Structure of Food Marketing

Food Marketing

Food marketing is a channel that helps in running the producer and consumer parallel. It comprises of numerous chain of activities that brings food from ‘farm gate to plate’. The marketing of even a single food product can be a complex process constitutes many types of producers and companies. No one can work alone. Food marketing is the concept which says that there are different stages through which from farm the food reaches to ultimate consumers. Let’s take the example of the bread manufacturing process. As bread is the processed form of wheat flour. The person who manufactures breads has to procure different raw materials as well as labor; it requires packaging and then distributing. There are number of different business people are engaged in the different stages. Hence food marketing may seem a simple term but actually it is the complexities of different work at different levels.  In the United States the food marketing is the direct and indirect non-government job provider.

The four vital components of food marketing are commonly called as “four Ps” of the marketing as they relate to product, price, promotion, and place. The prominent factor that food manufacturers earn the huge ratio of the retail food income is that they provide the most distinguished, value-added service. The resources that manufacturers invest in developing, pricing and promotion, and placing their products helps distinguishing a food product on the basis of both quality and brand-name recognition.

Product

In deciding what type of new food products a consumer would most prefer, a manufacturer can either plan to develop a new food product type or trying something innovative to modify the existing food. For example, a sweet, flavored juice drink would be a new product, but juice in new flavored ice dollies with chunks of fresh fruits is sure an extension of a product already in marketing process. There are mainly three basic steps to both developing and extending: generate ideas, screen ideas for feasibility, and test ideas for appeal, finally. After these series of steps will take a food product make it to national market. Its quiet interesting that among hundred new food product ideas that are considered; only six make it to the chain-store shelf.

The food industry goes numerous marketing decisions. Huge money has to be invested in brand building (through advertising and other forms of promotion) to increase either quantity demanded or the price consumers are willing to pay for a product. Manufacturers those are engaged and invested a great deal of money in brands may have developed a certain level of consumer brand loyalty with their efforts. Thus consumer develops a faith with the product brand and always give preference to its while buying. This is the normal practice for consumers to continue to buy a preferred brand even when an attractive offer is made by competitors.

Price-To make profit pricing of the food, the manufacturer must know that the retailer adds around 50 percent to the price of a wholesale product and thus decide how to keep the best price.

Promotion-Promoting a food to consumers has to be done everywhere. Advertisements on television, print media, online and in magazines are forms of promotion. So that consumer goes to the store to purchase the product.

Place-Place is the distribution and warehousing process important to move a food from the manufacturer to a location where a consumer can buy it. It can also refer to where the product is positioned in a retail outlet.