European Food Marketing: Adding Value in Mature Food Markets through Market Segmentation and Product Differentiation

David Hughes

EuroChoices, 2014, vol. 13, issue 2, 20-26

Abstract: type="graphical">

Large-scale food manufacturers and retailers vie with each other to capture the attention of the shopper, with the competitive focus being on brand warfare – retailer brands versus manufacturer brands. Manufacturers invest in research to identify what consumers prefer and are willing to pay a premium for, whilst increasingly retailers have access to data on direct shopping behaviour in their own stores. Now, more traditional agribusiness sectors are embracing market segmentation and product differentiation practices in increasingly competitive, mature markets. The challenge for farms and firms of a smaller-size is to gain horizontal scale and co-ownership of proprietary products and services to improve their bargaining positions in increasingly fragmented commodity markets.

Date: 2014
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