1 William G Walker Vice President WGW Marketing NEW PRODUCT DEVELOPMENT 3119

2 Product Principals Product Principals Sales – Wholesale & V/A Retail Sales – Wholesale & V/A Retail Vendors, Clients & Customers Vendors, Clients & Customers Profit Centers & Cost Centers Profit Centers & Cost Centers Distribution Channels Distribution Channels Short Term Sales / Long Term Marketing Short Term Sales / Long Term Marketing Tracking Process Tracking Process Office Necessities Office Necessities Support & Research Support & Research Product Design Outline Product Design Outline Cost Build Up Cost Build Up Program Recap Program Recap Product Development Outline

3 Product – (Fresh & Further Processed ) Growers, Processors Growers, Processors & V/A Further Processors & V/A Further Processors National & Regional Brand Comp Shop National & Regional Brand Comp Shop Distribution Channels Distribution Channels Brokers Brokers Product Development Product Development & Marketing Companies & Marketing Companies Margin & Mark-Up Levels/Impact Margin & Mark-Up Levels/Impact Access Leverage Customers Access Leverage Customers Product Principals (vendors, clients and customers

4 Wholesale Ingredient (Processors) Ingredient (Processors) Re-Distribution Product (Retail, Foodservice) Re-Distribution Product (Retail, Foodservice) Direct Distribution (Processors, Foodservice) Direct Distribution (Processors, Foodservice) End-User Fresh & V/A Bulk Sales End-User Fresh & V/A Bulk Sales (Retail, Foodservice) (Retail, Foodservice)Retail Branded Branded Private Label Private Label Sales Wholesale & Value-Added Retail

5 Vendors, Clients & Customers Vendors Further Processor (adds value) Further Processor (adds value) Multiple Vendors (flexibility) Multiple Vendors (flexibility) Multiple Capabilities (processing, packaging) Multiple Capabilities (processing, packaging)Clients Product Development Companies Product Development Companies Marketing Companies & Brokers Marketing Companies & BrokersCustomers Processors Processors Foodservice Foodservice Retail Brands Retail Brands

6 Profit Centers & Cost Centers Branded Item Sales Retail Brand and SKUs (A/R) Private Label Sales Resell Capabilities & Items (A/R) Branded & PL Commissions Direct Sell Processor Capabilities (no A/R)

7 Distribution Channels Food Processors Direct, Marketing Companies, Brokers Mass Retail Direct, In-House Brokers, Brokers Foodservice National Accounts, Leverage Operators, F/S Distributors, Brokers Retail Fancy Food, Catalog, Grocery, C-Store, Brokers

8 Short Term Sales Long Term Marketing Short Term Sales= Leverage Operators Each Market Channel Long Term Marketing+ Processors= Eliminate Distributors Spec Products through R&D and Product Development Companies Leverage Operators / Customers Make Careful Choices for Long Relations Professional Follow-up Food Service= Leverage Operators Eliminate Distributor in Decision Making Retail= Eliminate Distributors Spec Products & Packaging with Buyers Value-Added Product Development Branded & Private Label

9 Tracking Process GOAL: ACTION: RESULT: NEXT STEP: Daily/Weekly Communication with vendors, clients and customers Revise Tracking Process weekly Prepare for the worst, expect the best! Deliver bad news first! Start early and work late! Be passionate about your products and your work! Be prepared to fail! Don’t quit until you succeed! Chance prefers the prepared mind!

10 Office Necessities High Speed Internet Phone, Fax & Copier Computer & Printer Web Site Cell Phone Digital Camera Snap shot view of simple necessities

11 Support & Research National Industry Associations State Growers and Industry Associations Web Search Fancy Food Directory State Economic Development Centers Private Label, Fancy Food & Foodservice Trade Shows Business Referrals

12 Product Design Outline Identify Product Item – select Identify Flavor – test & select Package – select Brand – select Prototype / Mock-up - create

13 Cost Build Up EVALUATE Component Cost & Minimums Standard & Variable Cost Forecast Breakeven Quantity Sell From Prototype Sell To Meet Production Minimums Adjust To Client Needs

14 Program Recap Select Product Research Production Sources & Competition Research Industry Associations Interview Principals Assess Viability in Market Place Select Processors & Identify Leverage Operators Create Bench Sample & Mock-up Packaging Make Sales Appointments Sell from Prototype Adjust to Clients Needs Purchase Order Production

15 Contact Information William G Walker Vice President WGW Marketing, Inc

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