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Food markets are saturated with millions of irms producing thousands Of different products, each Of these competing for a market share. This type of highly saturated and extremely competitive market makes it very difficult for many food firms to be hugely successful. The Food Marketing Function therefore plays a huge role in the food industry. In a recent study conducted at University College Cork it was discovered that 53% of television advertisements were for food and beverage products. Therefore it is essential for food firms to market their products effectively.
Successful marketing in this sector has a direct influence on business rofitability. Why is the food marketing function so important to food firms in today’s competitive market? 1 . It creates product recognition and brand awareness: In a highly competitive market place, product recognition is essential for food firms to survive. Food firms must make consumers aware of their products to generate sales. It’s important that food firms advertise and market their product through mediums such as television, internet and newspapers to enforce brand awareness among consumers e. . Coca Colas Christmas advertising campaign “Holidays are coming, Always Coca Cola” 2. It is ssential to compete against rival food firms marketing campaigns: Every food firm in todays market dedicates a lot of time to devising unique and creative marketing strategies. Along with this many major food firms with huge marketing budgets such as Nestle and Kraft invest heavily in marketing campaigns. The majority of consumers are aware of these firms’ food products.
For other food firms to compete and gain a market share they must utilise the food marketing function by marketing and branding their product as unique, of better value and of higher quality. 3. It allows firms to identify iches and gaps in the food sector: Market Research is an integral part of the food marketing function. It involves going out into the market place and conducting surveys on consumers to gain knowledge on consumers tastes and needs. After gaining this essential knowledge firms can produce food products that satisfy consumer’s tastes and preferences directly.
Conducting market research as part of the food marketing function also helps firms to keep costs down. By analysing consumers needs and producing a product based on these needs they avoid the costly process of trying a product they evised on their own assumptions of consumer needs out on the market. 4. It reduces the risk of business failure: Successful marketing reduces the risk of a product or business failing. When a food firm markets their product successfully they create brand awareness among consumers. This will in turn generate sales.
This generally ensures business profitability as long as the food product satisfies consumer’s tastes and preferences. 5. influences consumer’s perception of the product: The food marketing function is very important to food firms as it shapes the way consumers view their product. Different food firms market their products towards different market segments e. g. health conscious, elderly, female consumers etc… This influences consumers perception of the food product. For example Yorkie chocolate bars are predominantly aimed at men with the slogan “It’s not for girls”.
This type of food marketing allows Yorkie to gain a large share of the male chocolate eating sector but also creates a perception among female consumers as being somewhat sexist. 6. It creates brand loyalty among consumers: Through sponsoring certain events such as sports games, television programs nd concerts food firms can create loyalty among consumers. This can greatly increase business profitability and allow food firms to maintain their market share. A good example of this was Dominos Pizzas sponsorship of The Simpsons on Sky One Television. This was intelligent food marketing as The Simpsons was shown on Sky One at 6 p. . in the evening just when consumers would be thinking of what to have for dinner. They presented consumers with an easy and quick option for dinner without having to miss a second of the television program. On top of this they offered loyalty coupons nd discounts creating a huge amount of loyalty among consumers. What Trends will influence new products developed by food firms in the future??? 1: Pleasure Pleasure is the main motivation to consume. people will only buy food they find tasty and flavoursome. This has always been and will remain the main reason consumers will buy food products.
The movie “Supersize Me” released in 2004 starring Morgan Spurlock raised global wareness to the problem of obesity and exploitive tactics such as supersize meal used by fast food chains. These tactics used by fast food firms have become socially unacceptable in society. Therefore food firms should become aware of this and ensure that they don’t use such exploitive tactics Along with keeping the fat content in their food products as low as possible to satisfy our modern health conscious society. 6: Functional Foods (Cosmetic Foods): Functional foods are foods that provide an extra function e. . reducing cholesterol, boosting ones immune system or increasing ones beauty. They have become increasingly popular in recent years especially products such as Actimel and Benecol. For example Coca Cola has released its Diet Coke Plus product which is a tasty drink that provides consumers with anti-oxidants and vitamins. In essence it’s marketed as a tasty drink with health benefits. Many major food firms are also trying to enter the cosmetic functional food market. Coca Cola have also teamed up with L’Oreal to produce a cosmetic drink product.
This is a product that both tastes good and is marketed to increase beauty. Nestle have also tried to enter this market with their product Glowelle which studies have shown that it may reduce Cancer risk and enhance health. However this product has been a failure as it does not state these health benefits in adverts or on the bottle. This is a growing food sector that is in early stages. Such products add value to food by offering extra health/beauty elements. There is potential for high profits in this new sector, therefore food firms should try should try and develop products to gain advantage of this market sector.