PROMOTE
Concept Plan
Food and Agriculture Enterprise
Consumer Driven • Population growth drives increases in food demand • Income growth drives increases in per capita food expenditures • U.S. food expenditures to rise 26 percent, or $208 billion, between 2000 and 2020 Food Review 25(1): 2-9. USDA-ERS, May 2002
Food and Agriculture Enterprise
Consumer Driven • Demand for Value-Added Products • Demand for Quality-Differentiated Foods
Food Review 25(1): 2-9. USDA-ERS, May 2002
Food and Agriculture Enterprise
Consumer Driven • Demand for Value-Added Products “Benefits” that Add Value
Food Review 25(1): 2-9. USDA-ERS, May 2002
Food and Agriculture System
Benefits that Add Value • Production - An economic livelihood for farmer producers • Manufacturing - A business opportunity for entrepreneurs • Consumption - A market source of nutrition for society
Food and Agriculture Enterprise
Consumer Driven • Demand for Value-Added Products “Benefits” that Add Value
• Demand for Quality-Differentiated Foods “Distinctions” that Differentiate Quality
Food Review 25(1): 2-9. USDA-ERS, May 2002
Food and Agriculture System
Consumer Driven Benefits that Add Value • Production - An economic livelihood for farmer producers • Manufacturing - A business opportunity for entrepreneurs • Consumption - A market source of nutrition for society Distinctions that Differentiate Quality • Needs • Wants • Values
Agriculture-Food System
Consumer Driven Benefits that Add Value • Production - An economic livelihood for farmer producers • Manufacturing - A business opportunity for entrepreneurs • Consumption - A market source of nutrition for society Distinctions that Differentiate Quality • Needs - I need food to live (my lifestyle experience)
Lifestyle Experience
Distinct Needs • By 2020 more than one-third of the American population will be over fifty • Over 68 percent of the population is using vitamins and minerals • Over 25 percent of the population are using herbs and related supplements • American consumers are constructing new personal wellness regimes Natural Products Census, The Hartman Group
Food and Agriculture System
Consumer Driven Benefits that Add Value • Production - An economic livelihood for farmer producers • Manufacturing - A business opportunity for entrepreneurs • Consumption - A market source of nutrition for society Distinctions that Differentiate Quality • Needs - I need food to live (my lifestyle experience) • Wants - I want foods that are …
Convenience Products
Distinct Foods Dashboard Dining Makes Tracks Focused on the growing niche of mobile foods, Deli Dashers® Premium Meal Oriental Cups, with a decidedly regional Chinese influence, are hitting the mark. PreparedFoods.com http://www.preparedfoods.com/CDA/ArticleInformation/features/BNP__Features__Item/0,1231,113739,00.html
Stand-Up, Zip-Lock, Pop-Top, Squeeze Bottle, Surprise Inside Products
Food and Agriculture System
Consumer Driven Benefits that Add Value • Production - An economic livelihood for farmer producers • Manufacturing - A business opportunity for entrepreneurs • Consumption - A market source of nutrition for society Distinctions that Differentiate Quality • Needs - I need food to live • Wants - I want foods that are … • Values - I appreciate (and benefit from) foods that are …
Consumer Trends
Distinct Values
Food and Agriculture System
Consumer Driven “Benefit Mix” that Adds Value • Production • Manufacturing • Consumption “Distinction Mix” that Differentiates Quality • Needs • Wants • Values
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Food Entrepreneurship Opportunities Needs
Distinction Mix
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Wants
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Consumer Satisfaction
Values
Increasing
Value-Added Products Benefit
Increasing
Distinction
Quality-Differentiated Foods
Increasing
Value-Added Products Benefit
Increasing
Distinction
Quality-Differentiated Foods
Important Web Resources • AgMRC Website - Agricultural Marketing Resource Center http://www.agmrc.org/agmrc/whatsnew/whatsnewmkt.htm
• Supermarket Guru Product Archive Search Website http://www.supermarketguru.com/page.cfm/5820
Promote – Class Activity • Describe the “Benefit Mix” for a product – How are production, manufacturing, and/or consumption factors used to add-value to the product?
• Describe the “Distinction Mix” for a product – How are consumersʼ needs, wants, and/or values considered to quality-differentiate the food?
• Describe the targeted consumer
10 minutes!