Invest in Branding and Direct Marketing

Consumer desire should always be at the core of any producers branding activity. To that extent, producers or marketers should consider the desires and/or values of their consumers to ascertain the value of various provenance elements against these in order to determine the ultimate value. This has potential to assist with deciding which assets are worthy of greater communication or prominence on packaging.

Branding – What is it?
A brand is a distinguishing symbol, mark, logo, name, word, sentence or a combination of these items that companies use to distinguish their product from others in the market. In simple terms, it is your unique identity that consumers know you by. The identity is communicated through mediums such as packaging, websites, and advertising and, in some cases, farm gate and visitor centres.

A brand is a necessary evil, they add a layer of complexity to the buying decision, but they also allow for routines (‘Ah, there’s my brand’ or, ‘oh yes, I’ve heard of that one’); such habits make buying easier- automatic even. A brand is how food producers can strive to build a loyal following but also what consumers use to recommend or discuss with others.

What it is not?
Branding is not just a logo. Branding is what a consumer associates with or feels when they see a product on the shelf or in market. Branding is not defining a product category. A brand is, or should be, unique to a particular product and create a personality that consumers will remember or connect with. In most product categories these days, consumers are spoilt for choice and at retail level only have a limited time to make their decision.

For food producers, the process of branding involves creating a unique product name and image which, in the consumers mind, aims “to establish a significant presence in the market that attracts and retains loyal customers.

Consumers and Brands
Consumer desire to know more about the origin of their food has moved beyond country of origin labelling alone. Consumers are presented with more food choices than ever before from both retail private labels and both small and big brands. The challenge for producers to attract both brand awareness and loyalty has never been greater.

The rising consumer demand for more information to guide their food choices opens the door for producers to respond by increasing their own consumer communications and in doing so establish their value proposition to differentiate their product. By ensuring the proposition is meaningful they will build credibility and create a lasting favourable impression which will in turn deliver customer loyalty and ongoing success.

A global food landscape and a rise in the availability of information means provenance as a food term has moved well beyond place and now provides producers with a broadened central theme to highlight their uniqueness in terms of other elements linked to production and processing which is referred to as ‘social provenance’, and reputation and perception, known as ‘cultural provenance’.

Consumers are impressionable and growing consumer trends highlight an emotional connection to food that impacts purchasing decisions. Producers are moving beyond relying on attractive logos alone and those who communicate provenance values clearly and quickly will compel purchase and drive loyalty.

Producers ‘calling out’ a combination of provenance values on packaging are likely to achieve a price premium on shelf, compared to those that call out either one or none. Each provenance element appears to be valued differently.

• Valuable element variables include, but are not limited to:
• Reputation – depends on the notoriety of the consumer if using as an endorsement.
• Place – if a county has more brands leveraging from the same ‘place’ that are of a higher quality, the value appears to be higher and more consistent than counties less well known for production of a product.
• Official production certifications such as organic.
• Food awards.
• Public identity ( food influencer) endorsement.

The use of provenance values can validate a price premium.

The Halo effect of the provenance element of place and the production method of organics appear to add immediate value to the bottom line of products and offer a premium pricing opportunity, in particular to small-scale producers or those operating in a commodity market seeking a price premium. However, consumer trends have a significant impact on the weight of various provenance values and may change both in time and across various country markets at any time.

A strong provenance identity can offer some brand protection, especially when the value is tied strongly into unique production (social) elements such as organic or farmed. However, the author notes that ‘protecting’ is as important as marketing provenance, and where an industry or regional framework is not in place, producers should consider various means of external validation to authenticate or/and to enhance their credibility.

These three provenance values as central themes that act as a guide in assisting producers develop brand strategy or further develop their produce by assessing the value of associating with, and the subsequent pricing proposition offered, by leveraging from one or more of the following provenance elements: spatial, social and cultural.