Assessment Report on Marketing Capabilities of SMEs in Food Industry
This assessment report by BAREM Research and Consultancy evaluates the marketing capabilities of SMEs in the food industry to enhance regional competitiveness and business development services.
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IPA-INNOFOOD Development of Research and Innovation Facilities for Improving the Regional Competitiveness of Food Industry Assessment Report on the Marketing Capabilities of SMEs Prepared by BAREM Research and Consultancy, August 2021.
CONTENTS 7. Sales and Marketing Available Sales and Marketing Departments Sales and Marketing Responsibles Number of Employees in Sales and Marketing Departments Foreign Language Speaking Employees in Sales and Marketing Departments Budgets Allocated for Sales and Marketing Share of Marketing Budget in Total Turnover Marketing and Promotion Activities Sales and Marketing Supports Needed 8. Exporting Current Export Situation Exporting Countries New Target Markets Information Needs for Exporting 1. Introduction 2. Methodology 3. Sample Profile Main Company Features Exported From B1 Data 4. Executive Summary Facts and Figures Improvement Areas for the Companies Support Needs of the Companies 5. Presentation Flow of Findings 6. Field of Activities, and Product Details Field of Activities Form of Products (raw, semi- finished, finished) Form Shares in Revenue Domestic Market Share of Sales by Product Forms Packaging Design and Supports Needed Use of Distribution Channels Prepared by BAREM Research and Consultancy, August 2021.
CONTENTS 9. Innovation in Products and Services Sources of Innovation Information Innovations During 2016 2019 Share of New Products in Total Turnover Future Plans for Product and Service Development Purpose of New Product Studies Development Plans, Timing and Barriers Information Needs for Innovation 10. Innovation in Production Processes Future Plans for Production Process Development Development Plans, Timing and Barriers Budget Allocated for Development Supports Needed for Development 11. Conclusions Prepared by BAREM Research and Consultancy, August 2021.
1. Introduction About the Report: This report has been prepared by BAREM Research and Consultancy in order to meet IPA INNOFOOD Project s Component C requirements. The main aim of this component is, as defined in ToR, to assess the marketing capabilities of the SMEs in order to design and then deliver proper business development services to SMEs in the food and beverage sector. Component C has the following parts, namely, C1 and C2: C1: Determining opportunities for new markets; this part of the C activities was conducted by BAREM Research & Consultancy using secondary resources and expert views. The detailed report was delivered on 07.06.2021. Prepared by BAREM Research and Consultancy, August 2021.
1. Introduction This report presents the findings of the below research modules of C2 activities: Assessing marketing capabilities of SMEs; in this context, the following tasks, requiring quantitative research methodology, are conducted by BAREM. This part of the study was defined as an online interview. Prepare survey questions related to marketing capabilities for the selected segments: The CAWI questionnaires were prepared based on the findings of B1 activities and the expert views by BAREM. The questionnaire has five sections with 40 questions. Define target group and carry out data collection in close cooperation with regional chambers: The respondents of this part, are selected from the previous respondents of the quantitative research (B1 activities), who are operating in the most promising food segments defined in the C1 report. Process and interpret results of collected data: The report presents the main findings, the tables are appended as Excel files. (Tabulations from C2 Activity Questionnaire plus tabulations from B1 activities data of the selected 51 companies.) Prepared by BAREM Research and Consultancy, August 2021.
2. Methodology Sample List: 123 SMEs operating in the most promising food and beverage categories are selected for the online interviews. Questionnaire: The CAWI questionnaires were sent to the companies. After 3 reminder mailings, 7 respondents have completed CAWI questionnaires. Change of Interviewing Method: Due to the high non-response rate, BAREM decided to continue the survey with CATI interviews. 44 companies responded to CATI calls, thus reaching 51 interviews in total. Analysis: As some SMEs operate in more than one field, the total number of operation fields are 75 among 51 companies, thus; The analysis by field is based on 75, The analysis by companies is based on 51, In the analysis by field, 10 is accepted as the minimum base for the analysis. The others with lower bases are grouped under others heading. Prepared by BAREM Research and Consultancy, August 2021.
