How to build a food brand~

Sue Sullivan (Owner of HOT SQUEEZE, USA, Gr8r Atlanta) asked: Looking for advice on how to build a food brand

Hi, Interesting question…but unfortunately it does not have any formula.
I am in food business as well and fortunately marketing personality!! And i believe building a brand is ongoing process and your own unique branding idea comes from you. Yes YOU, no consultant can create a DNA for your brand; of course they can help in execution and makeup.

Simply answer this to yourself to understand how you want to take your brand forward…

a) When you created or thought about the logo or name of your brand, what was going in your mind? i.e. what was the idea, what was the image you could see, what was the feeling?

b) Does this feeling still as strong or has it changed, if changed, then answer why it has changed, is it because of outer influence or is it because your internal objectives has changed?

I believe your brand is an extension for your own personality…one thing is very interesting about brand building you can change it to your own likes…what i mean by it, can you change your personality? (unless you are not happy with who u are) most of the time it is hard to change and that is why we sometime subconsciously want to be somebody else…branding is a good medium to express your hidden or secret personality/expressions which you can create through a product brand Or service brand.

For example, you give the brand a name, dress it up with colors and font and give it a language for communication which will make it stand out and interesting, you don’t go to all kinds of places, right, you go to select places with your frnds and family…similarly your brand goes to select places (distribution and stores). Do you make friends with everyone, No, right…similarly your brand makes friends with select group of people (in marketing we call it segment and target audience)…but you are friendly with everyone who come in contact with you…similarly your brand is friendly (this is customer friendliness in the marketing language)…you have hobbies…similarly your brand has some 

I hope you got the picture!! And i am sure you can make an interesting brand for yourself.

Connect like the way STARS do

We have an insatiable desire to be different. This desire to be different from people around us is so strong that even 1-degree of separation makes us feel special about ourselves. No wonder that’s why we aspire for various things.

Commercial brands do this all the times i.e. finding ways to differentiate themselves from other brands, but are unsuccessful connectors. Most of the brands try hard but sadly still finding the answers. One reason is- they are trying to answer the wrong question “How should i connect?”

Look at STARS / POPULAR SINGERS (Michael Jackson, Madonna, Elvis Presley) they are true connectors. They market themselves uniquely. They are open to people, they talk about themselves and also, lets people to talk about them. What happens…they do what they like and showcase their qualities to “all the people” (consumers) and if people like them, these STARS (P. Diddy; Sean John) have a “select fan followings” (T.Group) to cater to. These fans “choose” the STARS for their “unique qualities”, not other other way round.

Once STARS identify which “select people” like them and for "what reasons”, they try to understand what they want and fulfill their needs by offering more music/movies or products.

So, what are they doing right that commercial brands are failing to do. The answer is STARS don’t ask, “How should I connect?” instead they freely showcase there Unique Qualities, then identify “who wants to connect with them” and then tailor make their offerings (entertainment) and satisfy there TG. In the process they make millions and a stong brand name.

Few new age commercial brands that have taken this route to connect with people are handful, I can think of only “Apple”, Puma, & “Google” right now, but I am sure in coming years this is the only way to connect with people.

Make people choose you, than you choosing people.

who wants you!

Choose your type, you mass, luxury, and exclusive brands.

Type 1: one who wants to be with a brand
Type 2: one who want brands to be with them
Type 3: one who need no brands

cycle is taking its curve much faster!!

Retail in India
Market Size
Unorganized market: Rs. 902 000 cr (to grow by 5 percent per annum)
Organized market: Rs. 35000 cr (to grow by 25 to 30 percent per annum)
Includes organized Food and Grocery Rs. 600 crore
(Govt. Statistics www.nic.in)

Categories of Retail Models in India
Discount store (supermarket, hypermarket and other formats)
E.g: Shubhiksha, Margin Free (kerala), Big bazaar etc

Dedicated brand outlets
Exclusive showrooms either owned or franchised out by a manufacturer. E.g: Nike, Reebok, Zodiac etc

Multi-brand outlets
These stores specialize in stocking products of different brands of singular category. They can also be classified as company owned and operated stores. E.g: Vijay Sales, Viveks, Witco, etc

Supermarkets
A large self-service grocery store selling groceries and dairy products and household goods
E.g: Food World, Nilgiris, Shubhiksha, Monday 2 Sundays etc

Hypermarkets
A store that combines a supermarket and a department store. The result is a gigantic retail facility that carries an enormous ranges of products under one roof, including full lines of fresh groceries and apparel.
E.g: Big Bazaar, Giant, Star India Bazaar etc

Department Stores
A Store that organizes its goods by departments, such as women's clothes, home furnishings, electronics, and the like, department stores range from collections of elaborate, fancy shops to practical outlets for ordinary merchandise. They differ from ordinary stores principally because of their size and range of merchandise.
E.g: Pantaloon, Lifestyle, Shopper stop, Westside etc

Specialty Chains
These are small stores that specialise in a specific range of merchandise and related items. Most stores have an extensive width and depth of stock in the item that they specify in and provide high levels of service and expertise. E.g: Furniturewalla (type of furniture), Evoluzons (designer cloths), Planet M etc

Company owned and operated stores
These stores are company operated and usually sell merchandising at seconds or at discounts. They are similar to the Multi- brand outlet, only difference is, they only showcase company owned brands.
E.g: Megamart

