Download maori branded products project

Mana Taiao Limited
PO Box 1189 Ellerslie
Auckland
Tel: (09) 373 2492
Web: www.manataiao.com
MAORI BRANDED PRODUCTS PROJECT
Singapore, Canada, USA, Germany
By: Phillip Klap
For: New Zealand Trade and Enterprise
Date: June 2006
Contents
Introduction ............................................................................................................................ 1
Executive Summary................................................................................................................. 1
Purpose of the Study ............................................................................................................... 2
Objectives...............................................................................................................2
Methods ................................................................................................................................. 3
Recruitment Procedures ............................................................................................3
Participants .............................................................................................................3
Data Collection ........................................................................................................3
Results – Overall ..................................................................................................................... 4
Summary of Findings................................................................................................4
Importers / Distributors ............................................................................................4
Retailers / Supermarket Buyers..................................................................................5
Singapore ............................................................................................................................... 6
Key Themes and Trends............................................................................................6
Summary of Findings................................................................................................6
Importers / Distributors ............................................................................................6
Retailers / Supermarket Buyers..................................................................................7
Advertising / Brand Consultants .................................................................................7
Canada................................................................................................................................... 8
Key Themes and Trends............................................................................................8
Summary of Findings................................................................................................8
Importers / Distributors ............................................................................................8
Retailers / Supermarket Buyers..................................................................................9
Advertising / Brand Consultants .................................................................................9
USA ..................................................................................................................................... 10
Key Themes and Trends.......................................................................................... 10
Summary of Findings.............................................................................................. 11
Importers / Distributors .......................................................................................... 11
Retailers / Supermarket Buyers................................................................................ 12
Advertising / Brand Consultants ............................................................................... 12
Germany .............................................................................................................................. 13
Key Themes and Trends.......................................................................................... 13
Summary of Findings.............................................................................................. 13
Importers / Distributors .......................................................................................... 13
Retailers / Supermarket Buyers................................................................................ 14
Advertising / Brand Consultants ............................................................................... 14
i
PART
1
Introduction
This summary report follows up on some earlier generic research by NZTE in the same markets
and serves to confirm, by focusing on a specific product (food and beverages in this case) that
much work is needed to raise the profile of Maori products. This report is a very useful guide in
identifying the magnitude of the task ahead if the use of "Brand Maori" as a product point of
differentiation is to become a marketing tool particularly in Canada and Singapore. The
emphasis on quality of product above branding in these markets is a sobering lesson to absorb.
To "crack" these markets will require a huge educative effort and one that probably needs to
coat tail on other promotional efforts aimed at promoting New Zealand in the first instance and
then inside that, Maori culture and products/services. The need for a coordinated strategy is
obvious.
However, what is encouraging about this research is the identification of a very positive response
from the German and USA markets where receptiveness to the idea of "Brand Maori" and the
willingness to assist in promotion and similar is very pleasing. The USA result is particularly
encouraging because with the largest economy in the world the USA market presents itself as an
obvious target for niche marketing using "Brand Maori".
The full report is held by the Waka Tohu project team and we are happy to answer any queries
you might have. These queries should be forwarded to us by email ([email protected]) in
the first instance.
Buddy Mikaere
Waka Tohu Project Leader
September 2006
1
PART
2
Executive Summary
This report presents findings from a market research project commissioned by Landcare Research
Limited and carried out by New Zealand Trade and Enterprise to assess the potential added value
of indigenous branded products in Singapore, Canada, USA, and Germany.
This study focused on the knowledge and opinions of three target groups within the food and
beverage industry including importers / distributors, retail buyers, and advertising / brand
consultants. Participants were questioned about Maori knowledge, Maori Branded Products
(MBPs) as a sales and marketing tool, pricing, and product differentiation advantages.
In general the research showed that knowledge about Maori culture is limited and indicates that
brand promotion should be preceded with a cultural education promotion in order for consumers
to establish a link to the brand. Although Maori culture does appear in tourism there was no
perceived link between Maori culture and indigenous Maori food. Mainstream retailers did not
generally consider Maori Branding Products to be an effective marketing tool. Those who did
tended to represent smaller niche marketing specialty stores. Retailers did not always
understand the MBP concept but often emphasized that such products should be traditional foods
or foods prepared in a traditional way.
Knowledge of Maori culture is limited and indicates that brand promotion should be
preceded with a cultural education promotion in order for consumers to establish a link
to the brand.
