Customization Strategies in Food And Drinks
Business Insights
September 30, 2011 99 Pages - SKU: RET6647607
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This report 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.
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.
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).
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?
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- About the author
- Disclaimer
- EXECUTIVE SUMMARY
- Introduction
- The evolution of customization
- Case studies of customization in food and drinks
- Evaluating customization strategies
- Technology and mass customization
- The future of customization in food and drinks
- Introduction
- Summary
- Introduction
- Who is this report for and what is it about?
- 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
- Summary
- 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
- Summary
- Introduction
- Graze
- Nespresso
- Mymuesli
- Cereals and customization
- Chocri
- Chocolate and customization
- YouBar
- Implications for customization in a developing market
- Evaluating customization strategies
- Summary
- Introduction
- Customization and the food and drinks industry
- Levels of customization
- Virtual customization: Starbucks Frappuccino
- Adaptive customization: Cadbury Adams Trident Fusion Sugarless Gum
- Cosmetic customization: Jones Soda
- Collaborative customization: Slant Shack Jerky
- Strategies for overcoming production constraints
- Managing product constraints
- Managing operations constraints
- Managing system constraints
- Strategies for engaging consumers
- Customization and personalization
- Collaborative interaction
- Managing the ‘paradox of choice’
- Technology and mass customization
- Summary
- Introduction
- Digital innovation and mass customization
- Configurators
- Databases
- Social media
- Programmable production machinery
- End-to-end mass customization solutions
- 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
- Summary
- Introduction
- Mass customization’s transition to maturity
- Benefits and challenges for manufacturers
- Future consumer trends
- 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
- References
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