Food entrepreneurs work within the culinary industry and they have a unique set of challenges when compared with others. Every food entrepreneur needs to understand these unique difficulties associated with the food industry and effectively develop ideas to combat them successfully in order to stay above the rest.
One big challenge before food entrepreneurs is the ever growing numbers of entrepreneurial activities in this segment making it hard to survive and grow. Secondly, consumer food products can easily be prototyped in the entrepreneur’s workplace. In vast majority cases, women assume the responsibility for most retail channel shopping activities. It is very important to see to that the product development takes into account the trends in the retail value chain. Every product needs to be created after considering the issues related to the size of the product, packing possibilities, size and format, pricing, labelling, and the supply chain issues.
It is important that a food entrepreneur ably designs his products in a way addressing the typical challenges prevailing in the retail consumer products segment. They should be capable of evolving products that are fully compatible with retail merchandising strategies. Often retail distribution channels are highly intact and powerful. It is very difficult to predict and understand them. Retail food products must be able to effectively meet the unique expectations and requirements of the retailers as well as their customers. Other than evolving new products, food entrepreneurs also have to develop innovative product presentation methods to the retailers. While over 75% customers are entering retail outlets with prior decisions, it is even more difficult to promote a new product unless the new products effectively address most of the concerns discussed above.