Organic Industry Australia

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There has been new categories that have driven an extreme growth in the organic sector in Australia to a record $1.72 billion industry. (Euromonitor)

The industry now valued at 1.72 billion has represents a 15.4 per cent compound annual growth rate (CAGR) since 2009. The growth is due to an increase of consumption of certified organic food, cosmetics and household products.

Australia still has the largest area of organic land in the world with 54 million Acres. Between 2011 and 2014 there has been a 53 per cent increase in fully certified organic land area and organic producers such as Farm-Gate have been in the rise and value of $508 million.

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Drivers

There are several reasons why such increase in the industry. The major driver is the availability of organics in major supermarkets and new independent organic groceries. Another strong driver is the export market, which supports the existing organic farmers. According to data organic product exports have doubled in the last two years.

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Sectors

Different sectors play a role in this extreme growth. Dairy has been the fastest growing organic category and it is estimated to be worth $113 million with the bigger percentage coming from yogurt. Even though the organic beef sector is not the fastest growing sector it is the one most valued at $198 million. The last important growing sector is the organic wine sector.

The Australian retail market for certified organic is expected to continue growth in the near future. There is a greater demand for organic products than ever before and also an upward trending outlook.

Consumers’ reasons for shopping organic

Australians are becoming increasingly aware of product labels, reading nutritional panels and seeking information about the ingredients in the products they consume. Consumers in Australia are also looking for reassurance when buying organic, more consumers now believe if products are more organic than they could trust the product even more. Consumers also want their products to be chemical free, additive free, environmentally friendly and non-GM.

The changes in consumer behavior above indicate that Australia will continue to see positive growth in the organic industry.

 

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Upper Class Consumers : Golf China

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China Golf

The Chinese Consumer

With a recent increase in disposable income among the upper class in China. These upper class consumers can now be identified by a number of traits. First, due to their increase in disposable income, many are seeking experiences that are different from those available in the mass market.

Second, in China consumers treat the product and services they purchase as a means of showing one’s social reputation. For example in China, female consumers consider clothing as a symbolic medium to demonstrate one’s social status or express one’s social image.

Third, the typical Chinese consumer is increasingly self-indulgent, seeking products and offerings that cater to his or her personal gratification. For Chinese individuals traits such as achievement, stimulation and power are seen as more valuable in comparison to what the more collectivist individuals find more valuable, traits like conformity and tradition. It’s clear that with the economic growth in China more people will become more individualistic and materialistic.

china-golf

To really see how the economic growth and the increase in disposable income are affecting the upper class consumers, we can take a closer look at the golfing industry. Like in the U.S, golf clubs in China all have well manicured grass, golf carts and well-dressed members. However when looking further in, these members aside from having caddies are served by host drivers, umbrella holders and even have their own personal waitresses. Rather than just drinking water these members treat themselves to beer and other alcoholic beverages. The additional features present in the golf industry match perfectly with the culture of those in the upper class with greater disposable income who self indulge and like to maintain impressions.

Luxury Golf Club

Very few people play golf in China, mostly only the country’s wealthy elite play. As China’s economy continues to grow and the wealth of the upper class continues to rise, so will the growth of the distinct golf culture in China, which could eventually have an impact on the golf culture globally.

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Holiday Marketing Strategy

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It is key for any business to implement social media into their holiday marketing strategy. There are several ways how one can build an online community using social media for sales and promotions. According to research, 36% of social media users trust brands with a social media presence, and 80% of users who received a response on a social channel went on to make a purchase. Social media can be significant for creating brand awareness and reputation. Holiday season can serve as a perfect opportunity to reach out and get one’s brand exposed. Here are 4 ways you can use social media during holiday season for increasing brand awareness and recognition:

1.Conversation

Most businesses can certainly use social to media solely to push their products and services. But social media can be more beneficial when it is used as a channel to connect with customers. One can start a conversation simply by asking questions like, “What’s your favorite holiday tradition?” Starting a simple conversation can go along way and shows that you care. These are the questions that add a personal touch and can help ensure your online community remembers you. It is also important to create a relationship with online community by responding to them not just asking questions. Customers want to know that their word means something, so it’s important to make sure you’re acknowledging their answers.

2.Giving Back

Even though utilizing social media during the holidays for giveaways and exclusive sales is necessary. Giving back to the community can also help. It is as easy as having a charity event you sponsor. Posting photos of such events on social outlets can also be critical during the holiday season to show support to the community. Customers love to see proceeds go to charities for a good cause. Customers feel as if they are helping others when buying products or using services. Social media can be an excellent tool to promote your efforts towards helping out the community. Customers will enjoy seeing that you are a business that gives back.

 3.Sharing

The best social media campaigns are those that involve your customers and encourage sharing. Having the customers take part in sharing their experiences using products or services on your social media networks can be the best content to increase awareness and sales. For example, having a competition to win a discount or a product by having your online community share and tweet photos of him or herself with your product. People use social media to feel connected to the brands they follow. Having your online community share their experiences through different social networks can bring people together.

