1 / 11

Small Farms building Global Brands through Social Networks

Small Farms building Global Brands through Social Networks. The case of Italian Extra-Virgin Olive Oil Producers. Dr. Domenico Dentoni University of Adelaide, now at Wageningen University Prof. Thomas Reardon Michigan State University (USA).

clove
Download Presentation

Small Farms building Global Brands through Social Networks

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Small Farms building Global Brands through Social Networks The case of Italian Extra-Virgin Olive Oil Producers Dr. Domenico Dentoni University of Adelaide, now at Wageningen University Prof. Thomas Reardon Michigan State University (USA) Seminaire International 2 – Indications Geographiques 16-19 December 2010, Antalya, Turkey

  2. Introduction It is crucial to build Collective GI Reputation & Individual Actor’s Reputation jointly in the marketplace: • An effective collective action builds GI reputation • BUT individual actors have to link with customers and build market channels (locally or globally) • With individual reputation, small actors gain sustainable competitive advantage in their niche market -> Social & Environmental benefits Problem: Small Farms’ marketing constrained by: • High costs, limited human & financial resources

  3. Introduction In this study we explored: Opportunity for Small Farms to Build “Global Brands”: • Building a Net of Social Relationships (i.e. Network) with “High-Status” Third-Party Actors • Signal of Quality which goes much beyond the GI (in terms of consumer value and buyers’ price) and • May be Financially Cheap • May be Difficult to Imitate

  4. Grounded Theory Data Theory • Primary Data from 34 Small Producers, 14 Importers and 4 Deli Store Managers in US • Open Interviews: • Define the problem • Identify the Variables • Semi-structured Interviews: • Measure the Variables • Ag Economics • Third-Party Certifications & Retail Transformation (Reardon) • Sociology • Status (Podolny 1993, 1994) • Social Ties (Granovetter 1985; Uzzi 1997) • Marketing • Familiarity with Product • Consumer Evaluation of Intangible Attributes of the Product

  5. Instrumental Case Study Italian Small Extra-Virgin Olive Oil Producers • < 10 employees, 500-50,000 liters bottled • 24 exporters, 10 domestic (but actively attempting to export) • Purposive Sampling USA Europe Asia & Oceania

  6. Social Ties with “High Status” Actors US Consumers Transaction, product flow Social Tie, info flow US Distributors Chefs Journalists Personal Events Tr. Guides NGOs Importers Tasters Journalists Personal Tr. Guides Public Ag Web&Blogs Italian Producers

  7. Social Ties: Effects & Drivers Direct effects on Third-Party Endorsements • 18 out of 24 with endorsements had social ties (75%) Ultimately, effects on Brand Equity • Choice: all exports started with third-party endorsements (100%) • Gate Price Premium: 17USD vs. 11USD (controlling for acidity) • Brand Associations & Perceived Quality: endorsement is used to communicate with final consumers Drivers of Social Ties: • 7 out of 18 based had social ties as path-dependence (40%) • 11 out 18 developed social ties with clear market purpose (60%) • Slow Food Presidia, Tasters, Chefs, Journalists, Consultants

  8. The Proposed Model: Effects Consumers’ Familiarity with Product Consumers’ Evaluation of Credence Attributes P2 P3 “High-Status” Third-Party Endorsement of Small Farm’s Brand Small Farm’s Global Brand Equity P1

  9. The Proposed Model: Drivers Small Farm’s Initial Status P5 Small Farm’s Social Ties with “High-Status” Third-Parties “High-Status” Third-Party Endorsement of Small Farm’s Brand International Market Information P6 P4 Small Farm’s Capabilities !

  10. Managerial & Policy Implications Small Farms’ Owners & Managers: • Opportunity for Sustainable Competitive Advantage • Access & Use of International Market Information Public & Public-Private Organizations: • If “High-Status”, then endorse products directly, otherwise no! • Provide market Information on • International Markets • “High Status” Actors as potential Endorsers • Provide Training on How to use Market Information • Develop Individual Actors’ Entrepreneurship, Market –Sensing Capability

  11. Teşekkürler! We look forward to keep discussing with you on these issues. Full paper reference Dentoni, D. and Reardon, T. (2010) “Small Farms Building Global Brands through Social Networks” Journal of Chain and Network Science, Dec 2010 (In Press). Contact: Domenico Dentoni, domenico.dentoni@adelaide.edu.au

More Related