How Great Market Research Can Help Food and Beverage Manufacturers
How do you navigate a market landscape as vast and dynamic as the Food and Beverage Manufacturing industry? How do you introduce your new product or make it stand out from the competition? And how do you keep your offerings or your company itself relevant amidst the fast-changing times?
These questions might make one think that thriving let alone venturing into the Food and Beverage Manufacturing industry would prove to be formidable and intimidating pursuits. But that wouldn’t necessarily be the case if one leverages great market research in their endeavors in Food and Beverage Manufacturing.
From resonating with the right audience to competitively pricing your product, from adapting new and emerging technologies to innovating in an ever-shifting industry, market research would prove key to the foundation of strategies and achieving the goals of any enterprising Food and Beverage Manufacturer.
Image: Gustavo Fring
Benefits of Market Research for Food and Beverage Manufacturers
One of the largest and most saturated industries in the US, Food and Beverage Manufacturing could prove to be challenging and daunting for startups to enter and for new products to be introduced. That is, unless plans and business decisions are informed and backed by data gathered from market research which utilizes one or a combination of research methods which includes qualitative and quantitative research, feasibility studies, focus groups, interviews, and surveys.
Great market research allows upcoming products to find their optimal customer or target audience. This type of research allows manufacturers to tailor their marketing and advertising to resonate with their ideal consumer versus a blanket approach taking aim at multiple customer segments all at the same time, which might be more costly and inefficient. With a better understanding of their target customer through market research, Food and Beverage Manufacturers could improve not only their product’s reception but also their chances of getting their own share of the market.
The Issue of Feasibility
You might even say that market research could inform manufacturers if there is even a market for a particular product. Feasibility studies and the like would attest whether there is money to be made with a proposed product which you could also present to interested investors.
In addition, market research not only provides insights into consumer behavior but also of trends and opportunities for growth, improvement and innovation. Manufacturers who are able to identify these opportunities and develop the appropriate products or solutions could greatly benefit for being first in line, discovering and capturing niche markets, as well as gaining an edge over their competition. Identifying or forecasting consumer and market trends allows Food and Beverage Manufacturers room to pivot with existing products, either by increasing the production and/or promotion of a selection that’s becoming popular or mainstream, or pull back efforts on one expected to be in decline, possibly exploring ideas to improve it or shelve it until conditions become favorable.
What Product Attributes Should Be Emphasized?
Speaking of competitive edge, market research allows manufacturers to recognize the strong points of their products in comparison to their competitor’s offerings, enabling their marketing and advertising efforts to highlight those advantages. By the same token, insights on what a competing product offers could be helpful in assessing whether it’s worthwhile to emulate the same qualities or counter it with a better solution. These insights in combination could help determine the ideal price point for a product to strike a balance between gaining revenue and competitive pricing.
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Continental Mills Case Study by Nimbus Online
Continental Mills was looking to introduce new package designs for their line of baking and pancake mixes. Nimbus Online conducted a study for them, interviewing respondents who were current buyers of baking and pancake mixes. Half were shown the current packages and the other half were shown the proposed designs. They were told that they have $10 to spend and were asked to browse and buy as normal. Their eyes and brainwaves were tracked throughout the shopping process.
We found that by deploying the new designs, Continental Mills would be losing around $19 million. The existing package designs exhibited a harmony among the visual elements that was not replicated by the new designs. The current packages were well-liked, and this was demonstrated by consumers responding positively with their brainwaves and wallets at higher levels than with the new package designs. The visual harmony was consistent throughout the entire current line of packaging.
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Growing Your Food and Beverage Manufacturing Business with Market Research
We’ve touched on the benefits of market research for startups and new products, but it doesn’t cease being an important asset to a Food and Beverage Manufacturing company once they’ve gotten off the ground. In fact, market research is just as important to any established company for remaining relevant amidst shifts and trends in the market and consumer behavior, as well as up-and-coming competitors and new technologies.
Customer loyalty and retention might not only be as important but possibly more vital than new consumer acquisition, as existing customers have already consistently endorsed your product over time. Recognizing what they like about your product or what makes them stick with you could be essential in how your offering evolves or your selection expands, gaining new customers without turning away loyal ones. Such insights could also influence how creative you can get with rewarding customer loyalty, chief of which is how and when you would launch relevant promotions or marketing. Think of a buy-one-get-one promotion to counter the introduction of a competing product into the market, or advertisements thanking your most loyal consumers when celebrating milestones.
Health Consciousness
Another thing to consider is the increasing popularity of healthier product selections. Market research can help you learn whether a health-conscious version is good enough to replace your primary product or if it needs to be offered as a separate line. Your marketing team might also be interested in finding out if your ideal consumer buys your product for health benefits to warrant emphasizing this in your advertising.
This also extends to sustainable practices. While this would score well with Gen Z, this isn’t only for marketing purposes. Market research can help you locate the ideal location where not only you have a competent workforce and cost-effective resources to tap into, but also local regulations that support and enable sustainable production practices.
Regional Flavor
Another interesting benefit that market research gives Food and Beverage Manufacturing companies is the opportunity to diversify or introduce flavors or cuisines from a different region. It can either stem from the idea of introducing a novel new product or identifying a growing or trending preference towards a particular regional taste or selection.
And amid the pressures of e-commerce (boosted by the pandemic), DTC, omni-channel shopping, and AI, market research is as relevant as ever to any company with regard to the viability of adapting new technology, expanding shopping and distribution options, and even the prospect of globalization.
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Food and Beverage Manufacturing Market Research with Nimbus Online
Whether you’re a startup looking to claim your share of the market or an established company who wishes to stay relevant by launching new products or adapting a new way of managing your Food and Beverage Manufacturing business, you can’t go wrong partnering with an esteemed and experienced market research team like Nimbus Online. With 35 years of market research excellence serving leading US and international companies like the aforementioned Continental Mills, we’re not only well equipped with a wide array of research methods but we’ve remained on the cutting edge of market research with a potent combination of leveraged AI technology and a high level of excellent human thinking. Contact Nimbus Online today to learn how we can help you navigate the massive and ever-changing market landscape of the Food and Beverage Manufacturing with a roadmap built on high quality and data-driven market research!