Food Processing and

Manufacturing
Marketing Management
How do food manufacturers
market?

• Market segmentation
• Target marketing (niche marketing)
• Product differentiation
• Positioning
• Branded products
Brand names

• Most common marketing strategy

• Identifies the seller, differentiates the
product, and creates brand loyalty
Product Life Cycle

Profits

-
Development Acceptance Saturation
Pricing Strategies

• Not everyone wants the highest quality

product.
• Almost everyone is willing to give up some
quality for a better price.
Distribution

• Industrial customers
• Foodservice customers
• Consumer markets
Promotion Choices

• Goal of the promotion?

• Theme or appeal?
• Type?
• Which media?
• Who targeted?
Structure of Food Manufacturing

• Food processing is the largest

manufacturing sector in the U.S.--8% of
employment, 11% of all value-added.
• Number of food processors declining;
average plant size increasing.
• Food plants specialize by product lines.
• Large food processors are diversified.
Food Processing Industry

• Dominant Core of large firms

• Competitive fringe of smaller firms
Law of Market Areas

• Territorial boundaries between two or more

markets or plants is a locus of points such
that the final selling prices, including
transportation cost, are equal for sellers in
each market.
Law of Market Areas
(Miles)

Plant A 100 200 300 400 Plant B

A’s price
2.00 3.00 4.00 5.00 6.00
7.00 6.00 5.00 4.00 3.00
B’s price
Market
Boundary