3. Sample Profile Main Company Features Exported From B1 Data The profiles of the responding companies are extracted from the B1 data. B1 Activities called Assessment of Needs and Capabilities of SME s for R&D Capacity Building has been completed with 276 companies conducted with CAWI and CATI methods. The data related to the 51 companies is analysed to see the main features of them: 51 SMEs distribution by size: 25, small-sized 17, micro-sized, 9, medium to big sized. Establishment Type: 35, family businesses 12, local partnership, 2, international partnership, 2, other types. Prepared by BAREM Research and Consultancy, August 2021.
3. Sample Profile Main Company Features Exported From B1 Data Employees: The average number of employees, 32,5. The reported number of operations, employing university graduates, is 50, thus 2/3 of the activity areas have qualified staff with university or above education. The average number of university graduates is around 6,3 among those companies. 25 operations employ Food Enginers, and the average number is 2,4. Certifications : Half of the companies (26) have ISO 9001 Quality Management System Certificate and ISO 22000 Food Safety Management SystemCertificate. 12 companies have ISO 18001 Occupational Health and Safety Management System Certificate. 16 companies do not have any certificates. Prepared by BAREM Research and Consultancy, August 2021.
3. Sample Profile Main Company Features Exported From B1 Data Research and Development (R&D) Supports: 16 companies have R&D activities. In these companies, average number of R&D projects in the past 5 years is 5. In half of the companies, costs of R&D projects are monitored. The invesment for R&D activities is 15 % of total turnover. Registered Trade Marks: Out of 43 operational fields, the average number of registered trademarks is 2,9. 15 operational fields have trademarks but not registered, 2,4 on average. 12 companies have patented products; 3,2 on average. Prepared by BAREM Research and Consultancy, August 2021.
3. Sample Profile Main Company Features Exported From B1 Data Capacity Utilization: Around 75% of the companies used 30%- 90% of their capacity before the pandemics, more than half of the companies reported the use of more than 75% of their full capacity. The ratio of the revenue from exported products to total revenue is 29% on the avarage. Full details of company profiles in B1 activity were presented in in the appendix of B1 Activity Data , as an Excel file. The results obtained for the C2 sample, 51 companies, are presented in C2 Activity Data , as an Excel file. Prepared by BAREM Research and Consultancy, August 2021.
4. Executive Summary Facts &Figures As explained in previous pages, BAREM conducted 7 CAWI and 44 CATI interviews with SMEs in the 12 NUTS-2 regions. Interviewed SMEs operate in the most promising food segments defined in the C1 report, namely Milk and Dairy, Fruit and Vegetables, Bee Products, Nuts, and other products including, Ready to Eat, Beverages, Confectionary, Spice, Meat, Cereals, and Oil. Product Forms : 51 companies operate in 75 fields. On an average, companies offer 1,2 forms of products. The top product form offer is Finished Products by 73%. Finished products weight is 69% of total sales turnover. 70% of finished products are sold in the domestic market. Prepared by BAREM Research and Consultancy, August 2021.
4. Executive Summary Facts &Figures Exporting: 41% of companies export to 70 countries, 3,3 countries on average. 45% plan to export and, 14% do not export nor intend to export. Germany, the USA and Iraq are the top exported countries. 73% of the companies intend to export to more countries. Germany, the USA, Qatar and Saudi Arabia are the countries that most companies intend to export. Prepared by BAREM Research and Consultancy, August 2021.
4. Executive Summary Facts &Figures Sales and Marketing Departments: In most companies, senior executives or owners are responsible for marketing and sales activities (63%). Related departments are responsible for 29% of the companies. None of the companies get outsourced support nor believe no need for such activities. Half of the companies (51%) have a combined Sales and Marketing department. More than one-third of the companies (35%) have neither sales nor marketing departments. Department size is 5,8 employee on average. Average Sales and Marketing department budget share to total turnover is 14%. Prepared by BAREM Research and Consultancy, August 2021.
4. Executive Summary Facts &Figures Sales and Marketing Activities: Among 51 companies, Digital Marketing and E-Commerce is used by 57%. It is followed by mass media advertising (51%); Expositions in Domestic Fairs 45% and in International Fairs 20%. Most companies deliver directly to retail customers (71%) and 59% to wholesaler customers. 33% of companies deliver through dealerships / distributors. Most companies (88%) sell packaged products for retail sale and do packaging in their own facilities (93%). Package design is mostly outsourced to third parties (78%). Prepared by BAREM Research and Consultancy, August 2021.
