The future for shellfish products in retail markets and how to - - PowerPoint PPT Presentation

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…?

4,5 4,1 5,1 4,5 7,5 7,9 7,9 20,8 5,8 0,5 1,5 1,7 0,3 0,6

• 0,6

15,4 Inflation Unemployment

Are we happy?

5.0 5.6 5.1 6.2 8.5 20.2 21.2 Misery Index

Sources: Haver Analytics/The Economist March 2016

8.2 7.5

Changing needs…

1 42% 2 36% 3 11% 4+ 11%

60 45 32 1980 1990 2013

Cooking time Household composition

Source: Kantar Worldpanel

Chilled Ready Meals £1.5bn

% change v last year

16 8 7 6

• 11
• 11

Premium Standard Branded Total Healthy Value

Source: Kantar Worldpanel 52 we 31/1/16

1.383 754 501 Fresh Frozen Canned Your context: Total Seafood £2.6bn; +0.2%

Source: Kantar Worldpanel 52 we 31 Jan 2016

£m

+3%

• 7%

=

Source: Kantar Worldpanel 52 we 31/1/16

Lower trip volume offset by increased price

Shellfish: lower trip volume offset by higher £

There may be trouble ahead…

85 89 91 92 99 108 118 Fish/Seafood Bacon Lamb Beef Pork Turkey Chicken

% 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

GDP Per Capita, US $ Modern Format Retailing

India Indonesia Malaysia Thailand Philippines Korea Argentina Taiwan Singapore U.K. Germany France Brazil 33% 66% 100% China

Sources: CIA, Nielsen

Private Label evolution: brand architecture

Basic Regular Premium Better for you Better for the planet Health & Wellness Value for money Responsible consumption

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 Ethical Convenience/ Practicality Indulgence Pleasure

The consumer is not necessarily the shopper

NPD strategy options - Ansoff matrix

E x is tin g N e w Existing New

P r o d u c ts Markets

M a rk e t D e v e lo p m e n t M a rk e t P e n e tra tio n P ro d u c t D e v e lo p m e n t D iv e rs ific a tio n

Export, Snacks New category to brand Added ingredients Packaging Smaller sizes ??? Pet food

Beyond 2 in 1…

Top 20 innovations of the 20th Century

• 1. Frozen food
• 2. Pasteurised milk
• 3. Sanitary products
• 4. Microwaveable food
• 5. Tea bags
• 6. Instant coffee
• 7. Ring pull cans
• 8. Sliced bread
• 9. Plastic bottles

10.Disposable nappies 11.Powdered baby milk 12.Chilled food 13.Ready meals 14.Vacuum-packed food 15.Disposable razors 16.Gravy granules 17.Artificial sweeteners 18.Tetra Pak cartons 19.Pre-packed meat and fish 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