NZhoney
This case is a study on the honey industry in New Zealand. By
analyzing the case, three market segments for honey can be identified
based on the types of customers. The first segment of customers is
the consumers, while the second and third segments are the retailers
and industrial buyers. These three market segments show different
behaviours in their usage patterns, purchase patterns and attitudes
towards the product.
Consumers
Consumers represent a small but significant market segment for the
honey industry. They purchase honey mainly for household
consumption. For consumers, honey is most commonly consumed in its
unprocessed state, such as liquid, crystallized or even in the comb.
Because of its sweetness, honey is also greatly used as a bread spread
or on other baked products. Honey can also be used as a cooking
agent, as we can see that over 50 per cent of households in New
Zealand use it regularly in their cooking. In baking, honey can serve
as a substitute for sugar as it has an advantage of drying out more
slowly and has a lesser tendency to crack, and it also offers an
improved aroma. It may not be well known, but honey can also be used
as a medicine to treat certain ailments or applied to wounds.
Since honey is sold in pottles, measuring from 250grams to 2kilograms,
and its usage is always in small amounts, the purchase cycle would be
approximately once a month. A pottle of honey can last a long time in
a household. Therefore, household consumers would purchase it
infrequently.
When purchasing honey, consumers are usually low in brand awareness.
The most common attributes of honey is the colour, texture and the
price. Consumers tend to associate darker colour with increased
flavour. The texture is important as consumers face problems in
spreading honey which are too thick. When faced with few choices,
consumers would select the honey based on the price.
Industrial buyers
25 per cent of the honey market in New Zealand belongs to the
industrial buyers who purchase honey for industrial processing
purposes. Industrial buyers can be divided into large-scale
industrial users and, small-scale industrial users and food service
outlets. There are many industries that use honey as one of the
ingredient in their products. Although on a small scale, honey is
largely used at an industrialized level in baked products,
confectionary, candy, marmalades, jams, spreads, breakfast cereals,
beverages, milk products and many preserved products. This is
because honey is a major substitute for sugar as a sweetener, which
increases the flavour of baked products, confectionary candy and
breakfast cereals. Honey also helps the beverage industry to produce
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