Food Industry E-commerce Strategies for Success

Food Industry E-commerce Strategies for Success

·        Retail

Within the “online grocery and consumables” retail segment, Anderson says, manufacturers can choose from national ship models like Amazon Prime Pantry (for shelf-stable foods like pasta or cereal) or “full-basket” models for local delivery or pick-up of fresh, frozen, and chilled groceries.

Depending on a food manufacturer’s product portfolio, all of these models can be high-potential, but, Anderson says, it’s important to prioritize where you’ll be most active and allocate resources (both human and financial) accordingly.

·         Direct-to-consumer (D2C)

As local food availability grows, larger manufacturers must find ways to compete with the options already on the ground. Many opt for D2C routes, typically additionally to their retail partners.

·        Consider your audiences

You’ll direct your energies differently, depending on where your customers are finding you. What you supply and the way it’s marketed should modification to suit numerous e-commerce platforms.

·        Decide what to sell

Understanding the right products to carry is key, says Anderson. In national ship models (like Amazon facilitates), the price-to-weight ratio is critical, as heavy, low-price products face profitability challenges, given the costs of shipping one to five items at a time. Packaging durability also needs to be tested for air freight.

Full-basket models produce less pressure on individual things to be profitable, since customers usually order 20+ things promptly, making a basket of products. When orders are consummated from native stores, less offer chain adaptation is needed, because the same product on the market in-store area unit typically sold on-line.

·        Convert consumers

Winning at the digital shelf requires attracting, engaging, and converting shoppers and balancing growth with profitability. Anderson suggests five strategies for brands hoping to grow their online stores–strategies that require different focus and skills than brick-and-mortar marketing.

Discoverability in search results and category listings is key to attracting page views on product detail pages.

Product content should be complete, accurate, and compelling. Hi-resolution product pictures, detailed titles and descriptions, and enhanced content like video or product comparison matrixes.

Ratings and reviews are increasingly influential. While food makers have less management over these than product content, they will use sampling programs and alternative techniques to incentivize authentic reviews, and may monitor for negative reviews and respond directly on retailers’ sites.

In-stock availability is fundamental. No matter however determinable a product is or however compelling its content is, if it isn’t in stock when shoppers are ready to buy, there’s no sale.

Pricing and promotion are other key factors. Are promotions being executed as planned? How do costs compare to alternative on-line and offline retailers for similar products?

·        Use the right tools

A vast range of cloud-based tools can now help companies drive performance and stay ahead of their competition by adapting their supply chains to changing consumer demands.

Logistics tools

Freight view is a cloud-based freight management software that offers API plug-ins with WooCommerce and apps through Google Chrome and Salesforce.

In the e-commerce arena, an API can integrate shipping and logistics operations directly into a company’s online store, so customers can see their shipping costs as they check out. The API’s connection with the company’s carriers and brokers instantly pulls and displays up-to-date rates.

·        Marketing tools

Companies like Hook Logic, a pioneer in performance marketing, are increasing the opportunities designed for digital spaces to help CPG brands and online retailers compete for small-screen shelf space.

Hook Logic partners with both brands and retailers to target high-intent shoppers in real time and accelerate sales. They’re rapidly expanding into food markets to keep pace with increasing digital demand.

·        Data management tools

Garrett Magrath of Directive Consulting recommends a website analysis tool called Hotjar. With Hotjar, companies can create funnels to view customer drop-off rates, analyze carts, record users, visualize heat maps, and conduct user surveys right in the store.

·        Look at the data

Anderson emphasizes that market size, growth, and category share typically drive decisions about where to play and how much to invest. These can be essential for defining “the size of the prize” and motivating executives to invest.

Shopper knowledge together with demographics, attitudes, and behaviors helps manufacturers understand who is shopping online and why. Digital shelf analytics facilitate complete makers maximize their performance on-line.

Salesforce, an outsized CRM computer code company, is breaking into the food industry by working with companies like Sprouts, Sysco, and a few major grocers to help them build mobile applications, consumer engagement programs, and internal IT help desks.

Salesforce simply free new shopper knowledge in its 2016 Connected trade goods Report that outlines what it takes to form loyal shoppers. Here’s some of what they found:

A majority of respondents prefers to use on-line retailers once buying by value, but when pricing is not a factor, the majority still prefers to shop in brick-and-mortar stores.

Millennials are five times more likely to rely on social media interactions when researching a brand than Baby Boomers.

Forty-one plc. of millennials would be willing to share personal information with a whole in exchange for a lot of personalized service and discounts, compared to only 22% of Baby Boomers.

·        Stay ahead of the curve

In a market that’s seeing such rapid growth, it’s important to anticipate developments and adopt new technologies that can help you succeed. The food and beverage industry face unique challenges and shows slower technology adoption rates. Early players like General Mills are within the best position to adapt once they’ve established a viable e-commerce presence.

It’s clear from the BCG study that brick-and-mortar shelf space does not necessarily translate into digital sales. In the winner-take-all climate of digital commerce, those that lead the means can reap the largest rewards, each within the short and therefore the future. Younger, more nimble competitors with disruptive approaches and skills are coming alongside established players to stake out leadership positions in this new economic arena.

Over the coming months and years, watch for more ways to aim your e-commerce strategies toward innovation and growth.