product planning and management for ntfp marketing...marketing strategies mass market: danish...
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WWF-Silva 2006 Training Workshop6-9 May 2006
Product planning and management for NTFP marketing
Davide PettenellaUniversity of Padova - Italy
Marketing Marketing strategiesstrategies
Mass market:Mass market: Danish Christmas trees, Irish foliage, Danish Christmas trees, Irish foliage, Albanian aromatic herbs, Finnish frozen or Croatian fresh Albanian aromatic herbs, Finnish frozen or Croatian fresh mushrooms: mushrooms:
= relatively = relatively low priceslow pricesin many rural areas this is not a winning in many rural areas this is not a winning
strategystrategy
Mass
P&S
Differentiation
complementarity
-
+
+
-
Specialised
P&S
ComplementarityP&S
Main product development strategies
Specialized Specialized productsproducts: e.g. high AV : e.g. high AV nniches iches products products
Complementary products & servicesComplementary products & services: : ssynergies ynergies with other products/services with other products/services (tourism, recreation), i.e. with other (tourism, recreation), i.e. with other economic operatorseconomic operators
2 alternative 2 alternative strategiesstrategies
Specialized nSpecialized niches productsiches productsa case study: a case study: chestnutchestnut
209 000 ha for chestnut production209 000 ha for chestnut production89 000 agricultural enterprises 89 000 agricultural enterprises 76 000 ha orchards76 000 ha orchardsVarieties “Varieties “MarroneMarrone” and “Chestnut”” and “Chestnut”Regions: Regions: CampaniaCampania 51%, 51%, CalabriaCalabria12%, 12%, LatiumLatium 11%, Piedmont 9%, 11%, Piedmont 9%, Tuscany 7%Tuscany 7%
ChestnutChestnut
Chestnut Chestnut –– Marketing Marketing CharacteristicsCharacteristics
- Difficulties in obtaining a nut clean and of homogeneous size
- Production variability- Fresh nuts quality maintenance
problems- Fungal infection and insect
attach to fresh fruits, weevil damage during storage and later
- high harvesting costs and highly concentrated labour requirements
- good nutrient values- different final uses - high added value products
through processing- easy storage (refrigeration)- various by-products (honey,
mushrooms)
NegativePositive
For. resourcesassessment
Chestnut Chestnut –– Distribution of consumption of chestnuts (Bellini, 2003)
15 - 20 %30 %Export10 %Dried
35 - 40 %10 %Processing industry20 - 30 %40 %Internal markets (fresh consumption)10 - 15 %5 %Self consumption
< 5 %5 %Peeled, for animal feeding and other uses
MarronsChestnut
Segmentation
Chestnut Chestnut –– Policy & Research Policy & Research
Access:Access:Private orchards: public access is forbiddenPrivate orchards: public access is forbiddenGathering of wild chestnuts is allowed Gathering of wild chestnuts is allowed
Research:Research:diseases, cultivation, graft and crown carediseases, cultivation, graft and crown carerecovering of old chestnut orchards and transformation of chestnrecovering of old chestnut orchards and transformation of chestnut ut coppicecoppiceharvest techniquesharvest techniques
Large incentives for Large incentives for restoration of restoration of chestnut orchards chestnut orchards (financial support by (financial support by Regional authorities)Regional authorities)
Financing, economic incentives
Certification under EU regulationsCertification under EU regulationsRegistration of Protected Designation Registration of Protected Designation of Origin (PDO) (Reg. 2081/92)of Origin (PDO) (Reg. 2081/92)Protected Geographical Indication Protected Geographical Indication (PGI) (PGI) Traditional Speciality Guaranteed Traditional Speciality Guaranteed (TSG) (Reg. 2082/92)(TSG) (Reg. 2082/92)
Chestnut Chestnut –– Marketing Marketing marron from Castel del Rio, marron from Mugello, chestnut from Monte Amiata, chestnut from Montella
Marron from Mugello-Fano in Garfagnana
Organic production (Reg. 2092/91 and IFOAM)Organic production (Reg. 2092/91 and IFOAM)
Differentiation
Networking and promotion, Networking and promotion, e.g. locale.g. local aassociations ssociations for chestnut marketing (for chestnut marketing (www.marrone.netwww.marrone.net): ): fairs, fairs, exhibitions, museums, exhibitions, museums, ……
Chestnut Chestnut –– Marketing Marketing
Networking, integration
Network of Network of locallocal municipalitiesmunicipalities (the (the Italian Italian Associazione Nazionale CittAssociazione Nazionale Cittààdel Castagnodel Castagno))
