What do you do if you're a decision-maker in food manufacturing and want to expand into new markets?

Food is ever evolving. People have become ever more conscious about what’s in their food, and what impact it has on their health. Thorough market research would enable to understand the current requirements, demographical changes, flavors, dietary requirements, market gap analysis, regional municipal policy and requirements.

Permit me to use terminologies from Food Safety Management System 1) You need to understand your business scope and context. Who are your target audience and how can the new market you are interested in serve your business goal and vice versa. 2) Understand your key stakeholders in the new market; the consumers, regulatory bodies, other interested parties and their respective needs. Understand how your value is worth it in the envisioned market is key.

Market research is the most significant phase toward expanding new products. Understanding and analysis of your business scope and business context through using tools like SWOT, PESTLE ...e.t.c. Understanding your stakeholders e.g competitors thoroughly and how they affect market share. Proper analysis of your business context and your stakeholders requirements help to generate new ideas for new product development.

While planning you need to consider how P- Political government E- Economical trajectory S- Social/Cultural demand T- Technological advancement/availability E- Environmental impact L- Legal requirements may affect your business situation.

How to unlock New Markets with Strategic Planning! As a decision-maker eyeing expansion, crafting a robust strategic plan is paramount. Begin by defining clear objectives - is it increased revenue, market share, or brand recognition? Align these goals with a comprehensive action plan to outline financial projections, marketing initiatives, and operational strategies. Conduct thorough risk assessments to anticipate hurdles and craft contingency plans. Remember, adaptability is key - your strategy must evolve with market dynamics while staying true to your vision. A meticulously designed strategic plan is your compass, guiding you through uncharted territories. Embrace it, and new market opportunities will be well within your grasp.

While planning you need to consider if your how P- Political government E- Economical trajectory S- Social/Cultural demand T- Technological advancement/availability E- Environmental impact L- Legal requirements may affect your business situation.

Key trends to consider in this include a) how climate change may affect ingredient availability and prices; b) understanding key demographics needs as they transition into new phases -- e.g. what are youth's tastes and preferences, to gear for what they will buy as they enter their working years, and the "silver dollar" of more affluent seniors' preferences based on their health/wellness concerns and needs; c) target market regulations; b) how policies may shift in future, potentially in favour of local sourcing or sourcing from preferred markets, based on ongoing shifts in global geopolitics. All these considerations and more would inform your strategies for reformulation / flexible formulation.

One thing I have found that placing the existing product in new market will be great idea only when you have done the ground market research and modified the product as per customers need . Many times it happens that your existing product don’t do well in your areas but holds great potential for new market , export etc . So well market research is a key to success in new market.

Efficient supply chain management is critical when expanding into new territories. You must establish reliable sourcing for Raw materials and packaging, considering local suppliers to reduce costs and support the local economy. Logistics planning is also vital to ensure timely delivery of your products. This includes transportation, warehousing, and inventory management. A robust supply chain can help you maintain product quality and availability, which is crucial for establishing a strong presence and the most important things we can get through the year.

To keep maximum landed product shelf life when reached to market is one of key consideration when doing the planning and local distribution. Most of food companies adapt to local sourced and produced to gain their competitive edge to meet highest customer satisfaction with logistics savings, meanwhile with multiple manufacturing locations globally also provide shielding in terms of supply risk whenever a crisis arises.

Looking for local tollers as they are familiar with local requirements/ compliance/ inventory management. I recently attended a tradeshow, and there are many tollers exhibits their tolling services. This is useful especially if Capex is challenging and green field expansion is not an option until full commercial viability is established.

Each business has it's own limits and in order to expand and grow more there should be a partnership development to asses in business development. Partnerships can be considered, in supply management, logistics, marketing, financial solutions.

Most of the subjets mentioned are very important, but in my view the most critical one is your Team selection. It is the one that will execute all those ideas and strategies and finally accomplish the objectives . Selecting the right people is the first step, always.

There is a list of activities that has to be considered : - market research (Macro and micro) that shows the demand , capacity , quality of product , standard and certificates , competitors , culture and customer behaviours - customization of the product to the targeted market ; quality , labeling , certificates - if the market is international ; designing the strategy : global sales , out source , international production , investment . - then simply 4P - sales channels selection - organizing and pricing and finally operation and feedbacks - for food products usually we start with Hotel-Restaurant-Catering and later in retail . However in some cases retail or B2B could be the only solution. R&D must work close to the marketing team.