Friday, April 19, 2024

PULPIT: Marketing process not agreed yet

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The Farmers Weekly editorial, When industry good goes bad, made some interesting observations about the Red Meat Story and Taste Pure Nature, however, it also demonstrated a misunderstanding of the process.
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It is far too early to suggest the meat companies and Beef + Lamb New Zealand have failed to reach an agreement on the rollout. 

Agreeing the detail is the whole point of the process we are in.

Different players in any sector have different perspectives, products and channels to market. 

The fact we don’t always agree on the precise detail does not mean the industry is broken or disunited.  

We all agree on the broad principles of Taste Pure Nature and we’re committed to making the rollout work.

At a special workshop in April, B+LNZ received unanimous support for the Origin Brand and high-level, go-to-market strategy from processing companies. 

This level of support is a first for our sector.

This backing also shows the level of support and buy-in to the approach that we have taken and the realisation of the potential opportunity.

Farmers have also been supportive throughout this process and of the brand itself.

Farmers tell us they feel pride, aspiration, optimism and they have a sense that everyone is working collectively for the good of the sector.

However, the sector has been clear from the outset that we would jointly develop an activation plan – and that is what we are doing. 

This is a collaborative and iterative process commonly used in global brand development around the world to produce sector-specific action plans. 

Throughout this process we have gathered evidence to support the approach and direction of the Origin Brand and strategy.

Building the activation plan is no different and, like the underpinning brand, will benefit from the input of our processing partners and their in-market insights.

So, what does this look like?

Following a robust analysis B+LNZ and the processing companies have initially identified China and the United States and within them a handful of cities that offer the most potential.

Over the coming months B+LNZ will provide the companies with opportunities for input before we come together to make an informed, collective decision. 

After all, this is not B+LNZ’s decision to make alone.

Right now the process we are going through is to get clarity on what we will do and how we will do it.

The next question will be about how we resource that and finally agreeing the detailed activation plan with the sector.

The discussion that is taking place now around where the brand is activated is very similar to the process other sectors have gone through when setting up a whole-of-sector approach. 

For instance, closer to home, Hawke’s Bay winegrowers who produce cabernet and syrah in a warmer climate got behind the decision to position NZ wine predominantly for its cool climate characteristics because they recognised the industry needed to work together as one.

It’s also important to understand the principles behind the Origin Brand, in particular, the marketing and how it links with the existing activities of exporters.

The Origin Brand has been designed to complement all producer and exporter brands, both existing and new. 

In each pilot market we envisage precise, targeted marketing. 

This is not a big-bang approach because we know we have a responsibility to invest farmers’ money wisely and spend their funds where we anticipate the greatest returns.

We also expect that individual producer brand owners will continue to invest in their own unique propositions over and above this activity.

Subject to the outcome of the farmer consultation, we hope to have about $9 million to invest in Taste Pure Nature, which will be a combination of the proposed extra levies raised and current baseline funding.

As a sector our future lies in driving a higher premium for our products. 

Our research shows that country and place of origin is a primary tool consumers, retailers and food service use to decide where to buy their products from. 

Origin branding is also a platform off which greater value can be driven.

Our existing and emerging competitors are investing significantly in differentiating themselves and winning.  

Australia, for example, invests about $70m a year in marketing its red meat True Aussie brand and Ireland is investing in its Origin Green sustainability programme. 

We will not stand a chance if we do nothing.

In fact, it’s likely we’ll slip behind our competitors.

We believe we have the most authentic story to tell.

Farmers now have a say by attending one of B+LNZ’s consultation meetings over the course of the next three weeks.

We need to make this decision together and that’s the goal everyone is working towards achieving.

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