haleus jasenka, mag.oec. silvija zeman, phd...quality marks of the european union for agricultural...

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Gregoric Marina, PhD Međimurje Polytechnic in Čakovec Bana Josipa Jelačića 22a, Čakovec, Croatia Phone: +385994040164 Fax: +38540396980 E-mail address: [email protected] Haleus Jasenka, mag.oec. University College Nikola Subic Zrinski Selska cesta 119, Zagreb, Croatia Phone: +385989060843 Fax: + 3850800 442442 E-mail address: [email protected] Silvija Zeman, PhD Međimurje Polytechnic in Čakovec Bana Josipa Jelačića 22a, Čakovec, Croatia Phone: +385994498247 Fax: +38540396980 E-mail: [email protected] Prof. ddr. Ana Vovk Korže University of Maribor Koroška c. 160, 2000 Maribor, Slovenia Phone: +38651622766 Fax: E-mail: [email protected] THE IMPORTANCE OF BRANDING OF AGRICULTURAL PRODUCTS WITH QUALITY LABELS AND THEIR RECOGNITION IN CROATIAN MARKET ABSTRACT The purpose of the research paper is the importance of branding products bearing one of the quality marks (European Union or national branding) and their recognition on the Croatian market. Marketing Quality Marks promoted by Croatian Agricultural Agency are: "Honey from our beautiful, Controlled quality, Croatian island product, Egg of Croatian farms, Meat of Croatian farms, Milk of Croatian farms". Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin, protected designation of geographical origin, Traditional specialty guaranteed". The Croatian Chamber of Commerce is behind the branding of products bearing the inscriptions "Croatian Quality and Original Croatian". Zagreb trademarks were protected as the intellectual property of a producer association: "Zagreb's fresh cow cheese (ZG sirek), Jagodica purgerica (Strawberry Purgerica), Zagreb pušlek, Zagreb cherry". Branding an agricultural product means creating a certain awareness among consumers, making it recognizable on the market. In

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Page 1: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

Gregoric Marina, PhD Međimurje Polytechnic in Čakovec

Bana Josipa Jelačića 22a, Čakovec, Croatia

Phone: +385994040164 Fax: +38540396980

E-mail address: [email protected]

Haleus Jasenka, mag.oec.

University College Nikola Subic Zrinski

Selska cesta 119, Zagreb, Croatia

Phone: +385989060843 Fax: + 3850800 442442

E-mail address: [email protected]

Silvija Zeman, PhD

Međimurje Polytechnic in Čakovec

Bana Josipa Jelačića 22a, Čakovec, Croatia

Phone: +385994498247 Fax: +38540396980

E-mail: [email protected]

Prof. ddr. Ana Vovk Korže

University of Maribor

Koroška c. 160, 2000 Maribor, Slovenia

Phone: +38651622766 Fax:

E-mail: [email protected]

THE IMPORTANCE OF BRANDING OF

AGRICULTURAL PRODUCTS WITH

QUALITY LABELS AND THEIR

RECOGNITION IN CROATIAN MARKET

ABSTRACT

The purpose of the research paper is the importance of

branding products bearing one of the quality marks (European

Union or national branding) and their recognition on the

Croatian market. Marketing Quality Marks promoted by

Croatian Agricultural Agency are: "Honey from our beautiful,

Controlled quality, Croatian island product, Egg of Croatian

farms, Meat of Croatian farms, Milk of Croatian farms".

Quality Marks of the European Union for Agricultural and

Food Products (Ministry of Agriculture) are: "Protected

designation of origin, protected designation of geographical

origin, Traditional specialty guaranteed". The Croatian

Chamber of Commerce is behind the branding of products

bearing the inscriptions "Croatian Quality and Original

Croatian". Zagreb trademarks were protected as the

intellectual property of a producer association: "Zagreb's fresh

cow cheese (ZG sirek), Jagodica purgerica (Strawberry

Purgerica), Zagreb pušlek, Zagreb cherry". Branding an

agricultural product means creating a certain awareness

among consumers, making it recognizable on the market. In

Page 2: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

order to achieve that, it is important to involve agricultural

experts from the beginning of the production preparation

process through soil treatments (strict control of chemical

substances) and environmental protection. Methodology used is

historical, analysis and synthesis as well as quantitative and

qualitative primary research. Quantitative method was

conducted through questionnaire distributed to random sample

of Croatian consumers with response of 920 collected

responses. The research shows how many users of quality

agricultural products at the EU level or users of marketing

quality labels at the Croatian level are familiar with the labels,

whether the quality labels are sufficiently commercially

promoted and how it influences consumers buying preferences.

