5.2.1/5.2.3. France & Germany.
France & Germany are mentioned in this review only with reference to the idea of family health and childrens growth as these are so heavily accentuated in the UK section.
The authors of the report suggest that only the UK market has a specific demand segment for family health. Yet, when meal functions are also considered, it is interesting to note that Germany records an even greater response than that generated by the UK market. It is possible that this is not reflected in the demand segments because German consumers have reacted to a less developed market for salmon and are simply unaware of the potential possibilities for further development of salmon products.
By comparison, the French market has not considered health to be an issue it may be interesting to consider similar responses to other non salmon products to identify whether this is a national trend or again unawareness of the potential to develop salmon to create a new market demand. Whilst health does not appear to be a specific issue, the French consumers have identified a demand segment for childrens growth. The authors have proposed a playful form of salmon to respond to this market demand. This is intended to amuse children during meal times. The reality is that the industry should encourage the new consumers of the future with products to which they can relate. This is the way to introduce salmon at the earliest possible stage and hopefully create a lifetime loyalty. What is surprising is that the authors do not relate this demand to the UK family health segment in which similar ideas also exist.
5.3. A Situation / Function analysis of smoked & FPP salmon demand in the UK.
The authors have stated that the market for smoked salmon and further processed products is a very different to that of fresh and frozen. However, it is clearly a market, which is changing rapidly. This is because smoked salmon has been perceived to be a way of adding extra margin to the basic salmon raw material. The problem has been that production of smoked salmon has increased so rapidly, that like salmon itself, the product has become ubiquitous and hence has lost some of its luxury image.
The comparison of market share of the main demand segments does not show a great difference between the three target countries. The only real variance is the UK market includes a segment for health. This is similar to the demand segment for the fresh and frozen products and probably reflects the same attitude.
It is interesting to note that the five-year trend for the ne utrality segment for each country differs markedly. In France, the trend is upwards, in the UK down, whilst in Germany, demand is expected to stagnate. These three very different prognosis for the most basic demand segment indicate that there is confusion about market positioning of smoked salmon. It also illustrates the industry\rquote s reluctance to recognise its dependence on one main added value product. This is demonstrated by the fact that this section, which considers smoked salmon and FPP, concentrates on almost exclusively on smoked salmon and slight variations. This can be seen by the fact that in each of the tables examining the marketing mix, the authors have been unable to cite specific examples under the product headings and instead have used meanin gless terms like 'a pleasant product' or 'a functional food'.
5.3.2 The UK market.
The rather surprising finding of this study is that the most significant meal situation for smoked salmon in the UK market is for the home made packed lunch. Whilst smoked salmon has clearly been devalued by its widespread availability, it is still unlikely that these findings reflect the true consumption pattern of UK consumers. Despite its falling price, smoked salmon still retains some of its luxury status, hence the i nclusion of the so called 'classy' demand segment and this has prevented a complete devaluation to being a packed lunch product. This demand is more likely to be met by canned salmon or even salmon paste.
Interestingly, the commercial sandwich sector, which has not been included in this study, must reflect national consumption preferences, but whilst virtually every other ingredient combination is available, salmon, whether fresh or smoked rarely features in ready made sandwiches. Marks & Spencers, the leading supplier of sandwiches, do offer both salmon and smoked salmon varieties, but these are both only recent additions to their range and only account for a minor proportion of sandwiches sold.
It is also significant that sandwiches feature in both fresh and smoked salmon marketing mixes, but the apparent differences in perception between the two simply confirms the reason why such consumer surveys can be unreliable. In the fresh salmon demand segment, sandwiches are cited as a product within an ingredien t demand, whilst for smoked salmon they are place din their own segment. The percentage share between the two ranges from 3 to 22% and this variance is too great to be indicative of a lack of significant consumer testing.
6. Retailer attitudes to salmon and salmon products.
As they are at the cutting edge of the business, retailers clearly have a much better appreciation of the realities of the salmon market than that held by most consumers and sadly, of many producers as well.
What is clear from the retailer attitudes is that salmon is equal to or much more important than other fish in all three countries. This is not difficult to understand as can be seen from the stated buying criteria. Farmed salmon offers both predictable and consistent, price, quality and availability, criteria, which cannot be met by wild caught species. Certainly, in the UK market, the fishmonger has become totally dependent on supplies of salmon to sustain the viability of the business.
