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Food & Beverage Marketing

Marketing, Article

With Strong Pressure to Meet Evolving Consumer Demands, Food and Beverage Marketing must Quickly Adapt

Food and beverage companies face much greater business pressures today than they did just five years ago. It’s a blitz of rising commodity costs, retailer price pressure, distributor consolidation, farm-to-table and other direct distribution models such as mass entry of online retailers into this space.

In a reversal of longtime trends in the industry, large manufacturers of food and drink staples are now losing ground to smaller, more nimble competitors that are meeting consumer demand for more innovation, healthier options and door-to-door delivery. Even the most historically dominant brands are playing catch-up with the latest trends and consumer demands for transparency in food ingredients, sourcing and sustainability.

Create an Emotional Connection to Get Noticed in a Competitive Industry

When it comes to food and beverage marketing, there is a vast difference between B2C and B2B (including distributors), more so than in almost any other industry. The emotional connection to food within the B2C purchasing process is highly significant: hunger, thirst, desire for something sweet or salty, nostalgia and a deep concern for the food’s origins, just to mention a few.

Understands how retailers, distributors and others within the channel need to appeal to the end consumer’s need for an emotional connection has an advantage over those who don’t. Moreover, B2B customers have a lot of brands competing for their attention, so B2B agencies must clearly and effectively present a product’s advantages to the end consumer.

The average food and drink company in the B2B space spends a whopping 24 percent of its revenue on marketing, globally.

These emotional triggers ushered in a radical change in consumer priorities within the food and beverage industry, but food and beverage marketing employ the same techniques used more than a decade ago despite significant investment in marketing resources.

According to a Deloitte study, the average food and drink company in the B2B space spends a whopping 24 percent of its revenue on marketing. Food and beverage distributors spend about half as much, but that is still considerably more than other industries. The reason there is such high marketing spend is simple: the industry is extremely competitive with low customer loyalty. Low loyalty provides an opportunity for those who can entice B2B and B2C consumers to switch to their brand. At the same time, this puts a lot of pressure on a food and beverage marketing to create a superior level of customer satisfaction with every interaction to keep customers from jumping ship.

Digital Sales and Marketing Tactics to Supplement Personal Relationships

Adding to the complexity: the industry is a large one, encompassing restaurant equipment, food supply and distribution, processing, manufacturing, food safety and many other categories. How can food and beverage marketing adapt to such a rapidly changing environment across so many categories? Today, many food and drink companies are trying to migrate from relationship selling to a multi-channel model, where personal relationships are supplemented by digital sales and marketing efforts.

We should cater to the practical and emotional needs of modern consumers using cutting edge, deeply researched marketing strategies, as well as detailed marketing plans and tactics. For example, while content marketing and thought leadership-based marketing can play a big role in any food and beverage marketing plan, companies in this sector, in particular, are finding a higher level of success using mobile and social tactics to deliver content and connect with audiences.

Understanding of consumer demands

Lucidity helps companies in the food and beverage sector outsmart competitors who may even be outspending them. We do that by having a deep understanding of consumer demands in the B2B and B2C channels that comes from our extensive research and experience in this industry.

Our services help food and beverage clients successfully compete in a challenging environment.

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