Proceedings
of The World Avocado Congress III, 1995 pp. 461-466
INTEGRATED
LOCAL MARKETING STRATEGY FOR THE SOUTH AFRICAN AVOCADO INDUSTRY
Chairman,
Local Marketing Committee
South African Avocado Growers Association (SAAGA)
Tzaneen, South Africa
1. Introduction
---------------
South Africa, although a comparatively minor avocado
producer is one of the world's leading exporters with 70% and more of its
annual production sold on European markets.
Returns from domestic sales reflected the lack of
commitment to the local market. In 1993 SAAGA collaborated with a professional
research company to determine the key success factors for improving avocado
marketing in South Africa and to develop an action plan for its phased implementation
by an officer appointed on a two-year contract for this specific purpose.
2. Workshop
-----------
The first stage was a workshop attended by the major
players in the
industry to establish the dynamics for the local market, the product itself,
local promotional history, pricing resources. The major issues were narrowed down to
three.
2.1. Industry Structure and SAAGA’s Role:
The major issue was to get agreement on the
structure of the industry and the part that SAAGA should play in the
development of the local market. The
structure is set out in Figure 1.
The industry was then stratified-vertically into
four groupings as set out in Figure 2.
SAAGA's role was then defined, at the first and
second level, as one of communications, co-ordination and ensuring co-operation
among the major players. At the third and fourth levels, the role changes to
that of promotion and education; in other words, to create the marketing pull
to complement the push role the producers have towards the distributors.
2.2. Long Term Commitment
---------------------------
The second key issue identified by the workshop was
long term commitment. Commitment calls for an organised professional marketing
approach, marketing expertise, a market orientation and an adequate marketing
budget.
2.3.
Implementation:
--------------------
The third issue was the need to establish the logical
dimensions of all the tasks involved and to appoint staff to implement a
focused, inter-related series of strategies.
3. Fieldwork
------------
The consultants then tested perceptions among
distributors and intermediaries of the avocado industry. The major findings
were that the market place was extremely well disposed towards avocados and
there was a strong desire among distributors to work with the industry.
4. Final Integrated Strategy
----------------------------
4.1. Target Markets, Objectives and Means of
Achievement
-------------------------------------------------------------
TARGET OBJECTIVES MEANS
----------------------------------------------------------
Members Keep
them informed of simplified
version of
Influence producers Visual material
pricing strategy (videos etc)
Report back on Annual
marketing Conference
successes achieved
Report back on Monthly
newsletter
criticism/weaknesses
Focus group findings
----------------------------------------------------------
FPMs To increase volume Point of sale
turnover
chains
To communicate quality/ Reproduction of
price relationship literature
Green- To emphasise that Avocado workshops
Grocers Consumers view quality
over price Market
statistics
Informal To generate dialogue Ripe and Ready
stickers
Sector
Meetings with officials
Avocado Promotions
Visits to producer
areas
-------------------------------------------------------------------------
Consumer To promote health and Nutrition leaflets
nutritional aspects (sponsored)
To educate consumers re Interviews
with
ripening
signals
SAAGA's dietician
To
demonstrate avocado's PR
Consultant's
versatility
recipes
To
capitalise on Magazine features
editorial
and radio/TV Visits to
producer
opportunities areas
--------------------------------------------------------------------------
References
Farrell David, Study of the
Local Market for South African Avocados, 1991
New Products Laboratory (Pty)
Ltd, Integrated Marketing Strategy for SA Avocado Growers Association, October
1993
Discussion ----------
Long Term Commitment
--------------------
The second key issue
identified by the workshop was long
term commitment. The industry is still
export-orientated.
The South African avocado
industry has never been
controlled (as are the citrus
and deciduous fruit
industries) and*in place of
single-channel marketing, a
number of export companies compete for the fruit on
offer. Notwithstanding this intense competitive spirit, there is co-ordination
of export volumes to prevent peaks and
valleys
on the European market. This is done by the
voluntary
exchange of information which can well be
mirrored
in local market co-ordination.
