COMPANY CASE STUDY ON PRODUCT STRATEGY:

Fody's product offering was carefully tailored to meet the needs of people with IBS. Maintaining a low-

FODMAP diet was a complicated endeavour, so Fody tried to simplify the process for IBS sufferers.

Fody's original product line was launched with six items, including pasta sauces, salsas, and chocolateand-

nut cereal bars, but more products were made available because Singer believed that a complete diet

was the best solution for IBS sufferers. The line was expanded and diversified to include soups, spices,

salad dressings, olive oil, snacks, and other foods (see Exhibit 1). Their top three sellers were their Dark

Chocolate, Nuts & Sea Salt Bars; Mild Salsa; and Tomato & Basil Pasta Sauce.

Taste was a crucial consideration for their brand, and new products were developed with care. Fody did

not want their products to taste good for low-FODMAP foodsthey wanted their products to taste good,

period. It was also paramount for them to know where their ingredients were sourced and that they were

processed ethically and under good working conditions for all involved. All products were certified low

FODMAP by Monash University. Products also carried a combination of USDA organic, Ecocert, vegan,

and kosher certifications. Fody wanted to invest in building not only a brand but also a culture.

To create new products quickly, the company decided early on to outsource production. For instance,

Fody's ketchup was made in eastern Europe because the supplying company not only made a great-tasting

ketchup but also had smaller minimum order quantities. The outsourcing model shortened the developmentto-

production period significantly. "From brief to new product launch is 12 to 18 months in a large

company," Surkis remarked. "In our world, we do it in three to four months. Things get done so quickly

here, but going faster can't be an excuse for a lack of quality or launching the right product." Outsourcing

also allowed Fody to better answer their customers' needs, which Fody ascertained from frequent feedback.

Consumer feedback attested to the appreciable changes that Fody's products brought to people's lives.

Levine took pride in reading the glowing reviews and letters of thanks sent by IBS sufferers who had

regained a part of their lives thanks to the low-FODMAP diet that Fody had facilitated for them. Levine

described one particularly moving exchange with a young customer.

"There was a phone call from a young boymaybe 10 or 11 years old," Levine recalled. "His mom ordered

for him, and he just called to say thank you and that we changed his life. He said, 'You took the hard part of

the diet and made it easy and fun. You revamped my life.' I got goosebumps from head to toe."

To keep the logistical aspects on track, Soch had to keep a close eye on all their contributors to ensure

strong supply chain management. The entirety of the Fody line of products was being manufactured and

shipped through third party warehouses; food never went through the Fody offices in Montreal. With the

bulk of sales processed online, and only a few deliveries made to bricks-and-mortar grocery stores, it was

possible for one person to oversee all third-party service providers. But with considerable growth on the

horizon, the team would have to carefully re-evaluate how to manage their supply chain should they find

themselves in all major grocery chains in North America.

QUESTION 2) PRODUCT STRATEGY consists in offering the right consumer goods and services to the right target audience. Product strategy includes quality, new product, package design, brand names, research and development, product life cycle, and warranties and services. The goal of product strategy is to develop products that will meet buyer expectation.

Using concepts from this course and information from the case study, describe FODY FOODS' product strategy. Explain how FODY

FOODS differentiates its products. In your opinion is this strategy successful?