Some common mistakes are being made by Australian manufacturers when it comes to product and branding strategy according to the head of Melbourne manufacturer, Kez's Kitchen.
Michael Carp, MD of the premium biscuit, cereal and snacks maker, a family-owned business best known for its Taking Café Home range in Coles and Woolworths, says that although local businesses do need to maximise the advantages of being Australian made, this is only one factor among many that influences a customer’s choice to purchase, as well as a buyer’s decision to stock the product on shelves.
He says many Australian brands, however, don't understand their customers, don't know the value of branding, and aren't innovative in their product development. He lists the most common six mistakes:
1. They don’t offer anything different. Consumers look out for new products that will excite and engage them. “If ‘Australian-made’ brands offer products that emulate many others produced locally, there’s little motivation for consumers to switch brands. They will go with a lower cost item or the one they’ve always been buying.
2. They focus on price, not quality. Consumers don’t always go for the lowest price shelf item – and the recent research that more Australians are buying locally made regardless of price, is proof. “Businesses need to be less concerned about reducing shelf prices and instead focus on producing a product of high quality, with a unique point of difference. A quality product is one that incorporates the best ingredients, is high in taste and texture and sometimes even offers a health benefit,” Carp says.
3. They don’t work on their brand. If consumers and buyers know and trust a brand, they’re more likely to buy. But these days, strong brands go further: they tell a story. Brands with a story can better engage customers, and create brand loyalty. “Many businesses have a great story but don’t tell it,” Carp says.
4. They don’t deliver on promises. If your brand and packaging makes bold statements about the products inside, you need to follow through. “At Kez’s Kitchen, our key brand message is that we’re all about the taste, and we deliver this by producing high-flavour foods that we’re passionate about and consumers know and love. As this is a promise to consumers, we never make sacrifices on ingredients.”
5. They don’t invest in packaging. While delivering on promises helps ensure repeat purchases, it’s the packaging that initially draws consumers in. “Packaging is the most visible part of a food business, and businesses need to invest in research, development and design of the packaging. The packaging is also the most important platform for telling your brand story,” says Carp.
6. They don’t adapt to change. Perhaps the easiest mistake is simply standing still. “Not only are consumer needs and tastes changing, but competitors are getting better at what they’re offering,” says Carp. “If you don’t adapt your brand and product you’ll be left behind. In a country as competitive as Australia, we need to get out of our comfort zones to continually improve.”
Kez's Kitchen MD, Michael Carp, reveals six product and branding strategy mistakes many local food companies are making.
