The document discusses food chain marketing and introduces concepts related to aggregate marketing systems and chain analysis. It provides an overview of market forces like specialization and competition that shape aggregate systems. It also outlines how to map a chain by identifying the focal business unit and selecting relevant upstream and downstream units based on their contribution to core benefits and ownership. The goal is to understand chain behavior and apply a consumer-oriented perspective for future graduates in the food technology domain.

1. Introduction to Part B
Food chain marketing
Caspar Krampe
Marketing and Consumer Behaviour Group
Food production chain

2. General Aims of Part B
• Learn about the behavior of the consumer and its implications for food chains.
• Refer to: Reader Page Part B-2
• Develop a consumer-oriented perspective
Ø As a course
Ø As a future graduate in the domain of food tech

3. Schedules of Part B
16 May Introduction to food chain marketing
19 May Market segmentation and targeting
25 May Consumer decision-making
31 May Competition between and within chains
02 June Chain integration, innovation and sustainability

4. Course materials
Reader
PowerPoint
Brightspace site
Knowledge clips
Lectures
Questions and explanations;
Start your assignment on time,
not during the excersise!
Exercises
The group product;
“Oatly” case
3 Group Assignments
Application in relation to
other parts of this course
“French Fries” case

5. Course materials
The group product;
“Oatly” case
3 Group Assignments
Group 1
Group 2
Group 3
Group 4
Examples

6. 3 Group Assignments
Ø Aims to better understand the concepts explained during the
lectures, applying them to a real case.
• Groups of four to five students
• Each group makes an assignment about the case
- Desk research & Observation
• Assignment questions are shared on Brightspace
• Please use the templates provided to complete the assignments
• Opportunity for questions and explanation during exercise hours
- In Microsoft Teams (the schedule for answering questions is already
updated on Brightspace): 5 min per group
• Start in time, not during the exercise!
• Free riding problems: contact the teacher (if you cannot solve it by yourself)

7. Assignments
Upload your assignments to Brightspace before the deadlines indicated
below:
Assignment 1 (Product analysis and customer-focussed business)
Group 1 & 2
Exercise: 23 May
Deadline: 01 June 17.00
Assignment 2 (Consumer decision-making)
Group 1 & 2
Excersie: 10 June
Deadline: 13 June 17.00
Assignment 3 (Competition)
Group 1 & 2
Excersie: 14 June
Deadline: 22 June 17.00

8. Today’s lecture
0 1 0 2
• Know why and how chains are shaped by
market forces
• Elaborate on the complexity of an aggregate
marketing system
Aggregated marketing system
10 min
Break
• Be able to draw meaningful chain maps
Chain mapping

9. 1
Aggregate Marketing
System

10. Learning objectives
At the end of this lecture, you
• should have an understanding of the components of
an ”aggregated marketing system”
• should know what the market econonmy entails, how the
rule of the games are set and why specialization is
important

11. An example
Ø How does the chain for this pencil really look like?
By Milton Friedman

12. Aggregate marketing system
Ø How does the chain for this pencil really look like?
Ø Another example: Breakfast at Tiffany’s (Reader Page B-4)

13. Aggregate marketing system
Market forces
Ø How does the system work?

14. Market forces
Ø What are the basic characteristics of a market economy
q Limited intervention from the government.
- The motive of self-interest – the “invisible hand”
- The producer gets to decide what to produce, how much to
produce, what to charge customers for those goods, and
what to pay their employees.
- These decisions in a free-market economy are influenced by the
pressures of competition, supply and demand.
q Competition

15. Specialization
- Definition: An organization concentrates its productive efforts
on producing a limited variety of goods.

16. Specialization
- Definition: An organization concentrates its productive efforts
on producing a limited variety of goods.
- Not only the first form of exchange, but also the first step in the
formation of a food chain.

