Whether it’s fruits, vegetables or meats, more consumers want to buy locally produced food if they can find it. You might call it the Michael Pollan (In Defense of Food) effect.  Or the locavore (eat local) craze might be building as a result of the continuous reports of food-borne illnesses. Either way, marketing that connects food products to their local origins is a growing trend.

Last week, grocer giant Safeway announced it is targeting the locavore demographic by launching an in-store “Locally Grown” marketing campaign. The company intends to showcase specific farmers who have provided local stores with fresh produce ranging from corn and beans to apples. Safeway also believes the emphasis on buying and selling local products will enhance its position as an environmentally responsible company. Fewer trucks hauling produce fewer miles translates to reduced greenhouse gas emissions.

Kim Severson, writing for the New York Times, points out that marketers are stretching the meaning of locavore. Traditionally, the term applied to consumers who bought produce at local farm stands.  These days, Frito-Lay is introducing consumers to the farmers who grow their potatoes and Hunt’s is letting us know that it sources tomatoes from farms within a 2 hour drive of their processing facility. The bottom line is campaigns like these are as much about keeping consumers informed about what they’re putting on the kitchen table as they are about increasing sales. Don’t miss this opportunity to connect with your customers on a topic that has become a cultural touchstone.

[Sources: Safeway release, June 2009; Severson, Kim. "When 'Local' Makes It Big," New York Times, 5.12.09]

Long before boxes of cereal or cookies land on the shelves at the local grocery store, manufacturers have spent significant sums on trade promotion management. The goal of these expenditures, which approach 14% of revenues according to some surveys,  is to influence retailer behavior. Specifically, trade promotions encourage retailers to take steps to increase sales of manufacturers’ products.

Trade promotions attempt to influence retailers to:

• Carry specific products
• Devote a set amount of shelf space/location to the products
• Set a specific price for the products

While manufacturers and retailers may be cutting some advertising budgets, manufacturers have a different plan when it comes to trade promotion spending in 2009 as revealed by a recent Consumer Goods poll:

• Decrease slightly over last year 33%
• Stay flat from last year 25%
• Increase more rapidly than previous years 20%
• Increase at the same pace as previous years 18%
• Decrease significantly from previous years 5%

The survey results indicate that firms are still willing to spend on trade promotion and they are also looking for systems to help them identify opportunities for improved efficiency and to measure return on investment. Share the results of this survey with your management consulting clients and develop a pitch to consumer goods manufacturers that allows them to increase sales along with trade promotion spending.

[Sources: Trade Promotion Management, Accenture, 2008; Trade Promotion Management, Consumer Goods Today, 5.1.2009]