Connecting with Australian Consumers.

In endless industry surveys and market research, Australian consumers have stated they would seek-out and / or pay more for Australian origin food products.  However, when Australian's go shopping, it is a very different story and they do not follow-through on what they say.

The situation has caused an identity crisis for the Australian agri-food industry.  Millions has been spent on campaigns such as Year of the Farmer that have not worked.  The debate rages as participants in Australia's food system look for someone to blame, with most fingers pointed at food retailers and supermarkets.  The story not often told is that Australian consumers are the biggest part of the problem and should be held more publicly accountable for the gradual demise of Australia's food system that was once the envy of the world.

So why are Australian consumers so disconnected with the origin of their food?  Why are they not insisting that Australian food products be more available, and kicking up a stink when they are not?

The situation has become very complex, nuanced and precarious, and likely to result in countless more Australians losing their jobs.

In today's special guest blog, global marketing and strategy expert Mr Barry Urquhart starts to shed some light on why consumer purchasing behaviour has been changing.

“CONNECTING WITH AUSTRALIAN CONSUMERS”

Australian consumers are a funny lot.

Some 78% unreservedly declare they have an unqualified preference for Australian made and grown products... if all things are equal.

At the supermarket checkouts, business counters and online, that figure falls to less than 40%, across a broad cross-section of consumer segments, products, services and brands.

The latter point provides a key insight into buying habits and customer preference in a complex, fragmented global marketplace in which commodisation is common. A lack of loyalty and preparedness to pay value-based premiums is explained by a lack of effective branding.

Indeed Australia, and Western Australia in particular, suffers from a lack of the inherent benefits and advantages of widely recognised and respected brands. At present, each is labelled and the latter suffers from commonly-held reputation... it is expensive. Labels, logos, attractive graphics and appealing advertising do not in isolation equate to a brand.

Brands enunciate values, qualities, beliefs and aspirations. For example, the single word, “pure”, speaks volumes about New Zealand. Scotland enjoys the financial and social consequences of world-wide expectations of the attribute, “quality”, which is attributed to its produce.

Some Australian brands are recognised internationally. There is Vegemite. It is owned by Kraft, which is intern apart of Philip Morris, the largest cigarette manufacturer in North America. Holden, likewise owned by General Motors.

Qantas, “The Flying Kangaroo” is iconic, recognised in many parts of the world and is 49% owned by overseas shareholders. A significant percentage of the fish sold in Australia as “Barramundi” is caught in the canals of Thailand and Vietnam. Perish the thought! Barramundi is an Australian aboriginal word. Is nothing sacred?

Hence, Australian consumers have over the past from decades become disillusioned, disappointed and disloyal. They find it difficult to conclude what exactly is meant by the terms Australian-made, Australian-owned, Australian-packaged and Australian produce. The terms are vague, inexact and the consumers are apprehensive.

HOPE SPRINGS ETERNAL

There is increasing evidence of the market appeal, potential and advantages of fresh, local, quality and value Australian agricultural produce and general food.

Community-centred Growers’ Markets and Farmers’ Markets are resonating with consumers and impacting on the competitive, established major retail chains and networks.

INTERESTING INSIGHTS

The relevance of local markets provides some invaluable insights.

In the first instance, they are typically well branded.

Personal relationships are established and sustained, underwritten by the trust accorded to genuine Australian producers.

Most significantly, there are few, if any, “middle-men” in the supply chain. That implies “local”, “fresh”, “quality” and “value”, each a commendable and compelling attribute.

Therein lies a key question, challenge and message:

“What industry are you in?”

The simple single answer which much be applied, regardless of where one is in the distribution network is:

Supply Chain Management

Farmers, orchardists, vignerons and growers can no longer satisfy themselves with “producing quality goods and delivering such to the farm, orchard or vineyard gate”. 

Within their respective categories, unpackaged, unbranded beef, milk, oranges, wine and the like look remarkably the same. That is the nature of commodisation.

FOUR FEATURES

To satisfy consumer needs and wants, local produce and producers need to be able to provide (in descending order of importance):

·         Convenience

·         Range

·         Brand

·         Price

Each of those qualities should be and, indeed must be, complemented with the underlying philosophy:

IT IS BETTER TO BE DIFFERENT

THAN IT IS TO BE BETTER

When a product, service, company or brand is different it is, by definition, incomparable. That is when Australian consumers are readily happy to pay up to 15% as a premium for Australian products.

IN CONCLUSION

This is not a plaintiff call to “get back to the basics”. It is a reality check and a challenge to:

“Never leave the basics”.

The foundations to ensure that the agribusiness and food sector and individual operators are able to reach out, connect with and engage Australian consumers are:

Formulate, document and implement a disciplined, structured BRAND MANAGEMENT STRATEGY

·      Refine and define a concise SUPPLY CHAIN

·      Identify, isolate and then make a virtue of those aspects which are SUSTAINABLY DIFFERENT

·      Involve, engage, recognise and celebrate those who are TEAM MEMBERS

ABOUT THE AUTHOR

Barry Urquhart, Managing Director of Marketing Focus, Perth is an internationally respected consumer behaviour analyst, marketing strategist, author and conference keynote speaker.

He has extensive experience in the retail, rural, manufacturing, services and finance sectors.

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

M:        041 983 5555

T:         08 9257 1777