Food Processing Lesson

1. Environment and
Marketing
(EM)

2. PLAYERS IN THE MARKET
• In any business, there is always a leader to lead and
guide the group and a follower to receive orders from
the leader as instructed.
• The success of any business depends of the
participation of every one involved especially the
people.
• For the business to keep on going, one should be
innovative or creative to keep a part from the rest of
the competitors.

3. KURATKO and HODGETTS (1989)
• There are two important aspects of creativity:
PROCESS – serves as the goal or aim designed to
obtain a solution from the problem that may arise or
may be encountered
PEOPLE – resources that determines the solution
though the solution varies depending on one’s
approach to go with the problem like formulating
innovative solution.

4. KURATKO (1976)
•People who want to venture Food processing
business, s/he needs to venture the following:
Explore and examine the economic, cultural, and
social conditions prevailing in an area
Conducts feasibility of the business
Consider the needs and wants of the community
Availability of raw materials, tools and equipment
Proper training and skills; and
Appropriate technology

5. Choose between the two products that you
prefer.
A B

6. COMPETITORS:
Quantity vs Quality

7. COMPETITORS: company in the same industry
that offers a similar product.
• Direct
• Indirect
• New entrants

8. DIRECT COMPETITORS:

9. DIRECT COMPETITORS:
• Offers the same
product, services
competing the same
potential market.

10. INDIRECT COMPETITORS:

11. INDIRECT COMPETITORS:
• Company or certain
business offers
alternative product or
service other than
what you are selling
in the market

12. SUBSTITUTE/ NEW ENTRANTS

13. SUBSTITUTE/
NEW ENTRANTS
• Competitors compete
for the financial
resources of your
costumer but do not
exactly offer a similar
product or service

14. Choose between the two products that you
prefer.
A B

15. MARKETING
• market – serves as the place for the distribution
of goods or products for sale
•Is an important aspect of businesses
•The process on how well a product is patronized
or solid and continuously be loved by customers.
•Conducting market research is needed and a
competitive analysis
•It covers advertising, public relations and
promotion activities.

16. Product Development
• Quality
• Service offered
• Innovative
• improving

17. Product Production
•Customer’s demand through
advertisement and promotion
•If it clicks the market then
produce enough to supply the
rest until eventually business
expansion is necessary based on
the demand
of the product

18. Optimal Pricing
• Pricing should be affordable
but competitive to justify
production cost, expenses, and
a portion for profits.
• It should be compensate for
the effort and time given.

19. Optimal Pricing
• Pricing should be affordable
but competitive to justify
production cost, expenses, and
a portion for profits.
• It should be compensate for
the effort and time given.

20. Distribution
• Wholesalers,
retailers,
distributors,
inside and field
representatives,
online selling,
direct mail, and
catalogs.

21. Distribution
• Wholesalers,
retailers,
distributors,
inside and field
representatives,
online selling,
direct mail, and
catalogs.

22. Distribution
• Wholesalers,
retailers,
distributors,
inside and field
representatives,
online selling,
direct mail, and
catalogs.

23. Distribution
• Wholesalers,
retailers,
distributors,
inside and field
representatives,
online selling,
direct mail, and
catalogs.

24. Distribution
• Wholesalers,
retailers,
distributors,
inside and field
representatives,
online selling,
direct mail, and
catalogs.

25. Distribution
• Wholesalers,
retailers,
distributors,
inside and field
representatives,
online selling,
direct mail,
and catalogs.

26. Distribution
• Wholesalers,
retailers,
distributors,
inside and field
representatives,
online selling,
direct mail, and
catalogs.

27. • This can be done
through media like tv,
newspaper,
magazines or the
internet
• Products to be known
Advertising and
Promotion

28. • In purchasing buyers,
nowadays, are
knowledgeable and
intelligent enough in their
buying habits.
• WARRANTY – assurance
for the repair or support
of product or services for
a certain period of time.
SALES

29. Three Simple Things to Start a Business (Dave
Thomas)
1.Know your product
2.Know your customer
3.Burning desire to suceed

30. Building Up Customer’s Profile
1.Who the customers are (age, gender, etc)
2.Who the customers desire (wants,
interests)
3.Where the customers live (location to
visit/buy product)
4.What the customers can afford (buying
or purchasing power or behaviors; when and
how they will pay

31. ACTIVITY:
1. Think of a business that you would like to start.
2. List down the materials/resources/equipment that you need for
your business.
3. Identify where you going to locate your business; and
4. Workers you need to hire or pay yourselves
5. Are you skilled? If not how do you plan them?
6. How will you present your product? Does your business require
packaging?

32. COSTUMERS’ NEEDS AND WANTS
•Consumers have individual preferences
•Success of the business depends NOT
only the ability to create products and
services but primarily on how well one
goes with the trends.

33. COSTUMERS’ NEEDS AND WANTS
•Some Ways on How to Address the
needs and wants of Customers
Innovating products
Improving services
Giving high quality products and
servies

34. FOUR CATEGORIES OF CONSUMERS’ BASIC
RIGHTS
•Right to be protected –
has the right to be safe
against the marketing of
products that are
detrimental to one’s
health.

35. FOUR CATEGORIES OF CONSUMERS’ BASIC
RIGHTS
•Right to be
informed –
informed in the
nature or
conditions of the
product or
service offered
for sale.

36. FOUR CATEGORIES OF CONSUMERS’ BASIC
RIGHTS
•Right to be
selective –
assured of the
price, variety, and
the quality of the
products and
services offered.

37. FOUR CATEGORIES OF CONSUMERS’ BASIC
RIGHTS
•Right to be
entertained and
heard. –
assured of their
physical and
psychological
comfort and fair
treatment.

38. MARKET
•Should be…
Measurable
Reachable
Sufficiently
large

39. CONSUMER ANALYSIS
•Necessary in
knowing
behavior of
customers,
their needs,
and relevant
demographic
s.

40. MARKET ANALYSIS
•The
process in
evaluating
the target
market

41. MARKET ANALYSIS
•How well the
products
services satisfy
consumers in
terms of
quality, pricing,
volume of
products to
produce,
among others.

42. Guidelines in conducting market analysis:
1. Identify the target market.
• Determine potential
customers by asking the
following questions:
oWho will buy your
product/service?
oWhat are the benefits and
features do the
product/service will offer?

43. Guidelines in conducting market analysis:
2. Divide your market into
smaller groups.
oWhy do you need to
segment your market?
oWhy do you have to
consider the behavior
and demographics of
your customers?

44. Guidelines in conducting market analysis:
3. Conduct market research.
oWhat are the features do you like about the
product/service?
oHow will you use the product service?
oWhat are the benefits the product/services
offer?
oAny suggestions you may give for the
improvement of the product?

45. Guidelines in conducting market analysis:
4. Identify selected market to serve for
distribution
oIs your chose market capable of housing
in all your products for sale?
Do not lean only one market. Consider
other markets for product expansion to
cater the rest of your consumers.

46. Guidelines in conducting market analysis:
5. Finalize your target market
projections.
oIs your market small or big?
oAre you capable of meeting consumer
needs regardless of the market size?
oIs your capital sufficient or more than
enough for your plans?

47. Guidelines in conducting market analysis:
6. Write your market analysis
oAfter market analysis, assess yourself
if you are now ready to start a
business.

48. ACTIVITY:
•Identify the different
products/services available in the
market
•Compare different
products/services in food
processing

49. ASSIGNMENT:
•Conduct a market analysis
based on the previous
activity.