New sellinNew sellingg systems systems Direct sales: “Direct sales: “PickPick--up your chestnutsup your chestnuts”: selling ”: selling directly to the consumers the right to collect directly to the consumers the right to collect chestnut for a fixed rate or in relation to the chestnut for a fixed rate or in relation to the weight of collected fruitsweight of collected fruits““Adopt your own Adopt your own chesnutchesnut treetree”: chestnuts ”: chestnuts picking and organised picnics under the picking and organised picnics under the chestnut tree chestnut tree ee--businessbusiness::
B2B: fresh chestnuts, semiB2B: fresh chestnuts, semi--finished products, …finished products, …B2C: jamB2C: jamss, dried nut, dried nutss,… ,…
Differentiation
ProductProduct developmentdevelopment
Dried soft chestnut
Package for making the traditional castagnaccio cake (based on chestnut flour, pine seeds, raisins)
LessonsLessons learnedlearned
Vertical integrationVertical integration to sell the high AV to sell the high AV productsproductsDirect salesDirect sales to increase forest owners to increase forest owners profitsprofits investment in orchards ameliorationinvestment in orchards amelioration
protection of property rightsprotection of property rightsPublic authorities: external supportPublic authorities: external support in in promotion, technical assistance to forest promotion, technical assistance to forest ownersowners
Complementary Complementary products and servicesproducts and services
= products & services that bring added value to some other products or services, but are not attractive enough to succeed alone.
Networking, integration
In In manymany MediterraneanMediterranean countriescountries: : a strong a strong linklink betweenbetween
NWFPs marketingpolicies
Tourism, recreationand landscape
protection policiesLeader EC project approach
http://www.wanderhoteleuropa.com/it/wandern/angebot_05.html
Törggelen holydays: few days-one week holidays (normally for aged persons) based on
roasted fresh chestnut +walnut +new red wine tasting + speck and the meat
organized in South Tyrol
In the region South Tyrol chestnut maturity and the first wine of the year take place at the same time. Every year different kind of chestnut fairs are celebrated. Tourists are attracted with Chestnut-trails and visits of agriculture farm to eat fresh roasted chestnuts, taste the new wine and other local specialities. Fairs of chestnuts are also organised. Many old chestnut recipes are rediscovered and utilised during these days. Tourists can also learn everything about chestnuts from woodland to gastronomy on chestnut walks and different kind of chestnut parties.
(http://www.umbriadoc.com/eng/prodottotipico/generale/prodottotipicodoc_tartufo.htm)
We sell the product, but also the associated history, monuments, events, farm tourism, …
Willingness to cooperate among private operators
Private/public partnership in promotion
Networking, integration
http://www.stradadelfungo.it
A common instrument fornetworking: “la strada” (road –route)
http://www.marrone.net/rubriche/strada.htm
NWFP
= imago product
http://www.appennino.info/
Territorial marketingTerritorial marketing
In many contexts the real constraint is In many contexts the real constraint is not the lack of natural capital, but that not the lack of natural capital, but that of of entrepreneurshipentrepreneurship
Key factors: partnership private/public Key factors: partnership private/public actors, cooperative attitude = actors, cooperative attitude = social social capitalcapital
Lessons learnedLessons learned
From total marketing (4 Ps)…From total marketing (4 Ps)…
… to social marketing = 2 “new” Ps… to social marketing = 2 “new” PsPPoliticalolitical powerpowerPPublic relationsublic relations
Civil society, in the Mediterranean region Civil society, in the Mediterranean region too, is playing an increasing roletoo, is playing an increasing role
Company’s decisions are taking into account the long-term interests not only of the internal but also of the externalstakeholders Corporate Social Responsibility(Kotler, Armstrong, Saunders, Wong, 2001)
From total marketing (4 Ps)…From total marketing (4 Ps)…
… to social marketing:… to social marketing:
CSR, mCSR, marketing based on ethical arketing based on ethical principles:principles:
safety and health of workers, consumers, safety and health of workers, consumers, local populationlocal populationno discrimination, no social inequality no discrimination, no social inequality right to information, transparencyright to information, transparencysustainable use of natural resourcessustainable use of natural resources......
There is no conflict (no trade-off) between ethics and economics (profit, value of the assets, …)
