Agriculture Reference
In-Depth Information
Generic products . All the products that were identified and studied are
generic and undifferentiated. Generic marketing certainly has a place even
in modern markets, but is more associated with mass-produced products
that are consumed in large quantities as opposed to niche-oriented
seasonal products. Thus, having indigenous fruits marketed as generic
products, even in low-income markets, is an indication of the inefficiency
of the market. The main implication here is therefore the need for greater
attention to product differentiation on the basis of product attributes and
the nature of supply and demand.
Small amount of added value . The fruits studied were all marketed with
small marketing margins and the addition of little value in the form of
packaging, processing, certification, quality control, and other utilities. This
probably stems from the focus on low-income domestic/local markets, where
consumer spending power is limited. This implies that any attempt to add
value or increase the marketing margin must be associated with targeting
higher-income consumers, who are able to compensate for this. The
feasibility of fruit processing has been reported by Jordaan et al . (Chapter
15, this volume) to be positive, with high net profits of 14-28%.
Orientation to local markets . Supply and consumption are entirely directed
at local markets, given the traditional status of the products and
consumption habits. The local markets are assumed to be low-income
markets by and large, with limited ability to pay for greater sophistication
and value additions that add significantly to the marketing margins. Hence,
the current tendency to favour generic marketing of produce. The
implication is arguably that limited benefit can be derived from much value
addition in local markets. At best the improvements can be incremental.
Alternatively, the improvements could radically change the product offer
through processing (e.g. fruit juices, jams and preserves) while retaining
product appeal. Another alternative may be to consider acceptability in
higher-income markets and adapt the product accordingly.
Indigenous demand . The product is undoubtedly associated with
indigenous demand, which establishes its current appeal. This is a positive
factor and a key element in a marketing strategy, especially in a world that
is showing greater appreciation of organic and natural products. This
implies that the attributes and motivations that underlie this indigenous
demand could be useful selling attractions in new higher-income markets
where novelty and indigenous innovation are valued.
Limited promotion . The product is offered in its generic form as and when
available, little is being done to promote consumption. Encouraging
consumption in local and especially new markets would require much
greater effort in this regard. Promotion could focus on selling product
attributes beyond simply taste. These attributes may be medicinal value,
uniqueness, scarcity value, novelty, etc. Promotion would largely be
associated with new and especially higher-income markets dominated by
corporate entities and chain stores.
Land tenures, policy and institutional arrangements . Land tenure issues were
investigated in Malawi and Zambia. Most of the lands belonged to members
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