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\starttext
\chapter{Introduction}
The specialty food market has exploded. A combination of factors
has led to exciting opportunities for food entrepreneurs. Retail sales
of all specialty foods are generating revenues of more than 88
billion a year and averaging annual growth of more than 8
percent. To some, this means great opportunity. To others, it
represents a formidable challenge. Your ability to grab a slice
of this pie and make your mark, establish your independence,
achieve success, and acquire wealth will depend on how
effectively you prepare-and prepare you must! How to prepare for
the opportunities and challenges of taking your food products to
the appropriate store shelves is the subject of this guide. You
need not know the basics of small business operations just yet.
For now, success will depend on your personal and business
vision, drive, talent, and the amount of capital you can raise.
Let's put that last item into perspective: the average cost of
getting national grocery store shelf exposure for a new product
by a branded manufacturer has been estimated at more than \$6
million. Still reading? Take heart. There is a proven
alternative: the specialty food industry. It has become the
proven vehicle for entry-level food distribution in the United
States. Different market segments and new products can be tested
in the specialty food industry without the initial investment
required of the major food producers. The secret has to do with
superior execution of often ordinary ideas
\section{How Long Does It Take to Be Successful?}
\section{How Much Will It Cost You?}
Depending on your approach, you can
expect to incur minimum start-up costs of approximately \$35,000
to \$100,000 and more each year for the first three to five years.
This includes production, packaging, labeling, advertising, and
promotion of one product. It does {\it not}
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\startframedtext[right][width=3.2in]
\centerline{\ss\tfb Life Before Specialty}
\centerline{\ss\tfb Food Marketing}
What food entrepeneurs did before starting a specialty food firm (in order of
prevalence):
\startitemize[1]
\item Other business non-food-related (52\%)
\item food-related business (14\%)
\item Medical profession (11\%)
\item Education (8\%)
\item Nonprofit Charity (8\%)
\item Entertainment (3.6\%)
\stopitemize
---{Food Entrepeneur Magazine 2014 pool responses}
\stopframedtext
include the cost of
success. Many firms that won "Outstanding Product Awards" were
ill prepared for the next move. Not all of them succeeded in
profiting from their good fortune. This estimated cost also
assumes that you will be doing a lot of the leg work
(administrative, invoicing, database management, and so on).
Our purpose is to explore the inner workings of {\bf niche
marketing.}
Niche marketing entails finding the best combination of product
packaging, pricing, positioning, and promotion that will
encourage the consumer to purchase a product not otherwise
offered by the major suppliers. Imagination is a key ingredient,
but adequate funding is essential.
\stoptext
---------------------------------
--
John Culleton
Wexford Press
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