Grocery Products Introduction Stage
As mentioned in the previous chapter, the grocery store chains started offering more choice to customers, with the advent of the nationwide supermarket chain phenomenon. As competition increased and local grocery stores became more popular, grocers responded by offering a variety of grocery products that their customers could purchase from them. Grocery stores marketed their products along with advertisements in local newspapers. This marketing approach worked well because it was an innovation. Grocery stores offered a whole new category of products to their customers. The same strategy could be used by other manufacturers as they strove to win market share.
For example, the cheese manufacturer Fage used this marketing strategy as they entered the market after several years of dominating the market with their brand. As competition grew, Fage developed smarter marketing strategies such as nationwide advertising and distribution of their own catalogs. In the past, food manufacturers marketed directly to consumers. Nowadays, food manufacturers make their products available online for faster distribution and enhanced sales. Direct marketing through catalogues and television commercials are still being used by some food manufacturers, but the Grocery Products market has experienced tremendous growth. The Grocery Products industry is a competitive market where a company can earn millions by offering new products on the introduction stage and through clever advertising and promotion.
The Grocery Products industry is at its introduction stage and manufacturers need to take advantage of this period to grab the market. As mentioned before, the Grocery Store industry is experiencing tremendous growth due to competitive advantages and the introduction of more competitive grocery store brands. The farm products industry is poised to enter the second stage of its growth, which is growth beyond the grocery store industry. There is enough room in the market for farm products to expand their market share. The future of the farm products industry depends on how well Grocery Stores and Farm Products companies plan and manage their markets.