Qualitative research was conducted by interviewing Assistant

Minister at Ministry of Agriculture and Deputy Head of City

Office for Agriculture and Forestry at City of Zagreb. The

research results show that promotion of national agricultural

products with labels of quality is extremely important for

consumers but still not sufficient and needs to be improved on

all levels; by producers, Ministry of Agriculture, City of Zagreb

and all stakeholders.

Key words: branding, promotion, Croatian agricultural and

food products, quality labels, national quality labels

VAŽNOST BRENDIRANJA

POLJOPRIVREDNIH PROIZVODA KOJI NOSE

OZNAKU KVALITETE I NJIHOVA

PREPOZNATLJIVOST NA HRVATSKOM

TRŽIŠTU

SAŽETAK

Predmet istraživanja ovoga rada je važnost brendiranja

proizvoda koji nose jednu od oznaka kvalitete (Europske unije

ili nacionalne marketinške oznake) i njihova prepoznatljivost

na tržištu Hrvatske. Marketinške oznake kvalitete (Hrvatske

poljoprivredne agencije) su: “Med iz Lijepe naše, Kontrolirana

kvaliteta, Hrvatski otočni proizvod, Jaja hrvatskih farmi, Meso

hrvatskih farmi, Mlijeko hrvatskih farmi”. Oznake kvalitete

Europske Unije za poljoprivredne i prehrambene proizvode

(Ministarstva poljoprivrede) “Zaštićena oznaka izvornosti,

Zaštićena oznaka zemljopisnog podrijetla , Zajamčeno

tradicionalni specijalitet”Hrvatska Gospodarska komora stoji

iza brendiranja proizvoda koje nose oznake “Hrvatska

kvaliteta i Izvorno hrvatsko”. Zagrebačke robne marke zaštitile

su kao intelektualno vlasništvo proizvođačke udruge:

“Zagrebački friški kravlji sir ZG sirek, Jagodica purgerica,

Zagrebački pušlek, Zagrebačka trešnja”. Brendiranje

poljoprivrednih proizvoda znači stvaranje određene svijest kod

potrošača te ga učiniti prepoznatljivim na tržištu. Cilj

Page 3: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

istraživanja ovoga rada je prepoznatljivost poljoprivrednih

proizvoda s jednom od oznaka kvalitete kod potrošača te

važnost brendiranja takvih proizvoda. Da bi se to postiglo,

važno je uključiti poljoprivredne stručnjake od početka procesa

pripreme proizvodnje kroz tretman tla (stroga kontrola

kemijskih supstanci) i zaštite okoliša. Metode korištene u

ovome radu su povijesna, analiza i sinteza, kao i kvantitativna i

kvalitativna primarna metoda istraživanja. Kvantitativna

metoda provedena je putem upitnika distribuiranog slučajnom

uzorku hrvatskih potrošača uz 920 prikupljenih odgovora.

Istraživanje pokazuje koliko su korisnici kvalitetnih

poljoprivrednih proizvoda na razini EU ili korisnici

marketinških oznaka kvalitete na hrvatskoj razini upoznati s

oznakama, bez obzira na to jesu li kvalitetne oznake dovoljno

komercijalno promicane i kako utječu na sklonost potrošča ka

kupnji. Kvalitativno istraživanje provedeno je intervjuiranjem

pomoćnika ministra u Ministarstvu poljoprivrede i zamjenika

voditelja Gradskog ureda za poljoprivredu i šumarstvo Grada

Zagreba. Rezultati istraživanja pokazuju da je promocija

nacionalnih poljoprivrednih proizvoda s oznakama kvalitete

izuzetno važna za potrošače, ali još uvijek nije dovoljna te ju je

potrebno poboljšati na svim razinama; proizvođača,

Ministarstva poljoprivrede, Grada Zagreba i svih

zainteresiranih strana.

