Branding, Packaging and Access to the markets.

Introduction • Facilitator: David Lutabana (B.Pharm, MBA, MSc.) –

Business & Quality Management Consultant.

• Key Areas of interest: Business development &

management, Quality Assurance and Marketing

• Company: Talemwa Investment Consulting Co. Ltd,

Sinza Mori A, Kinondoni,

Dar es Salaam, Tanzania.

Tel: +255 788 430836

Email: info@ticc.co.tz, www.ticc.co.tz

Facts on Challenges Facing Agricultural Marketing in Tanzania

• Lack of access to agricultural markets.

• Inadequate value addition in agricultural products.

• Stringent requirements on quality and safety of Agri-food products

from Regulatory and market demands

• Market dynamics, supermarkets replacing local markets

• Limited internal resources and poor access to external resources

• There are various factors contributing to these challenges, but one of

the factors, is lacking of “BRANDING, PACKAGING AND

MARKET ACCESS SKILLS”.

Training objectives

• The Agro-products Branding, Packaging and how related.

• Agricultural Marketing and access linkages.

• The influence of Branding and Packaging of Agri-products on market access and sustainability.

• Other factors which should be considered for sustainable market accessibility and retention.

Agri-products Branding

• A brand refers to a name, term, symbol, or any other type of feature that defines or identifies a seller's product or service

• A Brand differentiates one Agro-product of one supplier from other Agro-products from competitor suppliers.

• Branding is a long term exercise, but one that reaps long-term profitability through increased customer loyalty.

Agri-products Branding…

• Consumers behavior changes have driven the agricultural producers to start think about their marketing and branding strategies.

• Before, the producers have been able to produce crops or livestock and sell them as commodities, that would go to another industry to be processed and further marketed to the public.

• This process did not require understanding consumers or their wants and needs.

In summary the advantage of branding

• Product Identification • Product Differentiation • Imitation elimination • Signifies standard or quality of the product • Act has a Trade mark which ensures legal right • Helps for brand loyalty • Helps in advertising • Helps for price differentiation • Helps for repeated sales

How do you brand your product?

• A brand is made up of many elements that create an emotional feeling in customer’s mind about a company, its people, and its products.

• This customer’s emotional feeling helps a company’s Agro-Product to stand out in its consumers’ minds, as it is compared with other competitors’ products.

How do you brand your product… • Elements which makes are brand include;

– Company logo – Slogans or taglines – Color schemes – Graphic design elements – Compelling packaging or advertising, etc.

• But, none of these elements individually can be considered as a brand. When combined together, they begin to build a brand.

• To build an effective brand, a company must actively market itself and its Agro-product product.

• Every marketing activity should support the brand a company has chosen to construct. Ultimately, effective brand will be built which offer the customer something in mind, each time the customer experiences it, whether that “something” is tangible or intangible

Examples of branded Agro-products

Brand creation …

• To build an effective brand, a company must actively market itself and its Agro-product.

• Every marketing activity should support the brand a company has chosen to construct.

• Ultimately, effective brand will be built which offer the customer something in mind, each time the customer experiences it, whether that “something” is tangible or intangible

Brand creation …

• Beyond the company being perceived as credible and offering a compelling product, a customer must feel some type of personal connection to that Agro-product.

• Once a brand is established for a customer, the brand promise must be kept each time the customer encounters it

Packaging • Packing means covering, wrapping and crating of

goods into a package before they are transported or stored.

• Packaging is the use of containers and wrapping materials plus decoration and labeling to protect the product, to help and promote its sales, and to make it convenient for the customers to use the product.

• In another words, the branding symbols are affixed on the package. Therefore, packaging material are used to advertise the Agro-product brand.

