Consumers accustomed to 10 different kinds of lettuce at the supermarket will not settle for just one colour of ketchup, a farm business management conference heard Feb. 6 in Saskatoon.
“The consumer is never going to be happy and is looking for more differentiation on the products you’re selling,” said University of Saskatchewan agricultural economics professor Tom Allen.
As examples, he cited the marketing of green and purple ketchup alongside traditional red varieties.
“We’re not just selling food anymore,” said Allen, citing the ketchup’s novelty and play value for children who use more of it more often.
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Speaking to workshops on profiting from agricultural change, Allen said today’s consumers are living better and longer than a generation ago.
In Canada, they are multicultural, sophisticated and well travelled. They crave a food experience, Allen said, noting how beer commercials depict people in social settings. They will not cook roast beef when they can have Thai or Mexican.
He said consumers now spend less of their disposable income on food than their parents did, but are more demanding.
They want convenient and inexpensive food of a consistent quality. They also have a concern for the environment and a strong desire to “do the right thing.”
Groups such as the People for the Ethical Treatment of Animals and Greenpeace have influenced public opinion about genetically modified products and food animal welfare.
Allen said agribusiness has to turn consumer demands into selling points for specific products. One beer company uses a Ducks Unlimited mallard to link with saving wetlands.
Another firm uses a glowing polar bear logo to sell northern Canadian diamonds, differentiating them from African gems.
Germans have a great fascination with North American Indian culture and would pay more to buy bison produced by Natives, said Allen.
He noted the marketing of breakfast cereals into a country like Japan makes little sense when fish is a staple morning meal there.
Allen said it is necessary to think globally in any marketing strategy, to understand who is buying and what they value and find ways to differentiate between products or services.
“If you’re just selling wheat, that’s not good enough anymore,” said Allen.