17. Specialization
- Definition: An organization concentrates its productive efforts on
producing a limited variety of goods.
- Not only the first form of exchange, but also the first step in the
formation of a food chain.
- The basis of an “aggregate marketing system”

18. Specialization
- Definition: An organization concentrates its productive efforts on
producing a limited variety of goods.
- Not only the first form of exchange, but also the first step in the
formation of a food chain.
- The basis of an “aggregate marketing system”

19. The rule of games: Institutions
Ø Institutions can be practically defined as the set of rules
and organizations that surround the chain and determine
“the rules of the game”,
Ø E.g., the Government
By laws and regulations, courts and control institutions (EFSA)

20. The rule of games: Institutions
Ø Institutions can be practically defined as the set of rules and
organizations that surround the chain and determine “the
rules of the game”,
Ø E.g. the Government
Ø E.g., Certificate organizations

21. The rule of games: Institutions
Ø Institutions can be practically defined as the set of rules and
organizations that surround the chain and determine “the
rules of the game”,
Ø E.g. the Government
Ø E.g. Certificate organizations
Ø E.g., NGOs, Interest groups

22. The rule of games: Institutions
Institutional factors Examples
Regulative Laws and regulations
Courts
Customs
Control institutions (EFSA)
Socio-economic Labour Unions
Special interest groups
Chamber of Commerce
Certification organizations (Utz, Fair Trade, Organic)
Cultural Cultural norms
Informal authorities
Ø A summary table

23. 2 Chain Analysis
Farm to Fork

24. Learning objectives
At the end of this lecture, you
• should be able to map the (food) chain
• should distinguish the units of analysis and assessment
of relevant firm components

25. Understand the chain: “what”
To satisfy consumers
To jointly create benefits

26. Understand the chain: “why”
To satisfy consumers
To jointly create benefits
For managers it is important to know
- where the inputs come from (to assess risks,
uniqueness, continuity of supply...)
- how their products reach consumers

27. Understand the chain
Ø Select the most important service providers that add values.
Ø Different people draw chains differently.
Ø The underlying logic
Ø Mapping a chain: A chain is a mental model to simplify the
messy network that an economy actually is.

28. Analyzing the structure of chains
Ø Including everything?
• Makes the chain drawing less insightful
There are some guidelines to map a chain!

29. Analyzing the structure of chains
Ø First, determine the “focal company”
We take the example: FrieslandCampina

30. Analyzing the structure of chains
Ø Second, determine the unit of analysis: the “business”
Smallest unit in a company that...
• Is not necessarily a technical activity
• Has its own set of competitors
• Competes on the basis of a brand (or several brands that
logically go together)
• Has a leader responsible for strategic planning (and
profitability)
• Has its own vision or culture (though possibly
influenced by higher corporate levels)
• Should not be confused with a “company”.

31. A “business unit”
Corporation
Division

32. A “business unit”
Corporation
Division
Strategic business units

33. A “business unit”
Corporation
Division
Strategic business units

34. Analyzing the structure of chains
Ø Third, assess the relevance
q Make a selection on the basis of:
• Contribution to the core benefits of the product

35. Analyzing the structure of chains
Ø Third, assess the relevance
q Make a selection on the basis of:
• Contribution to the core benefits of the product
• Physical product or augmented product
• Ownership (contributor or service-provider, like transport)
q Important: Activities (e.g., producing milk or pasteurization) are not
businesses!

36. Analyzing the structure of chains
Ø Fourth, perspective of the focal business unit
(upstream or downstream)

37. A “business unit”: focal firm for chain analysis

38. A “business unit”: focal point for chain analysis
Step 1: Decide the “business unit”
Group assignment product
More

39. A “business unit”: focal firm for chain analysis
Step 2: Draw the upstream and downstream
Focal business unit
Upstream Downstream
1st Tier
2st Tier
3rd Tier 1st Tier 2st Tier 3rd Tier
? ?

40. B1 Summary
ØAggregate marketing system
Keywords: Specialization, market forces, institutional
influences
ØMapping the chain
Key words: business units, selection of key players, relevance.