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Business of Wellness

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Business of foods is sensitive !!

  • There is nothing like a relaunch of a food brand. Once rejected in the market, even the most high-profile relaunch can not get the brand and the business a foot-hold in the market place. For ensuring a successful business of a food brand, getting all the brand elements right the first time is essential.
  • Food habits are extremely regional in nature and change every hundred miles. Taste, next to hunger, is the most important driver of consumption and therefore, of the business. And then the differentiating USP needs to be built in to the product. Creating the product differentiator alongside taste and flavor that have mass acceptance are important precursors to getting scale of business and improved margins.

  • Food being a daily/hourly occasion, consumer get tired & bored with the same product/taste very soon. Regular new product innovation therefore is a high priority component in food business capability list .
  • Barring a few categories, food is a medium to low technology production system and therefore, cost of entry is rather moderate. This makes a new business vulnerable to copying and competition unless there is sufficiently strong entry barrier created in one or multiple attributes of the business.

  • While creativity in brand communication is important, product delivery is of far higher consequence since the experience is instantaneous. Moreover, unlike other FMCG categories, benefit  communication is subject to rigorous regulatory scrutiny.
  • Most of the ingredients used in the production of food are of agri origin and therefore, are seasonal. Right sourcing mechanism and proper storage system for the rest of the year can significantly affect business profitability.

  • Foods and Pharma are the only two items that are ingested and therefore, affect the internals of human body. And the effect of the same manifests itself immediately or over a period of time and accordingly, affects the business/brand. Product designing and in-process quality assurance are therefore of crucial importance in this sector.
  • Most of the foods have limited shelf-life and therefore, are easily prone to spoilage. Appropriate packaging design, tight supply-chain mechanism and in-market storage & fast stock rotation are therefore important pre-conditions for a successful food business.

  • Food is a segment that is kept under strict regulatory surveilance and any deviation ( even if unintentional or by ignorance) from the stipulation of the applicable act can cause a case of  criminality. Extreme care needs to be taken to ensure that all the applicable provisions of the country's food law  are built into the product and the business.


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Foods business is sensitive     The N&N Global advantage
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