4. Executive Summary Facts and Figures Innovation Plans Out of 41 company leaders, who have plans in the pipe-lline, 83% intend to develop a new product the same ratio (83%) applies to the projects to increase the efficiency in the production process . In the new product studies, the primary purpose is to develop the formula, improving the flavor (71%). Cost reduction (56%), and Extending shelf life (34%) More than half of these companies (53% of companies with innovation plan; 27 companies) plan to change their current production process in the following: Production line (81%), Packaging (59%), Laboratory tests (41%) The average percentage of the budget plan to allocate for these changes compare to turnover is 24%. Prepared by BAREM Research and Consultancy, August 2021.
4. Executive Summary Facts and Figures Source of Innovation Information: Almost half of the companies (47%) had no innovation project in the last three years preceding the pandemic. A quarter developed (27%) and launched a product or process that was new to the market. Another one fourth run (25%) a project however not commercialized yet. 80% of the companies have some plans on product or service innovation. Internet is the primary source of information in following Product Innovation and trends (71%), followed by Fairs (57%) and competitors activities (55%). Prepared by BAREM Research and Consultancy, August 2021.
4. Executive Summary Improvement Areas for the Companies Product Form: Bee (42%) and Fruit and Vegetable(31%) products have the highest Raw Product share. Export: 59% of the companies do not export. Sales and Marketing: Almost two thirds of the companies(65%) have Sales and/or Marketing departments. In these departments, 1 employee can speak a foreign language on average. 37% of the companies cannot satisfy some packaging demands of the market. Fairs are the second source of innovation (57%); however, only 20% of companies attend international Expos. New Products or Processes Development: A quarter (27%) developed and launched new products or processes to the market in the last three years before the pandemic, while another quarter one-fourth(26%) developed, however, did not launch. 80% of 51 companies plan for a new product or service development; however, only 14 % have short-term plans. 53% have a plan to change current processes; however, none have short term plan. Prepared by BAREM Research and Consultancy, August 2021.
4. Executive Summary Support Needs of the Companies In this part of the summary the figures are given for the total sample of 51 companies Export: Main information needs about the countries companies want to enter are; Conditions of entry (57%), The market share of the imported products (55%), Prices (43%), Compete countries(31%) Sales and Marketing Activities: The most needed supports for improving sales and marketing activities are; Market research (59%), Marketing activities (57%), Financial support to improve/ develop the product range (55%) Marketing training and support mentioned by another 49%. Prepared by BAREM Research and Consultancy, August 2021.
4. Executive Summary Support Needs of the Companies From the total sample (51) percentages, another support areas; New products: The companies expect the following supports to consider the entry to the markets with new products: Export support is the preliminary area to encourage companies ( 71%). Market research support for new product portfolio (49%) Needs analysis of existing markets (41%) Qualified employee support for new products ( 35%) New Production Processes: Financial support is essential to renew production processes (84%), Qualified employees (37%) and Laboratory/ Analysis (35%) supports. Prepared by BAREM Research and Consultancy, August 2021.
5.Flow of Findings The findings are grouped by context (a different order than the questionnaire) and presented in the following order: 6. Field of Activities, and Production: In this part, the number of companies, producing more than one product group are grouped under the main product lines. The form of products, their share in total production, and the packaging forms are summarized. 7. Sales and Marketing Activities: Since the main focus of this report is to understand the SMEs sales and marketing capabilities, their organizational structure and marketing activities are presented in this part. 8. Exporting: Although the number of companies exporting at present is low, 21 companies, the other companies are also interested in exporting. Their information needs are handled in this section. Prepared by BAREM Research and Consultancy, August 2021.