Leading National level Hypermarket

Spencer’s Hypermarket
Mega value. Maha khaushi

Spencer’s Hypermarket promoted by RPG group which also run chain of “Food World” supermarket in south, currently the hypermarket is operating from two locations Hyderabad and Mumbai, Spencer's Hypermarket sells all its goods below the Maximum Retail Price (MRP),

Brand: GIANT (Supermarket and Discount store format)

Widest range of products at the lowest price is the USP used
Air-conditioned, clean, comfortable, well-stocked and laid-out setting used as differentiator.
B2C and membership based B2B model in use.
Offers 3 levels of discounts. These levels are linked to the units purchased and translate into significant savings at each level of consumption.
Focus on own private label
50,000 products / 1,20 000 Sq.ft

Big Bazaar
Isse sasta aur accha kahin nahi

Big Bazaar Hypermarket promoted by Pantaloon India Ltd, which is in the business of retailing from 1987, since then it has expanded to large format supermarkets, departmental stores, hypermarkets and malls. Big Bazaar Currently operating in more than 13 locations, it sells all its goods below the Maximum Retail Price (MRP).

Brand: Food Bazaar, Gold Bazaar

Price and the wide array of products is the USP.
Targeted to the middle class and anyone who want goods at affordable price.
‘Family focus’, this strategy of the company is reflected in all its communications and product offerings.
More for less is the philosophy of the hypermarket
High service level and good ambiance used as differentiator.
Focus on own private label
1,70,000 products @ 6- 60 % discount

Star India Bazaar
Chota Budget, Lumbi Shopping!

Hypermarket promoted by Trent ltd a company of TATA GROUP, which is in the business of retailing; it runs famous “Westside” a large format departmental store. Star India bazaar Currently operating in Ahmedabad only, it sells all its goods below the Maximum Retail Price (MRP).

Focused on the requirements of the entire “Indian family”.
Added value by private label card (The Star India Bazaar private label card, which offers discounts to members),
Widest variety of products and great savings opportunities at the hypermarkets is the USP
Catering to the middle-class demand by offering products at affordable prices.
Each Star India Bazaar will be around 50,000 sq feet in size.

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The recent spurt of hypermarkets initiated by leading business houses targeting masses are one of its kind were focus is on low price and mass-market products.

Hypermarket business world over is price centric, and economic of scale dominates, similarity is seen in India too with likes of Big Bazaar, GIANT, and Star India Bazaar luring consumer with lowest price offerings and wide assortment of mass products.

In India it is at very nascent stage, known industrial group are cashing on the retail boom, expanding nationally to compete and to acquire greater market share and mind share. Some of the leading business houses like Reliance, Landmark Group (Dubai), Bharti (Airtel), Shopper stop ect will enter in near future. One will also find real estate biggies diversifying in to retail with joint ventures.

While Price, Product and Place playing major role in the initial stages of these hypermarkets to capture the market share. People, Process and Promotion will become important to sustain and grow the brand to compete for mind share in the future.

In the second phase of growth, one will see new kinds of specialist hypermarkets selling specific products targeted to all the segments of audience at various price points. This further will give way to theme base hypermarkets, hypermalls etc.

Share your thoughts, spot or predict the trend to come...(innovation, technology, consumer, competition, formats, promotions ect...

economics of my office chaiwala!!

It was fine Friday 8:30 am, I came early to start with freshness and thought will start my weekend from 5 pm…as i was going through the work for the day and i found its a relax day not much work, I find a hot cup of strong tea kept on my table at 9:30 am…wal-haa what a start. The chaiwala asked how was the tea; as usual I said “badiya hai” and started working.

It was 11:30, as usual he came again and asked for tea, I said “in the afternoon” and my colleague ordered a few cups…it was 2:30 in the afternoon and I find myself with a cup of tea and some drinking coffee, others having horlicks, some are having plain milk…it was like we were only busy drinking our favorite milk, it was quite a scene everyone with their respective cups sipping and working…sipping and working :). At 3:30 this guy drops in again asking everyone, few orders and few says later, he asked me and i realized this guy pops in every 3hree hours to offer us our dose of milk, I asked him to give me at 4:30…it was 5:30 and our guy drops in and offers every one including me.

I thought lets talk to him and understand his secret of smile every time he flashes while giving us our dosage. I asked him candidly, is this the only place to do business or does he also have other locations. With that flashy outburst, he said “kya sab mazak kar rahe hai mere saath”; at that moment i heard telephone ring, and my dear friend chaiwala takes the phone and excuses himself to recieve the call, he comes back with his nokia 6600. I got interested, asked him how much do you $$? Without hesitation said enough to sustain myself and my family, I asked how much is enough to sustain you, with a smile he said 25000/-, I said you surely make more than what you are telling me, he said no sahab approx this much only.

I asked him u don’t use only milk do you…with that flashy smile and with some hesitation he said I have to add water, I asked him you use powder milk, and very honestly he said Yes. And you charge 4 rupees… and I got a flashy smile. I asked him how many offices are in your dosage list? 4 offices including yours he said. I asked him add flavors like badam milk, elaichi tea, masala tea ect... I am sure people will like it…again I got a flashy smile this time with confidence he said I already have plans for it.

There was nothing much to tell him, but a piece of advice, beta your tea tastes good but if you start using cow’s milk it will taste gr8. He said “ok” cow’s milk for you next time.

He atleast made sure I be happy.

…Next day I read this news Mr. Biyani is working on an experimental retail concept of selling chai and samosa named as “chamosa”. $$