Question: MARKETING MANAGEMENTMID-TERM EXAMS
Brand-Name Fresh Fruits and Vegetables: Will Consumers AcceptThis Innovative Concept ?Annually, fresh fruits and vegetables account for over $20 billion in retail sales and this is the fastest-growing and one of the most profitable sales categories in U.S. supermarkets. While these products yield 8 per cent of supermarket revenues, they contribute 30 per cent of profits. In contrast, sales of frozen vegetables have been slow growing and in some cases, declining.Several producers have begun marketing brand-name fresh fruits and vegetables to capitalize on this trend. For example, the U.S. multinational firm Castle & Cooke sells bananas, tomatoes, and many others under its Dole brand. Bananas and tomatoes are the most frequently branded items because surveys have shown that consumers are dissatisfied with unbranded versions.
Marketers are confident that they can provide consumers with superior-tasting fruits and vegetables throughout the year.Research by Castle & Cooke found out that the Dole brand had positive associations for consumers who believe the name represents healthy and fresh produce. The research also showed that consumers favor branding of fruits and vegetables. It is perceived as a quality difference and consumers also like to be able to know who to blame if there is a problem.Branding is expected to be most effective if it is linked to additional convenience and/or high product quality. Castle & Cooke has tested cut-up vegetables for stir-fry cooking and Campbell is selling refrigerated salads. High quality is achieved through hybrid crops, genetic engineering, and the raising of crops in liquid nutrient instead of in soil.Despite its promise, the marketing of branded produce must overcome these problems:?
Many consumers view fruits and vegetables as commodities and have low involvement inpurchases.? Much of quality control is in the hands of retailers who must refrigerate, water, andproperly display the items.? Produce is highly perishable. There is also a risk of overripe produce carrying brand names.? Product supply may be unpredictable due to abnormally bad weather.QUESTIONS:
1. Compare the branding of produce with the branding of chicken products.
2. Should Castle & Cooke consider using dealer brands for its best supermarketcustomers of produce ? Explain.
3. Why is branding more effective if it is linked to added convenience and/or betterproduct quality?
4. How can firms marketing branded produce minimize potential problems ?
5. What brand name will you name Castle & Cooke's produce ? What branding strategydid you use and explain its rationale ?