The paper “ Fruits and Vegetable Price Wars among the Supermarkets” is a cogent example of a case study on marketing. The larger percentage of processed fruits and vegetables are sold as frozen foods. The processed fruits account for over 65% of the market share. This shows that the farm fruits are sold as processed drinks and not when they are law. However, the main challenge for the sector has been the issue of pricing. The key drivers for pricing fruits and vegetables are based on various factors. First and foremost, the frozen and packaged fruits’ prices are influenced by the international prices for the same products.
This is because even though the country can sustain itself in terms of fruit and vegetable production, imports of the same products account more than 20% of the market share. Second, completion among the processing companies has also been on of the key factor in pricing these products. This is because they want to attract the retailers in order to leverage its operations and ensure proper utilization of its resources. The primary agenda of this essay is to explore the issue of price wars on the fruit and vegetable farmers in Australia.
The essay will particularly refer to the recent media release by Coles that they have slashed the prices for their fruits and vegetables products. According to Coles, this move will see the farmers increase their sales and at the same time their products are moving given the fact that this is a high season. Refer to appendix 1. More importantly, this essay will evaluate why this issue is a media issue and why it is considered to be a public relations issue.
The essay also seeks to establish the primary publics and their specific interests to the industry. Media issueThis issue by Coles to slash the prices for the products is of major public concern. This is because it affects the entire farming sector. This is particularly so because any move by any single retail company to cut or increase its prices will directly mean that the farmers will be affected. The media is considered the most convenient way to communicate with sector stakeholders and more especially inform the farmers on issues that affect them.
This is to help them make informed decisions and choices. Using the media by Coles to address the issues that affect the products in terms of prices helps inform the farmers on ways the retailer is using to address the plight of farmers (Martin and Mitra 2001). Retailing these products is all about doing business and different companies try to use the media in order to determine the reaction by the public. A good example is the media release of 1st February 2012 talked about protecting the farmers from selling their products at prices that can sustain their farming.
This media was the response by Chris Presland the chair of the Green Box Regional Food Co-operative. According to Presland, farmers need to be protected and punished. Addressing the issue of price wars between large supermarkets, Presland is of the view that the move by Coles does not really demonstrate the good intentions of the bigger supermarkets in addressing farmer's problems and instead thy were out to benefit themselves by passing on the cost to them (West 2002).
This according to the industry body AUSVEG would be very through if the supermarkets engage in price wars. According to Presland, they are really fed up with the acts of the supermarkets which persistently increase their bottom-line profits at the expense farmers and processors. Presland continues to maintain that farmers ought to be given fair prices that are sustainable and that can support them in their farming activities. The media is used as a marketing tool by the majority of these companies.
Let’ s take an example of Presland’ s response, after opposing the stand by Coles to cut the prices, he argues that Green Box being a co-operative will provide the best alternative in selling the farmers’ produce given its objective to support the farmers in order to sell their produce directly to the customers from the farm. Refer to appendix 2.