In packaged food industry, the client enjoys a prominent place owing to proactive measures and a sharp focus on innovation in packaging to ensure better shelf life and safety during transit. However, certain pain points had recently emerged due to various factors such as a shifting preference from packaged foods to fresh products. A major reason here is the growing awareness regarding health and its link to fresh foods among new-age consumers. This shift in dynamics had to be addressed and therefore the client sought an in-depth analysis of trends and drivers that the market is set to witness over the coming period. It was pertinent to understand these in the context of their impact on grocery stores and supermarkets to make sure that the position of the client remains strong in packaging and packaged food domains.
A deep-dive into market dynamics led to the conclusion that purchasing decisions of the modern consumer are heavily leaning towards health and therefore there is a growing demand for functional and fresh foods and food ingredients. This shift is palpable and stands against the fact that the hectic lifestyle of this consumer pushes him towards convenience in cooking, storing, and consuming. While the decline in the latter is not massive, it creates a pressing need for players operating in the landscape to opt for appropriate strategies. Some of these included figuring out and strengthening alternate distribution channels for the client under the lens. Online grocery shops and e-commerce platforms form a prominent part of this strategy.
To ensure that the client is able to tackle the rising challenge of changing consumer preferences head-on, the team at Transparency Market Research identified analyzed and shared requisite information on trends, drivers, and emerging growth opportunities. An incisive understanding of the growth dynamics of online distribution channels also paved way for a comprehensive and impactful strategy to be formulated. Since, a large number of hyper markets and super markets are trying to enter the digital space; the strategy outlined hit the core of the issue that the client faced. Internet-based business models resolve the challenge of shrinking shelf space seamlessly. However, to ensure the client remained at the vanguard of his business game, the team identified and delineated novel and untapped growth opportunities, particularly over the internet domain. Steps towards tapping into these were also elucidated. To provide the client with the most granular knowledge, the team undertook an extensive research. It included tools of both primary and secondary research type. Besides, a number of interviews with experts in the industry and buyers in the market also marked the research space. The strategy was therefore aimed at improving profit margins and helping the client adjust to the changing and ever-evolving market landscape. Besides, it is significant to note here that technical feasibility study and effective logistics study was also undertaken by the TMR team so there were no loopholes in growth strategy prepared and shared with the client.
Transformation and Results:
The client brief focused on surviving the shifting preference in the food and beverage choices of the new-age consumer. It was creating issues that pertained to sales and marketing in particular. And, an in-depth understanding of trends and drivers made a number of changes in consumer behavior clearer. Besides, evaluation of growth dynamics in the market led to the client capitalizing upon hidden opportunities. One such trend that led to resolution of a major challenge is the growth of e-commerce and other online distribution channels, a factor that is leading the packaged food industry on to a higher growth trajectory, especially over the coming few years. Therefore, on the basis of Transparency Market Research’s extensive research analysis, the client could understand the current growth matrix and opt for strategies that are both fruitful and innovative. Additionally, on the basis of research findings, the company streamlined a number of processes on the supply chain side and that led to better shelf life and efficiency. Besides, the state-of-the-art solutions that it provided led to better outcomes. Another strategy that was particularly successful for the client was that of entering synergistic alliances by expanding operational footprint. This is paving the way for better market penetration and tapping into new consumer-bases.