Retail Bakery Vision Digital business era: collaborate to perform
Artisan | Modern Distribution | Industrial
INTRODUCTION The Retail Bakery Vision examines the developments that will have the greatest impact on the retail bakery industry over the next years. We have identified trends into three categories: •
Customer experience – exploring the changes in the bakery sector that will influence customer’s experience in the store to drive sales and profits.
•
Innovative equipment – demonstrating how innovative baking equipment streamline bakery operations, lower operational costs and strengthen the bakery business overall.
•
Data and analytics – collecting and analyzing new types of data and new opportunities to improve energy saving, bakery operations and better understand customer tastes.
In this retail bakery analysis, we begin with a view on how the customer interaction is changing in retail and specifically in bakery sector. We then illustrate the future of bakery equipment through an overview of new technologies able to collect and analyze bakery business data to drive operational improvements and introduce products customizations that will meet customer’ expectations. Finally, we will outline a roadmap for bakery managers to get ready and succeed in the technology-enabled future of retail bakeries.
Technology and bakeries
We believe that every bakery will be a digital bakery. The pace of technology is accelerating, and the barrier to enter is lowering. It is no longer enough to produce good quality bread at the right price, have a nice looking bakery area and a good set of baking equipment. Customer demands more.
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“Read how you can achieve higher performance in bakery with Mondial Forni”
Customer Experience Bread as a full sensorial experience.
Control: from retailer to customer Today’s customers hold the power, choosing where, why and how they buy bread and products. Loyalty to retail brands is fading; customers are ready to switch to one supermarket to another: whoever will provide the best shopping experience, products that will sweets their taste and seamless personalized services. Customers with opinions, sharing and reviews are now influencing each other more than traditional advertising.
They expect a retailer not only to serve them with better products, freshly made food and better prices but also to provide them with a better experience. If not, another retailer is right on the corner or on the smartphone .
What’s the opportunity? At Mondial Forni we always think that changes are opportunities: for manufacturer, to introduce new ideas on the market, for retailers, to leverage new technologies and provide richer experiences that differentiate their image and attract new customers, and for customer to have more and better choices. When customers’ behavior and technology change at the pace of these days retail’ managers may find difficult to find the right partners to access the future. At Mondial Forni we work consistently with our customer and suppliers to make sure the opportunity will not be lost, and we will be with our partners at the center of the next stage.
Supermarket and Bakery evolution Evolution of supermarkets format from the focus on variety and surface to the customer experience has driven a consistent change in stores layout. The section of the store dedicated to fresh products has gained more and more space and has introduced new ways to connect with the customers. With the evolution of the store, the bakery has gained a growing role in the fresh department becoming the corner able to inspire the senses of the people and thus able to engage them in a richer shopping experience.
Evolution of supermarkets from variety and surface to customer experience
The next stage of supermarkets development will see on one side a strong integration of digital technologies and on the other side the revitalization of the relationship between customers and food, people and nature. Eataly – Milan, Italy
Retailers will strongly invest in technology in order to be able to connect with their customers, understand their preferences, provide new loyalty programs and introduce a unified experience between on-line and off-line shopping. A new wave of consumers, the so-called “millennials�, will not accept an on-line experience that is not at the level of the off-line one. However, all generations are approaching the digital era and the level of personalization given in the digital world will shape preferences in the off-line world. The result is a new strain of shoppers with increasing expectations about the quality and consistency of their shopping experience. Retailers are also improving their ability to connect with local producers, to provide information on food origin, to organize course about healthy food and involve children in nutrition courses. Together with a seamless on-line / off-line experience, customers are looking to reconnect with nature and are looking at the food as a source of wellbeing.
Role of the bakery As in a traditional market, the buying space becomes a meeting place. From an item aimed to extend variety and increase revenue, the bread has become a product that inspires the senses. The bakery explains where the bread is coming from thus helping people to reconnect with nature.
In the journey towards a richer customer experience, the bakery will play a central role to change the supermarket experience. The bakery involves the customers in the production process and awakes the sense with a fresh smell of recently baked products. But it can do more. Bakery departments can adapt products to local taste without losing control on quality across different stores and the appeal of the introduction of new grains and healthy options. The challenge for bakery manager is not only how to introduce this transformation adding more efficiency, being more flexible to adapt to changes while generating more sales and profits for the store. The challenge is also: who will be the supplier and the equipment able to ketch up with this trend and to enable the change?