Whilst, salmon is so important to the retailer, it does have some perceived disadvantages for them. The main three include an apparent consumer weariness, which may be due to the fact that the French market is the main target market for all European producers. This concentration of supplies u nderlines the urgent need to diversify the market away from salmon as a basic ingredient. The second is price, which relates to the fact that salmon producers are still unable to let go of their previous preconception of salmon as a luxury product. The key market for salmon is as an every day meal option and salmon prices need to reflect this need. The final disadvantage is the view that salmon is not child friendly. Since most producers view their target consumer as being in the older age groups, this is n ot surprising. It also conflicts with the consumer response that salmon is chosen because of the family health aspect and that it is good for growing kids. Obviously, one of these perceptions is incorrect and since the sample size used in this survey was so small, it must be the consumer response, which has been misunderstood.
The authors of this report claim that the French market is mature and the demand segments already well differentiated. It has already been suggested that this view may well be mistaken. This is apparent from comparisons of the French and British retailer's perception of their fastest growing sectors. In France, the fastest growing sector is for 'heart of fillet' or just another presentation on the basic raw material theme. By comparison, the fastest growth in the UK market is for meal solutions, a highly differentiated product range. This is a market area, which is not exclusive to salmon, but is across the whole protein sector. The differentiation of the market through meal solutions clearly will widen the potential market for salmon to embrace many more consumers who would otherwise never consider buying either fish or salmon.
The final group of retail attitudes relates to the importance of certain aspects of salmon production. The first is to quality certification. This is the approach taken by sections of the Scottish industry. It is clear that supermarkets believe that most of their customers trust the supermarket to make the buying decision on their behalf and extra reassurance is unnecessary. In addition, most of these schemes are not understood by consumers and therefore have no relevance to the consumer direct. If there is a problem with the product, the consumer will probably revert back to the store rather than the original supplier, as in generally implied by consumer legislation.
Origin is also a contentious issue, which appears more important to the producer than the consumer. This was also apparent from the last ISFA market survey. Most consumers are more interested in t he price than the origin of the salmon they buy and this is reflected in the attitudes of the retailer.
Colour is a subject, which is under continual review by the industry. The clear message however, is that colour can be modified to meet individual needs.
What is clear from the retail attitudes is that whilst there is a general consensus about most of the issues raised, there is a general disagreement as to how sales can be increased. The answer will ultimately depend on how the future development of t he market. Past experience has shown that attempts at national, generic and quality promotions have all failed, whilst price related offers produced a consumer response. This is a subject in its own right, which merits much further discussion.
Conclusion.
According to Mr Andrew Cookson of GIRA strategic market research, who undertook this study, the aim was consumer perception, "their reality, not ours". However, it is clear that any attempt to engage in more efficient marketing of salmon cannot segregate consumers away from the wider market place. Producers, processors, retailers and consumers all have a part to play in developing the marketing mix.
It has often be said that the past problems of the salmon industry have been due to an unwillingness to move from production led strategies to those which are more market led. This would mean that the producers start to produce the type of products that consumers actually want rather than those that they think the consumer wants. However, it is dangerous to expect that the consumer should have an intricate knowledge of the market. In many cases, the consumer does not know what they want until they actually have it. The driving force for innovative development therefore cannot come from consumers al one, but rather from a combination of all those involved in the supply chain. Non can abdicate responsibility.
The frontispiece summary page of the report states that "Our study aims to show processors and retailers how to target real demand and profit from prevailing, favourable consumer trends". This clearly suggests that the producers, in the form of their international association, would prefer to relinquish their part of the process.
Marketing is about ensuring the right product, is available at the ri ght price, at the right time and at the right place and, most importantly, that the producer can do this profitably. Thus, the producer is inextricably linked into the market process. They must also be the driving force to take the industry forward.
This report shows that whilst consumers must be part of the marketing process, they cannot be the dominant force, nor can they relied on to provide an accurate assessment of the realities of the marketplace. Instead, they can be much better utilised either endorsing or rejecting specific product ideas and promotions. This is not a question of their realities or ours. What is needed is an all encompassing assessment of the marketplace, which not only takes into account the needs of the producer, processor, retailer or consumer, but also the realities of the market place.
References.
More efficient marketing of fresh, frozen and smoked salmon in France, the UK and Germany \endash breaking the mould of current practice to win new markets and further develop existing ones.
Abstract of a Qualitative & Quantitative Consumer study carried out in 2000 by GIRA for the International Salmon Farmers Association with the support of Roche Vitamins Europe Ltd.
ISFA, GPO Box 293, Hobart, 7001, Tasmania, Australia.
Roche Vitamins Europe Ltd. Basle. Switzerland.
Gira Consommateur, 71 rue Pierre Semand, 93130 Noisy-le-Sec, France.