September 06

September 2006, World Apple Report Highlights

Branding Fresh Apples
As apple organizations get bigger, they face challenges of how to distinguish themselves from similar, large competitors. They can attempt to do this on the supply side and/ or the demand side. On the supply side, they can focus on providing superior products for superior value with superior service. On the demand side, they can seek to transform themselves from selling commodities to marketing branded products. Branding in the apple market faces a special challenge since the market is already flooded with generic products. It becomes necessary to create a branded market segment where there was none before. Successful branding will require economies of scale (You must be very big.), building emotional ties with consumers and finding ways to offset the general weakening in brand loyalty among today's consumers.

Exercise Challenge for Marketers
There appears to be a natural link between consumer health concerns, participation in exercise and favorable attitudes towards consumption of fresh fruit that has not been tapped effectively by apple marketers. Recent comprehensive surveys of participation in exercise in the United States suggest that while participation in exercise is very diverse, few make a heavy commitment. For example, less than 5 percent of the U.S. population runs or jogs even twice a week. Types of exercise range from bowling to hiking. The location varies from home gymnasiums to distant mountaintops. Participation is weakening in many categories as the population ages. Devotees still offer excellent potential targets for increased apple consumption. Reaching them may be quite complicated.

Location Not What it Was
Location in a famous apple-producing district is no longer a guarantee of the future success of any apple producer. Supplies from top international producers are available anywhere in the world twelve months of the year. Local suppliers must match them in every respect if they are to compete. Some fringe groups have been pushing large retailers to buy product because it is produced locally or domestically. However, locational preferences are likely to be just another small niche in the marketplace that can be easily over-supplied and will lose its allure to retailers and consumers unless the product meets or surpasses world standards.

Special Statistics
Australia: Distribution of Farms by Value of Output, 1982-83 and 2002-03 (chart).
United States: Participation in Sports, 1987-2005 (chart).

The authoritative guide to the world apple business today.

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