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Mergers/consolidations/partnering
- both retailers and vendors |
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Brands
focus on core products and spinning off less profitable or non-core
products |
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Slow
growth - aggressive cost reduction |
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Brand
proliferation |
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Away
from home eating |
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High
failure rate of new items - 90% fail within the first year |
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Two
types of new item development
a)
Incremental (line extensions) - necessary and safer
b) Breakthrough marketing - the vision thing
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Easy
opening re-sealable packaging |
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Increase
public concern for genetically modified products |
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Mainstreaming
of "functional" foods - organic, natural and associated
health benefits |
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Continuing
trend to Home meal Replacements |
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More
ethnic foods, led by Asian and Indian foods |
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More
emphasis on vegetarian foods |
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Most
popular flavor categories: Italian, Mexican, Chinese/Asian. Over
time all categories tend to fragment and develop into sub categories,
e.g. Asian - Chinese, Japanese, Vietnamese, Thai, and Korean |
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In
last ten (10) years, Americans have doubled their use of spice to
3.1 lb. per capital |
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Most
popular cooking types are, in order: fired, grilled, roasted, braised,
pouched |
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Trends
for developing new items or enduring trends are:
Flavor - big and bold are becoming more widely accepted
Service
Value - quality and price relationship as perceived by the consumer
Comfort
Convenience |
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Retailer
trends: cost reduction, consolidation, increased pressure for direct
store deliveries. |
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Special
Note on the Internet!
Business-to-business commerce is estimated to be $900 million by
the end of 2000. By 2003, one-fourth of all U.S. B2B purchasing
will be done online. Can food companies track shipping, forward
warehousing, and distribution using the Internet as the tool? At
Patterson we will vigilantly pursue B2B Internet applications in
supply chain management that will reduce costs, improve efficiencies,
and deliver value to our customers. We recognize the need to build
an e-commerce infrastructure that leverages existing investments
and provide the foundation for running a successful integrated e-business
for the e-generation.
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