Bord Bia - Converting Opportunities to Business

It's the biggest Irish food and drink industry trade event this year; a global forum where international decision makers will focus entirely on Ireland's capability and export capacity. It is also the largest ever showcase of innovation from Irish food and drink companies. Marketplace Ireland, the Bord Bia-organised platform for Ireland's largest indigenous industry, is firmly centred on converting opportunities to business.

Over 50 leading Irish food companies are exhibiting while 220 retail and foodservice buyers and distributors from across Europe, the U.S. and Asia are participating at the Croke Park Conference Centre today and tomorrow Wednesday 23rd and Thursday 24th of May 2007.

Marketplace Ireland centres on 2,600 pre-arranged business meetings (speed dating style) which bring Irish companies face-to-face with 220 international buyers. As well as organising and scheduling the meetings, Bord Bia is working closely with individual companies, both at the preparatory stage and in supporting leads generated over the two days.

With Irish food and drink companies behind some of the UK's most successful retail brand launches in recent years, the industry's story of innovation, responsiveness and capability has never been stronger. Side-by-side with the programme of meetings, Marketplace Ireland showcases 88 new products developed by Irish food and drink companies in a specially conceived futuristic Innovation Zone.

The Innovation Zone is the largest ever presentation of new Irish products, many of which are being launched at the event. Products will be displayed according to their relevance to consumer trends and aspirations, a move which provides the all-important context that allows buyers to identify their market potential.

"The opportunity to meet with 220 leading international buyers with a combined purchasing power of some €135 billion will serve to underpin the double digit growth in exports recorded last year, when they surpassed €8 billion for the first time", according to Bord Bia Chairman, Angela Kennedy.  "A focus on innovation and relationship building has driven the Irish consumer food capability to its current position of strength and is critical to its future success. Bord Bia's Marketplace Ireland is the perfect showcase for the Irish food Industry to demonstrate the energy, range and capability of Ireland the Food Island"

A high calibre line up of international experts will support the conference agenda, with insightful presentations from former Marks & Spencer and Carrefour chairman Luc Vandevelde; Musgrave chief executive Chris Martin; former McDonalds global marketing officer Larry Light and marketing guru Kjell Nordström.

Ireland's food and drink industry is amongst the most dynamic in the Irish economy, recording double digit growth with exports reaching €8.1billion in 2006. High value brands have driven much of this expansion and Ireland's capability in pizza, meat and dairy products and frozen bakery have seen number one positions secured in numerous brand categories. 

For further information contact:
Rosaleen O'Shaughnessy, Corporate Communications, Bord Bia
Ph: 01 614 2245

Today's speakers synopsis:

A retailer's strategic perspective
Luc Vandevelde Managing Director of Change Capital Partners, former Chairman of Carrefour and CEO of M&S and Promodes
"Converting Opportunities to Business - Follow the Customer"

• Luc Vandevelde is the founder and Managing Director of Change Capital Partners, a private equity firm focused on investments that leverage the company's extensive retail and consumer industries expertise. Prior to his current role Luc held the position of Chairman with the Carrefour Supervisory Board and Marks and Spencer.
• Luc highlights in his paper the questions facing all companies in terms of "how to build successful, sustainable business in a globally competitive world". He points out two critical factors that impact on the ability to compete at global level or with global competitors on a local basis. They are:
   
  1. Follow the customer to identify and define winning opportunities
  2. Concentrate on the opportunities that lead to profitable, sustainable growth
• The paper highlights the need to "place your customers at the centre of everything you do and constantly examine your business from their point of view".
• A winning customer centred strategy needs to be analysed within the global environment in which companies operate.  "Indeed, whereas many of us have become global players, most of the battles are fought locally. In the end, we'll only succeed as retailers by adapting to the local competitive landscape in terms of the products we sell and the types of store in which we sell them" he commented. 
• Many retailers are expanding into different store formats for the wrong reasons, such as economies of scale in terms of back office, logistics or buying conditions. However, Luc's view is that the biggest advantage often lies with the ability to be in touch and reach your customer more often and in different circumstances. Customer knowledge and personalised marketing and promotion capabilities are key to offer more and get greater loyalty in return.
• The other critical factor is the need for focus in terms of carving out a product portfolio while only focusing on those opportunities that will lead to profitable growth.
• Luc's advices companies "If you find yourself in an inferior position in a mature market, reposition yourself or get out. In the long run, if you're not achieving profitable growth, your business will be unsustainable. Unless you're constantly creating value, your competitive position will suffer and you won't have the resources to achieve your strategic ambitions".
• In the end, the best way to build and maintain competitiveness is to stay focused on the customer and align our goals to the customer's expectations all around the world.

Branding guru brings ‘Light touch' to foodservice challenge
Larry Light, former Global Chief Marketing Officer at McDonald's
Foodservice is the promise of a distinctive experience and, in a world where choice proliferates, the rules of engagement are fast changing.

• Canadian, Larry Light, former Global Chief Marketing Officer at McDonald's and the man who oversaw the globally successful I'm lovin' it campaign, delivered his presentation on Creating the future of foodservice and examined the forces that now shape the sector. Chairman and CEO of brand management consulting company Arcature, Light counts multinationals such as Mars, Kellogg's, IBM, GE, Ford, Renault and Visa among his clients.
• Arguing that unfocused, over-generalised marketing strategies are redundant in a world of individualised lifestyles and cultural diversity, Light insisted that: "The basic driver today is that the consumer demands, not wants, more choice and more variety. They want a product that is personalised and customised: mass marketing is a massive mistake."
• Successful brands must be built on what he called "pillars": a focused and familiar identity that promises a special experience and consistently delivers on it. "It used to be believed that through market segmentation you could identify your target market and provide one brand," he said. Today, however, "consumers have less free time than ever before and so they want a brand to make the experience and choice easy for them".  
• Among current food industry trends identified by Light is the reappraisal among consumers of what constitutes a meal. "People's attitudes toward snacking have shifted from bad to good and the changing definition of what a meal is has affected food design". Beverage consumption is rising faster than food consumption and the boundaries between the two have grown nebulous. Smoothies, for example, are now regarded as a mini-meal.
• Light's advice to food industry professionals is to adopt a more flexible approach to brand development. "What are needed are alternative brand architectures to allow brands create more occasions and more choice for consumers". He also warned that the traditional hierarchies of branded and private label no longer hold. "We need to get rid of the concept that private label is a competition to branded offerings. It is another brand and the best brand will win."