Ključne riječi: brendiranje, promocija, hrvatski poljoprivredni

i prehrambeni proizvodi, oznake kvalitete, nacionalne oznake

kvalitete

1. Introduction

Despite the demanding procedure there are more and more

Croatian producers of agricultural products that aim to brand

and produce their products according to quality standards either

on the EU level or as the marketing quality labels. The market

is recently showing more and more interest in products

produced according to quality standards. Consumers seek for

agricultural products where they are convinced that the

beginning of the process of soil preparation, it’s growth without

chemical supplements as well as final production are based on

quality. Quality is first and foremost customer satisfaction, and

the customer decides whether there is a quality or not. The

geographical position of the Republic of Croatia is an

advantage in the diversity of natural and climatic conditions,

the richness of the tradition of certain areas and the vast

number of autochthonous products that can successfully

compete on the European and international market through

their specific production, taste, smell and quality. Branding of

such products is easier for marketers and distribution from

producer to consumer is more efficient. Quality labels at EU

level or Croatian national marketing labels are brands liked by

Page 4: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

consumers. The visual appearance of the product itself is also

important when choosing and purchasing. It also helps in

positioning of the product amongst competitors. Products with

quality marks of either European or national designations intent

to increase buyer’s awareness of quality. Importance of

branded agricultural products has been recognized by the

Ministry of Agriculture through the European Union quality

label for agricultural and food products (protected designation

of origin, protected geographical indication and guaranteed

traditional specialty), Croatian Agricultural Agency through

marketing projects of Croatian agriculture (Milk of Croatian

Farms, Eggs of Croatian Farms, Bread of Croatian Fields,

Honey from Our Beautiful, etc). The Croatian Chamber of

Commerce stands behind the branding of products labelled as

"Croatian Quality" and "Originally Croatian". The counties and

towns have been increasingly introducing marketing product

labels too.

1.1. Aim of the research

The importance of branding products bearing one of the quality

marks (European Union or national branding) and their

recognition on the Croatian market is the main aim of this

research. Research goals are to find out the awareness of such

products amongst Croatian consumers, to identify to which

extent consumers find quality labelled products important, how

they perceive the quality of such products and is it sufficiently

promoted in Croatian market.

1.2. Methodology

Methodology used is in this research is historical, analysis and

synthesis as well as quantitative and qualitative primary

research. Quantitative method was conducted through

questionnaire distributed to random sample of Croatian

consumers with response of 920 collected responses. The

research shows how many users of quality agricultural products

at the EU level or users of marketing quality labels at the

Croatian level are familiar with the labels, whether the quality

labels are sufficiently commercially promoted and how it

influences consumers buying preferences. Qualitative research

was conducted by interviewing Assistant Minister at Ministry

of Agriculture and Deputy Head of City Office for Agriculture

and Forestry at City of Zagreb.

2. Literature review

Brand is a recognizable mark or name of a product and service

that often implies a certain quality. To meet customers’

expectations and to create product which will be perceived as

brand, it must leave a strong impression on the buyers. This

impression is gained with quality, availability, appearance and

ultimately acceptable price.

Page 5: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

"The brand identity elements can be: brand name, logo-symbol-

sign, slogan, jingle (tune), packaging, shape, colour, characters,

smell, touch, etc. There are six required criteria when selecting

the brand identity elements: unforgettable, meaningful,

attractive, portable, adaptable and protected” (Keller,

2003,175). "The brand is not build by attracting new but by

retaining existing customers” (Wreden, 2010, 17). Back in the

1800's. branding became a discipline when Campbell's and

Heinz as well as other companies created certain brands to

highlight their goods at the time of mass production. Branding

has become more profitable in the 20th century, but

unfortunately some companies have become almost worthless

at a time when the mass market economy has been thrown out

so many brands that they have lost their meaning. The change

came when company Philip Morris made its best products more

competitive based on price rather than a brand (Wreden, 2010,

pp. 36-37). Before the very beginning of product branding,

several questions were asked: What do we want from the

product? Who should be our buyers? To whom is the product

intended? In order to create brand from any product, there is a

time and communication towards consumers needed. Without

time nothing can drastically change consumer's mind (Kotler,

2006). "Advertising is the most powerful communication tool

for creating awareness of the company, product, service and

idea" (Kotler, 2006, 115).

