Concept Statement -research chef this pt by working with marketing to ensure that the descriptive terms are realistic and can be produced to a degree of authenticity

4 Elements 1.statement starts out as a product definition and builds, promising the consumer a certain experience 2. performance char are added in an attempt to increase the level of interest 3. sensory char are also added until the consumer or guest has a pretty good picture of what to expect 4. price is added at the end, so the consumer can decide if they would be interested at that level

Concept Statment --Whatever descriptors that attribute certain characteristics to the food are used, the research chef must make sure that the product delivers on the claim. -- The research chef is accountable to produce authentic food products that have the quality indicators that the concept statement promises to the consumer.

Product Safety -format for distribution must be carefully defined, must present the desired product quality aligned with the desired product safety

Marketing 1. target market 2.positioning included: product design, package design, pricing, distribution, merchandising, advertising and promotion

Target Market Target market identifies the gap in the market. the gap is a combination of product benefits that a specified group of consumers demand but is not being provided by existing products or competition. --marketing research provides an overview of buying and consumption patterns along with demographic and geographic correlates: household size, number and age of children, income level, region of the country--AC nielsen and iri

Marketing -consumers develop opinions based on marketing communications (advertising, promotions, packaging, price and display), word of mouth and actual usage experience. product characteristics and benefits define the mental framework we use to compare and evaluate brands. must find the right combination of benefits and communicate them clearly. sensory, rational and emotional benefits

Marketing- Benefits rational benefits refer to what the product does for us. Sensory benefits refer to taste, appearance, texture and aroma. Emotional benefits refer to psychological benefits-- such as those provided by eating comfort foods, foods that are good for your health or image perceived as we consume their brand

Product Name Product Name should be simple, easy to pronounce, memorable and indicative of product benefits --Campbell’s kitchen classics, Hershey’s nutrageous-- Acclaim

Advertising Decisions -objectives stated in terms of awareness and trial levels -what we will say about the brand -how much we plan to spend--budget -which media vehicles we will use to reach our target customers

Advertising Decisions -how expenditures will be allocated to different geographic areas -how the messages will be scheduled over the introductory campaign -how to measure the effectiveness of the ads

ADVERTISING heavy expenditures in the first few months. most important period in the life of the brand is during and just after introduction, when sales build to an initial peak. the higher the peak, the higher the probability the new item will be a success. advertising budget in the initial stage should include year 2 as well.

ADVERTISING -35% of a new item’s year one sales can be attributed to advertising million spent of food advertising --media advertising is still the best way to build awareness and build brand loyalty and equity --TV ads are down..how do we reach our consumer

INTERNET companies are using destination websites to provide information, promote product and offer coupons -frito lay uses a website that is interactive to go after the millennial generation since they have grown up in the technology age and that is one of their core consumers

INTERNET blogs, chat rooms, on-line discussion groups-- consumers pay attention to these since they feel they are honest and credible. 1. need to be aware of what consumers are saying about your brand and responding if the talk becomes negative 2. reach out to selected bloggers, give them an early opportunity to use and evaluate your product and start a coversation which can spread viral marketing

BUZZ MARKETING opinion leaders, trendsetters, innovators and first users- generate the person to person buzz -usually when going after the yr old category -will use a variety of event sponsorships, samplings and giveaways, stunts.

GUERILLA MARKETING unconventional marketing intended to get maximum results from minimal resources. -vitamin water -relied on sampling from a van in high traffic locations combined with promotions such as spin the bottle which gives consumers a chance to win products and prizes, dj events with local radio stations, in-store tastings, and unique in store displays- signage “OJ found guilty” of being high in sugar -corner bistro did much the same-tasting at taste of chicago, commuter sampling at transit terminals, advertising in elevators

PUBLIC RELATIONS story to write about in papers like the Wall Street Journal or USA Today-benefits or how it will change our lives in a dramatic way

PRICING -the price does not have to be the lowest on the market -set with reference to perceived product quality and benefits -consumers must perceive a higher value than they could obtain with the purchase of a competitive item --if consumers don’t perceive differences then price will be deciding factor

PRICING -if consumers don’t perceive differences then price will be deciding factor -pricing a product too low will decrease its perceived value -pricing at introduction if too low will make it hard to raise price later since consumers will have an established reference price for each item. --launching a product with a higher initial price point and promotions that lower the effective price for a trial and early repeat purchase is more effective thatn launching with a lowball price

PRICING --pricing must include-sales velocity, stocking fees, displaying the product and must meet profitability and return on investments --psychological factors-helps evaluate quality and value. marketers will rather price something at 2.99 than 3 because it is perceived that 3 is significantly higher than 2.99