The purpose of packaging In summary the aim of packaging include: • Prevent physical damage, e.g. from knocking, shaking or

crushing; • Prevent contamination from micro-organisms, pollution

or vermin; • Protect against dehydration or dampness; • Protect the product’s nutritional and sensory

characteristics; • Attract the profitable market for the product; • Help to increase a product’s shelf life. • Prevent leakage of products during storage and

transportation. E.g. liquid products do not leak and that dry materials, such as flour, do not spill out.

Labelling • Packaging should be well designed to be visually

stimulating and attracting the customer, as well as providing information about the product to help the customer understand the product.

• The information on the label must cover: – The name of the food; – The weight/volume (metric) (unless under 5g); – The list of ingredients in descending order of

weight; – How the food should be stored, where appropriate; – The date when the food should be eaten; – Genetically modified ingredients and allergens; – The name and address of manufacturer or

distributor; – Nutrition information on the package.

Sample of the product in the market

Packaging as the tool for market access

• Package present the product brand (that is where the brand symbols are affixed on)

• Makes the product to speaks for itself by providing the all important information the new market need to know.

• Projects popularity of the producer ( Company branding)

• Acts as an advertisement aid of the product

• Packaging become part of the product brand the customers will keep in their memory for long time, and then refer it to new customer.

• It is the tool to present product in the new market in terms of product samples.

Agricultural Marketing and access linkages

• Marketing is the activity or processes that create, communicate, deliver, and exchange Agro-products of value for customers.

• The marketing activities includes Market research, Agro-products advertisement, Product distribution, and sales.

• Value is the perceived benefit customers receive, which can be product availability, product accessibility, or product need fulfillment

Marketing access and linkages…

• The success of Agro-product market access dependent on the Agro-product marketing mix devoted on it.

• The marketing mix is comprised of four (4) marketing components; – Quality of the Agro-product, – Price of the product, – Distribution channels put in Place, and – Promotion effort and advertisement, including the linkage

strategies in place

• Packaging quality will have a direct impact on the Quality of the Agro-product, while the Branding will influence the Promotion effort and advertisement.

Marketing and access linkages…

• Agro-products produced in Tanzania are not competitive enough in the market due to the inadequate branding and quality standards, among other factors.

• Which leaves the local market flooded with imported Agri-products from foreign countries

• For instance: Tanzania annually import the following from foreign countries;

» $358 million of processed edible oil » $20 million of processed milk » $250 million of sugar

• Source: The Citizen (Jan. 27, 2017)

Marketing and access linkages…

• Having or finding a market for Agro-processing SME is not enough to guarantee success. More is still needed.

• The SME should be in a position to supply the found market in terms of the product quality required and reliable supply expected by the market.

• “ A typical Marketing paradox is when the buyers like supermarkets and other processors, are complaining on inadequate supplies, while the Agro-food producers (SMEs) are complaining about lack of market”

Marketing and access linkages…

• Linking the Agro-processing SME to the certain market, aim at developing a long-term business relationships between the producer and the consumer. Not just one time bulk sales.

• In another words the linked market should be competitively maintained by the SME.

• Market linking is just a small part that the SME should undertake. But the major part should be the maintenance of that new market.

Marketing and access linkages…

• Market linkage approach can be “top-down” which involves identifying market demand and then seeking a group of SMEs to satisfy it, OR

• It can be “bottom-up” approach, by identifying SMEs to work with and then finding markets that they could supply.

• Marketing linkages are searched and developed by either individual private SMEs through market search initiatives, or can be developed by consulting firms, NGOs, government, etc.

Marketing access techniques

• Brand you product with well designed package • Participate in various product exhibitions and

conferences • Join various business networks and develop alliances to

access various market linkages identified. • Networking is connecting with other SMEs (e.g.,

online, in person, or via some other means) who share similar values, visions, ideas, conflicts, or business structures.

Market sustainability and retention

• “But more importantly, is to well brand their produced products, process the Agro-

products with high quality assurance skills in order to comply with customer and

regulatory quality requirements, develop good marketing strategies to promoting their

brands and then reliably supply the market they serve”.

Thank you