Creating a brand is an art because consumers when purchasing

non-branded products consider it as necessities, and the main

decision making element of choice is the product price. Brand-

name unsupported by quality will not attract the buyer again.

The name of the brand itself has a profound effect on

positioning of the product on the market. The name should

suggest the high quality of a particular product or at least not

suggesting something which is not of the highest quality. When

choosing a brand name, several issues need to be addressed;

which associations are positive, which are negative with a

particular product? how strong is each association? are some

associations unique? (Kotler, 2006). "The mark appears in all

shapes and sizes: they can be specific or general, tangible or

intangible, global or national, costly or inexpensive but in most

cases what makes them powerful is not just what they are but

what they represent" (Olins, 2003,17). Trademark means

selling products under the same quality label on the market.

Trademarks are considered "quality assurance". Through a

trademark, the seller can build a better image of his or her

product and show the customer a product of higher quality. The

brand is very often linked to the geographical area, linking the

quality and origin of the product (Dentoni, Gow, 2009). The

brand value is in the consumer's mind. The goal of each

marketing expert is to create a strong brand, and in order to

achieve this, the thoughts, feelings, consumer beliefs of certain

products should be influenced; all with a single goal of linking

Page 6: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

the brand to consumers. The trade mark is a set of mental

associations that reflect the value of a product or service. The

value of a particular brand is reflected in rational and emotional

links between brands and consumers (Keller, 2008).

3. Croatian quality labels and trademarks

In order to achieve greater competitiveness and profitability

agricultural producers build their reputation by the high quality

of agricultural products, because quality is one of the key issues

for consumers. Today, when purchasing food products,

consumers pay great attention to declaration of products, they

are increasingly interested in the raw materials from which

certain products have been created. There are several different

quality labels on the Croatian market, some of which are

trademarks of cities, counties, marketing agencies or EU

quality labels carried out by the Ministry of Agriculture.

European Union Quality Marks for Agricultural and Food

Products are: Protected designation of origin, protected

designation of geographical origin and Traditional specialty

guaranteed (www.mps.hr). National Quality labels are: Honey

from Our Beautiful, Controlled quality, Croatian island

product, Eggs of Croatian farms, Meat of Croatian farms, Milk

of Croatian farms (www.hpa.hr). National quality labels

branded by Croatian Chamber of Economy are: Croatian

quality and Originally Croatian. Zagreb City trademarks were

protected as intellectual property of producer associations

(http://znakovi.hgk.hr/en/proizvod/). The following brands

belong within their trademarks: Zagreb fresh cow cheese,

Strawberry Purgerica, Zagreb Puslek and Zagreb Cherry

(www.zagreb.hr).

"EU quality labels for agricultural products and nutrition are

information mechanisms that guarantee consumers the purchase

of high quality traditional products with a clear local origin.

Products labelled with a quality system are implemented in

accordance with the product specifications regulations,

approved and recognized by the European Commission, and

their production is under the control of the competent

authorities. Products labelled with one of the quality labels are

products for which product groups have produced the product

specification and initiated and completed the EU-level

protection procedure. After the termination of the name

protection process, those producers whose production is based

on the recognized product specification and in the system are

production control, have the right and obligation to mark the

product with the appropriate mark or label of the quality system

for agricultural and food products"1. Today, 18 agricultural and

food products are registered in the European Union with a

1 European Union Quality Marks for Agricultural and Food Products,

Catalog of Croatian Registered and Protected Agricultural Products and

Foodstuffs, page 6.

Page 7: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

protected geographical indication in the EU. The Republic of

Croatia has not entered the European Union so long ago, and

takes 13th place by the number of quality marks. Geographical

indication is the name of a geographical region or a sign

indicating that a product or a service originate from a specific

geographical locality and possess specific quality and

characteristics attributable to its geographical origin.

Designation of origin is a special kind of protection, and shall

imply essential or exclusive inherent natural and human factors

of the geographical environment resulting in specific quality

and properties of products or services. For designations of

origin it is normally required that the process of production,

preparation and processing of designation of origin shall be

entirely carried out in the designated place of origin

(www.dziv.hr). Some of the agricultural food products bearing

labels of designation of origin in Republic of Croatia are: Lamb

from Lika, Kulen from Baranja, Ham2 from Drnis, Ham3 from

island Krk, Potato from Lika, Turkey from Zagorje, Zagorje

teters (mlinci), Smoked meat from Međimurje County, etc

(www. mps.hr). "The designation of origin is a more specific

form of protection and necessarily implies the essential or

exclusive impact of particular natural and human factors of a

particular geographical environment and hence the particular

quality and properties of products or services. When

designating originals, it is generally required that production,

preparation and processing of products and services take place

entirely in the designated area.