Pin to win

 4.Culture

You should be using social media to promote your brand at all times but the holiday season is great time to show your brand culture. Sharing fun holiday photos of sales force or corporate office is an excellent way to showcase what your business is all about. People like to see the personality behind the product or services they are using. Customers behaviors are a lot of times aligned with their brands personalities. During the holidays you want to make sure you’re documenting your company culture as much as possible.

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These are four simple ways that can help you engage your customers during the holidays through posts and promotions on social networks. These four steps not only help you strengthen your online community but also complement who you are as a brand.

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Products Gain Acceptance In Certain Cultures

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Some products are widely accepted by cultures in certain regions while others are not. Companies’ pricing strategies may differ across various regions of the world depending on if their product is culture-bound or not. Think about visiting a foreign country with a different culture. The culture-bound products that are easily noticed include food, beverages and clothing. I’ll provide the example of Indonesia – a country consisting of 17,000 islands that I’ve spent about seven months traveling around over the past five years.

seaweed chips

Indonesia is actually home to a wide-range of cultures with hundreds of different languages being spoken. The primary religion is Muslim, however, other religions such as Hinduism, Christianity and Animism can be found in different parts of the country. Typical dishes include rice or noodles, along with fish or chicken and mixed vegetables. These dishes are commonly served with a spicy chili sauce called sambal. While there I tried types of potato chips that I never imagined existed including: seaweed, cheese pizza and barbequed beef flavors. Beverages are somewhat similar to those found in the western world and include water, juices and soda. Alcohol is not consumed by many Indonesians because it is not seen as acceptable in many of the Islamic areas. Clothing can be very different with people on remote islands such as the Mentawais wearing tribal outfits that look similar to what Native American Indians once wore. While differences in these three product groups may be obvious to the casual onlooker, many other types of products are prevalent which are not as common Western countries.

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One product that is widely accepted in parts of Indonesia are cigarettes. Locals can be seen chain-smoking cigarettes as they represent a product that can be easily afforded by the masses. Western countries often put higher taxes on cigarettes because of the damage they do to the human body which ultimately translates into a high burden on the public health system. In Indonesia, however, a pack of cigarettes can be purchased for a dollar or less and due to low education levels, many cigarette users are not aware of how harmful the effects can be.

Another product group that I noticed being widely accepted by Indonesians was social media sites/applications. I met many teenage Indonesians that had used social media platforms such as Facebook for digital marketing purposes. Many of the times, the platforms were being used to advertise or promote a family business. People who had started little three room homestays for surfers were constantly posting new content to advertise their business all over the world. Figuring out what kinds of products are likely to be accepted by a foreign culture is no easy task. Values, customs, beliefs and type of lifestyle will all dictate whether a product becomes widely accepted or simply passed by.

Link to a Local Business

 

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The Golden Challenges For Coca-Cola

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Inca Kola

The soft drink Inca Kola is consumed across all social classes in Peru. It is very sweet, with flavors hard to discern. First-timers might find its color and taste extreme and most people will say its bubblegum flavor. Since the yellow-gold beverage was introduced 80 years ago, it has been a source of national pride.

The brand’s success has been highlighted by the Wharton School of Management at the University of Pennsylvania, in an essay called “Branding Lessons from Inca Kola, the Peruvian Soda That Bested Coca-Cola” The essay states: “The success of Inca Kola also reflects the uniqueness of Peruvian consumers, who tend to have very strong ties to products that they associate with personal and national identity.” Inca Kola is among a few privileged beverages that are more popular at home than Coca-Cola, the biggest player.

In 1999, Coca-Cola knew some changes had to be made and in order to gain some market share Coca-Cola purchased 38.5 per cent of Inca Kola shares for an undisclosed sum, reported by Wharton to have been $200 million, and creating what Coca-Cola’s executives now call a “strategic alliance”. The Giant Coca-Cola is known for making strategic alliances or even more so for buying out their competition. The US group has subsequently bought a further 10 per cent of shares without voting rights.

Now 15 years since the first purchase of shares in 1999, Inca Kola continuous to outsell Coca-Cola in Peru, with 30 per cent of the market against just over 20 per cent for Coke. About 90 per cent of Inca Kola is sold at small, independent shops and economists believe the continuing success of the beverage is due to meaning of the soft drink to Peruvians.

Coca-Cola might be the biggest player in market, but still faces challenges when doing Business in different countries. Changing consumer preferences, increasing health consciousness, rising obesity concerns, possible new taxes on sugar-sweetened beverages and growing regulatory pressures are not only affecting sales of Coca-Cola but also other carbonated beverages makers such as PepsiCo. In attempts to accelerate growth, Coca-Cola Brand has increased marketing investments and is driving packaged and product innovation to boost volume. In Peru Coca-Cola will continue to invest in shares to better capture the market that currently prefers to drink a local beverage that defines who they are and where they are from.

“Knowing how proud Peruvians are of their country, Coca-Cola became the official sponsor of the Peru’s National Soccer team in 2012.”

 

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