The New Zealand brand for food and beverage products is well established. However results of
the survey suggested that quality is the prime consideration and branding alone is not enough to
attract consumer interest. Retail buyers indicated that genuine indigenous Maori products with
attractive packaging and taste would attract prices considered at the top end of the market.
1
PART
3
Purpose of the Study
OBJECTIVES
The purpose of this study was to assess the potential added value of indigenous branded
products, in particular Maori Branded Products (MBPs) in Singapore, Canada, the United States of
America, and Germany.
2
PART
4
Methods
RECRUITMENT PROCEDURES
The four countries chosen to participate in the research project were Singapore, Canada, USA,
and Germany. Respondents were selected from industry sectors in these countries from three
target groups:
•
Food and beverage importers / distributors
•
Food and beverage retail / supermarket buyers
•
Brand consultants
PARTICIPANTS
The study sample comprised up to 10 food and beverage importers / distributors, up to 10 food
and beverage retail / supermarket buyers, and up to three advertising / brand consultants in
each country.
DATA COLLECTION
Survey questionnaires were completed with the target groups. Participants were asked about:
•
Maori knowledge
•
MBPs as a sales and marketing tool
•
Pricing
•
Product differentiation advantages
3
PART
5
Results – Overall
SUMMARY OF FINDINGS
The summary results for the importers / distributors and retail buyers are presented below.
Importers / Distributors
Singapore
Canada
USA
Germany
%
%
%
%
Item
Y
N
Y
N
Y
N
Y
N
Maori knowledge
1.
Are aware that Maori are the
indigenous people of New Zealand
2.
Can communicate two things that
come to mind when they hear the
100
-
90
10
-
100
100
-
100
-
90
10
-
100
100
-
40
60
50
50
60
40
55
45
70
30
67
33
100
-
-
-
30
70
30
70
70
30
64
36
word “Maori”
MBPs as a sales marketing tool
1.
MBPs considered good sales
promotional tools
2.
Believe MBPs need volume to achieve
consumer recognition
Pricing
Given two equal quality products would
MBP have sufficient positive differentiation
for retail managers to pay a premium?
4
PART
5
Results – Overall, continued
Retailers / Supermarket Buyers
Singapore
Canada
USA
Germany
%
%
%
%
Item
Y
N
Y
N
Y
N
Y
N
Maori knowledge
1.
Are aware that Maori are the
indigenous people of New Zealand
2.
Can communicate two things that
come to mind when they hear the
100
-
100
-
70
30
80
20
100
-
60
40
60
40
90
10
40
60
25
75
60
40
60
40
40
60
-
100
60
40
60
40
30
70
25
75
70
30
-
-
20
80
-
100
70
30
40
60
40
60
33
67
60
40
40
60
50
50
67
33
90
10
80
20
70
30
33
67
30
70
-
-
word “Maori”
MBPs as a sales marketing tool
1.
MBPs considered good sales
promotional tools
2.
Currently use IBP*/MBP for
promotional purposes
3.
Would organize special MBP
promotions and make shelf space
available
*Indigenous Branded Products
Pricing
Given two equal quality products would
MBP have sufficient positive differentiation
for retail managers to pay a premium?
1.
Believe there is enough product
differentiation for consumers to pay a
premium for an MBP
Product differentiation advantages
1.
Believe MBPs would create special
consumer interest
2.
Believe MBPs would need volume to
achieve consumer recognition
5
PART
6
Singapore
KEY THEMES AND TRENDS
Key findings as a result of the survey conducted with the target groups in the food and
beverage industry in Singapore include:
•
The New Zealand name is very well known with a link identified between the qualities
associated with New Zealand (i.e. clean, green) and the products that are exported
•
There is some awareness of Maori and Maori culture, but those in the trade believed
this awareness is low in the general population
•
40% of importers believe that MBPs could be effective promotional tools but would
require a high volume to achieve recognition, and only 30% of respondents believed
their customers would pay a premium price for MBPs
•
The majority of retailers believe that MBPs would not be an effective marketing tool,
and that there is no scope for a MBP to command a higher price
•
Maori culture is seen as an effective tool to promote New Zealand as a tourist
destination, but not for creating competitive advantages for food and beverage products
•
The food and beverage market is highly price sensitive and demands the highest quality
for the lowest price. Therefore MBPs will only fetch a premium if they fill a gap in the
market place, are differentiated from existing products, and fulfill certain lifestyle
aspirations. The sustained success of MBPs will only be achieved if the brand promises
are delivered through high quality products.
