The paper 'Australian Olive Industry Mission" is a good example of a marketing case study. The past two decades have been characterized by the significant growth of the Australian Olive Industry. According to a publication by Sheppard (2008), Australia has acquired a significant share in the global market with an estimated 0.3% of the olives market. This has seen the industry produce high quality and affordable olive products for local and international consumers. To garner both economic and environmental gains, the industry has made its products accessible therefore expanding into international markets.
Many Olive oil companies have stressed on the need for more quality branding and production that is needed for the industry to meet consumer preferences and favorably compete with industries in Europe. Extra virgin Olive Oil as one of Australia's best products in the industry. Unlike other types of olive oils, extra virgin olive oil is manufactured by mechanical extraction rather than chemically (RIRDC, 2010). It constitutes 95% of total Australian production. Contrary to this, a larger percentage of the European production comprises of the chemically refined oils.
The demand for Australian Olive oil especially the extra virgin oil continues to grow with more consumers from Europe warming up to the product and switching from the European’ s. This has been attributed to its perceived health benefit of being the healthiest edible fat. The European Producers who are the strongest and biggest competitors for the Australian Olive Oil Industry dominate the market. According to the European Commission (2000), the European Union is deemed as the major producers of olive oil. The EU is responsible for 80% of the olive oil produced there and consumes 70% of it.
However new competitors are emerging with Argentina and countries along the Mediterranean Basin acting as new entrants into the market. Regardless of the growth and the success experienced by Australia and the new entrants, there is still strong competition brewing up in this industry. The Australian Industry needs to stimulate the generic promotion of its products and market developments in order to compete favorably and acquire a big portion of the market share. A consumer survey done by Sheppard (2008) indicated that Australian consumers who were using imported Olive Oils were more loyal to the product.
This will have an implication that much needs to be done in terms of promotion of the product as well as the education of the consumers on the health benefits of extra virgin olive oils. The global consumption rates of olive oils have substantially grown in the past few years. Between 2000 and 2010, the global consumption of olive oil has grown from 2.59 million tonnes to 2.84 million tonnes (RIRDC, 2010). Despite this increase in global consumption rates, per capita consumption rates in olive oil-producing nations such as Greece have decreased substantially.
This decrease has since been unclear. An increase in olive oil consumption globally has been attributed to an increase in consumption in olive oil-importing nations such as the United Kingdom and France among others. Morocco, Turkey, France, and Portugal are among the countries which have seen an exceptional increase in consumption with a total per capita increase of 22% in consumption (RIRDC, 2010). Sheppard (2008) ascribes this increase consumption to increased awareness and information access.
Australian Olive oil is gaining popularity for its quality and the industry is optimistic that its success in the near future compared to the domestic market. The fact that locally processed olive oils control only a quarter of the local market share calls for the need to focus on external markets. This report seeks to find facts about the existing market and the strategies that can help in the success in new markets. The data collected and evaluated in this report constitute the size and growth of the markets in this industry, consumer preferences and purchasing trends and power.
Further, the report can be used as a research tool that will assist the industry in coming up with processing and production strategies that will assist the Australian Olive Industry to sustain production. This plan also uses findings from the Research Development Extension to provide communication, coordination and training tools that can be used in improving competency in the industry.
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