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This case is a study on the honey industry in New Zealand

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Introduction

This case is a study on the honey industry in New Zealand. By analyzing the case, three market segments for honey can be identified based on the types of customers. The first segment of customers is the consumers, while the second and third segments are the retailers and industrial buyers. These three market segments show different behaviours in their usage patterns, purchase patterns and attitudes towards the product. Consumers Consumers represent a small but significant market segment for the honey industry. They purchase honey mainly for household consumption. For consumers, honey is most commonly consumed in its unprocessed state, such as liquid, crystallized or even in the comb. Because of its sweetness, honey is also greatly used as a bread spread or on other baked products. Honey can also be used as a cooking agent, as we can see that over 50 per cent of households in New Zealand use it regularly in their cooking. In baking, honey can serve as a substitute for sugar as it has an advantage of drying out more slowly and has a lesser tendency to crack, and it also offers an improved aroma. It may not be well known, but honey can also be used as a medicine to treat certain ailments or applied to wounds. ...read more.

Middle

Retailers This group of customers purchase honey for the purpose of reselling it to other consumers. Retailers can be separated into two main groups, which are independents and supermarkets. Independent retailers are self-reliant outlets such as dairies and small supermarkets. These retailers depend on the sale of foodstuffs, such as honey, for their income. Another kind of independent retailers would be such as tourist shops and service stations which sell honey as a secondary product, alongside their main products. The tourist shops usually sell honey as a souvenir from New Zealand for tourists to bring home. Supermarkets are the major distributing channel for honey. The case study reveals that 85 per cent of the retail market is dominated by supermarkets. Owners or managers of retail outlets make their purchase decisions without much reference to the head office. Most just purchase honey on the spot from local producers who supply directly to the retail outlets. Marketing Implications In order to implement a successful marketing strategy, it is important to identify whether the customers are the end users or merely just the payer and buyer. This is because different strategies are used to appeal to each category. First, there is the pull marketing strategy, which appeals directly to the end users. And secondly, there is the push marketing strategy, where the marketer appeals to the buyers to purchase the product and then promote it to the end users. ...read more.

Conclusion

Therefore, honey producers need to implement strategies that would attract the consumers into purchasing their honey. The pull marketing strategy requires high usage of advertising and consumer promotion in order to build up consumer demand for the honey. When a pull marketing strategy is successful, consumers would demand for the honey from their retailers, who would then ask from the honey producers. Honey producers have to think of the best way to advertise their honey. One solution would be to use the Product Benefits advertising. In this kind of advertisement, honey producers must make known to consumers the features and major benefits of their honey. For example, a honey producer may advertise that its honey is produced by queen bees and is greater in flavour. Or since consumers prefer honey that is easier to spread on bread, the honey producer may take advantage of that factor and advertise that its honey is more liquid in texture; therefore it is easier to spread. Since brand is not an issue, plus consumers make purchase decision based on price, colour and texture, honey producers should differentiate their products from others. This can be done either by charging a cheaper price compared to competitors or producing honey which has the colour and texture based on consumer's preference. For example, consumers prefer honey that is easier to spread on bread. Therefore, honey producers can appeal to these consumers by producing honey which is less stiff in texture. ...read more.

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