SUMMARY OF FINDINGS
Importers / Distributors
The following importers / distributors in Singapore were targeted for the survey:
•
Hock Hua Group
•
Singapore Food Industries
•
Giorgio Ferrari
•
Ban Choon Marketing PTE Ltd
•
NZ Gourmet
•
Sing Ta Trading
•
Gold Kiwi Asia
•
Marama Valley
•
Ben Foods
•
Hong Tong Bee
Item
%
%
Yes
No
100
-
100
-
Maori knowledge
1.
Are aware that Maori are the indigenous people of New Zealand
2.
Can communicate two things that come to mind when they hear
the word “Maori”
MBPs as a sales marketing tool
1.
MBPs considered good sales promotional tools
40
60
2.
Believe MBPs need volume to achieve consumer recognition
70
30
30
70
Pricing
Given two equal quality products would MBP have sufficient positive
differentiation for retail managers to pay a premium?
6
PART
6
Singapore, continued
Retailers / Supermarket Buyers
The following retailers / supermarket buyers in Singapore were targeted for the survey:
•
Cold Storage
•
The Cellar Door
•
Canterbury of New Zealand
•
7-Eleven
•
Supernature
•
Singapore Cricket Club
•
CK Tangs
•
Grand Copthorne Waterfront Hotel
•
Takashimaya Singapore Ltd
Item
%
%
Yes
No
100
-
100
-
Maori knowledge
1.
Are aware that Maori are the indigenous people of New Zealand
2.
Can communicate two things that come to mind when they hear
the word “Maori”
MBPs as a sales marketing tool
1.
MBPs considered good sales promotional tools
40
60
2.
Currently use IBP/MBP for promotional purposes
40
60
3.
Would organize special MBP promotions and make shelf space
30
70
20
80
40
60
available
Pricing
1.
Given two equal quality products would MBP have sufficient
positive differentiation for retail managers to pay a premium?
2.
Believe there is enough differentiation for consumers to pay a
premium for MBPs
Product differentiation advantages
1.
Believe MBPs would create special consumer interest
50
50
2.
Believe MBPs would need volume to achieve consumer recognition
70
30
Advertising / Brand Consultants
The following brand consultants in Singapore were targeted for the survey:
•
BBS PTE Ltd
•
DDB Singapore
•
Yound and Rubicon
Comments included:
•
Currently little awareness of MBPs, but a growing understanding of Maori culture
•
Maori heritage and culture could be used as a valuable marketing tool
7
PART
7
Canada
KEY THEMES AND TRENDS
Key findings as a result of the survey conducted with the target groups in the food and
beverage industry in Canada include:
•
New Zealand is well known as a tourist destination, but not for food and beverage
products
•
Some awareness of Maori culture in a general sense
•
There is a place in the Canadian marketplace for indigenous branded products, but
MBPs would not necessarily increase turnover or command a higher price
•
A considerable investment would be required in order to educate the consumer and
keep them engaged
•
Success of MBPs will only be achieved if the brand promises are delivered through high
quality products
SUMMARY OF FINDINGS
Importers / Distributors
The following importers / distributors in Canada were targeted for the survey:
•
Dovre Import and Export Ltd
•
Big Sky Marketing Co Ltd
•
Dana Lee Consulting
•
Pro Organics
•
Snow Cap Enterprises
•
The Marine Group
•
Worldwide Specialty Foods
•
Planetvancouver.com
•
Horizon Distributors
•
Far Met Importers
Item
%
%
Yes
No
90
10
90
10
Maori knowledge
1.
Are aware that Maori are the indigenous people of New Zealand
2.
Can communicate two things that come to mind when they hear
the word “Maori”
MBPs as a sales marketing tool
1.
MBPs considered good sales promotional tools
50
50
2.
Believe MBPs need volume to achieve consumer recognition
67
33
30
70
33
67
Pricing
Given two equal quality products would MBP have sufficient positive
differentiation for retail managers to pay a premium?
Product differentiation advantages
Believe MBPs would create special consumer interest
8
PART
7
Canada, continued
Retailers / Supermarket Buyers
The following retailers / supermarket buyers in Canada were targeted for the survey:
•
Albion Fisheries
•
Disley Foods
•
Cru
•
Major the Gourmet
•
Les Amis de Fromage
•
Longo Supermarket Chain
Item
%
%
Yes
No
100
-
60
40
Maori knowledge
1.
Are aware that Maori are the indigenous people of New Zealand
2.