5.Flow of Findings (2) 9. Innovation in Products and Services: The approach to the innovation in products and services, and companies innovation history together with future plans are analysed in this part of the report. 10. Innovation in Production Processes: Future plans for production process / lines, budget allocation and the timing of implementation are presented together with the barriers and required support. Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production The field of activities of the companies in C2 sample are detailed in the following table. The four leading categories are; Milk and dairy products, Fruit and vegetables products, Bee Products, Nuts Products The above leading categories are based on the number of respondents; they do not represent the market distribution. Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production One-third of the companies in the sample produce Milk and Dairy Products. Followed by Fruit and Vegetable companies with one-fourth. Bee and Nuts producers are one-fifth of all companies. Others are constituted by Ready to eat, Beverages, Confectionery, Spice, Meat, Cereals, and Oil products. This group counts for one-third of the companies. Companies are active in more than one field (51 companies in 75 fields), on average 1,8 per company. 31 31 26 20 20 Q1: What is the field of activity of the company? Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Field of Activities Milk and Dairy Products Fruit and Vegetable Products Ready-to- eat Food Products Confecti onery Products Meat and Meat Products Bee Nuts ProductsOthers Spice Products Oil Total Beverages Cereals Products Products 51 16 13 10 10 16 7 5 4 4 3 2 1 Base 16 16 2 1 1 3 1 2 1 1 2 1 1 Milk and Dairy Products 13 2 13 1 2 4 2 3 2 1 1 1 1 Fruit and Vegetable Products 10 1 1 10 1 2 1 1 1 1 2 1 1 Bee Products 10 1 2 1 10 3 2 1 3 1 1 2 1 Nuts Products 16 3 4 2 3 16 7 5 4 4 3 2 1 Others 7 1 2 1 2 7 7 2 2 2 1 2 1 Ready-to-eat Food Products 5 2 3 1 1 5 2 5 1 1 1 1 1 Beverages 4 1 2 1 3 4 2 1 4 1 1 2 1 Confectionery Products 4 1 1 1 1 4 2 1 1 4 1 1 1 Spice Products 3 2 1 2 1 3 1 1 1 1 3 1 1 Meat and Meat Products 2 1 1 1 2 2 2 1 2 1 1 2 1 Cereals 1 1 1 1 1 1 1 1 1 1 1 1 1 Oil Products Q1: What is the field of activity of the company? Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Form of Products Milk and Dairy Products Fruit and Vegetable Products Bee Nuts Products Total Others Products 75 16 13 10 10 26 Base Raw agro-food products Semi-processed products Finished products 22,7 31,3 30,8 50,0 20,0 22,7 16,0 12,5 23,1 10,0 20,0 16,0 73,3 68,8 61,5 60,0 70,0 73,3 51 companies operate in 75 areas. Some of them have production in more than one form. In 75 production areas, 73% are finished products. Half of the Bee Products Producers offer raw products. Q1: In our previous surveys with you, you stated that you produce ... products, how are these products offered for sale? Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Form Shares in Revenue Milk and Dairy Products Fruit and Vegetable Products Bee Nuts Products Total Others Products 75 16 13 10 10 26 Base Raw agro-food products Semi-processed products 20,7 28,8 30,8 41,5 20,0 3,1 9,9 6,9 13,5 3,0 12,0 11,9 Finished products 69,3 64,4 55,8 55,5 68,0 85,0 Top sales turnover come from Finished Products (69 %). It reaches up to 85% in others group. Q2: What is percentage share of raw agro-food / semi-processed/ finished products in your total sales turnover? Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Domestic Market Share of Sales by Product Forms Milk and Dairy Products Fruit and Vegetable Products Bee Nuts Products Total Others Products 75 16 13 10 10 26 Base Raw agro-food products Semi-processed products Finished products 20,4 27,2 30,8 41,5 20,0 3,1 10,8 68,8 6,9 65,9 17,2 52,0 4,0 54,5 12,5 67,5 11,9 85,0 Top sales turnover comes from Finished Products (69 %) in the domestic market also. Fruit and Vegetables and Bee products have the smallest Finished product share. Q3_1/2/3. Approximately how much of your raw agro-food products/ semi-processed products/ finished products (%) sales are in the domestic market? Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Packaging Design and Supports Needed Among 51 companies interviewed, more than half sell their products packaged for retail sale, and 35% sell both packaged and unpackaged. Only 12% sell wholesale to be packaged by the wholesaler Among 45 companies that sell packaged products, 42 package their products in their facilities. Among 42 companies package their products in their facilities, for 19 there is some market demand they can not satisfy. Both 35% Packag ed 53% Unpack aged 12% Q11.How do you sell your products to the market? Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Packaging Design and Supports Needed Milk and Dairy Products Fruit and Vegetable Products Bee Nuts Products Total Others Products 51 52,9 16 62,5 13 53,9 10 60.0 10 40.0 16 68,8 Base As packaged for retail sale. To wholesale to be packaged by the wholesaler In both ways 11,8 35,3 6,3 31,3 15,4 30,8 - 10.0 50.0 18,8 12,5 40.0 Q11.How do you sell your products to the market? Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Packaging Design and Supports Needed Fruit and Vegetable Products Milk and Dairy Products Bee Nuts Products Total Others Products Base In our own facility Outside of our facility No packaging Q12.Where do you package your products? 51 82,4 5,9 11,8 16 81,3 12,5 6,3 13 69,2 15,4 15,4 10 90,0 10,0 - 10 80,0 10,0 10,0 16 75 6,25 18,8 Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Packaging Design and Supports Needed Milk and Dairy Products Fruit and Vegetable Products Bee Nuts Products Total Others Products Base There are some market demands, cannot be offered by the company Not any Outsource packaging No packaging 51 16 13 10 10 16 37,3 37,5 38,5 50,0 30,0 37,5 45,1 5,9 11,8 43,8 12,5 6,3 30,8 15,4 15,4 40,0 10,0 - 50,0 10,0 10.0 37,5 6,25 18,8 Q12a.Are there any forms or styles of packaging that the market demands but you cannot offer? Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Packaging Design and Supports Needed Milk and Dairy Products 16 Fruit and Vegetable Products 13 Bee Nuts Products Total Others Products Base We don t have the appropriate technology We don t have the finances to invest in appropriate technology Our employee capacity is not enough for packaging Investing in packaging does not increase our profitability Other Not relevant Q13. What are your reasons for not being able to meet these packaging demands? 51 10 10 16 21,6 25,0 23,1 30,0 10,0 25,0 25,5 31,3 7,7 40,0 20,0 25,0 3,9 6,3 - - - 12,5 11,8 12,5 7,7 20,0 - 12,5 11,8 62,7 12,5 62,5 15,4 61,5 30,0 50,0 - 6,3 62,5 70,0 Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Packaging Design and Supports Needed Fruit and Vegetable Products Milk and Dairy Products Bee Nuts Products Total Others Products Base 51 16 13 10 10 16 Outside of our facility 68,6 75,0 61,5 90,0 80,0 50,0 In our own facility 19,6 18,8 23,1 10,0 10,0 31,3 Not relevant 11,8 6,3 15,4 0,0 10,0 18,8 Q14.Where do you meet your design needs for packaging? Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Use of Distribution Channels 71 Among 51 companies, 36 deliver directly to retail customers (71%) and 30 to wholesaler customers (59%). Offering products through cooperatives rarely used. 59 33 18 12 4 Q10. How do you deliver your products to your customers? Prepared by BAREM Research and Consultancy, August 2021.
6.Field of Activities, and Production Use of Distribution Channels Milk and Dairy Products Fruit and Vegetable Products Bee Nuts Products Total Others Products 51 70,6 16 81,3 13 61,5 10 80,0 10 70,0 16 68,8 Base Direct delivery to retail customers Direct delivery to wholesale customers Delivery through dealerships / distributorships Delivery through intermediary companies/ commission agents Offering products through cooperatives Others Q10. How do you deliver your products to your customers? 58,8 50,0 84,6 40,0 60,0 43,8 33,3 43,8 30,8 20,0 30,0 43,8 17,7 6,3 38,5 10,0 30,0 25,0 3,9 12,5 7,7 - - - 11,8 6,3 23,1 - - 12,5 Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Available Sales and Marketing Departments Sales 6% Separate Sales and Marketing 8% Half of the companies have a single Sales and Marketing department. In 8% of the companies have separate Sales and separate Marketing departments exist. 6% have only Sales department More than one-third of the companies have no sales nor marketing department. Single Sales and Marketing 51% No sales nor marketing 35% Q8. Which of the following are available in your company? Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Available Sales and Marketing Departments Milk and Dairy Products Fruit and Vegetable Products Bee Nuts Products Total Others Products Base Sales and Marketing department as one single department A separate Sales department A separate Marketing department There is no separate department for sales and marketing activities in our company. Q8. Which of the following are available in your company? 