ON-LINE COURSE Handicraft Production of Food Herbal Products MODULE 4. Business Management, Marketing and Sale

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1 ON-LINE COURSE Handicraft Production of Food Herbal Products MODULE 4 Business Management, Marketing and Sale

2 Objectives Objectives During this Module you will be able to : Have global knowledge of food safety in Europe, implications in the MAP food chain. Labelling. Have global knowledge how to build a correct label and on health claim General labelling requirement. Understand the flux of commerce around the world and in Europe. Extrapolate the national and international rules for global trade Learning results and evaluation criteria. Achieve the information about the different type of commercialization in order to decide the company strategy Learning results and evaluation criteria. Do critical evaluation of the different possibilities to share risk and gains, choose the best business type.

3 Authors Authors The e-learning material for Module 4 - Business Management, Marketing and Sale have been built by: - Alessandra Conti - Elena Cerutti Le Terre dei Savoia Piemonte, Italia - Barbara Ruffoni - Luisa Pistelli - Lorenzo De Angeli - Ilaria Marchioni - Barbara Lisè Consiglio per la Ricerca in Agricoltura e l Analisi dell Economia Agraria Liguria, Italia Italy, 2016 (Beta version)

4 Contents Contents 4.1 UNIT 1 Label National and International rules Mandatory information, list of ingredients, allergens, country of origin or place of provenance where provided 4.2 UNIT 2 - Marketing, principles and evolution Marketing base elements, company identity, logos, advertising, marks of quality, origin and registered, Commercial events. 4.3 UNIT 3 - Botanicals and phytochemicals Medicinal and aromatic plants, Secondary metabolites, Nutritional products, Health and medical benefits 4.4 UNIT 4 - Business strategies for the online market: web and social Campaign, conversation and amplification rates, Facebook, Google +, Linkedin, marketing, budget programming

5 4.1. UNIT 1 Label national and international rules Law on labeling and Disposal UE 1169/ Mandatory information to consumers Food allergies and allergens Commercialization Summary and challenge Sources of information 4.1 UNIT 1 Label National and International rules Law on labeling and Disposal UE 1169/2011 a) Principles of food safety, changes in the world of European trading from 2002 b) Reg UE 178/2002 brief remarks c) Reg UE 1169/2011 objectives d) Applies Reg UE 1169/2011 e) Role of Member State f) Importance of consumers g) Amending RegUE 1924/2006 (claims) Mandatory information to consumers a) Principles governing mandatory food information (Art. 3) b) Mandatory indication (Art. 9)

6 4.1. UNIT 1 Label national and international rules Law on labeling and Disposal UE 1169/ Mandatory information to consumers Food allergies and allergens Commercialization Summary and challenge Sources of information Food allergies and allergens a) What the alimentary allergy is b) How to make informations to consumers c) Food allergy emerging problem d) From allergens to allergenic components e) Main vegetable and food allergens f) Protein family functions, source allergens g) Substanes or products causing allergies or intolerances h) Labelling

7 4.1. UNIT 1 Label national and international rules Law on labeling and Disposal UE 1169/ Mandatory information to consumers Food allergies and allergens Commercialization Summary and challenge Sources of information Commercialization a) Commercialization general objective b) Harmonised subject c) Non harmonized subject d) National particularities e) Name of the food f) Correct information g) Unfair commercial practices h) Comparative advertising

8 4.1. UNIT 1 Label national and international rules Law on labeling and Disposal UE 1169/ Mandatory information to consumers Food allergies and allergens Commercialization Summary and challenge Sources of information Summary and challenge a) Summary This unit allows the learner to: Have global knowledge of food safety in Europe, implications in the MAP food chain Labelling Have global knowledge how to build a correct label and on health claim General labelling requirement Understand the significance of labeling in Europe. Know the main types of allergens and examples of correct labeling Know what it is a claims Understand what it means improper communication

9 4.1. UNIT 1 Label national and international rules Law on labeling and Disposal UE 1169/ Mandatory information to consumers Food allergies and allergens Commercialization Summary and challenge Sources of information b) Weekly summary Go into a store and check labels and comparative advertising and find the mistakes or doubts or Try to create a label for a product, and switch it with others And share your questions and conclusions on the Forum.

