From my biased perspective, the key variables in commodity selling systems are volume, price, averages and aggregation. Efficient and effective selling mechanisms, yes certainly. Commodity selling most probably evolved during the industrial revolution, which created these efficiencies and economies of scale and hence required these selling mechanisms. The very variables that work for commodity selling systems, run counter to targeted marketing and effective differentiation.
The well known Woolmark brand covered a range of wool product from low quality wool for insulation materials and blended carpets, right through to the very highest quality fine wools for exquisite suits, which sell for thousands of dollars. There's a huge variance in the types and quality's of wool available. This is equally matched at the customer level. There are highly price sensitive customers that want a low end product that will deliver them margin at volume, through to the highest end premium brands, where the price of the wool content in a garment is virtually of no consequence.
At The Merino Company, we created the Natural Tasmanian Wool brand. The key benefits if this brand - high quality, fine, Tasmanian origin, scarce and produced by farmers who take care of the environment. Arguably, Natural Tasmanian Wool is the jewel in the crown of the wool world!
Naturally this wool lends itself to a premium positioning, targeting the right apparel brands, retailers and textiles who respect, demand and are prepared to pay for this type of quality.
I'd propose effectively marketing primary produce is matching exactly the right type of produce with the right customer. The quality variation that occurs in wool from the lowest quality to the highest, tends to occur with other primary produce. Equally, there's vast disparity and variation in customers needs and the way they serve their consumer.
So, my view is matching works. Customers have specific needs and love having their specific needs met. Producers love being rewarded for the care they take in producing better produce.
Viva La Difference!!