51 16 13 10 10 16 51,0 68,8 61,5 40,0 50,0 62,5 13,7 6,3 15,4 10,0 10,0 12,5 7,8 - 7,7 - 10,0 12,5 35,3 25,0 23,1 50,0 40,0 25,0 Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Sales and Marketing Responsibles Distributor ; 3,9 Others; 3,9 In more than half of interviewed companies, senior executives or owners are responsible for marketing and sales activities. In almost one-third of the companies sales and marketing departments take the responsbility. None of the companies get outsourced support nor believe no need for such activities. Related departments; 29,4 Owners / Executives , 62.8 Q7.Who is mostly responsible for sales and marketing activities in your company? Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Sales and Marketing Responsibles Milk and Dairy Products 16 Fruit and Vegetable Products 13 Bee Nuts Products Total Others Products Base Senior executives / Company owners Related departments Distributors / Intermediary institutions Outsourced support 51 10 10 16 62,8 50,0 61,5 80,0 90,0 62,5 29,4 50,0 38,5 - 10,0 25,0 3,9 - - 10,0 - 6,3 - - - - - - No need such activities - - - - - - Other (Specify...) 3,9 - - 10,0 - 6,3 Q7.Who is mostly responsible for sales and marketing activities in your company? Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Number of Employees in Sales and Marketing Departments Milk and Dairy Products Fruit and Vegetable Products Bee Nuts Products Departments Total Others Products Base Mean Base Mean Base Mean 7 1 2 - - 2 1 3 - - 4 1 8 1 2 Sales 5,3 4 5,8 26 5,9 3,5 1 2 8 4,9 8,5 2 5,5 10 6 Marketing 10 5 4,6 11 6,6 Sales and Marketing No separate department Q9.Can you tell us the number of people working in these departments? Sales/ Marketing/ Sales and Marketing department 7,5 Base 18 4 3 5 4 4 Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Foreign Language Speaking Employees in Sales and Marketing Departments Milk and Dairy Products Fruit and Vegetable Products Bee Nuts Products Departments Total Others Products Base Mean Base Mean Base Mean 7 1 - - - 2 1 - - - 4 - 1 3 1 1 5 2 1 2 1 Sales 1,4 4 1 26 1,3 2,5 1 1 8 1,9 Marketing 11 0,7 10 1,9 Sales and Marketing No separate department Q9a.How many employees speak a foreign language in your sales/ marketing/ sales and marketing department? 1,2 Base 18 4 3 5 4 4 Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Budgets Allocated for Sales and Marketing Average share of Sales and Marketing budget is 14 %. Milk and Dairy and Nuts products have the highest share (20 %) Fruit and Vegetable category has the lowest share(9%) Milk and Dairy Products Fruit and Vegetable Products Bee Total Nuts Others Products Base Answering Base Sales and Marketing share in total budget No separate department (No answer) 51 33 16 12 13 10 10 5 10 6 16 12 13,8 20,1 8,7 16,4 19,8 17,8 18 4 3 5 4 4 Q9b.What is the percentage of budget allocated to sales and marketing activities in your total turnover? Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Share of Marketing Budget in Total Turnover Average marketing budget is 11% of the total turnover. The biggest share is in the Milk and Dairy sector while the smallest is in Fruit and Vegetable. Milk and Dairy Products Fruit and Vegetable Products Bee Nuts Products Total Others Products Base 51 16 13 10 10 16 Share of Marketing Budget to turnover 11,0 15,4 3,9 11,1 10,8 11,7 Q16.How much is the approximate ratio of your marketing budget to your turnover? Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Marketing and Promotional Activities 75 Three-fourth of companies do Digital Marketing (DM) and E-Commerce (75%). Half of them do mass media advertising. Domestic (45%) and international (20%) Expos are a point of promotion also. Among 51 companies, only 4 of them do not do any marketing and promotional activities. 51 45 39 33 27 20 18 Q15. Which of the following does your company use for marketing and promoting activities? Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Marketing and Promotional Activities Milk and Dairy Products 16 68,8 31,3 75,0 43,8 Fruit and Vegetable Products 13 23,1 53,9 61,5 53,9 Bee Nuts Products Total Others Products Base Advertising Activities in Mass Media Poster / Leaflet Distribution Digital Marketing and E-Commerce Participation in Domestic Expositions Participation in International Expositions Product Promotion Days Free of charge promotional product distribution Other (Specify) 51 51,0 39,2 74,5 45,1 10 50,0 50,0 90,0 60,0 10 20,0 10,0 70,0 10,0 16 50,0 43,8 87,5 56,3 19,6 27,5 25,0 25,0 23,1 30,8 20,0 40,0 10,0 10,0 12,5 18,8 33,3 17,7 25,0 18,8 53,9 23,1 20,0 - 40,0 20,0 25,0 12,5 Q15. Which of the following does your company use for marketing and promoting activities? Prepared by BAREM Research and Consultancy, August 2021.