10 4.1. UNIT 1 Label national and international rules Law on labeling and Disposal UE 1169/ Mandatory information to consumers Food allergies and allergens Commercialization Summary and challenge Sources of information Sources of information Conference on Labelling 2015,Turin, Italy, Speaker: Maud Perrudin, Brussel Directive 2006/114/EC of the European Parliament and of the Council of 12 December 2006 concerning misleading and comparative advertising European Food Safety Authority (EFSA) Hoffmann-Sommergruber K & Mills K. Anal Bioanal Chem Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety Regulation (EC) No 1924/2006 of the European Parliament and of the Council of 20 December 2006 on nutrition and health claims made on foods Regulation (EU) No 1169/2011 of the European Parliament and of the Council of 25 October 2011 on the provision of food information to consumers

11 4.2. UNIT 2 Marketing, principles and evolution Elements of marketing Simulation of a promotion plan Logos Marks of origin or quality Commercial events Summary and challenge Sources of information 4.2 UNIT 2 - Marketing, principles and evolution Elements of marketing a) Advertising b) Company image c) Packaging d) Promotions and promotional strategy e) Customer analysis f) Business plan g) Marketing strategy Simulation of a promotion plan Logos a) Brand b) Logotype (logo) c) Pictograph d) Diagram e) Payoff

12 4.2. UNIT 2 Marketing, principles and evolution Elements of marketing Simulation of a promotion plan Logos Marks of origin or quality Commercial events Summary and challenge Sources of information Marks of origin and quality a) Marks tipology b) Commercial marks: registration c) Mark of Origin d) Mark of Quality e) Ethic perception Commercial events a) Objectives b) Collateral promotional materials c) Collateral tools: the video d) Event types e) Exhibitions and trade shows f) Small and local events and markets g) Concept store

13 4.2. UNIT 2 Marketing, principles and evolution Elements of marketing Simulation of a promotion plan Logos Marks of origin or quality Commercial events Summary and challenge Sources of information Summary and challenge a) Summary This unit allows the learner to know: Definition of marketing. How to make a product attactive to consumers. What is a marketing strategy. Be able to indentify a company, knowing what are and the differences between brand, logo, pictograph, payoff and diagram. What is a mark of origin and a mark of quality. What are the main commercial events and their objectives.

14 4.2. UNIT 2 Marketing, principles and evolution Elements of marketing Simulation of a promotion plan Logos Marks of origin or quality Commercial events Summary and challenge Sources of information b) Weekly challenge Prepare a promotion plan simulation of a food herbal product (aromatised drink, seasoning, tea, spice etc ) And share your questions and conclusions on the Forum.

15 4.2. UNIT 2 Marketing, principles and evolution Elements of marketing Simulation of a promotion plan Logos Marks of origin or quality Commercial events Summary and challenge Sources of information Sources of information Davis Young. Building Your Company's Good Name Image.html#ixzz4Ypqmg8TT

16 4.3. UNIT 3 Botanicals and phytochemicals Correct identification of botanicals and quality Dietary supplements EU regulation and composition Main botanicals used in dietary supplements: examples and main species used Physiological and adverse effects of botanicals Main class of phytochemicals: chemistry and properties Functional food Novel food Summary and Challenge Sources of information 4.3 UNIT 3 - Botanicals and phytochemicals Correct identification of botanicals and quality a) Botanicals b) Sophistication c) Adulteration d) Reliable bibliographic sources for the authentication of botanicals e) Examples of plant adulteration Dietary supplements EU regulation and composition a) Herbal medicinal products b) Dietary supplements

