Impact of consumer trends on your value chain Jakarta, Indonesia July 2015 Christophe Landuyt

Impact of consumer trends on your value chain 1) Understanding & interpreting consumer trends 2) Geographical aspects 3) Assessing the impact a) on marketing & communication b) on distribution & trade partners c) on product design & development

Impact of consumer trends on your value chain 1) Understanding & interpreting consumer trends  - Every trend watcher has his own set of trends  - Trends are often formulated in vague terms  - ‘How to lie with statistics?’

Impact of consumer trends on your value chain 1) Understanding & interpreting consumer trends - Trends help us understand (groups of) consumers - Trends reveal what is about to happen - Trends allow us to make the difference / stand out

Understanding & interpreting consumer trends 1) FOOD TRENDS (Gfk – Anuga) Glocalisation Daily luxury Fair Food Wellfood Co-manufacturing Myfood

Understanding & interpreting consumer trends Glocalisation The world gets smaller all the time (global village), but in food we want local accents.

Soto ayanKippensoepVelouté de poulet Chicken soupSopa de pollo

Understanding & interpreting consumer trends Daily luxury Professional life is very demanding. Indulging in small daily luxuries makes it more bearable.

Understanding & interpreting consumer trends Fair food What we eat should reflect our values, our ethics and our hope for a better world.

Understanding & interpreting consumer trends Wellfood What I eat adds to my wellbeing and my physical and mental integrity.

Understanding & interpreting consumer trends Co-manufacturing Yes, I Cook!

Understanding & interpreting consumer trends Myfood What I eat, expresses my individuality. I am what I eat.

Understanding & interpreting consumer trends 2) NON-FOOD TRENDS (Euromonitor Itl.) 1) Narrow gap between interest & purchase (Shop this) 2) Eating right 3) Eco-worriers & social conscience (SHFT) 4) Home Base: importance of home & community 5) Work-Life balance: a source of stress

Understanding & interpreting consumer trends 2) NON-FOOD TRENDS (Euromonitor Itl.) 6) Luxury for more consumers (affordable luxury) 7) The People’s Choice (Trip Advisor) 8) Post-recession Coping (the New Normal - REWE) 9) There’s an app for that 10) Visual Craving (Filter Fakers, Pinstrosity)

Understanding & interpreting consumer trends Ugly Fruit Video

2) Geographical aspects EUROPE = - One unified market (legislation) - Many national laws (phytosanitary) - 27 nations – 24 official languages - Many different clusters of consumer preferences - Different speeds for developing consumer trends

Needs create segments

Table culture Courtesy Reinhardt Werner

Table culture Courtesy Reinhardt Werner

Table culture Courtesy Reinhardt Werner

Table culture Courtesy Reinhardt Werner

Five important questions relating to segmentation: Can we quantify the segment ? Is it big enough to justify ? Is there specific distribution ? Is it really different ? Can we reach it ?

High, middle and Low Luxury Market $$$$ Mainstream Market $$$ Mass Market $ Segmentation on price/value; design

EU market segments Upper end (5-20%) Middle end (50-70%) Lower end (20-40%) ‘statement’ pieces (large) decorative; minimalist styles top aesthetic and finish high value/high price mainly functional dining, tabletop well-priced creative ‘me-too’ mass machine-made functional ‘me-too’

In a nutshell There is no such thing as “a market” Countries is only one criteria Use elimination in the process Focus, don’t compromise

What do you prefer? Left or Right?

Mouse or Lion? Better the “head of the mouse” than the “tail of the lion”

Key Question: How do I find out who my target audience is and what their expectations are?

Customer profile Who are the target customers? Why will they want to buy? What will the target customers want to buy? How will customers want to buy? When will they want to buy? Where will they want to buy? Where do they live? How old are they? Are they men, women, children? What is their occupation? Income? Status? Level of education? Religion? Special interests? What benefits these customers will get by buying my product? What products with what features will meet their expectations? How will they want it packaged? What quantities will they want? Will customers buy this product when they buy other related products? How important is the place of purchase? Will they go to buy it alone or with someone else? Is delivery important? How frequently will they purchase? Is this a regular or special purchase? Are there certain times or days of the week or the year when products will be more demand (e.g. special foods may be in greater demand during New Years) What stores, locations, or outlets will make it easiest for customers to find and buy your products? Where would they expect to find them? Knowledge about target customers is the basis for providing them the products that will satisfy them, make them loyal, repeat buyers, and provide profits to the business. Courtesy Reinhardt Werner

How to find information Ask Shake hands Keep your eye on the competition

Society Consumer Markets Technology & Business Keep your eye on the competition

Understanding the market: Summary