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Customization Strategies in Food And Drinks

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					Customization Strategies in Food And Drinks

Published:September 2011
NO.Of pages:99
Price:US $ 2875




The report Customization Strategies in Food And Drinks examines how
manufacturers can use mass customization to meet consumer trends and
direct their business strategy. It considers how customization has evolved
and how digital technologies enhance and enable customization
opportunities. The report provides case studies of successful customization
strategies and considers future developments and growth opportunities.

Features and benefits

* Understand what is meant by "mass customization", how it relates to
customization and mass production, and its interplay with personalization.
* Evaluate key strategic questions relating to mass customized products for
food and drinks companies.
* Understand the key technical aspects associated with mass customized
food and beverages, based on analysis of theory and existing products.
* Gain insight into future developments as mass customization matures as a
concept, including key challenges and the impact of emerging technologies.
* Prompt your marketing and NPD teams with customized product and
marketing ideas from around the world.

Highlights

Mass customization have been evident in some sectors of the food and
drinks industry for decades, but customization is now becoming a more
significant trend, driven by an interplay between consumer trends, economic
trends and technological innovation.

Digital technological innovation has made mass customization a viable
business strategy, by enabling customized products to be manufactured with
the economies of scale associated with mass production. However, there are
considerable challenges including the costs of flexibility required in
production and packaging.

There are examples of customized products in several key food and drinks
categories, including bakery and cereals (e.g. MyMuesli), hot drinks (e.g.
Nespresso), snacks (e.g. Graze and You Bar) and confectionery (e.g.
Chocri).

Your key questions answered

* What is the intersection of trends that makes the concept of mass
customization so important right now?
* Which strategies of customization are being used by food and drinks
manufacturers?
* What are the key challenges for both small and large manufacturers in
customized food and drinks?
* What are the features specific to the food and drinks industry that govern
customization strategies?
* What are the current and expected technological developments that will
change what is possible within the mass customization space?

Table Of Contents

 * About the author
      o Disclaimer

  * EXECUTIVE SUMMARY
      o Introduction
      o The evolution of customization
      o Case studies of customization in food and drinks
      o Evaluating customization strategies
      o Technology and mass customization
      o The future of customization in food and drinks

  * Introduction
      o Summary
      o Introduction
      o Who is this report for and what is it about?
      o Defining customization
          + Mass production
          + Mass customization
          + Customization in the 21st century
          + Personalization and customization
          + Report definition of mass customized food and drinks products

  * The evolution of customization
      o Summary
      o Introduction
          + Stages in the development of customization in food and drinks
          + Key drivers of the development of mass customization

  * Case studies of customization in food and drinks
      o Summary
      o Introduction
      o Graze
      o Nespresso
      o Mymuesli
          + Cereals and customization
      o Chocri
          + Chocolate and customization
      o YouBar
      o Implications for customization in a developing market

  * Evaluating customization strategies
      o Summary
      o Introduction
      o Customization and the food and drinks industry
      o Levels of customization
           + Virtual customization: Starbucks Frappuccino
           + Adaptive customization: Cadbury Adams Trident Fusion
Sugarless Gum
           + Cosmetic customization: Jones Soda
           + Collaborative customization: Slant Shack Jerky
      o Strategies for overcoming production constraints
           + Managing product constraints
           + Managing operations constraints
           + Managing system constraints
      o Strategies for engaging consumers
           + Customization and personalization
           + Collaborative interaction
           + Managing the ‘paradox of choice’

  * Technology and mass customization
      o Summary
      o Introduction
      o Digital innovation and mass customization
          + Configurators
          + Databases
          + Social media
          + Programmable production machinery
            + End-to-end mass customization solutions
        o Digital technologies and food and drink customizationThe preceding
analysis considers the way in which technological developments have helped
improve and enable mass customization across all consumer-facing
industries. This section considers some specific uses that food and drinks
manufacturers deploying the mass customization business model are making
use of digital technologies as part of their business strategy. To reflect the
greater relative importance of CRM and configurators to the food and drinks
industry, due to the constraints on mass customized manufacturing detailed
in Chapter 4, the examples in this section focus primarily on the Internet.
            + Virtual food customizationAs covered in more depth in Chapter
3, virtual customization is a strategy that has been used by major brands
including Dunkin Donuts and Starbucks. In this context, the customer, using
an online product configurator, designs or simulates a virtual food or drink
product either for fun or to enter a competition. The virtual product is not
actually directly manufactured, purchased or consumed, although the
winning design in a competition may ultimately get manufactured and made
available for purchase and consumption. For manufacturers, internet enabled
virtual customization operates principally as a marketing tool, offering
benefits of brand engagement, brand awareness and interactivity with
consumers. It can also be used as a feeder for NPD. Consumers gain benefit
from the experience of co-creation, as well as potentially winning prizes or
notoriety if a competition is involved.
            + Online cosmetic customization