17 4.3. UNIT 3 Botanicals and phytochemicals Correct identification of botanicals and quality Dietary supplements EU regulation and composition Main botanicals used in dietary supplements: examples and main species used Physiological and adverse effects of botanicals Main class of phytochemicals: chemistry and properties Functional food Novel food Summary and Challenge Sources of information Main botanicals used in dietary supplements: examples and main species used a) Boswellia serrata b) Uncaria tomentosa c) Citrus aurantium d) Vaccinium macrocarpon (cramberry) e) Echinacea spp. f) Panax ginseng g) Paulinia cupana (guaraná) h) Piper methysticum i) Sylibum marianum j) Trifolium pratense k) Hypericum perforatum l) Valeriana officinalis Physiological and adverse effects of botanicals

18 4.3. UNIT 3 Botanicals and phytochemicals Correct identification of botanicals and quality Dietary supplements EU regulation and composition Main botanicals used in dietary supplements: examples and main species used Physiological and adverse effects of botanicals Main class of phytochemicals: chemistry and properties Functional food Novel food Summary and Challenge Sources of information Main class of phytochemicals: chemistry and properties a) Terpenes b) Carotenoids c) Phytosterols d) Phenolic compounds e) Flavoids f) Anthocyanins g) Isoflavones h) Polyphenols i) Glucosinolates j) Tannins Functional food Novel food

19 4.3. UNIT 3 Botanicals and phytochemicals Correct identification of botanicals and quality Dietary supplements EU regulation and composition Main botanicals used in dietary supplements: examples and main species used Physiological and adverse effects of botanicals Main class of phytochemicals: chemistry and properties Functional food Novel food Summary and challenge Sources of information Summary and challenge a) Summary Botanical food supplement category has to be distinguished from HMPs. It s important taking in account that national requirements for some herbs can be very different each other (e.g. classification of Ginkgo biloba). Since there is no agreement between the EU counties in terms of indication and efficacy, attempts to have a real harmonization are required. One of the most important issues of botanical products is regarding harmonization on safety and quality aspects of botanicals used as ingredients of food supplements (EFSA, 2012; BELFRIT, 2014). The claims and quality of extracts of botanicals used as ingredients are not yet regulated at European level. The lack of an authorization procedure centralized at EU level for the use of botanicals and derived preparations in food, together with the mentioned troubles actually slow down the free circulation of both HMPs and food supplements within the Member States. The most urgent feature is to provide an easy and safe access for consumers to a wide variety of affordable and well regulated food supplements containing botanicals which can be bought over the counter in pharmacies, supermarkets, specialist shops and via the Internet, and it is a very urgent matter to collect comprehensive data and make this database available to doctors, pharmacists, herbalists, nutritionists and health professionals who can inform patients and consumers.

20 4.3. UNIT 3 Botanicals and phytochemicals Correct identification of botanicals and quality Dietary supplements EU regulation and composition Main botanicals used in dietary supplements: examples and main species used Physiological and adverse effects of botanicals Main class of phytochemicals: chemistry and properties Functional food Novel food Summary and challenge Sources of information a) Summary Phytovigilance maintains surveillance of HMPs by requiring prompt reports from manufacturers of all adverse effects brought to their attention and by reports from physicians and patients. This supervision is not possible with food supplements because pre-marketing safety testing is not required. There is no mandatory requirement for manufacturers of supplements to record and investigate adverse effects they might receive. The distribution and widespread sale of adulterated products and the marked increase in misleading promotional claims on the Internet demand prompt action to protect the public health. Vigorous and concerted action is needed to educate the public about the critical need for new regulatory safeguards and for government funding to implement them.

21 4.3. UNIT 3 Botanicals and phytochemicals Correct identification of botanicals and quality Dietary supplements EU regulation and composition Main botanicals used in dietary supplements: examples and main species used Physiological and adverse effects of botanicals Main class of phytochemicals: chemistry and properties Functional food Novel food Summary and challenge Sources of information b) Weekly challenge Choose three plant species, used in three different productions. Describe the main class of phytochemicals that belong to them. And share your questions and conclusions on the Forum.

