Export Success and Marketing Mix Modification: a Study of the New Zealand Food Industry

Abstract

The New Zealand economy is highly dependent on international trade. According to Mr. Mike Moore, the Minister of External Relations and Trade, "exports are the lifeblood of the New Zealand economy". A review of both overseas and domestic academic literature found little evidence of work done in the area of export success and marketing mix modification relating to the Food Industry. Hence, the following objectives were defined: (1) To identify the most important marketing mix variables that contribute towards the marketing of a typical successful product overseas, (2) To compare and contrast the marketing approach taken by the managers interviewed, and to assess the level of agreement amongst them on the decision process most likely to assure success, and (3) To identify the types and degree of marketing mix modification found in this typical successful export product. Initial discussion with pilot respondents indicated the importance of narrowing the present research to specific sub-sectors within the Food Industry. This study, therefore, did not attempt to cover all food exporters but to investigate only the key exporters within three sub-sectors of the Food Industry, namely, Dairy, Fishing, and Fruit/Vegetables. Broadly speaking, this thesis endeavoured to build up a marketing profile of a typical successful product in the Food Industry. A questionnaire was developed consisting of both open-ended and close-ended questions. Personal interviews were conducted amongst 27 key companies within the above sub-sectors of the New Zealand Food Industry. This research found that the most significant marketing variables of a typical successful food product were product quality, product positioning, product brand-name, and distribution-channel structure. From the open-ended question, one other factor, product uniqueness, was included. Product quality was found to be quintessential for success. When it came to distinguishing the marketing approaches of the three sub-sectors, no differences were found for the close-ended question. For the open-ended question, both the Fishing and Dairy Industries stressed "New Zealand" as an important selling factor. As for Fruit/Vegetables, New Zealand's Reverse Hemisphere advantage was most prominent. In terms of marketing mix modification, the degree was found to be low. The most modified variable was distribution while the most standardised variable was product. These results provided valuable insights to exporters within the Food Industry, public policy makers and also for the direction of future research.