption, abuse of power, perceptions
Retailer responses • Increased space for private label • SKU reduction – e.g. Tesco Project Reset removes 20-30% – Share increased in only 20% of categories • Increased transparency • Reduce number of ways of taking money from suppliers • Groceries Code compliance
The way forward • Increased use of data • Supply chain • RMS, CPS, loyalty cards, qual and quant • Insight led • Category Management led
Category management • Right range • Right store • Right price • Right promotion • Right new product development
Category vision • Penetration • Frequency • Weight of purchase
People will pay more for what they want… • 5% more for health • 19% more to save time – Convenient/ready meals • 25% more for taste • 87% more when it’s a special meal
4 megatrends Health/ Well-Being Indulgence Ethical Pleasure Convenience/ Practicality
The consumer is not necessarily the shopper
NPD strategy options - Ansoff matrix M a rk e t New D iv e rs ific a tio n D e v e lo p m e n t ??? Export, Snacks Markets Pet food New category to brand Existing M a rk e t P ro d u c t P e n e tra tio n D e v e lo p m e n t Packaging Added ingredients Smaller sizes E x is tin g N e w P r o d u c ts
Beyond 2 in 1…
Top 20 innovations of the 20 th Century 1. Frozen food 12.Chilled food 2. Pasteurised milk 13.Ready meals 3. Sanitary products 14.Vacuum-packed food 4. Microwaveable food 15.Disposable razors 5. Tea bags 6. Instant coffee 16.Gravy granules 7. Ring pull cans 17.Artificial sweeteners 8. Sliced bread 18.Tetra Pak cartons 9. Plastic bottles 19.Pre-packed meat and fish 10.Disposable nappies 11.Powdered baby milk 20.Screw-top wine bottles Source: The Grocer/HI Europe online survey December 2004
How to turn 17.5p/100g into 35.5p/100g Source: http://www.mysupermarket.co.uk/Heinz_-_Tomato_Ketchup_In_Tesco.html 15/10/11
80% of CEO’s believe their brand provides a superior customer experience 8% of their customers agree Source: Bain & Company
Closing thought: Profits, people, planet... “It is not your duty to finish the work, but neither are you free to neglect it.” Source: Rabbi Tarfon, Pirke Avot, The Talmud
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