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Branded Produce
Building Consumer EquityQualitySafetyTrust
Product differentiation – attributes of the product that are difficult for other like products to emulate
A product brand “is the combination of name, words, symbols or design that identifies the product and its company and differentiates it from competition.”
Source: Giddens, Nancy. “Building Your Brand.” Ag Decision Maker, Iowa State University. http://www.extension.iastate.edu/agdm/wholefarm/html/c5-50.html
Processed Brands
• Some processed brands continue to be successful– Dole– Red Gold Tomatoes
• http://www.redgold.com/our_family/history.html
– Ocean Spray• http://www.oceanspray.com/
Some well-known brands are in trouble
Challenges with international sourcingInternational trade disputesEroding brand value
Commodity groups making significant effort to develop their brands(more on that later)
Extending from Processed Products
• Declining demand for processed vegetables
• Rising demand for fresh
• Build on name recognition previously developed
Green Giant Fresh
Cross merchandisingPutting brands togetherfor new product concepts
Chips & salsaWine & cheeseStrawberries and shortcake
+
Line Extensions
• Brands developed for one product (broccoli) are extended into further lines and products
• More shelf space• More retail exposure• Challenge of new
slotting fees
Merchandising
• In-store promotions, point-of-purchase, coupons, displays
• Category Management – inventory placement, point-of-purchase promotion, and display with a view toward maximizing category performance
Merchandising
• Use of contests• Cross merchandising• Seasonal displays• Working with specific
or niche commodities• Working with local
producer groups
Northwest Organic Pear Merchandising Sets
Merchandising• Also major role played
by promotion commissions– Vidalia Onions– Idaho Potato Commissi
on – National Watermelon
Promotion Board – US Highbush Blueberr
y Council
• Substantial emphasis on product health
Merchandising Health Benefits• Product attributes
– Blueberries, red wine & antioxidants
– Watermelon/tomato & lycopene, heart healthy
– Nuts & protein, Emerald Nuts
• Production Systems– Organic, natural,
IPM
National Promotion Initiatives
• USDA 5-a-day (now 5 to 9-a-day)
• Generic promotion in-store programs
• School nutrition efforts targeting better child health
National Promotion Initiatives
• Farm to School
• USDA Fresh Fruit and Vegetable School Access program
• Food and Nutrition Assistance Program
Branding State Produce
• Typically supported by state departments of agriculture
• State-retailer merchandising partnerships
Branding State Produce
• Grow local-buy local programs.• Is there a justification for public funds
promoting local produce?– Infant industry/local economic development– Security for local food supply– Off set promotion from other production
regions– Customer product and information demands
Programs in Kentucky
• Kentucky Department of Agriculture
• http://www.kyagr.com/• Labels• GAP training
certification• Restaurant Rewards
• Value-added food products
• Web site marketing• Farmers Markets• Farm-to School
Program
KDA Programs• Farm to School
– 702 schools in 60 Kentucky districts buying local KY foods
– Impacting 363,819 students– $1.6 million invested in 2011-12 (3.17%)
Source: USDA Farm to School Census
Do state loyalty programs work?
• In some cases, Eastwood study (TN)– Recognition positively affected by income,
family size, age– Recognition negatively affected by occupation,
gender (men), college
• SC study estimates a 6:1 benefit cost• Popular with grocery and restaurant retailers
looking to make a connection locally