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Supporting food SMEs: Hungaricool product competition

SUMMARY

One of the important missions of SPAR Hungary is to support Hungarian food companies, Hungarian producers and small entrepreneurs. However, getting these SMEs to be listed to a retail chain as large as SPAR involves numerous, almost insurmountable challenges.

This was the reason while the idea was born to give innovative Hungarian small businesses the opportunity to become suppliers within the framework of the Hungaricool product competition, so that their products can be placed on the shelves of SPAR supermarkets. SPAR is helping them to level up, while at the same time this effort also meets the consumers’ increasing demand for Hungarian products.

The idea was implemented through a product competition, in which 8-10 innovative SME products are listed in INTERSPAR stores nationwide each year. ContentPlus worked on the B2B leg of the campaign in 2022-2023. Hungaricool has a clear goal to educate the winning SMEs, support their leveling up and prepare them to be able to enter SPAR’s large assortment and to successfully compete in the market as a business.

B2B STRATEGY

Challenge

The challenge from a B2B perspective was the listing of smaller Hungarian SMEs and their products in SPAR stores, which required the development of a completely new purchasing, sales and marketing system by SPAR.
Encouraging small domestic entrepreneurs to enter the product competition despite the difficult economic conditions also proved to be a major challenge.

Idea

A product competition supported by a mentoring programme for innovative, agile Hungarian SMEs who are willing to take action for business success, who want to step up to the level of the big brands.
The competition will provide an opportunity for continuous communication from the announcement of the winners till the launch of their products.

Execution

Each season (competition), 8-10 Hungaricool winners will have their products introduced into the INTERSPAR chain; SPAR will provide them with professional training and K&H Bank will provide them with financial support to help them scale up and build their businesses for long-term success. The aim was to prepare the companies to become part of SPAR’s large assortment and to successfully position themselves as commercially competitive companies in the market as stronger brands because of this support.

Characteristics of the B2B target group

Hungaricool’s potential supplier has a high quality, exciting and marketable product, produced in Hungary, that is new or, if it already exists, not yet widely available in retail chains. They are also sustainable, innovative and motivated to enter the market or to upgrade.

The B2B campaign objective

To increase the number of potential suppliers (SMEs) throughout the programme and once an SME is listed, help these companies to level up through mentoring, training and development, so that they can enter in the SPAR national large assortment and market themselves in a competitive environment thanks to the Hungaricool programme.

EXECUTION

Phases of the campaign

While each season was slightly different, the communication for each season can be broken down into four major phases:

Phase 1: recruitment 

Phases 2 to 3: selection, background work 

Phase 4: announcement of results, market launch

Tools and channels used

fI. Purchased media package:

  • TV : Mokka Talk, Facts Plus content cooperation, monoblock (prime time period)
  • Online: banner, paid PR article, sponsor blog, native article, tag sponsorship

II. Organic PR:

  • K&H and SPAR press releases

III. SPAR’s own channels:

  • Offline
  • Flyer (SPAR, INTERSPAR)
  • Store radio
  • B1 poster
  • Dedicated gondola
  • Billboard
  • Online:
  • Hungaricool.hu
  • Spar.hu
  • SPAR Facebook page
  • SPAR Instagram page
  • SPAR Youtube channel
  • Hungaricool Facebook page
  • SPAR Newsletter
  • I Love Hazai podcast

IV. Influencer cooperation 

V. Social advocacy – former Hungaricool winners and their companies on social media

VI SPAR Supplier Academy:

  • sparakademia.hu closed website
  • webinar series
  • cooperation with Budapest Metropolitan University
  • blog
  • consultations with experts

VII Events

  • Season opening press event 
  • SPAR Marketing Bootcamp two-day conference (part of SPAR Supplier Academy)

The aim of the purchased media package detailed in Section I. was to increase brand awareness and reach the widest possible potential supplier base, which is why we opted for high profile media coverage. This was strenghtened by the press releases sent out organically (II).

We also communicated to those who had already shown interest or commitment to SPAR and/or Hungaricool (III). We also launched the I Love Hazai podcast, a show specifically targeting SMEs in the food industry, as it’s topics focus mainly on upskilling and business development.

When engaging influencers (IV), we looked for opinion leaders whose target audience belongs to the SME sector, partially covering the target group (SMEs from other sectors also follow these influencers).

The SPAR Supplier Academy (VI) is a unique mentoring programme that helps suppliers achieve business success in the long term. The target group here is the narrowest; this programme is for SMEs who have already become SPAR suppliers.

SPAR Supplier Academy Activities

Both events (VII) were private, so the target group was limited to suppliers, collaborating influencers and members of the press. 

Campaign stages

01.08.2022 – 05.10.2022: Research and planning

2022.10.06 – 2023.05.31: Hungaricool product competition, with three phases:

1. Recruitment (06.10.2022 – 12.6.2022)

We published the application deadline, explained the benefits of the programme and shared the experiences of previous winners.

2. Selection and training of winners (06.12.2022 – 12.04.2023)

Entries were now closed and training of the winning companies had started.

3. Announcement of results and training (13/04/2023 – 01/06/2023)

We have announced the winners of the 2023 competition, continued their training and prepared them for the business challenges ahead.

RESULTS

For the fourth season, 179 entrepreneurs enrolled with 301 products, an increase of 61% and 52% compared to the previous third season. This was the highest ever number of entries in the history of the competition.

Participation in Hungaricool competition

The well-chosen media buying and a multi-channel communication strategy worked. The Supplier Academy also helped to change the perception of SPAR in the eyes of SMEs in a positive direction.
This higher than expected number of applications was due to the extensive multi-channel communication. The well-chosen media buying and media strategy worked, and targeted outreach proved effective. The message reached the small and medium sized food businesses who saw potential and a way out through the Hungaricool product competition.

According to SPAR’s survey conducted in June 2023, 96% of SPAR suppliers agreed that SPAR supports Hungarian SMEs.

According to SPAR’s survey in June 2023, 93% of SPAR suppliers agreed that an entrepreneurial community has been established within the SPAR Supplier Academy.

SPAR image among listed SME's

Client recommendation

“Hungaricool is a success story. In the fourth season, which has just ended, 179 companies entered the competition with a total of 301 products. Thanks to the success of the programme so far and SPAR’s continued and extensive marketing communication support, the product competition has become widely known to local businesses over the past four years, with more and more committed and prepared applicants coming to the starting line. This is necessary as SPAR has very strict criteria for the products it markets. The winning products selected have to be those that will deliver a lasting result in the markets and meet the needs of the customers.” – said Mark Maczelka, Head of Communications at SPAR Hungary.