Noname strategy is a way to nowhere
In my opinion, such tendency covers all spheres of our life. For example, Ukrainian black “chernozem” soil is able to be a global standard in Bureau of Weights and Measures in Paris. Obviously, this fact would have a very positive impact on an image of agricultural products, which are grown on these lands. It is a real chance to increase competitiveness of such products both on domestic and foreign markets. Idea of “the most fertile land” where crops are grown will be profitable, as the problem of infertile soil is solved by the use of chemical fertilizers.
However, for some reason, the concept of “Ukrainian chornozem” has not become a brand yet. This fertile soil and its competitive advantages are not internationally recognized. As a comparison, Google’s web search engine provides about 97 thousand request results of «chornozem», and about 49 million results of “merino”.
Who should increase the popularity of our soil? Unions, associations and communities should do that with the assistance of state authorities. Of course, the implementation of global projects requires time and resources, but if successful, we will have an effective and competitive tool on the product market.
Besides, individual farmers have to use marketing tools to increase demand for their products either. Due to high competition, communication with customers, partners and suppliers moves to new levels. A supplier can offer, for example, not just grain, but also a famous brand. It is not just a brand, it is a town or village, social responsibility to the local community, conscientious attitude to the environment, the use of Conservation Technology, in other words, principles of sustainable development. For example, we place the logo “Agricom Group guaranties the quality” on the packages of products under TM “Dobrodiya”. Thus, the consumer has the opportunity to know what kind of raw materials are used, their origin, quality standards of production and so on. An experience has proven that the development of modern communication technology helps to get benefits from our openness: the research results of flakes market given by Pro-Consulting are the grounds for our optimism.
Of course, we also should distinguish the levels of relationships (B2B and B2C). However, every company will want to have a product line, which is in demand and trustworthy among final consumers and therefore, more popular one will be always chosen between two brands. A successful strategy of “Tetra Pak” is an example of processing industry. It used Television as an advertisement tool for the final consumer (although, the product is on B2B level). Therefore, getting approval of housewives, the company effectively promoted their equipment and packaging products for long term storage.
Anyway, nameless (“noname”) product clearly is not so popular, as a well- known one. We should actively improve the introduction of national brands, as foreign companies become closer to our markets. Actually, an additional argument for the development of our brands is the fact that most European and American companies, which are successful in agro-industrial sector, have already passed this way, and their experience is described in detail in the available sources of information. As they say, the way has been opened, direction has been already chosen and there is even a detailed roadmap of the best global practices. Let’s start our work, gentlemen.
(Newspaper “AgroMarket”, November 2015)
Petro Melnyk, CEO of Agricom Group
Access to new markets and opening of own one is a challenge. Especially, when you have to compete with successful foreign companies, which have developed their sales and marketing strategies for years. By the way, today price is not the most important factor when choosing a product. An exacting customer wants to get more than, let us say, a fashionable sweater. You know, he wants to buy both a merino wool and well-known designer thing (although, perhaps, this purchase is not as viable as synthetic one).