New Crops Newsletter
Issue No 12, July 1999.
NOTICE: Hard copies of the Australian New Crops Newsletter are
available from the publisher, Dr Rob Fletcher. Details of availability are
included in the Advice
on Publications Available.
11. Getting Together - Common Marketing Strategies
Senior Marketing Officer
Sheep and Wool Institute
Queensland Department of Primary Industries
GPO Box 3129
Brisbane Queensland 4001
Telephone: 07 3239 3251
Facsimile: 07 3239 0688
Successful marketing strategies comprise:
1. Considering the formation of a group
The advantages of getting together include:
A greater volume of product can be marketed,
A greater range of product can be marketed, including a
variety of grades or sizes,
There will be greater negotiating strength when dealing with
buyers, agents, wholesalers or retailers,
There will be less risk of a supply shortfall due to adverse
weather conditions or pests,
Costs can be shared at the various stages in the supply
chain, such as sharing harvesting equipment, packing and grading equipment
or processing equipment such as dryers or crushers and sharing the
distribution, shipping or market research costs, and
- Greater opportunities for promotion, making it more cost
effective, permitting larger budgets for promotional material
or enabling the development of a brand name.
The disadvantages include:
- A loss of flexibility, since the partners are locked into
the group strategy and individuals may miss individual
opportunities as they arise,
- A loss of independence, since group activities depend on
various people and rural producers have traditionally liked to
- There will be a delegation of decision making, requiring the
sharing of responsibility among the members, which implies
confidence in one another's ability and trust amongst the
- Sharing of commercial advantage such as knowledge of markets
or special production techniques.
Each member of the group must assess whether the disadvantages
are outweighed by the advantages.
2. Assembling the necessary components of a successful group
- To lead, make decisions, provide energy and enthusiasm and act
as the spokesperson,
- To observe members' capabilities, identify conflicts as they
develop and ensure harmony,
- To co-ordinate information, provide a focal point for
information exchange, ensure there is consistency in the
information and undertake negotiations and
- To be able to spend the time to carry out these tasks.
- Members need to be prepared to be a part of the group and
prepared to accept any disadvantages,
- Prepared to provide financial input
- Prepared to share a common vision and
- Prepared to make a long term commitment.
- Prepared to relinquish control for at least some aspects of
- Prepared to delegate responsibility for setting prices,
establishing markets, negotiating, quality control and grading,
- Prepared to share production and market information and
- Prepared to share contacts, such as trade information and
2.4 Competitive advantage
- With increased volume of production, the group has negotiating
- There is an increased range of products available,
- Risk management can be improved through more markets and more
- A continuity of supply through an extended season or reduce
variability in production.
A group needs to provide an advantage to the members which is
greater than what they perceive to be the disadvantages of membership.
Groups are dynamic and changes in membership should be expected.
The business structure should follow the strategy and be developed as the
members establish what the group's function is.
Technical skills can be bought in, so long as the group is able
to work together.
3. Developing the group strategy
3.1 Do Our Own Marketing Research (DOOR Marketing)
There are a large number of new industries and there are limited
resources for marketing research. DOOR Marketing uses Participative Action
Management to develop a program to assist producers in doing their own initial
marketing research for new industries
There are four key questions identified by producers:
The development of a Marketing Strategy entails:
Identification of products and target market segments
Establishment of prices
Agreement on promotional strategies
Definition of distributional strategies
3.2 Marketing Skills Program
Comprises a group facilitation meeting, two workshops and a
The first workshop consists of:
The second workshop consists of:
Distribution and promotion
Preparations for a market visit
Quality assurance and quality management
Preparation of a brochure for the target market
Group marketing has some definite advantages but members must
be aware of the potential disadvantages.
The group needs to be aware of the points raise above about
Champion, Commitment, Cooperation and Competitive Advantage
The group must develop a marketing strategy
People will determine the success of the group.
Any claims made by authors in the Australian New
Crops Newsletter are presented by the Editors in good faith.
Readers would be wise to critically examine the circumstances
associated with any claims to determine the applicability of such
claims to their specific set of circumstances. This material can
be reproduced, with the provision that the source and the author
(or editors, if applicable) are acknowledged and the use is for
information or educational purposes. Contact with the original
author is probably wise since the material may require updating or
amendment if used in other publications. Material sourced from the
Australian New Crops Newsletter cannot be used out of context or
for commercial purposes not related to its original purpose in the
Contact: Dr Rob Fletcher, School of Land and
Food, The University of Queensland Gatton College, 4345;
Telephone: 07 5460 1311 or 07 5460 1301; Facsimile: 07 5460 1112;
International facsimile: 61 7 5460 1112;