   * The future of customization in food and drinks
        o Summary
        o Introduction
        o Mass customization’s transition to maturity
        o Benefits and challenges for manufacturers
        o Future consumer trends
        o Next generation technologies
            + Social buying
            + 3D printing
            + Offline customizationDevelopments in digital technologies have
the potential to broaden the availability of customization beyond the medium
of the internet. In the US in 2010, the Coca Cola Company introduced Coca-
Cola Freestyle to selected locations. The Freestyle is essentially a smart
vending machine, where customers can create customized drinks from over
100 different flavor combinations and access flavors not readily found in
supermarkets. The smart vending machines are connected to the Internet so
the machine can automatically report daily on its component ingredient
supply levels.
  * Appendix

Methodology
        o (Untitled section)
            + Primary researchInterviews – both structured formal responses
and informal discussions – were conducted for this report with companies
active in the customization space and other industry experts.
            + Secondary researchThe secondary research carried out for this
report covers five main areas:
        o References

  * TABLES
       o Table: Average household size 1990–2015, selected major
countries
       o Table: Global middle class population, % by region, 2009-2030
       o Table: Category-by-category examples of customization



  * FIGURES

        o Figure: There are four intermediate levels between total
customization and mass production
        o Figure: The Dunkin’ Donuts website allows users to create their own
virtual donuts
        o Figure: The MyHeinz.com website allows user to customize ketchup
and mustard labels
        o Figure: Muller Corner Yogurts are a fairly early example of adaptive
customization
        o Figure: Burger King’s Have It Your Way slogan refers to
collaborative customization
        o Figure: The evolution of customization over time
        o Figure: Mass customization is driven by economic, social/cultural,
and technical factors
        o Figure: There are many drivers behind and manifestations of the
trend towards individualization
        o Figure: Graze offers a filtered set of choices in healthy snacking,
customized at point of sale
        o Figure: Nespresso offers 16 different customized coffee varieties
        o Figure: Mymuesli offers both collaborative and cosmetic
customization
        o Figure: Chocri allows consumers to create custom-made chocolates
over the web
        o Figure: You Bar provides custom-made and custom-packaged
energy bars
        o Figure: Starbucks’ Frappuccino website allows customers to create
their own virtual drink
        o Figure: Trident Fusion allows consumers to customize their flavor
profile
        o Figure: Jones Soda offers customized labels, including personal
photographs
        o Figure: Slant Shack Jerky is a collaborative-customized meat snack
        o Figure: eCreamery extends collaborative customization into ice
cream with novel packaging
        o Figure: Chocri produces its bars in a single size to minimize system
constraints
        o Figure: Manufacturing by hand at mymuesli.com
        o Figure: The concept of ‘the customer’ in customer-ization
        o Figure: There are six key strategies for managing the paradox of
choice
        o Figure: Digital innovation in the mass customization supply chain
        o Figure: The configurator at Meandgoji.com allows customers to
visualize choices
        o Figure: The drag-and-drop configurator at Element Bars helps build
user engagement
        o Figure: Archetype Solutions offers end-to-end solutions for mass
customization manufacturing
        o Figure: Domino’s Pizza offers customized online self-service
        o Figure: Specialty’s website creates a customized experience using
digital technologies
        o Figure: My Extra Gum is a mass-market product which nonetheless
offers online customization
        o Figure: My M&M’s is cosmetic customized but prints directly on the
product itself
        o Figure: Experimental machines have already 3D-printed both
chocolate and cheese
        o Figure: The Coca-Cola Freestyle vending machine provides instant
customized flavors
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DOCUMENT INFO
Description: The report Customization Strategies in Food And Drinks examines how manufacturers can use mass customization to meet consumer trends and direct their business strategy. It considers how customization has evolved and how digital technologies enhance and enable customization opportunities.