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Cross‐case analysis of producer‐driven marketing channels in Australia

Cross‐case analysis of producer‐driven marketing channels in Australia Purpose – The purpose of the study was to investigate the feasibility of producer‐driven marketing of differentiated meat, in the context of Australian family farms. Producer‐driven marketing (PDM) is defined as marketing by farm families of their own produce by developing and managing their own supply chains beyond the farm‐gate. Family farms are defined as family operated farms. The framework used compared revenue, costs and uncertainty in various distribution channels. Design/methodology/approach – Six individual case studies were conducted using semi‐structured interviews. The interview protocol included enterprise characteristics that contribute to the ongoing viability of the businesses. Findings – PDM was a feasible entry point for new brands and a profitable alternative to supplying generic product to the mainstream when costs were controlled. It is proposed that PDM was feasible in the context of Australian family farms where the distribution channel chosen reduces variability in the farm‐gate price, captures the marketing margin and minimises negotiation costs, particularly the labour costs to find a buyer. Research limitations/implications – The feasibility assessment excluded the cost of acquiring new skills which may be significant. The entrepreneurs interviewed already possessed significant marketing and business skills and experience to produce and market a brand through alternative distribution channels. Practical Implications – Producers can potentially increase farm profitability where household labour and skills are available to market produce beyond the farm‐gate. These implications are likely to be relevant in most developed countries, not just Australia. Originality/value – The phenomenon of producer‐driven marketing is relatively novel in Australian agribusiness with no previous analysis of the profitability and long‐term viability of such an approach in the Australian context. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png British Food Journal Emerald Publishing

Cross‐case analysis of producer‐driven marketing channels in Australia

Sherryl Broderick; Vic Wright; Paul Kristiansen
British Food Journal , Volume 113 (10): 12 – Sep 27, 2011
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References (31)

Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0007-070X
DOI
10.1108/00070701111177656
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of the study was to investigate the feasibility of producer‐driven marketing of differentiated meat, in the context of Australian family farms. Producer‐driven marketing (PDM) is defined as marketing by farm families of their own produce by developing and managing their own supply chains beyond the farm‐gate. Family farms are defined as family operated farms. The framework used compared revenue, costs and uncertainty in various distribution channels. Design/methodology/approach – Six individual case studies were conducted using semi‐structured interviews. The interview protocol included enterprise characteristics that contribute to the ongoing viability of the businesses. Findings – PDM was a feasible entry point for new brands and a profitable alternative to supplying generic product to the mainstream when costs were controlled. It is proposed that PDM was feasible in the context of Australian family farms where the distribution channel chosen reduces variability in the farm‐gate price, captures the marketing margin and minimises negotiation costs, particularly the labour costs to find a buyer. Research limitations/implications – The feasibility assessment excluded the cost of acquiring new skills which may be significant. The entrepreneurs interviewed already possessed significant marketing and business skills and experience to produce and market a brand through alternative distribution channels. Practical Implications – Producers can potentially increase farm profitability where household labour and skills are available to market produce beyond the farm‐gate. These implications are likely to be relevant in most developed countries, not just Australia. Originality/value – The phenomenon of producer‐driven marketing is relatively novel in Australian agribusiness with no previous analysis of the profitability and long‐term viability of such an approach in the Australian context.

Journal

British Food Journal – Emerald Publishing

Published: Sep 27, 2011

Keywords: Direct marketing; Producer owned ventures; Alternative distribution channels; Case study; Feasibility study; Transaction costs; Uncertainty; Australia

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