Can communicate two things that come to mind when they hear
the word “Maori”
MBPs as a sales marketing tool
1.
MBPs considered good sales promotional tools
2.
Currently use IBP/MBP for promotional purposes
3.
Would organize special MBP promotions and make shelf space
available
25
75
-
100
25
75
-
100
33
67
67
33
Pricing
1.
Given two equal quality products would MBP have sufficient
positive differentiation for retail managers to pay a premium?
2.
Believe there is enough differentiation for consumers to pay a
premium for MBPs
Product differentiation advantages
Believe MBPs would create special consumer interest
Advertising / Brand Consultants
The following brand consultants in Canada were targeted for the survey:
•
Natures Path
•
Fluids Communications
Comments included:
•
A substantial marketing campaign would be required for MBPs to establish the brand
•
Products would need to be significantly different in order to deliver on the promise of
the marketing campaign and survive beyond the launch
•
There may be a small niche market in Canada but Consumer education would be critical
to the development of the brand
•
Canadian indigenous products struggle in the marketplace and MBPs could experience
the same consumer indifference
•
Higher retail prices may be difficult to achieve because there is only limited knowledge
about Maori and no knowledge linking Maori to quality food products
9
PART
8
USA
KEY THEMES AND TRENDS
Key findings as a result of the survey conducted with the target groups in the food and
beverage industry in Los Angeles include:
•
The majority of distributors and retailers did not have a good understanding of the
concept of indigenous branded products
•
The advertising / brand agencies were aware of the IBP concept and believed it was an
emerging and powerful trend
•
Knowledge of Maori was low amongst distributors and retailers but high amongst
advertising / brand agencies
•
Retailers and distributors are very familiar with ethnic foods. Mexican, Caribbean,
African, and Latin American products are a huge and increasing niche in the specialty
food market in the USA
•
Mainstream food and beverage retailers and distributors are not interested in the
concept of MBPs, they are dollar-driven and require strong consumer demand before
stocking new brands
•
Product quality is the key driver of success at the premium end of the food and
beverage market in the USA
•
Branding alone is not enough to attract the interest of retailers. Superior quality,
premium packaging, ‘clean’ production and competitive pricing are all critical elements.
•
Current trend is towards ‘clean food’ such as organics, and natural, whole foods
especially products with a ‘story behind them’
•
Unlikely that MBPs could command a price premium unless the products are of superior
quality
•
A substantial amount of time and money would need to be invested in increasing
awareness of Maori in the USA if MBPs were to have any success
•
Niche opportunities exist in the wider IBP market but mainly in smaller specialty stores
10
PART
8
USA, continued
SUMMARY OF FINDINGS
Importers / Distributors
The following importers / distributors in Los Angeles were targeted for the survey:
•
Shop Natural Cooperative
•
C & S Wholesale Grocers
•
Frontier Natural Products
•
Azure Standard
•
Key Foods
•
Unified Foods
•
Millbrook
•
Alternative Sales
•
Associated Grocers of England
•
Ultimate source
Item
%
%
Yes
No
-
100
-
100
Maori knowledge
1.
Are aware that Maori are the indigenous people of New Zealand
2.
Can communicate two things that come to mind when they hear
the word “Maori”
MBPs as a sales marketing tool
1.
MBPs considered good sales promotional tools
2.
Believe MBPs need volume to achieve consumer recognition
60
40
100
-
70
30
Pricing
Given two equal quality products would MBP have sufficient positive
differentiation for retail managers to pay a premium?
11
PART
8
USA, continued
Retailers / Supermarket Buyers
The following retailers / supermarket buyers in Los Angeles were targeted for the survey:
•
Whole Foods
•
Trader Joes
•
Gelsons Markets
•
Bristol Farms
•
Southern Starz Wines
•
Krogers (owns and operates 15
•
Wild Oats
supermarket chains in the USA)
Item
%
%
Yes
No
70
30
60
40
Maori knowledge
1.
Are aware that Maori are the indigenous people of New Zealand
2.
Can communicate two things that come to mind when they hear
the word “Maori”
MBPs as a sales marketing tool
1.
MBPs considered good sales promotional tools
60
40
2.
Currently use IBP/MBP for promotional purposes
60
40
3.
Would organize special MBP promotions and make shelf space
70
30
70
30
60
40
available
Pricing
1.
Given two equal quality products would MBP have sufficient
positive differentiation for retail managers to pay a premium?
2.
Believe there is enough differentiation for consumers to pay a
premium for MBPs
Product differentiation advantages
1.
