Creating value through brands: the Zespri (TM) kiwi fruit case

Agricultural products are generally characterised by their commodity status. After years of poor returns, the New Zealand kiwi fruit industry developed the ZESPRI branding program in an attempt to position New Zealand kiwi fruit as an upmarket fruit category that appealed to today’s consumers. The brand has recently been released in New Zealand. This research assesses the effectiveness of ZESPRI’s strategy and explores the implications for branded fruit produce in general. The level of brand awareness of ZESPRI was found to be low among consumers, however brand awareness could be increased through a relationship marketing program involving targeted marketing and supply-chain management. Introduction Aaker and Joachimsthaler (2000) stated that the development of brands was the only way to remove oneself from commodity status and price competition. Gardner and Levy (1955) defined a brand as `̀ [a] complex symbol that represents a variety of ideas and attributes. It tells the consumer many things, not only the way it sounds (and its literal meaning if it has one) but, more important, via the body of associations it has built up and acquired as a public object over a period of time’’ (p. 35). Brand equity consists of awareness, recognition, and top of the mind awareness of the product amongst consumers; positive brand associations; perceived quality and brand loyalty. Brand equity will result in price premiums, consumer and trade loyalty, trade co-operation and joint marketing efforts and pride of ownership among the company (Aaker and Joachimsthaler, 2000). Traditionally producers of fresh produce have seen their responsibility for the product end when their produce leaves the farm gate (Crocombe et al., 1991). White (2000) stated: Agricultural producers [have] focused on large volume throughput to a large number of independent buyers who purchased unbranded, undifferentiated produce on an ad hoc, transactional basis from the supplier who offered the best price and quality at the time (White, 2000, pp. 7-8). Marketing for agricultural products has often been left up to single desk producer boards that have focused on increasing production efficiency, price competitiveness and product quality in order to develop a competitive advantage (Crocombe et al., 1991). However, Lichtenthal and Long (1998) stated that it was no longer sufficient for agribusinesses to produce a technically superior product. Miles et al. (1997) stated that agribusinesses would need to adopt strategic planning models if they are to be successful in the future. These The current issue and full text archive of this journal is available at http://www.emerald-library.com/ft