“Mondial Forni has invested time, resources and capital to be able to support bakeries and retailers in the journey that we call Bread Experience�.
Innovative Equipment Collaborate to perform. Many of our retail customers demand us: what’s new in baking equipment? At Mondial Forni we are convinced that what is new is that ovens can be a tool to leverage the business of bakery department. Ovens can help to monitor and improve operations, to adapt production to customers’ taste, to ensure quality across all the stores to transform a bakery corner in a sensorial experience that will drive more sales for the complete store. We give for granted what most competitors struggle to achieve: quality of baking, low energy consumption, high-class materials, low maintenance and long life of the equipment. Innovative equipment should be able to get to the next step, introduce digital technologies to enable a new business model: collaborate to perform. We identified four areas of improvements that will bring bakeries to a whole new level of performance:
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Operational controls – Functions that permits to identify and manage areas of inefficiency in the usage of equipment. We discovered that all our customers waste up to 30% of their energy due to inefficient baking cycles. Functions that allow to analyze sales of different formats in different store, customization introduced by bakers and reorganization of the production to meets customers’ expectations while reducing waste of breads and products at the end of the day.
•
Connectivity – Ability to enable a centralized control of all baking equipment. A dashboard that will permit managers to analyze: what is sold and where, how efficiency indicators vary across different stores, what preventive maintenance is due and where, what are energy and maintenance costs associated with the different stores. Connectivity can also improve quality across all stores locations thanks to remote installation of new receipts and delivering of messages directly on the equipment.
•
Taste functions – An oven is a simple equipment but it is hard to make it work according to customers tastes. New innovative equipment are able to control directly the taste of the products thus allowing bakers, even with low experience, to make the bread more crusty or more soft, darker or whiter not playing with ovens parameters but just using simple taste functions.
Centralized control and analysis of stores’ bakeries.
•
High level of Design – On the path to emotional bakeries the process of making bread is more and more in front of the customer. This allow the shopper to get in contact with the production of its food and creates a complete sensorial experience in the bakery corner. All bakery equipment should pass the test of stand up in front of the customer creating an outstanding image for the bakery.
Data and Analytics Understand to improve. How many retails can tell what the products mix is their supermarket bakery is? How it varies across the country? What are the energy cost associated with the different items? And how the operational efficiency varies in the bakery from one store to another? Collecting and analyzing the data is becoming essential for high performance businesses. Mondial Forni is working on equipment that can support automatic data collection, aggregation and analysis. This will allow undertaking internal programs that will reduce operating cost and enhance the efficiency of bakery departments but it will also help to analyze customer behaviors in term of bread consumptions and taste and to act real time to fulfill their expectation.
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ILLUSTRATIVE -
Roadmap Lead the journey to customer experience. A roadmap for bakery manager to assess their readiness to intercept changing customers’ preferences. From building the foundation of a successful retail bakery business to the actions to be taken to innovate and learn and finally the solutions to embrace and succeed in the technology-enabled future retail bakeries.
Today
Store Layout
Equipment choice
Customer fulfillment
Data & Analytics
Products Variety
Quality
High Variety
Assets management
Shelf always full
Reliability
Always available
Service management
Build Foundations
Smell of baking
Energy Saving
New Receipts
Receipts use
Front preparation
Total Cost Ownership
Fresh Experience
Efficiency measurement
Innovate and learn Design
Connectivity
Real time adaption
Business analysis
Emotional Space
Data Analysis
Loyalty
Real-time management
Lead customer experience
Vision
Transform ideas into actions. Build. Innovate. Lead.
For more information please contact: Massimo Contri massimo.contri@mfb.it Mondial Forni S.p.a. – Global Via Dell'Elettronica 1 37139 VERONA - ITALY www.mondialforni.com email: mbox@mfb.it
Mondial Forni is the result of Arturo Benini's dream, who in 1947 started his journey with confidence in the world of bread, enchanted by the magic around it and convinced that he could become an enthusiastic ambassador. This vision grew together with everyone who became part of it. Today, we still work with our customers to make their dreams become reality, to imagine new goals and view new horizons. What does distinguish Mondial Forni? We believe that diversity is a source of value and that every constructive contribution promotes the company's growth as an economic entity as well as a community of people. We believe that progress results from the union of individual energies and resources, from the transversal commitment of the people involved in this company. From the exchange of experiences and skills among those who have the common goal of continuous improvement. We always try to understand the dynamics of the business scenario, looking at critical issues that arise as opportunities, so we can be the one who drives the change.
www.mondialforni.com