May 06

May 2006, World Apple Report Highlights

Consumer Metamorphosis
Consumers are changing in many, significant ways. The apple industry must understand these changes if it hopes to woo consumers back to apple consumption. Increased affluence, a proliferation of choices, information overload, spiritual yearnings and time pressures are just some of the triggers for change that are not going to disappear. Many consumer products manufacturers, competitors to the apple industry, have offered numerous product variations so that consumers have become accustomed to being pampered. At the same time, so many interest groups are trying to influence consumers that they are more vulnerable to manipulation. The apple industry needs to be able to successfully anticipate the next rounds of consumer metamorphosis.

New Varieties to the Rescue
The announcement by the HortResearch team in New Zealand that they have developed a new red-fleshed, red-skinned apple set us to wondering about how much new varieties can be relied upon to rescue the global apple industry. It is not clear that past new varieties have enlarged the total apple market or that many viable niches remain for future new varieties. In a recent focus group conducted by the U.S. Apple Association, housewives expressed little interest in new varieties. In the meantime, the top priority of the industry must be to do a better job with existing varieties.

Integrated Marketing Communication
The underlying principle of Integrated Marketing Communication is that every interaction between a firm and its customers should be consistent. That applies to formal advertising and promotion, actual buying and selling transactions, and relationships involving sales and services. Such consistency is difficult to achieve within a large corporate structure. It is even more difficult to attain in the apple industry where many different agents are responsible for different parts of marketing communication. However, to compete with the likes of Frito-Lay, Cadburys and Coca Cola, the apple industry needs to improve its capabilities in integrated marketing communication.

Special Statistics
Major European Markets: Source of Imports, 2004-05 marketing year (chart).
China: Monthly Apple Exports, 2004 and 2005 Seasons (table).

The authoritative guide to the world apple business today.

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