Published on March 12, 2014
PREPARING TO CALL ON BUYERS WHAT DO YOU NEED TO KNOW? FEBRUARY 25, 2014
2 • Be prepared: learn about/understand the marketplace • Put on your buyer “hat” – what does a buyer want and what do they need to know? • Packaging/labeling information and useful vocabulary for selling food • Tips on being professional and organized OVERVIEW
WAYS TO LEARN ABOUT THE MARKETPLACE 3
WAYS TO LEARN ABOUT THE MARKETPLACE 4
WAYS TO LEARN ABOUT THE MARKETPLACE 5
WAYS TO LEARN ABOUT THE MARKETPLACE 6 • Visit stores and selling locations; note how things are displayed, signage used, pricing, sampling or promoted. Ask questions! • Visit trade shows; join associations and participate in their events, read their materials and use their resources • On-line research: trade websites, business journals, and special topics such as health or sports, travel and lifestyle • Market research tip: research librarians can be really helpful
WAYS TO LEARN ABOUT THE MARKETPLACE 7 • US Census Data – can help you pinpoint demographics and target audiences for your products: http://quickfacts.census.gov/qfd/index.html • “Gorilla marketing”/market research tip: Students!
WEARING THE BUYERS ‘HAT’ 8 What motivates a buying decision? How will your product HELP buyers with their needs and goals? Focus on the key benefits and attributes about your products Differentiate your products: Packaging/sizes, flavors “innovation” (techniques, ingredients…) Services you provide
PACKAGING AND LABELING 9
PREPARATION AND USE INSTRUCTIONS 10 How is the product best prepared? Consumers are literal; if directions state “serve grilled”, that means you have researched the preparation, and you give good instructions on your packaging.
FOOD LABELING EXEMPTION 11 Section 403(q) of the Federal Food, Drug, and Cosmetic Act requires that packaged foods and dietary supplements have nutrition labeling unless they qualify for an exemption http://www.fda.gov/Food/GuidanceComplianceRegulatoryInf ormation/GuidanceDocuments/FoodLabelingNutrition/ucm0 53857.htm
NET WEIGHT/QUANTITY 12 Should the net quantity of contents be stated in both grams and ounces? Answer: Food labels printed must show the net contents in both metric (grams, kilograms, milliliters, liters) and U.S. Customary System (ounces, pounds, fluid ounces) terms. The metric statement may be placed either before or after the U. S. Customary statement, or above or below it. Each of the following examples is correct (additional examples appear in the regulations): Net wt 1 lb 8 oz (680g) Net wt 1 lb 8 oz 680 g 500 ml (1 pt 0.9 fl oz) Net contents 1 gal (3.79 L) P.L. 102-329, August 3, 1992; 21 CFR 101.105
NUTRIENT CONTENT CLAIMS 13 Based upon nutrition content from your nutrition label “Cholesterol free” “High in Vitamin C” “Low Fat” “Fat Free” Federally allowable claims NLEA “Nutrition Labeling and Education Act” http://www.fda.gov/ICECI/Inspections/InspectionGuides/ucm 074948.htm
INGREDIENT STATEMENT 14 Descending order by weight The ingredient list on a food label is the listing of each ingredient in descending order of predominance. “Ingredients: Pinto Beans, Water, and Salt” 21 CFR 101.4(a) http://www.fda.gov/food/guidancecomplianceregulatoryinfor mation/guidancedocuments/foodlabelingnutrition/foodlabeli ngguide/ucm064880.htm
NUTRITION FACTS PANEL 15
HANDLING REQUIREMENTS 16 “Keep Refrigerated” “Keep Frozen” “Refrigerate After Opening”
UPC WWW.GS1.ORG 17
SHELF – LIFE STUDY & RESPONSIBILITY 18 Microbiological Aerobic Plate Count Yeast and Mold Coliform Organoleptic Visual Over-all Product integrity
PROCESS CONTROLS 19 Production Batch sheets Lot Coding Systems Recall Policy Good Manufacturing Practices (GMP) http://www.fsis.usda.gov/OPPDE/rdad/FRPubs/00-014R/fda-gmpregs.htm Food Industry Quality Control Systems; Mark Clute
20 Sampling Protocol – Safety Sampling Costs to Think About
FOOD VOCABULARY & USEFUL RESOURCES 21 Broker/Rep – person/agency paid commission BB – bill back (same as manufacturers charge back) BOGO – buy one, get one (free) Consumer testing/ focus groups – sensory work to identify preferences and attitudes about products Distributor – Takes ownership of product, marks it up, and sells/delivers to customers EDLC – Every day low cost EDLP – Every day low price
FOOD VOCABULARY & USEFUL RESOURCES 22 FOB -price from your warehouse or production site GMP/GHP –Good manufacturing practices/Good handling practices HACCP – Hazard Analysis Critical Control Point OI – Off-invoice discount POS – Point of Sale materials (product tags, signs, brochures) PR – Public Relations SKU – Stock keeping unit (shelf space) Terms (such as 2% discount net 10)
ORGANIZE YOUR MESSAGES 23 What is the story behind your product? Shelf-life Describe how product is packaged/units per case Price Minimum order Delivery terms Sampling/Demos/Marketing program Contact information
BE PROFESSIONAL 24 Your appearance – impressions make a difference
SAMPLE SAFELY 25
BE PROFESSIONAL 26 Practice delivering your story/messages out loud. Role play with a friend, associate or to an imaginary buyer. Develop your „elevator speech‟: be able to describe what your product is and what it does quickly and succinctly, i.e., the time it would take to be on an elevator!
BE PROFESSIONAL 27 BE ON TIME for appointments Have your paperwork, samples and information organized and present them neatly, (and samples safely) Don‟t make promises you can‟t deliver
29 INCLUDE CONTACT INFO & INFORMATION IF DROPPING OFF SAMPLES – FOLLOW-UP
30 BE AN AMBASSADOR FOR YOUR PRODUCTS, READY TO SHOW/TALK ABOUT THEM!
A WEALTH OF OPPORTUNITIES 31 • Share and learn from and with your colleagues, peers and the marketplace – ask questions • Take advantage of resources • Don‟t be afraid to practice your presentations • Be organized, professional and only make promises you can deliver • Don‟t be afraid to have fun and show your enthusiasm! • Thank the buyer for his/her time and follow-up
THANK YOU! LAURA BARTON OR Dept of Agriculture & SARAH MASONI OSU Food Innovation Center 503-872-6680 32
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