Articles
CO-OPERATING IN VERTICAL MARKETING SYSTEMS TO ENSURE REGIONAL PRODUCT QUALITY
Article number
655_3
Pages
41 – 46
Language
English
Abstract
Market saturation, increasing competition and price pressure force farmers to search for sustainable, competitive business opportunities.
Product differentiation via vertical regional marketing concepts could be one strategy.
Consumers show significant potential demand for regional food, in particular if environment-friendly produced, controlled and traceable.
Many caterers and some actors of the food industry and the retailing sector are concerned with vertical regional marketing concepts.
The retailing sector is the crucial limiting factor on the demand side.
It shows the lowest willingness to pay and furthermore retailers interest is only directed towards listing regional specialities, seasonal foods as well as farmer markets integrated in a shopping centre.
On the other hand also many producers stated their willingness to co-operate in regional marketing on the horizontal and vertical level.
However, only a few producers take stock in environment-friendly production.
Nevertheless, overall one can conclude the opportunities for vertical regional marketing systems focusing on environment-friendly product quality look promising.
Product differentiation via vertical regional marketing concepts could be one strategy.
Consumers show significant potential demand for regional food, in particular if environment-friendly produced, controlled and traceable.
Many caterers and some actors of the food industry and the retailing sector are concerned with vertical regional marketing concepts.
The retailing sector is the crucial limiting factor on the demand side.
It shows the lowest willingness to pay and furthermore retailers interest is only directed towards listing regional specialities, seasonal foods as well as farmer markets integrated in a shopping centre.
On the other hand also many producers stated their willingness to co-operate in regional marketing on the horizontal and vertical level.
However, only a few producers take stock in environment-friendly production.
Nevertheless, overall one can conclude the opportunities for vertical regional marketing systems focusing on environment-friendly product quality look promising.
Authors
A. Wirthgen
Keywords
vertical marketing systems, co-operations, product differentiation, regional origin, environment-friendly production
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