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Your Food Business Needs Multiple Strategies

In starting and supporting a growing food business, strategy should inform every action the entrepreneur takes. Business strategy, at a high level, is informed by the smaller strategies of the different elements of the business model. And, the strategy governs the actions taken by food entrepreneurs to meet their business goals. This doesn’t mean that food entrepreneurs need long or rigid strategic plans. But, entrepreneurs need to define and put constraints on their actions so that they focus on what is important in growing their business at that time.

Food brand development needs to be strategic so that entrepreneurs only speak to and “activate” (i.e. get sales from) their target customers. Food companies’ sales and marketing efforts need a strategy, including a channel strategy and a go-to-market strategy, so that they target the right geographic areas with the right channel partners at the right time with the right promotional activities. The business’ products need category strategies to stand out in stores against the competition at the right price points so that people actually buy the product. Fundraising and financial planning efforts need strategic focus so that the entrepreneurs adequately capitalize the business to support the other parts of the strategy. Without clearly defined strategies for success that leverage their defensibly unique strengths and current market opportunities, entrepreneurs won’t know how to prioritize their activities.

On our podcast this week, Frank Jimenez of Evolve Brands talks about how strategy informs everything they do. Since the snack category is crowded, the Evolve Brands team has focused their efforts on sales and marketing to build a strong distribution footprint of around 2,500 independent, natural and co-op grocery stores. This channel strategy that focuses on smaller chains, independents and natural grocers is where they have found they can get the most relevant customer feedback and other data to support future business development. To support their strategy, the Evolve team approaches retailers with a fully loaded promotional calendar with sales targets, proposed spending and tactical descriptions supported by data to help make the case for why partnering with Evolve will be successful.

Good strategies are ones that reflect current relationships with customers/partners and current market realities, and thus, can shift as those things shift. Without a well-documented strategy, even well-meaning food entrepreneurs can get distracted or fail to execute on their business’ core needs and goals.


And now, our roundup of the best food and beverage finance news, events and resources from around the web…

Food and Beverage Business Models

Business Model Insights

Raising Capital

Raising Capital

Grocery Store Shopping

CPG/National Brands

Grocery Store Produce Section

Market Trends

Regenerative Agriculture

Farming and AgTech

Mergers and Acquisitions

Deals/M&A

Events

Industry Events

Categories: Insights Newsletter