ABSTRACT
This chapter proposes that cooperative structure is central to sustainable brand positioning. Drawing on cases of New Zealand-based cooperatives, I examine whether cooperatives can develop global brands. Although all the brands studied enjoyed some success, their long-term sustainability was more elusive. Only those cooperatives with transferable ownership structures were able to sustain their brand value, because they could undertake long-term strategies supportive of their customers.
I will identify why agricultural cooperatives need to build brands; examine the branding strategies of New Zealand cooperatives; identify success factors driving long-term brand sustainability; and examine brand supportive structures necessary for long-term success.
The marketing of much New Zealand farm produce traditionally has been left in the hands of farmer/grower cooperatives. Increasingly, concerns have been raised about the effectiveness of such structures. Marketers have identified the need for cooperatives to move from a farmer-centric to a market-centric approach. However, questions have been raised about the viability of traditional cooperative arrangements to support a market-oriented strategy. This chapter therefore examines the ability of traditional and new generation cooperatives to develop and support market-based assets, including brands and long-term relationships with channel buyers, to develop a sustainable position for their members and increase returns. The findings suggest that traditional cooperatives may be able to develop innovative marketing programmes but still struggle to support them over the long term, due to problems in ownership structures. The new generation cooperatives attain more sustained long-term success, because members can capture the equity of intangible assets, such as brand value, thus ensuring that they undertake actions (e.g., channel support) consistent with building a sustainable, long-term position.