Believe MBPs would create special consumer interest
90
10
2.
Believe MBPs would need volume to achieve consumer recognition
30
70
Advertising / Brand Consultants
The following brand consultants in Los Angeles were targeted for the survey:
•
JKG Marketing
•
MacKenzie Agency
•
Mallonee & Associates
Comments included:
•
A substantial marketing campaign would be required for MBPs to establish the brand as
most Americans are not aware of Maori
•
The story behind the product and the product itself must be superior in order to
succeed
•
The concept of Maori growing and marketing their own food could be developed into a
powerful marketing tool
12
PART
9
Germany
KEY THEMES AND TRENDS
Key findings as a result of the survey conducted with the target groups in the food and
beverage industry in Germany include:
•
The image of Maori in Germany is very stereotyped and clichéd. The respondents
thought of tattoos, war dances and people living in huts. Maori were often confused
with Australian aboriginals.
•
Companies generally expected the concept behond the products to be similar to ‘fair
trade’, helping Maori to earn money and live in better conditions
•
The majority of companies did not see a link between Maori culture and food products
•
They expected a Maori label on products that are considered traditional, such as
traditional food, or food prepared in a traditional way
•
Quality is considered a very important issue
•
New Zealand products have a proven reputation of being high quality and achieving
premium prices. However importers could not see what value a Maori label would add
•
A significant marketing effort and large budget would be required to introduce MBPs
SUMMARY OF FINDINGS
Importers / Distributors
The following importers / distributors in Germany were targeted for the survey:
Agro-Food Legensmittelgrobhandel
•
Josef Maier GMBH & Co KG
GMBH
•
Port International GMBH
•
Atlanta Gruppe
•
Wine-In-Motion GMBH
•
Gepa GMBH
•
Peter Paulsen Import-Export GMBH &
•
Horst Bode Import-Export GMBH
•
H.P Klughardt GMBH
•
J.G. Shutte Honig
•
Co Handels KG
•
Kurt Ehlerding Krabben &
Meeresdelikatessen GMBH
Item
%
%
Yes
No
100
-
100
-
60
40
-
-
65
35
Maori knowledge
1.
Are aware that Maori are the indigenous people of New Zealand
2.
Can communicate two things that come to mind when they hear
the word “Maori”
MBPs as a sales marketing tool
1.
MBPs considered good sales promotional tools
2.
Believe MBPs need volume to achieve consumer recognition
Pricing
Given two equal quality products would MBP have sufficient positive
differentiation for retail managers to pay a premium?
13
PART
9
Germany, continued
Retailers / Supermarket Buyers
The following retailers / supermarket buyers in Germany were targeted for the survey:
•
Alnatura
•
Karstadt Warenhaus AG
•
Alois Dallmayr KG
•
Movenpick Weinland GMBH
•
Contigo GMBH
•
Nordsee Fishspezialtaten GMBH
•
Downunder Weinkeller
•
Te-Gut-Gutberlet Stiftung & Co
•
Gourmondo GMBH
Item
%
%
Yes
No
80
20
90
10
Maori knowledge
1.
Are aware that Maori are the indigenous people of New Zealand
2.
Can communicate two things that come to mind when they hear
the word “Maori”
MBPs as a sales marketing tool
1.
MBPs considered good sales promotional tools
60
40
2.
Currently use IBP/MBP for promotional purposes
60
40
3.
Would organize special MBP promotions and make shelf space
-
-
40
60
40
60
80
20
-
-
available
Pricing
1.
Given two equal quality products would MBP have sufficient
positive differentiation for retail managers to pay a premium?
2.
Believe there is enough differentiation for consumers to pay a
premium for MBPs
Product differentiation advantages
1.
Believe MBPs would create special consumer interest
2.
Believe MBPs would need volume to achieve consumer recognition
Advertising / Brand Consultants
The following brand consultants in Germany were targeted for the survey:
•
The Brand College Project
•
Lebensmittelzeitung
•
Die Verbraucher Initiative EV
Comments included:
•
Need for thorough market research identified in order to develop a brand
•
Knowledge of Maori culture is limited among mainstream consumers and a large
amount of money would need to be invested in educational marketing
•
Limited market prepared to pay premium prices for such specialty products
•
Brand should not just be a label but a genuine Maori product with knowledge or
expertise specific to Maori behind it
This summary report was produced by WritersInc Ltd
Tel (09) 579 2641 or visit www.writersinc.co.nz
14