Commitment
also calls for:
• meeting the consumer's needs for quality, freshness
a
good appearance and an
acceptable price;
• a detailed understanding of
the market, its
segmentation and potential;
• cost-effective distribution
and consistency of supply;
• educational and promotional
activities aimed at the
trade and the consumer;
• and product packaging which
is compatible with the
demands of the market.
As discussed under industry structure, SAAGAFs role
is not
that of a marketer per se. SAAGA's job is to
communicate, co-ordinate and ensure co-operation amongst the marketing
companies involved in the domestic market.
Fieldwork
The detailed findings and conclusions in the
fieldwork phase we 1. The marketplace is extremely well-disposed towards
avocados
which are considered unique and with no real
direct
competition.
2. The preoccupation with exports presumes a
"second
best"
status for fruit marketed locally.
3. The industry has done little to help itself or its
allies
in the distribution of fruit. Consequently the
market is poorly educated particularly as far as
cultivar quality and ripening.
4. Notwithstanding this, there is a strong desire
among distri to work with the industry to increase trader.
5. The promotional resources should be directed at
point -of-sale rather than consumer advertising.
Final
Integrated Strategy
-------------------------
objective:
To create commitment to the controlled development of the local market through
the implementation of a focused, inter-related series of strategies.
The consultants recommended a three phased programme:
Phase 1: Sharp focus
- Confining the programme to
the'Gauteng area
- choosing one major retailer only for internal
promotions - Confining oneself to the Johannesburg FPM
- Selecting key greengrocers as a first-season pilot
group - Confining oneself to above-the-line media which reaches
this geographic area only
Phase 2: Medium Focus, extending the above to a
larger area
Phase 3: Broad Focus, moving to a conventional
nation-wide sales, distribution and marketing programme.
Sharp Focus of the Integrated Marketing Strategy
------------------------------------------------
The Product: the avocado is a popular member of the
fresh
produce community. Marketed properly, it has major further sales potential.
That said, there are high levels of ignorance concerning avocados in general
and the Hass cultivar in particular. This ignorance is centred upon ripening
status, health and nutrition, and cultivar types.
Two other areas of concern are local market quality
(second best to export) and seasonality (not available for three months of the
year.)
Product Strategies* Although overlapping with the
promotional area of strategy, the recommended product positioning should be, in
order of importance:
- How to identify ripeness
- Health and nutrition
- Versatility
Technical research was suggested to extend the season
by
two
months through late hanging in cooler areas, controlled atmosphere or even importing
from elsewhere, and then, if this is feasible, to conduct test trials among key
distributors.
Consumer research was also recommended with an
on-going series of focus groups held initially in the production
area and Gauteng, eventually extending these
nationally.
The format would be standardised to enable a
benchmark process as follows:
- Frequency
of use
- Diversity
of use
- Where
purchased
- Perceived
negatives
- Perceived
positives
- Product
knowledge (or ignorance)
- Ripening
knowledge
- Health and
dietary knowledge
Price: SAAGA cannot dictate price to the industry as
this falls outside its mandate. However it should educate producers to the
concept of premium price for premium quality.
Distribution: Presentations/negotiations must be
undertaken with each of the parties concerned in order to agree the
distribution strategy as part of the overall promotional presentation to these
parties. In the case of retailers this would include showing draft concepts,
budgets and
modus operandi.
A series of meetings should be held with those
precluded from this first phase to reassure them that it is a pilot scheme to
provide SAAGA with a learning curve and to iron out wrinkles, after which it
will be extended to all
parties
on a national basis.
Review formats must be devised for SAAGA to report
back according to a predetermined set of criteria and frequency.
Promotion: This is the most critical of SAAGAfs overt
activities against which its performance may be measured. success in this area
will ultimately govern the support it receives from the industry as a whole and
upon which will depend the success of the entire programme.
Appointment of Promotions Co-ordinator
-----------------------------------------
The committee recommended the appointment of a
Promotions officer on a two-year contract to implement the agreed
task. The post was advertised and three candidates
were short-listed and interviewed. The successful applicant was appointed and the
following job description was mutually agreed for the officer.
Mission:
To increase public and trade awareness and
consumption of avocados on the domestic market by co-ordinating research,
communication and promotion involving growers, the trade (fresh produce
markets, retail chains, greengrocers, the informal sector), the media and the
consumer.