Apart from the name of a geographical area or a sign indicating

that a particular product or service originates from a particular

geographical area, authenticity may also be used to protect the

traditional geographic and indelible names used to designate

products or services that originate in a particular region or

place, conditions” (http://www.dziv.hr/hr/intelektualno-

vlasnistvo/oznake/). Products with the original designation on

their packaging have a prominent logo. Some of the products

bearing label of designation of origin are: Pag salt from island

Pag, Honey from Slavonia, Olive oil from island Korcula,

Olive oil from island Krk, Mandarin from Neretva, Sour

cabbage from Ogulin, Istrian ham, etc (www.mps.hr). The

Croatian Agricultural Agency, as an institution that has been

operating for years in the development of dairy sector in our

country, and at the initiative of the Ministry of Agriculture,

started activities for the introduction of the Sign of Milk of

Croatian Farms on milk packaging from Croatian farms as well

as dairy products produced from milk from Croatian farms. The

use of the Sign of Milk of Croatian Farms is intended to

promote the production and consumption of milk from Croatian

farms and dairy products from milk from Croatian farms

(http://www.hpa.hr/sektori/sektor-za-registre-informatiku-i-

potporu-poslovanju/odjel-za-trziste-i-marketing-

2 Prosciutto 3 Prosciutto

Page 8: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

poljoprivrednih-proizvoda/mlijeko-hrvatskih-farmi/). This is

an example of marketing labels bearing sing of Croatian

production together with Meat from Croatian Farms, Honey

from our beautiful4, Eggs of Croatian Farms, Bread of Croatian

Fields and Flour of Croatian Fields (www.hpa.hr).

The main goal of the project on Croatian farms is to ensure

increased consumption of these products, promote them and

create awareness amongst consumers about value and quality of

local agricultural products.

4. Empirical research results

Quantitative research was conducted through distribution of

questionnaire to random sample of Croatian consumers with

response of 920 collected responses in period of two moth in

year 2017. The research aimed to find out what is the

perception and how many consumers of products bearing

quality agricultural labels at the EU level as well as consumers

of national marketing quality labels and trademarks are familiar

with the labels, whether the quality labels are sufficiently

commercially promoted and how it influences consumers

buying preferences. Qualitative research was conducted by

interviewing Assistant Minister at Ministry of Agriculture and

Deputy Head of City Office for Agriculture and Forestry at

City of Zagreb in order to analyse the main ideas behind

creation of product quality labels, major problems, promotion

issues and other relevant information which can contribute to

better understanding of branding such products and increase

awareness and consumption of Croatian original agricultural

products.

4.1. Quantitative data analysis

One of the major research results implicates that the origin of

the agricultural products is considered as very important

amongst Croatian consumers. Majority of the respondents

(87%) finds origin of the product very important while at the

same time 79,5% of them are not aware of quality labels and

trademarks of agricultural and food products in Croatia. 77,5%

of the respondents consider products bearing quality labels

more reliable than those without, especially on the EU level.

Only 2.6 % of the respondents agree with the statement that

Croatian products bearing quality labels are promoted

sufficiently, 61,5% do not agree and 35,9% agree that there is a

need to improve promotional activities. The response indicates

that the promotion of such products is not sufficient in spite of

the fact that consumers are willing to pay even higher prices for

quality (74,9% responses). The awareness of consumers about

specific agricultural products labelled with designated origin of

Croatia varies from 22,6% (Meat of Croatian Farms), 45,2%

(Eggs of Croatian Farms) to 71% (Zagreb fresh cow cheese)

4 Associated with the verse of Croatian hymn

Page 9: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

and 77,4% (Zagreb Cherry). The research shows that when it

comes to specific local or national product labelled by its name,

respondents have low to moderate awareness about it, but they

do not have specific knowledge about quality labels and their

differences, quality trademarks and certified quality agricultural

products. They don’t have enough confidence in product origin,

weather there was chemically treated soil or to which extent is

the environmental protection applied in process of food

production. Some of the respondents encountered purchasing

products of designated origin; Smoked meat from Međimurje

County (10,30%), Ham from island Krk (17,2%), Kulen from

Baranja (27,6%), Ham from Drniš (31%), Turkey from Zagorje

(34,5%), Potato from Lika (55,2%), Ham from Dalmatia 72,4%

and Kulen from Slavonia 75,9%. The results show that some

very popular traditional Croatian food products are known by

consumers but there is still room for increasing consumption

and awareness of their quality labels. Respondents do not relate

traditional food products with certified quality perception.

