Scoping opportunities forAustralian Red meat Industry in the emerging digital technologyspace
V.RMH.[j13833] - Terms of ReferenceTOR
This TOR is seeking proposals from suitably qualified and experienced providers in the field of strategic marketing, consumer behaviour and fore-sighting, design led thinking and innovation, digital technology (particularly interface ofsmart (phone/tablet) devices and kitchen appliances and food innovation) and new business model designs.The Australian red meat industry is seeking input into the opportunities that exist in “digital food”. With the emergence of Internet of things (IoT), we already are seeing a hint of technology in a lot of everyday products and systems as our life is getting more digitalised. In the future, using food as the information channel to understand the real-time needs of the consumer and connect to smart wifi linked kitchens and pantry stocks and service providers could create and capture higher value.
This project forms part of a broader suite of initiatives aimed at equipping wider Australian red meat industry with tools needed to instigate innovative developments in order to increase value-addition to the red meat industry. Providers should clearly present potential opportunity spaces to both current industry players and potential new entrants. The value proposition(s) being considered will explore the impact of emerging digital technology and kitchen appliances and changing consumer lifestyles and behaviour. Specifically it will explore new products and services could be developed in terms of:
- How will we make food decisions
- How will we buy food; and
- How we prepare food.
A clear output will be to focus and makerecommendations for how the Australian red meat sector could capture high value opportunity from these insights with the aim for project outputs to lead directly into investable opportunities to explore with industry partners.
Background
The Australian red meat industry is reliant on commodity-based products. However to stay competitive, the red meat industry needs to capture value-addition by diversifying product range and red meat offerings beyond the current commodity-based range. MLA has identified a range of high valued frontier growth opportunities to drive innovation in the red meat sector. To support MLA’s initiatives to grow red meat demand and capability in consumer and market insights and disruptive business models (and enabling technology platforms), an in-depth assessment of specific emerging trends and markets needs to be undertaken.
This project aligns with “MLA’s Digital Value Chain Strategy”which encompasses digital technology and business model design from farm-gate to consumers. To date; this program has had a focus on data-mining and integrity systems along the red meat value chain. Intentionally, we are seeking in this research proposal to start with aconsumer-led perspective as it is evident that the ways people make purchase decision, click and collect shop, prepare food is different from even 5 years ago in a number of markets now along with what features are included in electronics and appliances.
Source *** Images from internet searches - Samsung Smart Fridge; Click&Collect:; FitBit
Case studies from the health/wellness, music and news service industry further demonstrate the impact digital technologyhas had on (personalised) consumer preferences with business lifecycles being rapidly reduced or now redundant. MLA has also been investigating “Emerging Food Delivery models” and “on-line shopping” (V.RMH.0057) and would anticipate interface between digital food, merchandising and delivery. Further the avalanche of smartphone users globally has seen consumers decision making and influencers on choice is very fluid.
One possible example for our industry could include building on MLA’s SteakMate App (launched in Australia in 2014) which essentially brought to life the vast meat science and consumer sensory profiles from Meat Standards Australia (MSA) technical pathways for predictable eating profiles of selected cuts (in this case for grilling/pan frying) to provide consumers with a tool to help them cook. Digital Food may see this evolve into a Smart label that interacts with storage conditions, the ageing enzymes within the meat and the drip purge loss in the soaker pad “talk” to the Smart fridge to suggest when is the ideal time (based on tenderness and remaining shelf life) to cook the product. The fridge knowing what marinades are in the fridge (ensuring labels are scanned for gluten free components as required for one of the guests perhaps) recommend a recipe to baste the roast overnight with this information uploaded to the Smart oven to prompt the user the start and finish times to cook the roast for when guests were confirmed to arrive. Further, the typical nutritive values recorded on the label calculates how many slices for the guest who has advised a specific energy/protein diet they are on. Ultimately though, whilst the future is hard to predict, understanding what problems to solve and jobs to be done can we help shape what opportunities red meat can unlock as part of a digital food strategy.
