A few thoughts for food industry CEOs in 2013:
- Look beyond year-over-year or results-to-plan and measure your organization’s relative market share performance (foodservice and retail).
- Most companies with less than 20% of the leader’s share in the category or segment will struggle to compete effectively.
- Leaders should gain cost advantages from strong supply chain and trading partner support, transparency and growth thru scientific marketing.
- Adaptive lower-share companies must design targeted, data-based value propositions tailored to unique customer cost variables.
- Competitors’ strategies are as important as your own. Move to identify, abandon and refresh practices that are falling behind.
- Innovative assortment still represents opportunity for dynamic firms.
- Keep consolidation, acquisition, PE or joint venture options on the table. Concentrate intently on exactly how and where to win or keep winning.
Growth will require frequent assessment, awareness of signals, hard review of competencies required to keep pace. Best plans could become obsolete in a matter of months.
Some businesses will not come out ahead this year.