4.2. Qualitative research results

According to interview conducted with Assistant Minister at

Ministry of Agriculture doc.dr.sc. Jelena Đugum who is in

charge of quality labels for agriculture and food production

authors identified that European quality labels are mechanisms

of informing guaranteeing consumer’s high level of quality of

traditional products with known, local origin. The Ministry of

Agriculture is monitoring the increase in production of products

certified as protected designations of origin, protected

geographical indications or guaranteed traditional specialties

based on the Certified Product Conformity Certificates issued.

A significant increase in production is seen in those products

produced by larger producers, which also have the possibility

of continuous production throughout the year. When it comes

to seasonal products and small producers, especially family

farms, this growth is somewhat smaller. In any case, the

increase in production points to increased demand for quality-

labelled products. In regards to importance of quality, dr.sc.

Đugum states that it is certainly the most important factor for

the competitiveness of the market, and today there is a large

number of similar products being offered to consumers. For this

reason, it is very important that manufacturers awaken the

awareness of the importance of various product certification

systems that guarantee consumers the proven quality and added

value of the product. Likewise, providing additional

information on product quality to the consumer is one of the

solutions to achieve market competitiveness. An excellent

example of adding value to a product and creating its

competitive edge in the market is product certification through

EU quality systems for agricultural and food products, i.e.

through protected designations of origin and protected

geographical indications and guaranteed traditional specialties.

Such products are labeled on the market with special signs that

Page 10: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

provide consumers with security and send a message to buy a

value-added product. Consequently, they achieve a better

position compared to competing products and fall into a higher

price category. Following issue discussed was the importance

of branding such products and it was said that the first Croatian

agricultural and food products whose names are protected by

original or protected geographical indications are registered at

EU level only in 2015, meaning that such products are on the

market labelled with the appropriate mark only for past two

years. At the same time of accomplishing European registration

for products, the Ministry of Agriculture has started with

promotional activities aimed at the promotion of protected

products in order to increase consumer awareness, as well as

the significance of the labels on particular products. By

involving producers in various sales and exhibition events as

well as printing of many promotional and educational

materials, they are working together with manufacturers on the

recognisability of products and labels. Dr.sc. Đuman is

convinced that consumers in the European Union know these

quality marks, especially consumers from those Member States

that have a significant number of protected products, such as

Italy or France. The same has been evident by producers from

Croatian tourist regions who say that many foreign tourists are

buying quality label products since they are aware of the

significance of the label itself and they are aware that they buy

a local quality product. The possibility to get protected quality

label is primarily intended for groups of manufacturers,

therefore the name protection requirement can only be

submitted by a group, except exceptional individual

manufacturer, in case it can prove that it is also the sole

producer. At the national level, the product name protection

procedure is initiated by submitting a request to the Ministry of

Agriculture.

In addition to regular controls subject to all products placed on

the market, products labelled with one of the quality system

labels or protected designations of origin, protected

geographical indication or as a guaranteed traditional specialty,

are additionally controlled by an authorized control body to

identify whether the product has been manufactured in

accordance with the requirements of the Product Specifications.

For each protected product the Specifications are published on

the Ministry of Agriculture web site which gives consumers

opportunity to obtain all information about production methods

and specific product features.