22 4.3. UNIT 3 Botanicals and phytochemicals Correct identification of botanicals and quality Dietary supplements EU regulation and composition Main botanicals used in dietary supplements: examples and main species used Physiological and adverse effects of botanicals Main class of phytochemicals: chemistry and properties Functional food Novel food Summary and challenge Sources of information Sources of information 2008/911/EC: Commission Decision of 21 November 2008 establishing of a list of herbal substances, preparations and combinations thereof for use in traditional herbal medicinal products Applequist W The identification of medicinal plants. A handbook of the morphology of Botanicals in commerce. St Louis, MO: Missouri Botanical Garden Press. BEL.FR.IT. list Committee for Herbal Medicinal Products (HMPC). European Medicines Agency. ral_content_ jsp Compendium of Botanicals new edition. EFSA, Compendium of Botanicals new edition. EFSA, Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use Directive 2002/46/EC of the European Parliament and of the Council of 10 June 2002 on the approximation of the laws of the Member States relating to food supplements

23 4.3. UNIT 3 Botanicals and phytochemicals Correct identification of botanicals and quality Dietary supplements EU regulation and composition Main botanicals used in dietary supplements: examples and main species used Physiological and adverse effects of botanicals Main class of phytochemicals: chemistry and properties Functional food Novel food Summary and challenge Sources of information Directive 2004/24/EC of the European Parliament and of the Council of 31 March 2004 amending, as regards traditional herbal medicinal products, Directive 2001/83/EC on the Community code relating to medicinal products for human use Guidance policies to promote the responsible commerce of herbal products. American Herbal Products Association (AHPA), July Guidelines for good agricultural and hygiene practices for raw materials used for herbal and fruit infusion. EHIA, topic/botanicals.htm Verified Botanical Reference Material The American Herbal Pharmacopoeia (AHP)

24 4.4. UNIT 4 Business strategies for the online market: web and social Online sale, e-trading Social network as opportunities to promote the enterprise How to set and manage a social campaign How to write and promote effective content Summary and Challenge Sources of information 4.4 UNIT 4 - Business strategies for the online market: web and social Online sale, e-trading a) The Social Networks for companies b) Types of campaign Social network as opportunities to promote the enterprise a) Use of Social Networks for marketing b) Conversation and amplification rate c) Facebook d) Google + e) Linkedin

25 4.4. UNIT 4 Business strategies for the online market: web and social Online sale, e-trading Social network as opportunities to promote the enterprise How to set and manage a social campaign How to write and promote effective content Summary and Challenge Sources of information How to set and manage a social campaign a) Configuring campaigns b) Structure of Facebook campaign How to write and promote effective content a) Targeting b) Budget programming c) Placement d) Offers e) Listing to optimize creative content f) Redeploy your budget

26 4.4. UNIT 4 Business strategies for the online market: web and social Online sale, e-trading Social network as opportunities to promote the enterprise How to set and manage a social campaign How to write and promote effective content Summary and Challenge Sources of information Summary and challenge a) Summary This unit allows the learner to know: Why companies should use social networks to improve business. Increase customer confidence in the company Brand. Improve the user's buying process. Understand different Types of campaigns. Use the Facebook tools to create effective advertising. Measure the involvement with the user. The Use of Social Networks for marketing. Know Strengths and weaknesses of the most used social networks. How to structure the Facebook campaigns. Create different campaigns for each advertising goal. Organize your ad groups according to the public. Make an offer for your goal. To do a list to optimize creative content. Redeploy your ADS s budget.

27 4.4. UNIT 4 Business strategies for the online market: web and social Online sale, e-trading Social network as opportunities to promote the enterprise How to set and manage a social campaign How to write and promote effective content Summary and Challenge Sources of information b) Challenge 1. Locate on Facebook at least 3 different types of sponsored ads. 2. Locate on LinkedIn at least 1 sponsored ad. 3. Find at least 3 Facebook pages using sponsored ads and have more than 1000 Fans or Followers. And share your questions and conclusions on the Forum.

28 4.4. UNIT 4 Business strategies for the online market: web and social Online sale, e-trading Social network as opportunities to promote the enterprise How to set and manage a social campaign How to write and promote effective content Summary and Challenge Sources of information Sources of information This unit information has been created with the collaboration of the consultant Claudio Ucchedu

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