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$customers$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$

• 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$

• $

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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

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" thats"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 faster than the competition”

Jack Welch, CEO of General Electric , 1981-2001

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$IT?$

Carmans$Bars$

• A smart rebrand about 5 years in saw

Carmans 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 Creswells 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. Ive 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. Its 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$,$%$etc$
• Theres$no$such$thing$as$a$long–term$contract$J

dont$scale$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$stuff$
• Dont$copy$someone$elses$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!

• f!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$in…;$

• nly$agent$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?$

Define$your$USP$

Then!consider!your!customers!(or!buyers):!

• What$does$the$customer$want?$$
• What$need$or$want$are$they$really$trying$to$saEsfy?$$
• What$feedback$do$I$get$from$customers$about$my$products?$
• What$is$the$main$reason$my$customers$buy$from$me$instead$
• f$my$compeEtors?$$
• What$can$I$do$to$match$or$exceed$those$expectaEons?$$
• What$can$I$do$to$make$sure$the$customer$gets$what$they$

want?$

The$Elevator$Pitch$

The$Elevator$Pitch$

• Concise.$Your$pitch$should$take$no$longer$than$30J60$seconds$
• Clear.$Use$language$that$everyone$understands$
• Powerful.$Use$words$that$are$powerful$and$strong$&$grab$

their$a`enEon!$

• Visual.$Use$words$that$create$a$visual$image$in$your$listeners$

mind$to$make$your$message$memorable$

• Tell!a!Story.$A$short$story,$that$is.$$
• Targeted.$A$great$elevator$pitch$is$aimed$for$a$specific$

audience.$$

• Goal!Oriented.$What$is$your$desired$outcome?$$
• Has!a!Hook.!Snag$your$listeners$a`enEon.$

How do you define your USP?

About McCAIN The extraordinary success story

• f McCain begins with a small

frozen foods plant opened in 1957 in Florenceville, Canada.

The$Elevator$Pitch$

IMPORTANT$BITS:$

• Ensure$your$pitch$is$targeted$to$your$audience$
• Lead$with$your$strengths$(USP)$
• Take$Eme$to$get$it$right$
• Keep$it$sharp$J$30$seconds$
• Be$accurate$
• Dont$be$modest$
• Understand$your$customers$needs$

Decision$Making$&$Focus$

Where$Should$You$Focus?$

• Your$Customer$
• Systems$
• The$Business$Decision$
• What$next?$

The$Customer$

What does your customer want?

Quality Product (Consistently) On-time Delivery Consistency

• f Supply

At the Right Price

What else does your customer want?

Easy to do business with.

Documentation.

Payment terms. Packaging Specifications. Labelling Specifications. Ordering. Invoicing. Low Risk! Communication

The$Customer$

MeeEng$Customer$Needs$

• What$do$you$need$to$saEsfy$your$customers$

needs?$

Capacity Capability

Capacity$

• The$Resources$

– Internal$

• People$
• Machinery$
• Space$
• $s$

– External$

• Supply$of$

materials$

• LogisEcs$

Capacity$

• The$Resources$

– Internal$

• People$
• Machinery$
• Space$
• $s$

– External$

• Supply$of$materials$
• LogisEcs$

What if?

Capability$

• Capability$is$heavily$dependant$on$Systems.$
• What$Systems$do$you$need?$

Systems$

LegislaEve$(what$MUST$you$do?)$

– Food$Standards$Code$

• www.foodstandards.gov.au$

– HACCP?$

• www.haccp.com.au$

– Safety$

• www.deir.qld.gov.au/workplace/$

– Environment$

• www.ehp.qld.gov.au/$
• www.business.qld.gov.au$

$ You$must$determine$your$own$obligaEons.$

Systems$ $Customer$Specified$(What$might$they$require?)$

• HACCP?$
• In$house$quality$management$system?$
• 3rd$party$Systems?$

– ISO$9000$(Quality$assurance$system)$ – ISO$22000$(Food$safety$system:$derivaEve$of$ 9001)Business$Management$

• Internal$Systems?$

– Process$documentaEon$ – Standard$OperaEng$Systems$

Why?$

It reduces the Risk!

Identification of legislative and customer requirements. Evaluation and assessment of legislative and customer requirements. Analysis of business’s current capacity & capability. Gap analysis assessment. Develop & analyse business case. Develop implementation plan. Proceed with engagement. Opt out.

Company Decision Making Process

Risk Management

• Hard and soft costs.

What do you want your business to be?

What$Next?$

• 1. Understand$your$legislaEve$obligaEons.$
• 2. Understand$your$customer$needs.$
• 3. Determine$what$is$required$to$meet$those$needs.$
• 4. Analyse$the$risk$…opt$in$or$out!$
• 5. Develop$a$Capability$Profile$(using$template$

handout)$

• 6. Develop$your$Pitch.$
• 7. Perfect$your$Pitch!$

How$We$Can$Help$You$ $

• Feedback$on$your$Capability$Profile$
• Mentoring$Programs$(for$Growth,$Investment,$

Export)$

• Tendering$for$Government$Workshops$
• Add$to$Database$for$receiving$informaEon$on$

future$opportuniEes,$events,$other$ government$programs$ $

Thanks…$