Part 1: Interest in branding origin-linked products
There is global interest by consumers for differentiated products with unique characteristics which are primarily based on the quality and reputation of the products; the origin of the product; sustainable production practices and cultural aspects associated with the product.
This has meant a greater focus on branding and promoting OLPs using appropriate business tools which allow producers to communicate to consumers about the distinct quality or characteristic of their products which is strongly linked to the territory of production.
Building consumer interest and trust
Commercial strategies can integrate IP tools such as GIs and trade marks to protect the interests of their producers in the fight against infringers; they allow for the promotion of the product and also provide information to inform consumers of the authenticity / characteristics of the product as it relates to the quality-origin link.
When developing their OLP strategies, producers use powerful tools to drive economic development in the territory of origin primarily because these tools are based on voluntary quality standards agreed to by all producers and which are externally verified. Such strategies also give some guarantee to the consumers and to the markets. Consequently, consumers are likely to have a higher value perception of quality products and are often willing to pay price premiums for this perceived value.
A group of producers are considering using an origin-linked product strategy to better position their OLP on the market.
There is however, no readily available information about the product, its characteristics and quality linked to the terroir.
Consumers are looking for such information about the product.
Further, potential exporters do not want to trade the product because of the lack of traceability information and guarantees.
Question: Can the producers develop an OLP strategy?
An origin-linked product strategy could be developed in this case.
Why? Because consumers are interested in the product and are looking for more information.
Producers within the geographical area of production can collectively develop and implement a strategy which can provide the information, quality and traceability guarantees both consumers and exporters are looking for.