Marketing Concepts of Meat Producers - Case Study Example

Selected Article:

‘Chicken Prices May Double from Next Week’ by Sarina Locke

Marketing Analysis:

This article in the ABC News product posted on 27 July 2012, shows how Australian meat producers use marketing concepts of a) positioning, b) market research, and c) market equilibrium in their business.

Australian retailers and meat producers are aware of the fact that people living in Australia like eating chicken meat more than any other type of meat. Therefore, they are trying to create an image of the product in the minds of consumers based on increasing feed grain prices in the international market. As Lauren (n.d.) states, “A good positioning strategy elevates the marketing efforts and helps a buyer move from knowledge of a product or service to its purchase” (p. 1). Using a positioning strategy, retailers are making consumers aware of an expected increase in the prices of chicken products. They are also making consumers aware of the reason behind the increase in order to satisfy them.

In the article, it is evident that Australian meat producers have researched the market to know the reason behind the expected increase in chicken rice. The research shows that chicken meat is one of the favorite proteins of Australians who like to eat loads of chicken per year. Through research about prices, meat producers have concluded that a significant increase in international grain prices over the last three months is going to increase the chicken price in the Australian markets. Moreover, they have also researched other products, such as wheat the prices of which have increased by $100 a ton recently which is nearly a thirty percent increase in wheat prices. However, they say that chicken prices are not going to increase by more than five percent. Again, the producers are trying to make good use of positioning to make consumers aware of the overall expected increase in prices.

Another concept of marketing evident from the article is market equilibrium. According to Ali (2011), the difference between demand and supply has always a huge impact on the overall market. The producers know that increased white meat prices will force consumers to eat red meat which will cause a decrease in the demand for white meat. The producers are trying to use this concept by saying that a decrease in the demand for white meat because of increased chicken prices will force suppliers to reduce feed prices which will consequently decrease the price of chicken in the Australian market.