Establishing Consumer Trust and Positioning Traceability

1. ESTABLISHING TRUST AND POSITIONING THROUGH TRACEABILITY
BY: STRATEGY CREATERS
TJUNG SHIRLEY (1001644808)
SHIVONNE PREVENA (1000923486)
NASIF CHOWDHURY (1001439325)
MUHAMMAD ALI (1001643069)
MUHAMMAD IDREES YAQOOB (1001642847)
SERIKI OLUWAFEMI JOSEPH (1000921761)

2. Table of Content
 What is traceability?
 What is positioning?
 Establishing trust through traceability
 How To Acquire Trust Of Omni Consumer
 Food Safety and Authenticity
 Communicating Information
 Supply Chain
 Proactively engage with stakeholders

3. What is traceability?
 1. Accounting: Ability to track a specific piece of financial information by means
of recorded data or audit trail.

2. Cost accounting: Ability to assign a cost directly to an activity or cost object
on the basis of a cause-and-effect (causal) relationship.

3. Quality control: Ability to trace the application, location, and/or history of an
activity or item by means of recorded data.

4. Systems management: Ability to track system requirements from a system
function to all those elements that individually or collectively perform that
function.

4. What is positioning?
 A marketing strategy that aims to make a brand occupy a distinct position,
relative to competing brands, in the mind of the customer. Companies apply
this strategy either by emphasizing the distinguishing features of their
brand (what it is, what it does and how, etc.) or they may try to create a
suitable image (inexpensive or premium, luxurious, entry-level or high-end,
etc.) through advertising. Once a brand is positioned, it is very difficult to
reposition it without destroying its credibility. Also called product
positioning.

5. Introduction
 Several factors have converged to create heightened need for transparency
and effective communication within the Consumer Products industry
 “Omni Consumer.” These new generation consumer are very enlightened
and therefore empowered

6. Omni Consumer
Who/ What is an
OMNI
CONSUMER?
 Empowered by knowledge
 Extensively distinct purchase drive

7. Establishing trust through traceability
Why the need to establish trust?
Protect and empower a brand for today’s “Omni Consumer”
Recipe for trust
Factors that influence trust are very dynamic. (changing)
In the past: Real values example packaging and intrinsic attributes of the products
Present: Omni consumer wants products that deliver more

8.  The purchasing behavior of today’s “Omni Consumer” is influenced by factors
relating not only to the product, but also to its broader impact on society. To
guide their purchasing decisions, these consumers leverage trusted
sources of information, which traditionally included Consumer Products
(CP) companies. However, product contaminations, recalls and confusion over
marketing claims have eroded trust in CP manufacturers.

9. Hunger for information
Today’s consumers have a high passion for information. Information can be access
through various medias including the internet.
It’s essential to the consumers that they find the right information when needed.
Knowing and understanding the preferred medium via which the target customers
prefer to access the information is really important.
To rebuild consumer confidence and re-establish brand relevance, CP companies could
encourage transparency by delivering credible information about innovative products.
**Examples

10. How To Acquire Trust Of
Omni Consumer

11. Leverage traceability to protect and
empower the brand
 To communicate effectively with the Omni Consumer, and compete with private-label
offerings, CP companies should leverage Full Value Traceability to address both protection
and empowerment in their brand value propositions.
 Both elements have suffered as a result of product contaminations and recalls. In addition,
many consumers today do not perceive the incremental value of branded products over
private label.
 In addition, many consumers today do not perceive the incremental value of branded
products over private label.
 Efforts to address protection and empowerment start with a deep understanding of the
target consumer’s wants, needs and preferences; this includes knowing the valued
sources and formats of information.
 Sources of these insights can include in-home product testing, interviews, call center
feedback, analysis of sales, loyalty card and panel data, and, increasingly, the Internet.

12. Food Safety and Authenticity
 Recent recalls of leading consumer product and pet food brands have
generated significant cost and damaged brand reputations.
 To give consumers confidence about product safety and authenticity,
consideration should be given to marketing activities that support safety,
such as compliance with Hazard Analysis and Critical Control Point
Procedures (HACCP) and ISO 22000.

13. Communicating Information
 Consumer product marketing increasingly requires a high degree of trust, especially regarding
functionality and responsibility claims. CP companies can substantiate these claims and empower
their brands in these large and rapidly growing segments by effectively communicating
information about ingredient source, functionality, sustainability and supply chain conditions
 Dannon’s marketing of functional products
 Dannon has created a stir in the yogurt category by communicating detailed information about its
growing portfolio of functional products, thereby effectively building consumer trust. The
company has built a growing portfolio of functional foods to address specific consumer needs.
For example, the Activia line claims to improve digestion. This product reached US$130 million in
sales after its first year on the market. Additionally, other Dannon products claim to control
cholesterol, have reduced sugar content, bolster the immune system and provide skin
nourishment. Since the introduction of these products, Group Dannone’s stock has significantly
outperformed the S&P 500 over the past two years.

14. Supply Chain
 Integration of the physical and information supply chains requires CP companies to
capture, store, analyze and communicate information from across the supply chain about
product movements, processing activities and attribute changes.
 Product movements – Fundamentally, a traceability system requires each upstream and
downstream product or ingredient movement be captured and recorded by the current
owner. Downstream: aimed at facilitating CP and retailer collaboration, reducing finished
goods inventories, avoiding out of stocks and complying with mandates and regulations.
Upstream: increasingly critical for product safety and to help isolate problems when they
do occur.
 Processing Activities – As a starting point, CP companies and, where appropriate, other
supply chain participants should fully comply with HACCP
 Attribute changes – In order to effectively track and trace products across the supply
chain, each ingredient, additive, product and package should be uniquely identified using
accepted industry standards.

15. Proactively engage with stakeholders
 In order to realize the transformative potential of Full Value Traceability, CP
companies should proactively engage with a set of stakeholders that
reaches beyond direct supply chain participants. Quarterly mock recall
exercises between CP manufacturers and retailers are no longer sufficient.
Consistent, thoughtful and vocal leadership by CP company executives is
required, with the emphasis on creating a common vision and a shared
sense of responsibility across a broad set of stakeholders.
 Suppliers, vendors, consultants, service providers, advisers, financers and
insurers need to believe that investment and participation in a robust
traceability system will protect and empower the company’s brands.

16. REFERENCES
 http://www-935.ibm.com/services/us/gbs/bus/pdf/g510-6621-01-traceability.pdf

17. .THANK YOU!!!
 .