The purpose of this paper is to examine how privately-owned, European SMEs are using authenticity, sustainability, and independence as part of their branding strategy for selling fermented functional food and beverage. The paper discusses possible promising target groups and gaps in the market by using the Sinus-Milieus and Braunegger’s models.
A literature review of the authenticity, sustainability, and independence concepts is followed by an in-depth analysis of eight SMEs, which illustrates how these concepts are being communicated by existent entities. The findings show that start-ups in the fermented food and drink industry tend to use phrases and visual materials that can be categorized in five areas of authenticity, while primarily focusing on one to two areas. It was noticed that 75 percent of analysed SMEs use their website to communicate their sustainability principles. Moreover, the examples exhibit the widespread use of glass and recyclable hemp as packaging materials. In addition, green delivery and C02 emission off-setting were found to play a significant role in today's sustainable SMEs. In the section on independence, the author hypothesizes the increasing importance of independence in the food and beverage business.
Concludingly, the paper aims to assist companies to find their place in the market, especially while competing with mainstream brands and large corporations. With the help of this toolset, these privately-owned enterprises will be able to spend more time producing healthy, desired products while creating significant added value that directly contributes to the EU economy.
Table of Contents
4 Introduction
4.1 Problem statement
4.2 The trend timeline and its current state
4.3 The research aim
4.4 The target audience for this thesis
4.5 The structure of this paper
4.6 Methodology
5 Definition of the terminology
5.1 How are SMEs defined in Europe?
5.2 Fermented functional food and beverage
6 Branding and the positioning strategy in theory and practice
6.1 Market segmentation and targeting
6.1.1 The Sinus-Milieus Model
6.1.2 The use of the Sinus-Milieus Model in the fermented food and beverage niche
6.2 Positioning
6.2.1 Adapted Braunegger‘s positioning model
6.3 The meaning and execution of branding for SMEs
6.4 Chapter summary
7 Three qualities as driving factors of branding in this area
7.1 Authenticity
7.1.1 Why are people buying authentic small-scale products?
7.1.2 Six aspects of authenticity
7.1.3 Authenticity from the consumer perspective
7.2 Sustainability
7.2.1 Packaging, product, processes, distribution
7.3 Independency
7.4 Chapter summary
8 Marketing communications analysis with the focus on authenticity, sustainability, and independence
8.1 Fairment & Completeorganics: How does a well-run SME in the fermented food industry look like?
8.1.1 Fairment
8.1.2 Completeorganics
8.1 Overview of 8 European SMEs from the fermented food and beverage industry
8.2 What the above fermented foods businesses have in common?
8.3 Communicating authenticity
8.3.1 Best practices: How are SMEs communicating authenticity?
8.3.2 Storytelling, appearing as artesian amateurs
8.3.3 Biographical authenticity, sticking to the roots
8.3.4 Procedural, material, and temporal authenticity, love of the craft
8.3.5 Geographical authenticity, being one with the community
8.3.6 Oppositional authenticity
8.3.7 Comparison and possible outtakes
8.4 Communicating sustainability, best practices
8.4.1 Certification
8.4.2 Cooperations
8.4.3 Sustainable packaging and delivery
8.4.4 Comparison and possible outtakes
8.5 Independency, a customer point of view
8.6 Chapter summary
8.7 Conclusion
8.8 Limitations and the need for further research
Objectives and Topics
This thesis examines how privately-owned European SMEs leverage authenticity, sustainability, and independence as core branding and positioning strategies to market fermented functional food and beverages. The research aims to provide a practical toolset for small enterprises to navigate market competition by integrating these three key qualities.
- Application of the Sinus-Milieus and Braunegger’s models for SME market segmentation and positioning.
- Deep dive into the conceptual pillars of authenticity, sustainability, and independence in the fermented food sector.
- In-depth analysis of eight European SMEs regarding their marketing communication and branding practices.
- Exploration of how SMEs can overcome resource scarcity through unique branding and storytelling.
- Identification of sustainable practices in packaging, distribution, and supply chain management.
Excerpt from the Book
8.3.1 Best practices: How are SMEs communicating authenticity?
The author grouped authenticity claims and signals communicated by these eight companies into five main areas. The areas were chosen based on the literature review findings.
This is the first overview of real-life examples of authenticity signaling in the fermented food and beverage niche. It aims to give companies an outline of how other SMEs are fostering loyal customers through staying true to themselves.
Summary of Chapters
4 Introduction: This chapter outlines the problem of competitiveness in the European food industry, introduces the fermented food trend, and defines the research goal of supporting SMEs.
5 Definition of the terminology: This section clarifies the classification of European SMEs and defines the scientific scope of fermented functional food products.
6 Branding and the positioning strategy in theory and practice: It discusses branding, market segmentation via the Sinus-Milieus model, and positioning using an adapted Braunegger’s model tailored for the food industry.
7 Three qualities as driving factors of branding in this area: This chapter analyzes authenticity, sustainability, and independence as strategic variables for SMEs, highlighting their theoretical relevance.
8 Marketing communications analysis with the focus on authenticity, sustainability, and independence: The final section provides an empirical analysis of eight SMEs, detailing how they communicate their core brand values in real-world scenarios.
Keywords
SMEs, branding, authenticity, sustainability, independence, marketing communications, fermented functional food, Sinus-Milieus, Braunegger's model, food industry, consumer behavior, product positioning, European SMEs, start-ups, brand trust
Frequently Asked Questions
What is the core focus of this thesis?
The thesis investigates how small and medium-sized enterprises (SMEs) in the European fermented food industry use authenticity, sustainability, and independence to effectively brand and position their products.
What are the central themes of the research?
The central themes are the application of socio-cultural segmentation models, the practical implementation of brand authenticity, the role of sustainable business practices, and the strategic importance of SME independence.
What is the primary objective of this work?
The primary goal is to create a practice-oriented toolset that assists fermented food SMEs in finding their place in the market and competing successfully against large corporations.
Which research methodology is applied?
The author conducts a systematic literature review to establish the theoretical framework, combined with an in-depth empirical analysis of eight selected European SMEs based on their public digital presence.
What does the main body of the paper cover?
It covers theoretical frameworks for branding and positioning, detailed analyses of three driving branding qualities, and an extensive examination of real-world communication strategies used by specific European start-ups.
Which keywords characterize the work?
Key terms include SMEs, branding, authenticity, sustainability, independence, fermented functional food, and market segmentation models like the Sinus-Milieus.
How is the Sinus-Milieus model utilized in this study?
It is used as a socio-cultural tool to segment the market and identify promising target groups, such as the 'Established' or 'Social Ecologists', who are more likely to value artisanal, functional food products.
Why is independence considered a strategic factor for SMEs?
The thesis hypothesizes that independence from large corporate structures creates a 'feeling of independence' that resonates with modern, conscious consumers who increasingly distrust mass production.
How do the analyzed SMEs signal sustainability?
They utilize various methods including official certifications, collaborations with local eco-conscious partners, and the adoption of sustainable packaging materials like glass and recyclable hemp.
What conclusion does the author draw regarding future trends?
The author concludes that the trend for healthy, fermented, and sustainably-produced food will continue to grow, requiring SMEs to integrate authenticity and sustainability as core competencies rather than stand-alone concepts.
- Quote paper
- Nika Jere (Author), 2021, Authenticity, sustainability, and independence as a branding strategy for selling fermented functional food and beverage, Munich, GRIN Verlag, https://www.grin.com/document/1128028