Another valuable input to this research paper was the interview

conducted with Deputy Head of City Office for Agriculture and

Forestry at City of Zagreb, Mr. Luka Čuljak who considers that

protection with a special guarantee seal ensures unreserved

quality and the preservation of the native autochthonous

product on the markets of the City of Zagreb. When it comes to

fresh cheese, the farms are also linked to a themed cheese road

that will affect conservation of rural areas in the vicinity of

Zagreb. It is extremely important to label products to make it

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easier for consumers to identify and decide which product to

buy. Product can be branded as a stamp (as in the case of a

Zagreb puslek) or by a warranty stamp, which gives consumers

some guarantee of the origin of the product and its quality. But

labelling itself is not enough unless the product is not

continuously promoted. The branding of trademarks started in

late 2013th and during 2014th. According to brand Zagreb fresh

cow cheese manufacturers claim that they have no problems

with placement, but their production capacities are limited to

the size of agricultural land process, the stalling capacity (hence

the number of heads), but also their age and eventual

successors. Therefore, in some farms, the production has

somewhat increased, but with quality labelling it gained added

value which does not necessarily affect production growth but

the controlled quality and price of the product as well as easier,

faster and cheaper placement (especially if cheese is delivered

at consumer’s doors). In 2016, the association reported to the

Public Contracts for Co-financing of Agricultural

Programs/Projects for the Priority Area of Promoting and

Popularizing Traditional Values of Rural Space and Sustainable

Development for the Public. The Association "ZG Cherry"

from 2013th to 2014th has approved and paid a total of 72.000

kunas, and in 2015 and 2016 the association did not appear in

the tenders, but assistance was provided during the organization

of the Cherry Days manifestation. Producers have been granted

grants through tenders for aid funds (in the period from 2011th

to the end of 2015th, producers of cherries were granted

2,293,322.00 kunas for various measures of conservation,

construction of new plantations, procurement of networks,

infrastructure projects, etc. From 2016th they supported

producers with funds aimed to primary production. "Strawberry

purgerica" association was granted 50.000 kunas in 2013th for

organisation of the Strawberry Days manifestation. Producers

have received through tenders for aid funds (in the period from

2011th to end of 2015th, as well as through different measures

for irrigation, purchasing new greenhouses the funds of

3,461,624.00 kunas. During the year 2015th, there were many

advertising and PR activities in Croatian media in regards to

ZG sirek; 182 reports were published on 62 different Croatian

internet portals, 41 in 18 radio stations, 20 in 8 Croatian prints

and 16 in 7 different Croatian TV stations. There were 7

promotional events, 4 promotional short films were recorded,

promotional campaign on social networks (Facebook profile,

Facebook page, Twitter) was conducted. Continuous promotion

followed during the year 2016th too. Due to the nature of the

association as well as the cheese products’ points of purchase,

the campaign is primarily directed to the City of Zagreb and the

Zagreb County.

5. Conclusion

Consumers of agricultural products would prefer purchasing

products bearing the European Union quality marks or national

Page 12: Haleus Jasenka, mag.oec. Silvija Zeman, PhD...Quality Marks of the European Union for Agricultural and Food Products (Ministry of Agriculture) are: "Protected designation of origin,

marketing labels, although they are unaware of what they mean

by the quality standards. The origin of food-based agricultural

products greatly influences purchasing decisions. Survey data

revealed that 79.5% of respondents were not familiar with

quality labels of agricultural and food products. Only 2.6% of

respondents indicated that products with quality labels were

promoted sufficiently. The research has shown that most

respondents are familiar with local quality labels such as

"Zagreb Cherry, Strawberry purgerica, Zagreb puslek" or

"Zagreb fresh cow cheese", and it is recognized by more than

70% of the respondents. Due to tradition and food culture,

Croatian consumers do recognize national products but they do

not know enough about quality labels, origin of the food, their

production, the process of soil preparation, soil treatment and

environmental protection, etc. The promotional activities

conducted by official bodies aimed to increase awareness about

the importance of quality but it still needs to be improved, more

focused on the target market but on the broader level; not only

Zagreb City area. Only 30% of the respondents confirmed that

they heard about the quality trademarks of agricultural and food

products "Protected Designation of Origin and Protected

Geographical Indication". Consumers are aware of agricultural

and food products on the national level, but not due to quality

labels and its promotion. Consumers are ready to pay higher

price for a product that is produced under controlled standards.

However, agricultural and food products quality trademarks at

the European Union level are not sufficiently identified by

Croatian consumers too, which leads to the conclusion that the

marketing activities of agricultural and food product holders of

quality marks at European level should be adapted to the

domestic consumer. There should be continuous effort and

brand promotion amongst entire population of Croatian

consumers.

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