Five Fantastic Ideas for Fancy Foods
The annual Fancy Foods show in New York City is one of the best destinations for visitors, specialty food producers, and food retailers to come together and enjoy a feast for the eyes, stomach and the mind. If you’re going to be visiting this space, you’re going to be welcomed by some amazing exhibitions and showcases.
For example, the Excite Talks bring together some influential thinkers to discuss the future of food. One of those thinkers is Bertha Jimenez, P.h.D. This incredible woman is the founder and CEO of RISE, a tech startup with the mission of increasing the value of organic waste. One way in which they do that is by working with microbreweries and using the grain that they don’t use and turning it into flour for food manufacturers. Her talk is only one of the many taking place at the Summer Fancy Food Show.
If you are a food producer exhibiting at the show, then your mind is probably occupied by sales and the traditional “Four P’s of Marketing” — Product, Price, Promotion, and Placement. And with approximately $191.2 billion spent on food marketing and advertising in 2016 in the United States, this is a topic that you need to be educated on. The Four P’s are the main ingredients that you’ve got to have in any marketing recipe. Of course, you know better than anyone that you can make a recipe your own by supplementing some non-traditional elements to enhance results.
Here are five ideas using contemporary asset management techniques that every food marketer should consider. Sprinkled throughout your strategy, these bold ideas will make a big difference to your bottom line.
(1) Use corporate trading to increase the value of your challenging inventory
When you think of having excess inventory, your first thought might be to go the traditional liquidation route. However, with corporate trading, traditional liquidation goes out the window in favor of a much better option. Even when demand for your product is low, you can get rid of your excess inventory at the full wholesale value! Did you know that around 25% of the value of your inventory is the carrying cost of extra excess inventory? When you work with a corporate trading firm, you can sell your inventory at its full value in exchange for high-quality marketing and business services.
Numerous inventory problems are solved with this strategy. You can get rid of perishable or short-coded products that are reaching the end of their shelf lives. You will also be able to deal with retailer issues like cancelled orders which are a result of the backlog. And of course, you can deal proactively with issues such as when new marketing initiatives or packaging updates render older product obsolete.
(2) Optimize your supply chain in ways like never before
If you are thinking about ways to optimize your business and make things more efficient, then you’re probably going to analyze your supply chain. Imagine your warehouses right now. Are there products are just sitting there, creating serious backup problems in your pipeline? Using an asset purchase program to increase sales will free up warehouse space and reduce carrying costs.
Moreover, an asset purchase program does not have to be limited to inventory. Increasing asset value for all underused assets is a practical, profitable strategy. You can sell not only the inventory sitting in a warehouse but the warehouse itself. A well-designed asset purchase program will also enable other upgrades such as equipment, office space, fleets and production lines.
(3) Open up new distribution channels
Asset management specialists, especially those who can optimize value by leveraging trade and barter, have an incredibly broad and deep network of retailers, distributors, and e-commerce providers who can provide new distribution points and revenue. These connections can really push a specialty food business forward. Not only can you avoid costly traditional liquidation, you will have huge exposure to new channels and outlets, all of which are pre-approved by you!
(4) Consider a private label strategy to enhance asset value
Have you ever considered a private label strategy? This may not seem intuitive to a producer of high-end food, but “private label” and “high quality” do not have to be mutually exclusive terms. Private labeling is the process by which you re-market your branded product, and any producer who does so has the opportunity to increase consumption and reduce inventory. Private label strategies can be incorporated into an asset purchase program.
(5) Acquire incremental shelf space, by using corporate trade
Your potential is confronted with an unprecedented choice on the shelves. Because of this, most businesses focus on “shopper marketing”, where the emphasis is placed at the point of purchase when the customer is confronted with and makes the final decision about the products that make it to their homes and tables. food items. Shoppers expect to be engaged, and it’s been shown that 1 in 10 customers will even change their minds about what brands to buy while they are in-store. Unfortunately, in-store marketing makes distribution and display more and more expensive.
A non-traditional way to spend money is to literally “lift” product from shelves, making the purchase to open up shelf space. Competitive purchases such as these can be integrated into asset purchase programs. By freeing up this shelf space, you will have the opportunity to give your customers the products they are looking for.
In conclusion, Asset Optimization strategies work alongside the traditional 4 P’s of marketing (Product, Price, Promotion, and Placement). The five “extra ingredients” touched on in this post can be put to work for you and they can make a difference in your recipe for profitable business. In fact, there is a “5th P” for anyone interested in exploring these unique marketing strategies. The 5th P is a “Partnership” with Sherwood Integrated Solutions.
Speak to a representative with Sherwood Integrated Solutions and you’ll be able to take advantage of Asset Optimization, corporate trade, and the benefits that will come to your inventory, supply chain, distribution, and retail efforts.