In addition, our kitchen and the supermarket shelf also look different from 5-10 years. Pre-cooked food, healthy and easy ready to cook meal kit, snacks, and have dominant the new product launches for the past years to meet growing demand (convenience, health conscious). People are also taking the advantage of emerging smart kitchen appliance which brings both challenges & opportunities to the food industry for how to delivery their food offers to meet that demand
Research Scope:
Proposals are requested that demonstrate a design led approach – namely, up to five opportunity spaces are to be presented based on review of the emerging digital technology platforms (feasibility element), consumer insights informing product-market fit (desirabilityelement), and achievable revenue and cost structures can deliver high value for Australian red meat industry (viabilityelement).
Central to the identified value propositions will be describing:
- which customer needs are trying to be satisfied
- which problems are being helped to be solved
- what are the key features of a novel product / service (that includes red meat components in the digital food) that match target customers’ problems/need(s).
The research should nominate proposed target market(s) for these opportunity spaces and include consideration for why/how Australian red meat industry can capture these values (as opposed to either other countries or other protein sources for example). Discussion on how the different technologies could provide insights for the players in the value chain could be strengthened - in particular identification of new opportunities (from IoT) for Australian Red Meat Industry (rather than supply chain players outside Australia) to capture these insights is to be considered.
The Benefits
The rise of various emerging digital technologies and kitchen appliances can help segment users and provide insight into where society is heading and why. As more information (either scientific or opinion based) becomes available, consumer behaviour will evolve to reflect such changes. It is proposed the researcher will identify who the early adopters for digital food will be and using design led thinking observe, learn and act with voice of customer from these early adopters who have an ability and willingness to change to shape and accelerate digital food innovation.
This information will assist MLA in “where to play” and “with whom” as part of MLA Donor Company’s 2Morrow’s Foods program which seeks out new usages and occasions for red meat products/services that can deliver 3 – 5 times value multiplier on commodity red meat offer. Further, this trend will also enable provisions for compliance and added value to other key food industry government initiatives such as Country of Origin labelling and traceabilityaspects for example.
Research Activities
The following activities are anticipated (but submissions may identify additional activities). Submissions must address all components of this TOR to be considered. Once the successful tender is accepted a MLA consultancy agreement listing the tasks, outcomes and timeframes will be agreed.
Task / Proposed Date- MLA uploads TOR on
- Submit proposal to MLA – include an outline on experience to deliver and the approach and timing to collate and present the information.
2. Proposal received, reviewed and feedback provided by MLA / 11-Sep-17
3. If agreed, standard MLA terms and conditions consultancy agreement sent to consultant and once executed work to commence / 9-Oct-2017
4. Interim progress report/workshop – consultant to present to MLA up to five (5) opportunity spaces for digital food with inclusion of Australian red meat. Up to 50% budget payment to be made to consultant on successful delivery / 30-Nov-2017
5. Final report (in MLA word doc format) presenting case studies, assumptions behind the recommended opportunity spaces identified (using desirable – viable – feasible criteria) and next steps plan for investable innovation submitted to MLA.
Condensed powerpoint deck of 7-10 slides to bring to life, imperative to act communication will also be required. / 27-Jan-2018 ** preference would be prior to 18th Dec’17)
Project Budget- Maximum projectbudget is AUD$45,000.Proposals are to itemise fees and expenses separately for respective research milestones.
Proposals
Solution providers/consultants are invited to submit proposals which outline:
- Capabilities, skills and experience of proposed team in digital technology, smart device/ kitchen appliances, food/ red meat sector research, with particular expertise in bringing to life consumer behaviour and design led thinking as relevant to this project scope;
- Experience in technology and insights communication translation to broad audiences
- Proposed approach to achieve the objectives
- Project timeline of activities and desired objectives/achievements, including major stages and milestones.
- Indicative project budget for each component being addressed and identification and time/rate of personnel working on the project
- Commercialisation plan for next steps (including if desired, Meat & Livestock Australia Donor Company (MDC) co-investment partnership with identified partner(s).
Key contact for MLA
Henry Dong
Project Manager
Meat & Livestock Australia (MLA)
T: 0434 398 850
E:
MLA Digital Food TOR – Jul 17Page 1