7. Sales and Marketing Sales and Marketing Supports Needed Milk and Dairy Products 16 37,5 62,5 Fruit and Vegetable Products 13 69,2 46,2 Bee Nuts ProductsOthers Total Products Base Market research Budget support for marketing activities Financial support to improve / develop the product range Marketing training and support 51 58,8 56,9 10 60,0 60,0 10 60,0 60,0 16 62,5 68,8 54,9 50,0 30,8 70,0 40,0 68,8 49,0 37,5 46,2 30,0 60,0 68,8 Distribution (logistics) support 41,2 50,0 46,2 40,0 20,0 31,3 Qualified employee support 37,3 56,3 23,1 50,0 20,0 31,3 Other 9,8 25,0 - 10,0 - - Q17. In which of the following areas would you like to receive support in order to improve your sales and marketing activities? Prepared by BAREM Research and Consultancy, August 2021.
8.Exporting Current Export Situation Not exporting nor planning 14% Among 51 companies interviewed, 21 companies (41%) export to 70 countries, 3,3 countries on average 23 companies (45 %) plan to export Seven companies (14 %) do not export nor intend to export. Export 41% Plan to export 45% Q4: Which countries do you currently export to? Prepared by BAREM Research and Consultancy, August 2021.
8.Exporting Countries Number of Companies 14 6 6 5 4 4 3 3 3 2 2 2 2 Germany is the most exported country, 14 companies export there. It is followed by the USA and Iraq with six companies Additionally, one company exports to each country: Austria, Belgium, Bulgaria, Morocco, Israel, Sweden, Switzerland, Japan, Kenya, Republic of Cyprus, North Korea, Syria, Saudi Arabia, Ukraine. Country Germany United States of America Iraq Holland France England Peoples Republic of China Qatar Russian Federation Australia United Arab Emirates Egypt Greece Q4: Which countries do you currently export to? Prepared by BAREM Research and Consultancy, August 2021.
8.Exporting Countries (1) Milk and Dairy Products 16 Fruit and Vegetable Products 13 Bee Nuts Products 10 Total Others Products 10 Base Germany USA Iraq Holland France England China Qatar Russia Australia UAE Egypt Greece Q4: Which countries do you currently export to? 51 16 27,5 11,8 11,8 9,8 7,8 7,8 5,9 5,9 5,9 3,9 3,9 3,9 3,9 6,3 12,5 12,5 30,8 23,1 7,7 15,4 15,4 7,7 15,4 40,0 30,0 10,0 10,0 10,0 10,0 20,0 10,0 31,3 18,8 - 20,0 - - - - - 25,0 6,3 10,0 10,0 - 6,3 12,5 - 12,5 6,3 12,5 6,3 - - - - - 10,0 - - - - - - - 10,0 10,0 12,5 - - - - 10,0 6,3 10,0 6,3 - - Prepared by BAREM Research and Consultancy, August 2021.
8.Exporting Countries (2) Milk and Dairy Products 16 Fruit and Vegetable Products 13 - - - - - - Bee Nuts Products 10 - - - - Total Others Products 10 - - 51 16 Base Austria Belgium Bulgaria Morocco Israel Sweden Switzerland Japan Kenya Northern Cyprus North Korea Syria Saudi Arabia Ukraine 2,0 2,0 2,0 2,0 2,0 2,0 2,0 2,0 2,0 6,3 6,3 6,3 - - - - - - - 10,0 10,0 - - - - - - - - - - - - 10,0 10,0 10,0 7,7 7,7 - - 6,3 - 2,0 - - - - 6,3 2,0 2,0 2,0 2,0 - - - - 7,7 7,7 - - - - - - - - - - - 10,0 - 6,3 Prepared by BAREM Research and Consultancy, August 2021.
