ESTABLISHING TRUST AND POSITIONING THROUGH TRACEABILITY

BY: STRATEGY CREATERS

TJUNG SHIRLEY (1001644808)SHIVONNE PREVENA (1000923486)NASIF CHOWDHURY (1001439325)MUHAMMAD ALI (1001643069)MUHAMMAD IDREES YAQOOB (1001642847)SERIKI OLUWAFEMI JOSEPH (1000921761)

Table of Content

What is traceability? What is positioning? Establishing trust through traceability How To Acquire Trust Of Omni Consumer Food Safety and Authenticity Communicating Information Supply Chain Proactively engage with stakeholders

What is traceability?

1. Accounting: Ability to track a specific piece of financial information by means of recorded data or audit trail.

2. Cost accounting: Ability to assign a cost directly to an activity or cost object on the basis of a cause-and-effect (causal) relationship.

3. Quality control: Ability to trace the application, location, and/or history of an activity or item by means of recorded data.

4. Systems management: Ability to track system requirements from a system function to all those elements that individually or collectively perform that function.

What is positioning?

A marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer. Companies apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, luxurious, entry-level or high-end, etc.) through advertising. Once a brand is positioned, it is very difficult to reposition it without destroying its credibility. Also called product positioning.

Introduction

Several factors have converged to create heightened need for transparency and effective communication within the Consumer Products industry

“Omni Consumer.” These new generation consumer are very enlightened and therefore empowered

Omni Consumer

Who/ What is an OMNI

CONSUMER? Empowered by knowledge Extensively distinct purchase drive

Establishing trust through traceability

Why the need to establish trust?Protect and empower a brand for today’s “Omni Consumer”

Recipe for trustFactors that influence trust are very dynamic. (changing)

In the past: Real values example packaging and intrinsic attributes of the products

Present: Omni consumer wants products that deliver more

The purchasing behavior of today’s “Omni Consumer” is influenced by factors relating not only to the product, but also to its broader impact on society. To guide their purchasing decisions, these consumers leverage trusted sources of information, which traditionally included Consumer Products (CP) companies. However, product contaminations, recalls and confusion over marketing claims have eroded trust in CP manufacturers.

Hunger for informationToday’s consumers have a high passion for information. Information can be access through various medias including the internet.It’s essential to the consumers that they find the right information when needed.Knowing and understanding the preferred medium via which the target customers prefer to access the information is really important.To rebuild consumer confidence and re-establish brand relevance, CP companies could encourage transparency by delivering credible information about innovative products.

**Examples

How To Acquire Trust Of Omni Consumer

Leverage traceability to protect andempower the brand

To communicate effectively with the Omni Consumer, and compete with private-label offerings, CP companies should leverage Full Value Traceability to address both protection and empowerment in their brand value propositions.

Both elements have suffered as a result of product contaminations and recalls. In addition, many consumers today do not perceive the incremental value of branded products over private label.

In addition, many consumers today do not perceive the incremental value of branded products over private label.

Efforts to address protection and empowerment start with a deep understanding of the target consumer’s wants, needs and preferences; this includes knowing the valued sources and formats of information.

Sources of these insights can include in-home product testing, interviews, call center feedback, analysis of sales, loyalty card and panel data, and, increasingly, the Internet.

Food Safety and Authenticity

Recent recalls of leading consumer product and pet food brands have generated significant cost and damaged brand reputations.

To give consumers confidence about product safety and authenticity, consideration should be given to marketing activities that support safety, such as compliance with Hazard Analysis and Critical Control Point Procedures (HACCP) and ISO 22000.

Communicating Information

Consumer product marketing increasingly requires a high degree of trust, especially regarding functionality and responsibility claims. CP companies can substantiate these claims and empower their brands in these large and rapidly growing segments by effectively communicating information about ingredient source, functionality, sustainability and supply chain conditions

Dannon’s marketing of functional products

Dannon has created a stir in the yogurt category by communicating detailed information about its growing portfolio of functional products, thereby effectively building consumer trust. The company has built a growing portfolio of functional foods to address specific consumer needs. For example, the Activia line claims to improve digestion. This product reached US$130 million in sales after its first year on the market. Additionally, other Dannon products claim to control cholesterol, have reduced sugar content, bolster the immune system and provide skin nourishment. Since the introduction of these products, Group Dannone’s stock has significantly outperformed the S&P 500 over the past two years.

Supply Chain

Integration of the physical and information supply chains requires CP companies to capture, store, analyze and communicate information from across the supply chain about product movements, processing activities and attribute changes.

Product movements – Fundamentally, a traceability system requires each upstream and downstream product or ingredient movement be captured and recorded by the current owner. Downstream: aimed at facilitating CP and retailer collaboration, reducing finished goods inventories, avoiding out of stocks and complying with mandates and regulations. Upstream: increasingly critical for product safety and to help isolate problems when they do occur.

Processing Activities – As a starting point, CP companies and, where appropriate, other supply chain participants should fully comply with HACCP

Attribute changes – In order to effectively track and trace products across the supply chain, each ingredient, additive, product and package should be uniquely identified using accepted industry standards.

Proactively engage with stakeholders

In order to realize the transformative potential of Full Value Traceability, CP companies should proactively engage with a set of stakeholders that reaches beyond direct supply chain participants. Quarterly mock recall exercises between CP manufacturers and retailers are no longer sufficient. Consistent, thoughtful and vocal leadership by CP company executives is required, with the emphasis on creating a common vision and a shared sense of responsibility across a broad set of stakeholders.

Suppliers, vendors, consultants, service providers, advisers, financers and insurers need to believe that investment and participation in a robust traceability system will protect and empower the company’s brands.

REFERENCES

http://www-935.ibm.com/services/us/gbs/bus/pdf/g510-6621-01-traceability.pdf

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